This is IB's pricing: https://www.interactivebrokers.com/en/index.php?f=1590

This is TSG's pricing: https://www.tradestation-international.com/...ng-commissions/

In general, TSG's pricing should be more expensive than IBKR, since they earn fees and commission on top of IB. If the fees are cheaper, TSG would have gone bankrupt long ago. TSG is introducing broker to IB, remember. IB earns as they should according to fixed/tiered pricing behind the scene, add that up with the fees/commission TSG earn, that would be the price shown on TSG's pricing page.

For small volume, IB's tiered pricing is cheaper for US exchanges, HKEX, LSE compared to TSG. You can check the minimum fees and % fee per trade value.

The only exceptional case is SGX, IB's fixed pricing is cheaper for SGX for small volumes than tiered pricing, but still comparing tiered/fixed vs TSG, the former 2 are cheaper than TSG.

So in short, IB is cheaper than TSG for fees/commission.

Thanks for the detailed explanation. I definitely benefitted from it. May I also ask if I should go straight for IB Pro so I get the full feature? Honestly, don't know how to use any yet.

No problem. Always glad to help. If you delink from TSG, then you automatically go to IB Pro. If you are new customer, you are also automatically linked to IB Pro.

IBKR Lite is only available for US and India clients. For new IB users here is the video guide, by Ziet: https://www.youtube.com/watch?v=f__HgJRe3nU

Alright, IB Pro it is.

Anyone might know if CIMB SG account can be linked with CIMB MY current account? It's not necessarily must be a basic savings account right?

Anyone can explain what happens if a country on an index that tracks emerging market gets promoted to be a developed country?

Thanks, just realized I can choose from Tiered or Fixed if I am a direct IBKR account, that's why I was confused.

As reference for fellow Ireland domiciled ETF connoisseurs, for trade below ~1660USD the actual difference between TSG and IBKR fees per trade is about 30 US cents.

While waiting for my account to be opened, I like to ask about VOO vs CSPX. I am aware of the US domiciled tax but that only applies to dividend right? Not actual buying/selling the ETF? Or people buy ETF for holding long term, thus over time, dividend is and will be affected? Thoughts?

I also read that via IBKR, CSPX is more expensive than VOO. Something about the $10 per month charges but this no longer applies, correct?

This post has been edited by merchant9: Aug 2 2021, 12:18 PM

I think you mean dividend withholding tax? That applies to US domiciled funds like VOO, rate is 30%. CSPX is UCITS, domiciled in Ireland, they still pay tax behind, rate is 15%, but that is factored in behind in the annual charges, so you don't need to sign any forms like W-8BEN etc.

In both cases (VOO and CSPX), the dividend will be affected since it is taxed anyway. The only thing to compare is whether the fees/charges from investing in CSPX UCITS, after accounting for the lower WHT of 15% vs 30% of VOO, is still lower than or higher than buying VOO directly the US. If it is lower, than CSPX is a better choice, if not, then VOO works better, for the long run.

Can you share the link/source which states CSPX more expensive than VOO? I think the $10 per month is the monthly inactivity fee charges but that is abolished now. So it does not matter now. In the past few brokers allow one to access UCITS on LSE, IB is one of them, whereas US is a more developed market, so more brokers have access to them.

You can find IB's charges here: https://www.interactivebrokers.com/en/index...=1590&p=stocks2

This post has been edited by TOS: Aug 2 2021, 12:42 PM

Wow, thanks for your prompt response, the link I refer to is here: https://www.thefrugalstudent.com/why-im-not...-domiciled-etfs

I was set on CSPX but then when I saw this article, I felt like I made the wrong choice. What's your view on this?

https://forum.lowyat.net/topic/4856719

there was a comprehensive thread comparing the cost of investing in Ireland domiciled ETF vs straight investing in US ETF.
giving credit back to the thread ownerYggdrasil
the thread was comparing NASDAQ100, I remember the conclusion is that the differences is not really significant in long run.

but do note that the comparison is made based on NASDAQ100 which dividend yield is not that high (0.49%)
for a high dividend yield ETF, I personally reckon that it is still more cost efficient to opt for Ireland domiciled ETF.

However, having said that
I myself still buy US ETF because there are some ETFs that hard to find alternatives in Ireland domiciled version e.g. IBUY, OGIG etc.

