Sorry for asking silly questions.

I understand that before buying SGX shares or S-REITs, I need to have a trading account, such as a DBS Vickers trading account.

For that, I want to apply for a DBS Vickers online trading account.

What I have now is a POSB saving account (with access to DBS iBanking website), and CDP account.

1. I realize that inside DBS iBanking website, I can apply for DBS Vickers online trading account. In the online application page, one question is asked, namely: "Is Singapore your sole country of tax residence?". I should press "No", right? Then, I shall upload a scanned image of my Malaysian Identification Card, crossed with the words of "for opening only DBS Vickers online trading account".

2. There are 2 types of Cash Upfront Accounts from DBS Vickers. Which one should I choose?
Cash Upfront Account (http://www.dbs.com.sg/vickers/en/accounts/types-of-account/cash-upfront-account)
Cash Account (Online) (http://www.dbs.com.sg/vickers/en/accounts/types-of-account/cash-account)

Thank you for your information.

This post has been edited by kart: Feb 19 2017, 10:52 AM

Thank you for your detailed explanation. I shall choose DBS Vickers Cash Upfront Account. Since I am just a beginner who have not invested in shares before, I am not competent enough to make good use of the elaborative features of a full-fledged trading account. A basic trading account is good enough for me.

1) If I want to sell any SGX shares or S-REITS though DBS Vickers, is the fee same at SGD18/0.18%? So, after the sale, the money will be credited to my POSB saving account, right?

2) Ramjade and elea88, I assume that you can withstand the risk of not having the ownership of the S-REITS units under your name, right?

3) Regarding the fee to request Maybank Kim Eng to deposit our share into our CDP account, are you referring to the following:



This post has been edited by kart: Feb 20 2017, 10:54 PM

Ramjade

Mine is POSB Passbook Savings Account. Since I opened this saving account many years ago, the minimum amount to be kept in the saving account to avoid the fall-below fee is SGD 500.

But, I believe that for new account owners, this minimum amount for this saving account has been increased to SGD 1000.

This post has been edited by kart: Feb 20 2017, 11:06 PM

I want to ask about the fee of using DBS Vickers Cash Upfront Account.

1). What is the fee to open the DBS Vickers Cash Upfront Account?

2) After I open the trading account, if I did not use the trading account to buy or sell shares, will there be any charges, such as monthly admin fee?

3) Are there any other fees I should know, such as Goods & Services Tax (GST) imposed by Singapore Government at 7%?

http://www.dbs.com.sg/vickers/en/pricing/f...ble_en_04122014

Based on the website, I can only see commission Charge of 0.28% (for online transactions), clearing fee (CDP imposed) of 0.0325%, and SGX Trading Fee of 0.0075%.

Thank you for the information.

This post has been edited by kart: Feb 25 2017, 08:00 AM

Ramjade and elea88, thank you for your informative advices.

As advocated by Master gark, it seems that the general consensus is to use a nominee trading account (such as Maybank KE and SCB) to keep SGX shares, rather than using a CDP account. I guess that most of you all think the lower brokerage cost far outweighs the risk of not having the ownership of the shares under your name.

This post has been edited by kart: Feb 25 2017, 02:44 PM

Sorry for not understanding your statement.

For the case of Maybank Kim Eng Trade Prefunded Account, will the dividend be credited into this KE Trade Prefunded Account, and then we need to manually transfer the dividend, to our Singapore saving account?

Assuming that MAS does not extend the tax-free period beyond March 2020, do you all plan to sell your SGX shares and S-REIT units latest on February 2020, since withholding tax will naturally reduce our yield?

This post has been edited by kart: Feb 26 2017, 10:03 AM

I agree with you that Point 1 and 2 are irrelevant to us here. My concern with Point 3 is based on the link you shared with me earlier.



In other words, if our shares are in CDP account, the stockbroker cannot misuse our shares to save them.

Then again, as Master gark said that Maybank Kim Eng is a very established and reputable brokerage house, probably I am worried too much.

___
Assuming that I have a DBS Vickers Cash Upfront Account, and also a Maybank Kim Eng Trade Prefunded Account.

At first, I buy some shares through DBS Vickers, and the shares are in my CDP account. Is it possible to sell the shares through Maybank Kim Eng, a few weeks later?

This post has been edited by kart: Feb 26 2017, 10:31 AM

Thanks, gark. That removes the my concern of not having the SGX shares and S-REIT units under my name.

Alright, I shall follow your advice to open Maybank Kim Eng Trade Prefunded Account.

_____

I have a question about the timing to buy a unit of S-REIT. It seems that the dividend of many S-REITs are ususally given in February each year.

Let's assume that unit price is same throughout the year (highly unlikely to occur, but let's assume it in such a way for this example).

If that is the case, would it be better to purchase the unit on January each year? And, after the dividend is given, we should not purchase any more units from March to December.

If I am not mistaken, the dividend is given based on the number of units I have during February (just before the dividend issuance date). As such, the number of units I have from March to December do not affect the dividend.

Please correct me, if my understanding is wrong. Thank you.

1) Do you all make your own Excel spreadsheet, or use a pre-made spreadsheet, to calculate the average cost of S-Reits units you are holding? After all, once the current price of the units exceeds the average cost, we start to make profit.

2) Do you use weighted average formula to determine the average cost?

Example:

Share price on 27 March: SGD 1.30. Bought 2000 units.

