Asked on 15 Aug 2018
I wouldn't bother too much with commissions because given the competitive nature, the rates are all fairly low (<1% for sure), and it's once-off. When most people talk about "costs eroding returns", they are referring to recurring costs like management fees (one consideration if you're thinking robo-advisors).
If you're going for value-investing, even if you're buying $1000 of one stock, the commission you are going to get charged is maybe $10. But if you're doing your research, and investing in right companies, you should be doing 15% p.a. returns, so that initial once-off cost of 1% ($10) is not so critical. I would study the custodian fees since these are charged in perpetuity.
Given the constantly dropping commission fees (U.S. already 0.00 USD reached for stocks and ETFs, f.ex. TD Ameritrade or Charles Schwab, no advertising from my part, I am only a very happy TD A customer), the absolute investing amount has almost no importance anymore. Perfect conditions for beginner retail investors, you could clearly experiment to find out what works.
my private strategy to successful equity investing is here, try to consider passive ETFs instead of single stock investing:
Dr. Wealth has covered this question before, let's read it from the expert:
He shared that "
If you take the $10 cost and divide it by the minimum commission of 1%. This gives you a figure of $1,000.
This means that if you want to keep your cost within 1% of your investment capital, you should invest a minimum of $1,000 (assuming your cost is $10)."
To get lower the initial buy in and sell out with
DBS cash upfront
standard charted bank
Dollar cost averaging
if you got capital invest on your own
You can start investing with $100 by doing RSP. As the commission for single trade can cost usually $25 commission. So only do that if you have high capital. But there are pros and cons. RSP transact once a month. While the other can invest anytime you want.
$100 per month is enough to start investing! you can check out the POSB regular savings plan, which can be found here: https://blog.seedly.sg/which-regular-savings-plan-is-the-cheapest/
Well for DBS and OCBC they charge $25 worth of transaction fee so I kinda calculate the potential dividends I can receive in the first year and ensure it is more than the commission fee. Thereafter it's a matter of letting it grow + accumulating more dividends!
Lowest comm out there is $10 + some gst etc. = $12+. (Fundsupermart, Stanchart)
Usual brokerage comm is $25 + gst, svc fees etc. = $28+
I would recommend investing at least $3 - 5k one shot to make it worthwhile. Comm should not be shaving off >3% of your returns at the initial start.
You can start investing with as low as a few hundred dollars, depending on how expensive the stock you like to purchase is.
Stock exchange platform has fees range between $10 to $25 per transaction with a maximum percentage tagged to the transaction amount. To maximise the percentage, you'll need about $5000 to $10000 in each transaction.