This post has been edited by tadashi987: Aug 2 2021, 03:38 PM

Oh then yes, that monthly charges of 10 USD has been removed, so things have changed. CSPX is ok if you are fine with Blackrock. Once you can handle counterparty risk, then looks at tax matters. Investing in CSPX will not subject you to US estate taxes, but will UK charge you the same? So far I see no is the answer: https://www.gov.uk/tax-uk-income-live-abroa...e%20UK%20shares.

You might want to check elsewhere to confirm. After CP risk and tax, then fees, you need to check the returns of either funds versus the index and how large their tracking errors are? Not to forget, VOO is a distributing ETF, CSPX is an accumulating ETF, so do you want to get dividends constantly or reinvest all of them automatically with the help of the fund managers?

It really depends on your preference and risk appetite, I can't make a judgement for you. In the end it is your money you are ultimately responsible for it.

Another thing to take into account for US ETFs is the estate tax that kicks in once you accumulated USD60,000.

oh confirm there is no estate tax for Ireland domicile ETF?
can't find any clarity on this because i doubt that, as Ireland-domiciled ETF still holds US stocks undeyling.

i personally did something very funny is that i have 'hidden will' that confirm my next of kin can sell on their own if i croak (touchwood)

This post has been edited by tadashi987: Aug 2 2021, 04:16 PM

You are serious? If not holding US stock, it can only be some form of derivatives? That would introduce substantial counterparty risk, not just on the asset-management side, but also the very underlying asset the fund is holding. If this is the case, to sleep well at night, better go for US ETFs.

"Synthetic" UCITS are not really for the faint-hearted.

Anyway, https://www.ishares.com/uk/individual/en/li...sheet-en-gb.pdf this suggests that it is really stocks ("Physical replication" in product strategy and "Physical" in product structure)

There is a synthetic ETFs that tracks S&P500: https://www.ishares.com/uk/professional/en/...-ucits-etf-fund you can see the underlying assets are swaps and it is "synthetic" in nature.

This post has been edited by TOS: Aug 2 2021, 04:06 PM

my bad for the shortcut -,- i meant i doubted UCITs or ireland ETF is not subjected to estate tax, because it is still holdings US stocks underlying.
however, cant find any clarity on these, only tax advisor can advise maybe.

Also for question raiser's information, one factor why I didnt opt for UCITs or ireland ETF bcoz you can hardly find an UCITs or ireland ETF which fulfill the following:
1) really domiciled in Ireland (a big number of them domiciled in luxembourg, swiss which their tax structure is kind of ambiguous to foreign investor)
2) accumulating distribution policy
3) a UCITs or ireland version to the performing ones in US which i mentioned e.g. IBUY, OGIG

so at the end i just opted for US ETF due to the hassle

This post has been edited by tadashi987: Aug 2 2021, 04:17 PM

I think the US estate tax on UCITS issue has been cleared some time ago. In the end you may die, but the fund still exists in perpetuity (until it is wound down, that is), there is no way IRS can track any fund investors die or not since the fund is not domiciled in the US, so IRS deal with UCITS but not its underlying investors.

https://newacademyoffinance.com/ucits-etfs-...#Estate_taxes-2

Hi guys! I am new to ETFs and to general stock trading. Before this I only invest in properties and mutual funds. Now I am looking to purchase ETFs. I have created a Interactive Brokers Account but waiting for approval. When I transferred money from my DBS account in Spore I noticed that an account holder can invest directly to various investments. I noticed Nikko ETF and etc. Anyone tried investing online through the DBS account and if so which investment and what are your returns like?

Before anything else, you should understand that even if you have the same investment product, your returns can vary depending on your entry points.

From your reply I believe you mean that if I purchase through DBS the entry cost may be higher due to brokerage charges and exchange rate as oppose to Interactive Brokers? Anyway IB has conditionally approved my account. Excited to start my new investment journey.

Just curious: How do you guys monitor the performance? Is it daily or monthly?

Aslo I would like to ask seasoned ETF investors: If you have USD30,000 how would you spread the investment? I was thinking of starting with USD30K

This post has been edited by cynthusc: Aug 26 2021, 03:42 PM

would it be counter productive if i buy the same stock that is in an ETF

lets say I buy tesla and ARKK at the same time, would it be counter productive?