Is SCB or IB cheaper if I'm going to DCA every quarterly, S$2500 every 3months into IWDA? I just turned 21yo, so I'm allowed to apply SCB, and below 25yo so monthly activity fee on IB is $3. Any advice? - Seedly
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Anonymous

Asked on 29 Jul 2020

Is SCB or IB cheaper if I'm going to DCA every quarterly, S$2500 every 3months into IWDA? I just turned 21yo, so I'm allowed to apply SCB, and below 25yo so monthly activity fee on IB is $3. Any advice?

Have been dca S$250/mth into Stashaway for 1.5years. As my Stashaway(22%) does not invest into world etf/s&p500 after its re-modification in May, I've decided to invest S$2.5k into IWDA every 3 months to save on brokerage fees. Or is investing S$833 per mth more worth? Very confused as some say IB is cheaper since my monthly activity fee is almost 0 ($3 - brokerage&fx - trading coms). But others say SCB is cheaper since my amount is not that big and investing every quarter would save me on fees.

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JG
Joey Gaeth
Level 5. Genius
Updated on 29 Jul 2020

I'll be referencing using investmentmoat's excel sheet in which he has very detailed compared scb (personal&priortiy) vs ibkr (tiered&fixed). Note that frequency is put as 3, meaning every 3months according to your situation, and 1 meaning monthly.

https://investmentmoats.com/money/competitive-interactive-brokers-commissions-pricing-monthly-activity-fee/

In your case, SCB is definitely gona be cheaper if u DCA S$2500 every quarter compared to IB.

However, if u were to DCA $850 every month, IB will be cheaper.

In summary, i'd suggest doing quarterly because your percentage of fees paid is lower. Go with SCB. ​​​

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Question Poster

29 Jul 2020

Woah, this is so helpful 👍 Thank You!
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
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Nicholas B
Nicholas B
Level 6. Master
Answered on 05 Aug 2020

One thing others here seemed to have missed - you mentioned that you are 21 and hence IBKR will only charge 3 USD minimum commission per month until you turn 26.

Assuming that you don't have Standard Chartered Priority (which gets rid of the minimum commission per trade)... you definitely will have lower total commissions on IBKR. In your case, DCA quarterly will be cheaper, though not by much.

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Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
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Sivla Oen
Sivla Oen
Level 3. Wonderkid
Answered on 05 Aug 2020

IB all the way. SCB has minimum comm fees of $10 at 0.25% of trade. And charges horrendous FX spreads of atleast 0.8% this means you lose an additional $20 for every trade of S2.5k (if in a foreign currency). IBKR on the other hand charges close to spot rates (like google conversion).

That's on top of the terrible lack of service from SC Bank - don't even bother really. Worst mistake of my investment journey - They have incredibly inflexible custodian structures that prevents you from transferring your securities should you decide to switch brokerage.

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Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
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