facebookHow much is the optimal amount to invest into a single stock? $5k? $10k? How do I determine how much I should be putting into a single stock? - Seedly

Anonymous

23 May 2020

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Stocks

How much is the optimal amount to invest into a single stock? $5k? $10k? How do I determine how much I should be putting into a single stock?

What would be the breakeven amount to make it worth it for example if I want to buy into DBS? Is there a criteria that I should be considering that'll determine how much I put into the stock?

Discussion (4)

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Hi, as Dan L have mentioned, the best way is to optimise the sales charge and commision to the trading platform.

For myself, I'm using DBS Vickers Cash Upfront. (Min sales charge $10). Thus average about 8k investment per trade will be optimal.

The stocks will be held in CDP, central depository. Which means you can sell thru other brokers / platform

I sell thru FSMone as the min sales charge is also $10. For DBS Vickers, sell min is $25.

Assuming a commission rate of 0.28% and minimum of $25- you'll likely want to transact $8,928 to meet the minumum brokerage

e.g. Singapore Stocks

$5,000 * 0.28% = $14, but you'll still pay $25

$10,000 * 0.28 = $28​​​

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Pang Zhe Liang

13 Mar 2020

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

You need to know your investment objective, as well as your overall portfolio based on your risk app...

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