Anonymous
Late 20s beginner with about $500/month looking to invest into ETF.
Since i'm still young (cross-finger), looking at long term horizon, i hope to allocate less % on local ETF and more on global ETF (S&P500, CQQQ etc) (larger risk-appetite huh?), which platform has the lowest fees & tax withholding (if any)? Am looking at FSMOne platform.
And how should i go about allocating my investment portfolio? Assuming 20% ($100) goes to S&P500, will the tax withholding (30%) eats up all my returns?
Thanks
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Joey Gaeth
29 Jul 2020
BSc Economics at London School of Economics and Political Science
If you are going to invest just $500 per month and that is going to be split into 2 or 3 etfs( ~$100 each) and all the etfs us-domiciled as they fsm do not allow trading on lse, the 30% WHT is not desirable imho.
If you can only DCA $500/mth, go for Stashaway or Syfe Equity100 instead if u want a diversification of ETFs with a small amount each month needed to be invested.
If not, go for SCB or IB. Since you're in your late 20s (>25yo), IB monthly activity fee will be $10 for you. If you're investing in 3 etfs, $10- brokerage fees&fx - trading comms, that shall leave you around $3-4 mth fee. SCB will be good if you do quarterly investment every 3months ($1500) instead of $500 monthly. Brokerage fees will be cheaper.
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At small amount, I would have save the trouble and go for roboinvester since they are able to purcha...
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Hi,
It really depends on what you plan to do with your investments? Are u looking for dividends consistently? Or are you looking for capital gains?
For dividends, I would say that the STI ETF pays are much better yield than the S&P 500. However, in terms of capital gains it is really far off the S&P 500. It wouldn't be fair to compare the two anyway because both countries have different economies. I would probably hold both and proportion according to what your goals are.
Have tried several Brokers from TD Ameritrade, Interactive Brokers, Tiger Brokers and even our local banks like DBS Vickers. If you are looking to buy SG stocks, not many Brokers offer that right now. I'm using Tiger Brokers for that right now because of low commissions. That being said this is a custodian account as compared to a CDP account like DBS Vickers. Some people would rather pay higher commissions for that ease of mind in a CDP account. It depends on your risk appetite. I personally split my account across a few brokers
If you are a beginner, i would strongly recommend using a robo-advisor as well. Something like stashaway. It takes the guesswork out for yourself. $500 a month would be difficult to purchase on a normal broker unless u buy fractional shares which not everybody offers. Should you decide to go ahead with a regular broker i would say alternate and dollar cost average your different investments across the months. E.g Month 1: S&P500, Month 2: STI
You also don't get taxed on capital gains for US stocks with the exception of dividend payouts. So i would not worry about that unless you're using the S&P500 for dividends
Hope that helps!