What is the minimum amount of money that you will need to buy your very first stock in the stock market? - Seedly
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Anonymous

Asked on 25 Mar 2019

What is the minimum amount of money that you will need to buy your very first stock in the stock market?

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Billy Ko
Billy Ko
Level 7. Grand Master
Updated on 07 Jun 2019

Thanks for the question, there are in fact many who have the same query as you.

It really depends on the stock that you intend to buy. Talking about blue chips-wise, after the reduction in minimum purchase size of 1000 shares to 100 shares in 2015, it has significantly reduced the starting capital required.

Just head on to SGX.com, whatever prices you see at the Last Done column, multiply it by 100 and that is the minimum amount you're required to foot. However, do take note of the commissions per transaction which can be found here as done up by Seedly https://blog.seedly.sg/the-ultimate-cheatsheet-cheapest-stock-brokerage-in-singapore/

In a nutshell, if you utilise the CDP account a.k.a. Cash Account in brokerage firms, it costs minimum $25 or 0.28% (whichever is higher) per transaction excl. SGX fees. So all in all, if you were to buy and sell a stock, it'd cost a total of $60.

Now, if we look at DBS which is trading at $25.29 (as of time of writing), if one were to purchase the minimum amount, which is 100 shares, it'd be $25.29 x 100 = $2529. After addition of the commissions, in order to breakeven, you're required to sell DBS at $2589. Therefore, the share price has to rise approximately 3% before you can bag a profit.

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Billy Ko
Billy Ko

26 Mar 2019

Thanks for pointing that out Shabir, there are indeed various forms of accounts having different pros and cons which in turn leads to the difference in amount of fees, so one has to see which account is most suited to them

The minimum amount of money is $100 a month for investment in STI ETF. Examples are the SPDR STI ETF or the Nikko AM STI ETF.

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Geraldo L.
Geraldo L.
Level 7. Grand Master
Answered on 25 Feb 2020

POSB investsaver allows you to buy into the STI ETF for as low as $100 a month. That's actually more diversified, and very affordable as compared to buying 1 lot (usually 100 shares x Price of stock) for a particular stock.

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