facebookWhat is the minimum investment value i should be looking into when investing with brokerage firms due to its commission fees? Also for brokerage, is it better to invest lump sum instead of monthly? - Seedly

Anonymous

15 Jun 2020

General Investing

What is the minimum investment value i should be looking into when investing with brokerage firms due to its commission fees? Also for brokerage, is it better to invest lump sum instead of monthly?

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Elijah Lee

15 Jun 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

I'd usually recommend keeping transactional costs down to 0.5% of your investment value. Thus you need to know which market you are investing in, as charges differ from market to market.

If your transactional costs are a sizeable portion of your investment value, you will end up in a scenario where by a stock market rally will result in mediocre returns for you.

For stocks, I personally prefer to go in lump sum as I'm usualyl waiting for a certain price to enter. So my money would have been sitting in the brokerage account waiting. DCA is more for asset classes with low or zero transactional costs, such as UTs.

Hello there! Different brokerages have different commission, and tiger broker's fees seem decent given they are a new entry to SG market. There are numerous articles around that say lump sum earns better return but DCA is also not a bad strategy too. You can check this out: https://www.firepathlion.com/dca-vs-lump-sum-in...

To the best of my knowledge, the minimum commission fees of brokerage firms is $10. So ideally, if y...

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