Hello, I am 19 years old and just about to start investing. My plan is to buy stocks with 4-5k that I have saved and hold for a term of about 5 years. Which brokerage account is suitable? - Seedly
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Elijah

Asked on 10 Apr 2020

Hello, I am 19 years old and just about to start investing. My plan is to buy stocks with 4-5k that I have saved and hold for a term of about 5 years. Which brokerage account is suitable?

Im considering Saxo and poems but im open to other suggestions. Any LaoJiao please help. The inactivity fee of saxo is quite high, and that means im forced to make a transaction with a minimum fee of 15? every quarter. seems a waste to me since i want to hold long term. Not sure about the inactivity fee of poems. the minimum trading fee is quite substantial to me. Wonder if any of yall that started investing with a small amount faced this problem or not. Any advise would help

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Use Interactive Brokers as their commission is the lowest at USD 1. In addition, when you buy or sell options, there is no commission, and when the options are exercised, no commission as well.

They also offer free 1 x withdrawal per month and USD 25 thereafter.

The monthly statements provided by Interactive Brokers are also very useful for tracking your transactions, portfolio growth, dividends received etc. You can even lend out your shares to get paid by short sellers borrowing your shares since you intend to hold them for about 5 years.

I was using TD Ameritrade for many years until I was introduced to Interactive Brokers and have shifted everything over ever since.​​​

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B
Bernard
Level 3. Wonderkid
Answered 3w ago

I use Tiger as my main broker.

1) It has lower rates (0.08/ minimum $2 USD commission) as compared to other brokers who charge $10/$20 minimum rates.

2) The interface is much better as well. They have been constantly updating their application to provide more functions i.e. news, company analysis, stock suggestions. I used to use other applications such as Webull, simplywallstreet, Motleyfool etc. to do these but now I only use Tiger. It's really all in one tbh.

3) It's licensed by the MAS and custodian account is under DBS, so no worries about losing your stocks. Compared to TD Ameritrade, the application process is way faster and less tedious. I waited for months for my TD Ameritrade account to be created and it never came.

4) Access to several markets: US, SG, LON, HK and CN

Overall, Tiger has been a great experience for me, good customer service as well.

You can use my invitation code: RZUVEB to get up to 100SGD worth of stock vouchers and free stocks.​​​

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Donald
Donald
Level 3. Wonderkid
Answered on 26 May 2020

Get a IB white labels. If you go pure IB, you'll be charged US$10 per month

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Ang Pei San
Ang Pei San
Level 3. Wonderkid
Answered on 26 May 2020

Is there any reason why it's a 5 years plan? Is something happening 5 years later?

Do consider to sit down with an adviser/ do a digital consultation. By running through the financial health review, you'll be able to understand better on how a person plans and what to look out for. I started my planning at 19 last time too and I'm Glad that I started it with the right person. If I didn't, I would have incurred a $38k hospital bill. No matter what investments you want to look it, make sure you got the protection done first.

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Aik Keong Koh
Aik Keong Koh
Level 4. Prodigy
Answered on 26 May 2020

Use TDameritrade for US stocks which offers low fees and no inactivity fee. Only hurdle is the initial deposit of min US$3.5k which you could easily get over with your current capital. If it's SG, you can try to use POEMS by Philip Capital. Easy to start and lots of physical branches to visit if you need any in-person help.

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CH
CH
Level 7. Grand Master
Answered on 10 Apr 2020

For US stocks only, I use TDameritrade. no inactivity fees. brokerage commissions is $10US for any trade size. deposit is simple, but there is a withdrawal fee of I think $25 or $50US. but since you want to hold long term, this withdrawal fee will not be significant.

Other countries stocks, other than SG, I don't trade. and TDa does not offer.​​​

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