Yes. Tech have always been expensive. Keep buying. When dips come buy. There was a dip few months back where ark was sinking.

I won't recommend rm1k/month DCA via TSG/IBKR into ARKK. Even if you're only making 1 trade per month the fees will still add up in the long run. Take for example:


IBKR-TSG
- every month RM1000 is allocated for overseas
- convert MYR into SGD via TransferWise (approx. ~0.6% transferwise or ~RM9 gone, based on google rates vs. actual amount received via transferwise),
- commissions to do spot-rate exchange within IBKR (2 usd per conversion or ~RM8 gone)
- trade commissions (approx 1.5USD per trade or ~RM6 gone)
= basically RM23 in fees per trade (approx 2.3% in fees)

Via TSG-IBKR you'll be paying (2.3% upfront "SC equivalent" + 0.75% annual mgmt fee), whereas from FSM you'll get (1.5% upfront SC + 1.85% annual mgmt fees).

You'll have to really do some maths and compare it upfront before making that decision to DCA via international brokers (unless of course if it has 0% commissions) - every amount will yield different result/savings. Take another scenario as an example:

Stashaway
- every month RM1000 is allocated for 30% Risk index fund
- convert MYR into USD (0.1% spot-exchange rate or ~RM1.5 gone. super rough calculations)
- buy into various ETF's with 0 commission
= basically RM1.5 in fees, maybe slightly more but yeah approx 0.1~0.2% per trade?

General rule of thumb - the higher the amount you transfer out (in a batch) of Malaysia, you'll achieve better results due to savings on fees/commissions. Hence why most opt to only transfer when they have more than rm5k (or even better, above rm10K-30K) to achieve economics of scale.

This post has been edited by polarzbearz: Dec 13 2020, 10:04 PM

Hi polarbear, as I understand buying US stock and ETF requires min charge of USD8.80 per transaction in FSM SG. Are you saying buying ARK fund is better with FSM Malaysia? Nikko Ark Fund in FSM SG has zero sales charge.

This post has been edited by ky33li: Dec 13 2020, 10:27 PM

theoretically 0% will be cheaper (for the upfront fees) though in the longer run it's still good to "move over" to direct holdings via IBKR/TSG (for example) when you have sizable amount given the annual charges are different (0.75% vs 1.85%). You'll need to do some maths to compare for yourself.

You can also try to run similar calculations assuming buying US stock/ETF via FSM SG since their commissions are way higher than IBKR/TSG.

Tho examples I gave above was mostly TSG-IBKR and definitely not purchasing overseas stock via FSM SG/HK. I literally just "ran away" from FSM HK to TSG/IBKR last month cause of their commissions / other handling fees

This post has been edited by polarzbearz: Dec 13 2020, 11:37 PM

Do not buy unit trust from FSM SG. There's quarterly platform fees involved. If you die die must buy unit trust, use Poems SG. Zero percent service charge, zero percent platform fees.

Again it's cheaper if you collect until RM12k and make the transfer overseas.

Thanks both of you for replying and helping out.
I think I may yet do the lump sum transfer.

FYI, because I happen to already have an Etrade brokerage account (which I honestly neglected due to no bullet years ago).
ETF is commisions free
If I successfully transfer in via Instarem or Sunway Money (I have not yet successfully done so as of 14th Dec 2020, because both of my accounts are not yet fully approved and set up). Then it is still a Forex cost via their platforms.
perhaps it is less than 2.3% / RM1k.

So I guess I will take both your notes.

Edit - I just got my instarem approved. Now trying a RM200 transaction.

Edit - Just got the transaction arrived into my etrade. I transacted on Sunday 13th Dec 2020, now is Tuesday 15th Dec.

This post has been edited by lee82gx: Dec 15 2020, 05:39 PM

Hi,

I am currently using webull to trade in the US from Malaysia. I have transferred a total of usd13k already and am planning to send more in order to reduce tt costs. Have to use tt since they don't accept 3rd party transfers. As I intend to send a lot more this time I was getting a little concerned about being able to withdraw as I haven't done so yet. They are regulated in the US but am still a little wary.

Has anyone here successfully performed a withdrawal to malaysia before? I have also applied to td ameritrade but it has been 6 weeks now and still no news.

Go test water with USD100.00
Forget about using TD Ameritrade. Need to wait super long time.

TD in the middle of integrating with CS.

Probably the reason slow down opening acc.

thoughts on ICLN and QCLN?

own experience with Customer Service of E*Trade and Charles Schwab last couple of weeks - definitely something happened in their offices, several times had to hang on phone literally 2 hours, whereas before it was within 1 minute someone to pick up the phone and answer.
i currently have an US account in Schwab. Do i need to convert it to international or can use as is? i heard if they find out then gonna close the account for violation of policy since once the account holder moved out of USA then has to convert to international. Although not always happens

This post has been edited by mitch81: Dec 19 2020, 07:27 AM

How to know you're holding US or international account for CS?

why not pwm?

i have opened it while being in the USA; and for such applicants with physical US address (at the moment of application!) and SSN number they open only US type of account; moreover even if to ask for a conversion of account into international it will be refused as the existing account holder has to provide a proof of current foreign physical (not only postal!) address + form I-94 indicating the exit from the USA + some other stuff
however, now i am kinda hestitating after viewing this post:


This post has been edited by mitch81: Dec 20 2020, 11:24 AM

What is "Domestic Ringgit Borrowing"?
Under Foreign Exchange Administration (FEA), declaration of Domestic Ringgit Borrowing.
I should select
(I have not obtained any Domestic Ringgit Borrowing)?
OR
(I have obtained any Domestic Ringgit Borrowing)?

if i wish to apply for foreign exchange share trading.

Guys, i got some question. I opened account on tradestation via ibkr, so means once i got ibkr account funded i don't need to care about the tsg account right? Because i had been already buying shares through ibkr, but i still receive email from tsg saying that i haven't done any deposit yet, which is weird because i already deposit and traded on ibkr already. So my ibkr account is there and will always be there kan?

Try asking here.

https://forum.lowyat.net/topic/4843925

Hi All,

Any comments on below ETF?

Vanguard Total World Stock Index Fund ETF Shares (VT)

Safest but too diversified ETF.
Suitable if you expect around 5%~6% p.a. only.
Not bad alternative to EPF, ASB etc.

I like it but it's US-domiciled so there's higher dividend witholding tax rate and estate tax liability. I would recommend the Vanguard FTSE All-World UCITS ETF instead.

This post has been edited by Gwynbleidd: Jan 4 2021, 08:11 PM