Share price on 28 March: SGD 1.80. Bought 1000 units.

Average cost of the units = SGD (1.30 x 2000 + 1.80 x 1000) / (2000 + 1000) = SGD 1.47

Correct me, if I am wrong. Thank you.

This post has been edited by kart: Apr 1 2017, 11:18 PM

Thanks for posting a screenshot of your spreadsheet.

Since we buy the shares at different price, it is good to keep track of the our average price, so that we would know our profit.

Good to know that I use the correct formula to determine the average price.

So, do you always wait for the current price of the units to be lower than your average price, before buying more units? I notice that you all like to mention 'average down'.

Thanks for the tip.

This post has been edited by kart: Apr 3 2017, 10:15 PM

So, in future, we need to download and install banking apps in our handphone, to generate the OTPs.

Well, for me, I still prefer a physical token, as I do not trust my handphone to perform banking transactions. There will always be supporters and opposers for this change.

Let's say that the price of a particular share is SGD 1.80.

I queue to buy this share at SGD 1.60. At the end of the day, I do not manage to buy the share at SGD 1.60. Does queueing to buy the share incur any brokerage fee?

In reverse situation, if I queue to sell the share at SGD 2.00 and no one is buying the share at the end of the day, does queueing to sell the share incur any brokerage fee?

Thanks for the confirmation.

This post has been edited by kart: Apr 24 2017, 11:54 AM

Thanks for the clarification, Cherry16, ShinG3e and bearbear.

____
Is the mobile number for the Maybank Kim Eng Trading Representative, Leslie Toh, +65 82xxxx50?

This post has been edited by kart: Apr 25 2017, 10:24 PM

How do you all decide the best price to buy S-Reits? Do you use something like 10-day average price, or 30-day average price, as a guide?

For example, the current share price of Soilbuild Business Space REIT is SGD 0.680. What would be the best price to buy this S-Reit?

Thanks for the advice.

This post has been edited by kart: May 20 2017, 10:45 PM

I want at least 6% yield. Is it realistic, with reasonable risk?

I choose Soilbuild Business Space REIT, as an example.

The total of the last 4 DPU = SGD 0.01489 + 0.0157 + 0.01399 + 0.01565 = SGD 0.06023

Desired Share Price (assuming 6% yield) = SGD 0.06023 / 6 *100 = SGD 1.00

So, if the share price is lower than SGD 1.00, it is a good time to buy, and I can get 6% yield, right? Please advise, if my calculation is incorrect. Thank you.


Yes, the well-known adage is "buy low, sell high". However, realistically speaking, we can never buy the share at the loweest price, and sell the share at the highest price. At least, I should follow the advice given here, and try to buy the share price at a lower price.

Assume that I buy Soilbuild Business Space REIT at SGD 0.68, but some of you all predict that the share price will go down. One or two weeks later, it does decrease. By then, I will regret that I bought the share way too early.

This post has been edited by kart: May 21 2017, 09:50 PM

Soilbuild Business Space Reit (SV3U)

After the dividend exdate, Is it a good time to buy this REIT at the price of SGD 0.71, for a newbie like me? Or, should I wait for the price to go down slightly?

If we sum the last 4 dividends, the yield is 8.34 %. Any REIT with yield more than 7% is good enough for me.

This post has been edited by kart: Jul 25 2017, 10:13 PM

Thanks for the advice. I will just target AIMS, as suggested by other experts here.

So, a good trick to buy the share is to queue at a price 10 Singapore cents lower than asking price, isn't it?

Thanks for your information. So, this is what the basic guide in share trading usually states.



When the bidding volume (seilling volume) is higher than the ask volume (buying volume), do you queue to buy the share at a price SGD 0.005 lower than the bid price?

When the ask volume is higher than the bid volume, do you queue to buy the share exactly at bid price?

When you bought AIMS at SGD 1.43, is it the bid price or ask price?

Ok, your suggestion is to queue at asking price, or (asking price - 0.01). Noted.

AIMS ex date is 4 Aug 2017. So, if we manage to buy AIMS on 4 Aug 2017, are we still entitled to get the dividend that will be paid on 21 Sep 2017?

Ok, it may sound silly to you all experts in S-Reit investment, but this will be the first time I am investing in S-Reit.

As long as the yield is more than 7 %, buying AIMS will be a good start for me. I just do not want to wait too long, until the price increases too much.

How do you keep track of the net profit of your investment (due to dividend, share price appreciation and so on) in SGX?


Example:
January 2017: Starting Capital of RM 10000, which was converted into an equivalent amount of Singapore Dollars.
February 2017 to June 2017: Invested the SGD in S-Reits and SGX counters.
July 2017: Invested another RM 20000, which was converted into an equivalent amount of Singapore Dollars, to be invested in S-Reits and SGX counters.


In this example, how do I know the profit from that RM 30000 investment? So, I pretend that I sell all of my shares in S-Reits and SGX counters, and convert all SGD into Ringgit. I then compare the final amount, against my initial amount of RM 30000, to know the profit I have made.


Of course, this example is rather simplistic. Sometimes, I may sell some SGX shares, so that I can convert the SGD into an equivalent amount of Ringgit, to be used for personal expenses in Malaysia.


Plus, the SGD to MYR exchange rate will keep on changing, so I need to record the exchange rate of each conversion I make, as well.


I am sure that you all may have better ways to determine the net profit of your investment. Thank you for sharing your experience.