For larger amounts have you looked at buying non-USD domiciled ETFs? Not for actively traded ones.

Example is Vanguard VUSD traded in USD on the LSE. Ireland domiciled for holding US assets (SP 500 fracker)

That way it's more efficient in regards to the withholding tax too. They're traded less so the liquidity isn't as good, but for long term holding and just topping up that shouldn't be much of a concern.

This post has been edited by rjb123: Nov 10 2016, 08:13 PM

Thank U for the alternative idea

hm.. just did a quick check - VUSD has no options on, doesn't fit my "combined arms" approach for US exchanges, although it is more tax efficient & has that non-US domiciled thing

Ah yes these don't have options and aren't traded on US exchanges

But they do the job for boring buy and hold

This post has been edited by rjb123: Nov 10 2016, 10:28 PM

So if I am buying ETF for long term holding, I need >USD10k for it to be worth it?

simple concept:
1. TT charges to US brokerages is about USD20 per transaction

2. Thus, if U transfer USD500 that's 20/500 = 4% just for TT charges by US brokerage firm (excluding cost of MY bank doing TT)
VS USD5000 = 20/5000 = 0.4%
This is only the FUNDING part, excludes commissions & fees when buying/selling

3. Thus, who said doing ETFs for long term holding need >USD10K ar?
Jumping through a lot of conclusions?

USD10k is just a thought. I don't know how much is the min to make it worth it.

Normally even more than $20 when you take into the account the charge at the receiving side too!

I don't think any amount is too small to start - but the numbers don't make sense if you're only funding with $500 or so each time due to the charges. With brokers like IB once you have the account open you can also fund internationally, like local deposit from a Singapore account which doesn't cost anything.

You can come up with a plan - how much you plan to invest, how often you plan to deposit

Then spend an hour and work out 2-3 or whatever different scenarios to see what the difference is. Foreign brokers have higher minimums and more expenses for transferring funds - but much cheaper trading charges, less spread on foreign exchange, and the ETFs tend to have much lower annual fees than your UT equivalents.

I am not looking for cheao trading charges. I am looking at long term of buy and hold (>10 years)

Looks like ETF is expensive for the average person like me. About the 30% tax by US, does that mean for all dividend gain, I will be taxed 30% of that amount?

Also, you mentioned about Ireland domiciled ETFs. Are those ETFs invested in the US stocks but based in Ireland?

This post has been edited by Ramjade: Nov 11 2016, 06:14 AM

ireland got tax treaty with us, so
dividend => (-15%) => etf => we

if us-domiciled,
dividend => (-30%) => etf => we

we need to calculate the "effective rate" in term of sum of annual expense ratio plus this div tax, for the actual number of "annual holding cost"..

other than that, come the "fund transfer cost" and "transaction cost"...

I have been reading those last few pages (about 5-7). It looks like IB is the way to go. Regarding the min usd100k, does that take into account your total amount in the ETFs or just how much you have in your funding account?

Also, are those Ireland domicile ETF a mirror image of say Vanguard Total Stock Market or are those Ireland domicile ETF based on companies in Ireland only?

Funding in your account .

Ireland domiciled ETFs hold different assets - you can take a look here : https://www.vanguard.co.uk/uk/portal/invest...ts/all-products

Its 10k usd not 100k

I was refering to the min amount so that they will waive the inactivity fees.

for IB, min deposit/holdings is $100k if u want fee waiver.

if not, min is $10k; $10pm charge but waived if trading charges can cover.

there is no escape for tax on dividends on any stock or etf, whether IB or any borker - it is a US tax law on all.

us residents even have to pay capital gains tax.

if u wish to avoid the $10 pm, only want to hold long term, u can always buy with local brokers. save that, save TT charges but pay much higher brokerage fee every time u buy or sell.



IB is a good one to have overall, esp for trading and regular buy/sell.

it is secure, efficient and cheaper than most if not all.

the thing is i am quite sure it is difficult to open with them now.

not becos they don't accept but more like local banks will not want to approve yr TT for the startup.

some people here already reported banks not approving some months ago.

given events last fri, it will be even more so.

but will have to read of a new experience by someone if he post it here soon.

What would be the reason for local banks refusing TT's ? Is there a law against this ?

remember RM is not an internationalized currency, traded only in Malaysia.
BNM still have a ton of rules on FX and money transfers.

go back 2 years, it was not a problem when i did mine.

what i remember... starting a year ago, some people reported banks rejecting them, BNM requires a form to be filled up and "investment" is not accepted. biz payment, education fees with doc backups should be OK, i would think. (dunno if "donation" will be approved. )

last fri, RM fell drastically. BNM imposed new rules.
what happens next, we don't know yet.
will have to see next week what FM/BNM do or don't do.

http://www.reuters.com/article/us-emerging...SKBN1360AZ?il=0
http://www.straitstimes.com/asia/se-asia/m...overnight-rates
http://www.bnm.gov.my/index.php?ch=en_pres...ac=3513&lang=en

This post has been edited by AVFAN: Nov 13 2016, 10:59 AM

Well I am planning to buy Ireland Domiciled ETF and just hold it. Not going to do that. (buy from local broker when you can save cost)

It's ok. Money will not be funded by RM but SGD as I am going to open one SG account next year. But for now ETF is still out of my reached as it's too expensive. Can't just cough up USD10k. but I have to act fast as Hansel said doors are closing.


Just wait few months. When condition recover, faster "exit" before capital control is imposed some more.

This post has been edited by Ramjade: Nov 13 2016, 11:27 AM

few months ago, I bough an etf (xlv) in usd using Sg Std Ctd trading acc. Min unit was 1 unit. and it was less than USD10K.

why do I have to use / open other brokerage acc when I can buy via Sg Std Ctd trading acc?

can anyone enlighten me on this ? what is d pro and con using the existing Sg Std Ctd trading acc I m having now.

btw, I m not a regular buyer for us shares / us etf. I m only active with Sg reits.

should I require to open another new trading acc like IB or OptionExpress ? btw I m a Malaysian without Sg working permit.

I also intend to keep etf for long term. kindly advise newbie like me

This post has been edited by prince_mk: Nov 13 2016, 03:01 PM

Boss

Mind share your latest portfolio ? I browsed through etfdb website but too many choices of etf till dont knw what to pick.

Thanks newbies