Which S&P 500 ETF and brokerage to go for

I am new to investing and am looking at investing in a S&P 500 ETF as well as some US companies. I would not be making much trades; most probably just going to buy and hold. My capital is around 40k.

I have shortlisted two S&P 500 ETFs - CSPX (LSE) and IVV (NYSE).
CSPX: Lower withholding tax of 15%
IVV: Higher withholding tax of 30%

The brokerage that I am considering are SAXO, Moomoo and TDA (I am not considering Interactive Brokers due to its high inactivity fee of 10 USD).
SAXO for investing in CSPX.
Moomoo/TDA for investing in US companies due to their lower commission fees than SAXO (Moomoo gives free Apple share as well).

My question is: Which S&P 500 ETF and brokerage should I go for? Should I use two different brokerage or should I stick to one brokerage (taking into account the commission incurred as well as freebies)?

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Jason

30 May 2021

Moomoo or TD is great as Chris has said. Additionally, tiger is another good alternative too. But all these brokers do not have access to LSE hence you are unable to invest in CSPX. If you want access to the LSE market, you may have to use IBKR or Saxo or SCB etc.

For US, both IVV and VOO are great choices.

If you require any referral for moomoo and tiger, I will put mine below. But if you have your friends one, please use theirs. All the best! (Oh ya there is a free apple stock if you deposit 2700sgd in moomoo that ends tommorow fyi)

Moomoo
https://j.moomoo.com/005OWR

Tiger
FQS76V

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Chris

30 May 2021

Owner and Writer at Tortoisemoney.com

I think you should go for Moomoo or TDA (although personally I'd lean to moomoo since TDA has pretty long account approval times).

This is because, SAXO's commissions are much higher as compared to Moomoo's. SAXO charges 0.1% comms, min 8 GBP (USD11.35) on LSE ETFs. Moomoo on the other hand charges USD 0.0049 / Share, min USD 0.99 / Order + a platform fee of USD 1 with every order (i.e. a min order commission of USD1.99).

Moreover, SAXO charges 0.12% custody fee per year which would be about SGD 48 per year (0.12% x 40000).

Lastly, the difference in expense ratios between VOO and CSPX will amount to about SGD 16 per year (0.07% - 0.03%) x (40000).

This disparity in fees will eat up your benefits from withholding tax which will amount only to about SGD 90 per year (15% x 1.5% x 40000 (assuming 1.5% dividend yield of S&P500).

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