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 All about ETFs / Foreign Brokers, Exchange traded funds

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pisces88
post Apr 6 2015, 01:30 PM

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QUOTE(MNet @ Jan 8 2015, 10:15 PM)
I use IB.

Yep last yr more on etf.

now looking toward to individual stock
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hi, mind to share what is 'IB'? im interested in ETFs too, want to get some Vanguard funds. biggrin.gif
pisces88
post Apr 6 2015, 01:36 PM

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QUOTE(rjb123 @ Apr 6 2015, 01:33 PM)
IB is interactive brokers

Can check out the Vanguard Ireland domiciled funds to reduce the Withholding taxes.
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Interactive broker's company is well known and trust worthy? sorry ah, never heard of them.. haha
pisces88
post Apr 6 2015, 01:51 PM

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QUOTE(rjb123 @ Apr 6 2015, 01:49 PM)
Yup, and they're covered in US by SIPC
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thanks~ browsing their website now notworthy.gif
pisces88
post Apr 6 2015, 02:23 PM

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QUOTE(rjb123 @ Apr 6 2015, 01:53 PM)
FYI,  depending on how you plan to invest IB may not be the best option.

IB has low fees, but you need to subscribe to the live data feeds at a cost and they charge an inactivity fee if balance is less than 100,000 usd or currency equivalent. Plus there's no automatic dividend reinvestment (DRIPS)  like TD Ameritrade
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oh? they charge inactivity fee for 100,000 USD from 1 single investor or total fund size?

im looking at Vanguard consumer staples, S&P 500, information technology and REIT.

cant afford to invest too much, maybe yearly 5-10k USD (total) only sweat.gif
pisces88
post Apr 6 2015, 02:39 PM

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QUOTE(rjb123 @ Apr 6 2015, 02:29 PM)
Have a look at  their site, there's a breakdown of fees -  the 100,000 waives your 10 usd monthly inactivity fee. This can be in stocks, cash in any currency etc to 100k usd equivalent.

It's also waived if you carry out enough trades a month, ie 10 usd in commission, depends if you're more an active trader or a buy and hold investor
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Oh so it's 10usd. I'm looking to invest quarterly or monthly if it's convenient to make payment.

I'm building a long term nest, so I guess I'm going to buy and hold. Looking at 10 yrs horizon:)
pisces88
post Apr 6 2015, 08:58 PM

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QUOTE(rjb123 @ Apr 6 2015, 02:47 PM)
OK similar to me, also long term and not very active trader.

Have a look at Vanguard UK ETFs, you can buy those through IB on LSE (London stock exchange)  and you'll have only 15% Withholding on dividends rather than 30%.
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thanks on the tips flex.gif

im looking at Vanguard Total Stock Market ETF too. smile.gif

by the way, when we make payment do you do a tt from your bank direct to their account everytime you want to top up? or can put additional funds inside for future purchase?
pisces88
post Apr 6 2015, 09:35 PM

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QUOTE(rjb123 @ Apr 6 2015, 09:12 PM)
TT from Maybank for example will cost you around 50 USD all in -  not that cheap! That's including receiving bank fees and intermediary bank fees.

You could also deposit in SGD for example free of charge if you  have an account in SG (IB uses Citibank in SG). I also deposit from my UK account (again, no fees)  to GBP. Inside IB you can transfer between currencies at very competitive rates -  better than you'd ever get elsewhere anyway.

I deposited quite a lot at once and just leave it there until I want to top up...  Won't earn any interest if it's sitting in Maybank FCA anyway.
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Noted! will go through the numbers notworthy.gif
pisces88
post Apr 7 2015, 12:51 PM

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QUOTE(MNet @ Apr 7 2015, 08:54 AM)
Min is USD 10k to open account only
https://www.interactivebrokers.com.hk/en/index.php?f=4969

Very affordable if u compare to TD amerit

TD amerit charge $9.99/trade
https://www.tdameritrade.com/pricing.page#ETFs

IB charge USD0.01/share or USD1 min, whichever higher.
https://www.interactivebrokers.com.hk/en/in...ssion&p=stocks1

Somemore the livefeed is free, not compulsory to subscribe to the paid service feed.
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QUOTE(rjb123 @ Apr 7 2015, 09:00 AM)
10 USD monthly is referring to inactivity fee, if you're not doing any trades during a month and have less than 100,000 USD balance.

TD Ameritrade has many commission free ETFs and supports DRIPS, so if you're only buying US ETFs infrequently and want dividends reinvested TD is a better option.
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Yes would like to invest the dividends back to the fund. nod.gif

so to summarize:

TD : 9.99/trade (irregardless to amount? trade 1000usd also 9.99, trade 10,000usd also 9.99?)
IB : 0.01%/share or USD 1, whichever higher. inactivity 10USD/month.

so if plan to trade 1500USD every quarter (March, June, Sept, Dec) :

my trade on IB will be USD10 (january), USD10 (February) + USD1 = USD21
my trade on TD will be net 9.99USD

anymore hidden charges? fund transfer fees?

IB : minimum 10k USD to open account?
TD : no minimum

This post has been edited by pisces88: Apr 7 2015, 12:56 PM
pisces88
post Apr 7 2015, 01:01 PM

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and also, wires out of account from TD is USD25.

IB allows one free withdrawal request every 30 days?
pisces88
post Apr 7 2015, 01:12 PM

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QUOTE(rjb123 @ Apr 7 2015, 01:02 PM)
TD only USA exchanges AFAIK, but most common ETFs that you'd likely to be investing in are available commission free (there's a list on their website)  so the trade is free, and DRIPS means your dividends are automatically reinvested. With IB they just get deposited into your account. But with IB you can be buying non us listed etfs, which means you don't have to pay the Withholding tax of 30%, only 15%.

There's a minimum on TD of 2000 usd I believe. Transfer charges will be the same for both, overall Tt from Malaysia will cost you 40-50 USD in total. IB cheaper if you have SG account for example and deposit in SGD.
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hmm.gif Does the 30% withholding tax applies if i trade US ETFs on TD? so it applies on all US-etfs regardless IB/TD?

 

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