A simple, affordable way to invest

[CityFarmer]

May be an option for those with lesser capital while still interesting in ETF...

A simple, affordable way to invest

Setting aside your money in a savings account certainly helps on rainy days. But if you’re looking to grow your long-term savings, this alone may not be enough, especially after the rate of inflation is factored into the equation.

Investing your money through banks like POSB is one option that can help grow your long-term savings. Many people believe that investing funds that are traded on a stock exchange is complicated and expensive, as they need a securities trading account and a CDP (Central Depository) account.

However, with a regular savings plan like POSB’s Invest-Saver, you can easily invest in Exchange Traded Funds (ETFs) that are listed on the Singapore Exchange with minimal expenditure each month.

All you need to do is arrange for a monthly GIRO deduction to start growing your savings through POSB Invest-Saver. You can start investing in either the ABF Singapore Bond Index Fund or the Nikko AM Singapore STI ETF.

Perhaps the best news of all is that you won’t need to break the bank to start investing – you can do so from as little as S$100 each month.

It’s a convenient option as well – if you have a POSB savings or current account, you’ll even be able to manage your investment amount by using POSB’s iBanking online service or at any POSB ATM.

This is the fifth story in a 10-part collaboration between TODAY and POSB.
http://www.todayonline.com/voices/posb/s...way-invest

[hh488]

Talking abt ETFs, recently I started using SCB trading platform to trade shares as commissions are much lower.

Also open USD & HK a/c at the same time. Thought of buying US ETFs as I think they don't hv min board lots to trade. In other words, am I allow to buy/sell say 1 unit, 2 units etc in them?

Anyone ever trade them? Can share?

[CityFarmer]

Can 'valuebuddies' collaborate with ST business or TODAY. Personally feel we can value add more with objective articles and under no vested interest

I will prefer we post selective articles as bases for our discussion. I reckon we have done so with my posts and GG's post. Thanks GG for the effort to bring-in relevant articles from various sources, and post within our VB posting guideline.

Regards
Moderator

[freedom]

Talking abt ETFs, recently I started using SCB trading platform to trade shares as commissions are much lower.

Also open USD & HK a/c at the same time. Thought of buying US ETFs as I think they don't hv min board lots to trade. In other words, am I allow to buy/sell say 1 unit, 2 units etc in them?

Anyone ever trade them? Can share?

can buy/sell 1 unit, 1 share. no problem

Have tried tens of times already.

[hh488]

Thanks Freedom for sharing.

Do you know how SCB will charge? Didn't really go into the platform to find out the charges for foreign bourses.

[Raks]

The difference is in the minimum transaction fee.

For SCB, there's no minimum transaction fee regardless of what you buy. For the POSB etc, no minimum is usually on promotion, and usually for investment product such as ETF, not individual share. I have bought/sold 1 unit share in ASX, LSE, NYSE, and NASDAQ with SCB for testing purposes. I bought ETF (various type) and share such as coca cola. The good/bad thing is, you might ask yourself whether do you want to spend $50 for a weekend outing or 1 unit of coca-cola.

ASX so far seems the best (except I lose the most here as I was catching a falling sword and foreign exchange rate) as there's no tax on dividend.
For US stocks, 30% of the dividend is taxed away as foreign investor (withholding tax).

The additional tax on dividend for foreign investor makes the calculation a little bit more troublesome.

I once had >10 counters in SCB, all 1 unit; and SCB called and ask whether I want scrip or cash for many of the counters (esp those without cash as default option). Although having one unit I cant get scrip they still have to get my consent to opt for cash. Lately I found that I can just ignore them and I will get cash.

I think SCB still the cheapest way to diversify. However, for investment at the size of $10k, DBS cash upfront 0.18% is still better as the shares would be in your cdp account. Please share if you know any cheaper way to invest.

Im waiting for the sgx 100 unit but currently killer is the minimum transaction fee.

[freedom]

Thanks Freedom for sharing.

Do you know how SCB will charge? Didn't really go into the platform to find out the charges for foreign bourses.

Mine was the price * the number of share you bought + 0.25% commission.

But for sale, there is an SEC charge. Forgot how much.

That's for US companies. For companies from France(ADR), there are French transaction tax, too. For companies from other countries other than US, there might be additional tax or charges.

[Raks]

Thanks Freedom for sharing.

Do you know how SCB will charge? Didn't really go into the platform to find out the charges for foreign bourses.

Mine was the price * the number of share you bought + 0.25% commission.

But for sale, there is an SEC charge. Forgot how much.

That's for US companies. For companies from France(ADR), there are French transaction tax, too. For companies from other countries other than US, there might be additional tax or charges.

https://www.sc.com/sg/personal-banking/i...-services/

Without priority account, it works out to be approximately 0.25% per transaction for sgx and 0.27% for others.
Just a little additional input. USA ETF through SCB is probably more expensive than it seems. If it's broad market ETF like SP500 they will pay dividend -> 30% withholding tax.
I have always look for total return = cap appreciation + div in the past. However, in US I would have to look for more capital appreciation. The withholding tax will knock it back quite a lot if it's a counter with not much capital appreciation. A bond-like counter with 6% dividend yield would be reduced to 4.2%. Essentially it means ~50% losses.

Just saw a 9 cents deduction from my 30cents coca cola dividend. Still feel pain

[LLS]

US 30% dividend tax is very heavy, maybe better to invest in asia markets instead

[banker]

I know there is no with holding tax for dividend in UK and HK.
TH is about 10%

What about MY and AU?