Asked 3w ago
I'm planning to start investing and I currently have very small capital but have emergency fund prepared, looking to DCA about $250 monthly into S&P 500 ETFs. Which method would reduce fees/taxes the most?
Actually if i may add, why don’t you consider quarterly dca or yearly via standard charted trading
they don’t charge monthly inactivity fee (unlike another brokerage that has lse stocks)
it allows you to buy stocks listed on LSE (london stock exchange) stocks, where you can buy ireland domiciled World ETF like IWDA. it’s mostly S&P500 (given US market cap is huge).
Why ireland domiciled ETF? simply cause there’s better tax agreement between ireland & us, (iirc 15% withholding tax on capital gains, vs 30% for singapore). this will help to optimize tax.
why IWDA? one of the few etfs that reinvest the dividends. this is featured in the book by rich by retirement.
why quarterly? given you are looking to dca $250 monthly, i find that it will be more optimal & cost effective to invest $750. given sc trades got min fee of USD 10.70 per trxn, and fees of 0.25%. if you want can even do it yearly $250 * 12.
now till 31 mar, there’s promo if friend refer you get a month of free qualifying trades (amount to be rebated)
Syfe can start small with $250, whereas FSMone requires i believe, min $1000 to start.
FSMone and Syfe can maximise your $250 as they allow fractional shares or units. tiger allow min 1 share which is about $393 at this time.
if speed is important to you, tiger or syfe.
take note that syfe 100 is not purely S&P500, but a basket of ETFs.
as for fees, tiger charges U$0.01 per share which in your case would work out to be about 0.0025%
Syfe 0.65% of your AUM
fsmone charges depends you use their ETF (U$1) or unit trust (0.35%)
hope this helps.
4 more comments
Frankly, none of the above. If you are looking for the least fees, then the DIY route via Td Ameritr...
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