What is the best way to invest in Ireland-Domiciled S&P 500 ETFs? - Seedly
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Anonymous

Asked on 11 Aug 2019

What is the best way to invest in Ireland-Domiciled S&P 500 ETFs?

Having read https://blog.seedly.sg/how-to-invest-in-ireland-domiciled-sp500-etfs/, I would like to buy and hold. Which stock exchange and brokerage should I buy this from?

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Harvey Tan
Harvey Tan
Level 6. Master
Answered on 11 Aug 2019

I would recommend via Interactive Broker.

Commission is dirt cheap.

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👍 1
W
W
Level 3. Wonderkid
Answered on 22 May 2020

Interactive brokers charge a minimum monthly fee of S$10 for accounts with balance between S$2,000 and S$100,000. i suggest if you're buying and holding, use stanchart online trading. you only need to pay a one time brokerage amount. there's no other monthly fees / custodian fees.

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Penny Chong
Penny Chong
Level 5. Genius
Answered on 11 May 2020

Interactive brokers is good.

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Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 9. God of Wisdom
Answered on 19 Apr 2020

Hey there, you can actually use and of the online brokerages on the Seedly platform which are in this list here: https://seedly.sg/reviews/online-brokerages

I would say two of the more compeitive ones are FSM ONE and SAXO for a modern interface and also relatively lower charges for US stocks. (even though Ireland Domiciled)

However, thing to note is that some in the community often use Interactive Brokers as well (for accounts funded more than USD10k) so that's one which you can consider as well.

Cheers!

2 comments

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Sri
Sri

20 Apr 2020

Should it be 100K USD and not 10K USD?
Lingster
Lingster

07 May 2020

Ib is cheap only if you have USD 100k inside with them, otherwise $10/month
Rais M
Rais M
Level 7. Grand Master
Answered on 26 Feb 2020

Interactive Brokers is the recommended broker due to its lower fees. However, I wonder if it is a good idea to set up a brand new broker account just to buy Ireland domiciled ETF. The time and effort spent might outweight the lower withholding tax rates.

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Jonathan Quek
Jonathan Quek

26 Feb 2020

I disagree. 30% withholding tax is a massive penalty to pay.
Rais M
Rais M

26 Feb 2020

I understand where you are coming from. For a $100 dividend, instead of getting $70 (30% withholding tax), you will be receiving $85 (15% withholding tax) instead. So we are talking about $15 per $100 dividend receive. Multiply it by x number of times and the amount could be significant. But is it a hassle to spend time setting up a Interactive Brokers account, transfer money into it, and consider and worry about all the FX related gain/loss which might offset against the $15 per $100. Not to forget, it also has a higher expense ratio which will also reduce the value slightly. Happy to discuss. :)
Geraldo L.
Geraldo L.
Level 7. Grand Master
Answered on 26 Feb 2020

For Interactive Brokers, typically you pay 0.05% for UK listed ETFs (excluding FX fees). For a comparison across some of the more popular brokerages (including SC and Saxo), you might want to refer to this article: https://www.alvinpoh.com/standard-chartered-stanchart-scb-vs-saxo-vs-interactive-brokers-ibkr-commissions-compared/

Do take note of the monthly activity fee chargeable for Interactive Brokers.

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MT2020
MT2020
Level 7. Grand Master
Answered on 26 Feb 2020

Interactive broker as the commission is very cheap.

1 comment

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Lurkingham

22 May 2020

Is it advisable to use Interactive broker if your monthly investment is only $300-500?

Interactive Broker is recommended to invest in Ireland domiciled ETF because it offers the cheapest commission.

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jul)

Level 9. God of Wisdom
Updated on 17 Feb 2020

Buy&hold is very good idea, you could open an account in germany (f.ex. Consors, their paperwork is a bit tedious; or Onvista)​​​

2 comments

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Frankie Rappaport
Frankie Rappaport

17 Feb 2020

No Consors not possible outside Germany
Frankie Rappaport
Frankie Rappaport

17 Feb 2020

Maybe then Saxo or as mentioned Interactive B