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 Interactive Brokers (IBKR), IBKR users, welcome!

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Lon3Rang3r00
post Mar 2 2022, 03:10 PM

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Wanted to open CIMB SG account for IBKR usage, for the initial S$1000 deposit, i wonder is it still workable to transfer like S$50 from Malaysia account to CIMB SG and S$950 from Wise? just to save a little from using the Fx rate. and if were to buy SGX listed shares, we don't need to do another conversion right? (Since topping up IBKR is in SGD)
Lon3Rang3r00
post Mar 17 2022, 10:07 PM

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Dear Sifu/s, just wanna ask how regular you guys topup? let's say i plan to have a commitment of investing Rm200/month into IBKR, should i hold and topup every couple of month or there's not much impact?
Lon3Rang3r00
post Mar 18 2022, 09:53 AM

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QUOTE(Hoshiyuu @ Mar 17 2022, 10:39 PM)
It'll depend on your deposit route, but try to keep your total transaction fee under 1% (0.5% ideally for me) - if you deposit and convert RM200 every month, you are going to lose quite a bit of fixed cost every month (2USD fixed currency conversion fee at IBKR for SGD->USD, Wise conversion fee for MYR->SGD or MYR->USD is around RM4 for RM200). Might wanna just hold onto it and deposit in longer interval (bimonthly, quarterly?) and later on, use low amount of margin (1.2x or below) to smooth out the buy interval if needed.

Losing 9% (MYR->(WISE)->SGD->(IBKR FX)->USD) or 2% (MYR->(WISE)->USD) of your deposit before you do anything is pretty bad.

The minimum deposit amount using the cheapest route at low volume would be MYR->(WISE)->USD at RM400 per deposit (~1% cost of conversion + 0.35USD for US stock/~2USD for LSE stock purchase) - if you buy Irish domiciled ETFs and stocks, MYR1200 per deposit via the MYR-USD route would be optimal-ish I guess? In that case I would suggest buying US-domiciled equivalent and forgo the 15% withholding tax gain until you decide to commit more per month in the future to cut down on purchase cost.

But don't overthink it too much either - sometimes being invested is the important part. There is a lot of nuance to this, so you can always come back and ask here with reference to what ticker you would be buying.
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QUOTE(Takudan @ Mar 18 2022, 12:33 AM)
Adding on to sifu's advice above, I think you can consider tapping into your savings/short-term investments for that mini-lump sum to IBKR.

For example, right now you have 10k saved up for rainy days. Take half of that, you'll have a healthy sum for a relatively lower transaction cost (conversion fee, commission etc). For the next half year, rebuild that missing 5k back into your savings, rinse and repeat. It does mean that you will be risking those few months where you're shorter on emergency funds.

My point is, always prioritise on having a healthy sum of emergency funds. Holding cash gives you a lot more choices and less worries. Only invest with with an amount that you can part with for a loooong period of time (e.g. 5 years+)
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QUOTE(polarzbearz @ Mar 18 2022, 12:57 AM)
Generally, the lower the amount, the less transaction fee incurred would be ideal (e.g. try to accumulate to 1k tranche; buy one fund per month; etc.). Otherwise the fees (albeit little) will add up very quickly.

Just to illustrate:
Wise/FTT transaction: between 1% ~ 2% depending on how much you transfer.
IBKR Conversion fee: 0% (if you direct debit via Wise USD multicurrency account) or ~1-2% if you use IBKR in-app conversion, again, depending on how much you transfer.
IBKR transaction fees
$0.50 out of $50.00 is 1%
$0.50 out of $500.00 is 0.1%

For myself (just started this month after stopping my SA DCA nod.gif), I'm going with RM2k/month into 1 fund (or max, two funds only).

Will rotate my ETF choice on month-to-month basis between VWRA (primary) or my complementary sector/region ETFs (e.g. CSPX, KWEB/3067, 3040, etc.) - topping up whichever ETF's that has lower valuation / other factors at play.
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QUOTE(dwRK @ Mar 18 2022, 09:21 AM)
ideas are good and valid... but i'll give y'all a more balance view

in a bull market like the us has been in the past 13 yrs... time in market is just as important

so whilst depositing every month... you lose out in fees... you win back in capital gains+dividends... take voo or qqq as example, y'all can do the maths to confirm wink.gif

obviously in a bear market... take your time...  laugh.gif
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thumbsup.gif Thanks everyone! I actually got scared because of the startup fund for opening a CIMB SG account which is S$1k, I just need some assurance to convince my inner self that i'm doing the right thing. Will definetely considering this route "MYR->(WISE)->USD" in the future if my transaction is less than $250, making multiple small transaction while paying the conversion rate doesn't really make sense as i'll be losing more in the long run. Initially i'm looking at using Rakuten solely, but then realize that they does not have the fraction share option. Now i'm slightly relief, will start my IBKR Journey with USD $1k, and use CIMB SG as my first transaction.
Lon3Rang3r00
post Mar 18 2022, 03:19 PM

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user posted image

Is there an update where there don't allow use Remittance agencies for the initial deposit?
Lon3Rang3r00
post Apr 8 2022, 11:35 AM

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I wonder how many of us waiting for the EPF withdrawal. And also curious what is the recommendation % reserved for Cash in your portfolio? or it's better to invest every penny in stock.
Lon3Rang3r00
post Apr 8 2022, 12:29 PM

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QUOTE(tadashi987 @ Apr 8 2022, 12:04 PM)
i practise keeping an emergency fund for 6 months and monthly DCA from my monthly salary

on top of that, additional source like bonus, dividend, I will keep until there is a attractive entry point
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Ya those are necessary, Emergency fund, and better if you have medical insurance to cover your medical bill (It's not a must but it's recommended). Just wondering How much % of your portfolio that you keep with your broker that is in "Cash" form? I might be wrong with the term. like e.g. You have 75% of Portfolio is in ETF, 20% on Index fund and kept 5% of it in cash that's reserved just in case if any stock on discount, you can bought it immediately without the need to transfer from your bank which may take about hours to a day (if it happen to be on the weekend or off their working hour).
Lon3Rang3r00
post Apr 12 2022, 09:55 PM

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Probably this question has been asked before. [IBKR charges $0 inactivity fee and $0.35 per transaction under Tiered]. So my question,

1) What's the sweet spot amount for DCA using IBKR on per Week/Month/Quarter.
2) Will you forgo the saving interest and parked lumpsum money in IBKR just to skim on the $2 conversion (if using CIMB SG with a plan to deposit every 3 months and then DCA accordingly every month).

This post has been edited by Lon3Rang3r00: Apr 12 2022, 10:00 PM
Lon3Rang3r00
post Apr 14 2022, 10:44 AM

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QUOTE(Davidtcf @ Apr 14 2022, 10:12 AM)
DCA doesn't have to be every month.. if you have high income maybe possible to do so (like earning RM10k a month without much commitments).

meaning of DCA is regularly invest your money into stocks or ETFs.

sweet spot depends on how much you can save and earn.. for me one time transfer of RM2-3k every 2-3 months is my sweet spot. Some people can transfer more like 5k each time. So depends on individual earning power and savings.

hence why your main source of income is actually the most important... need to keep think of ways to grow it further.

Using Robos like Stashaway, KDI Invest then easy to DCA monthly or even weekly.. but their downside is management fees every year and can't control what they invest in.
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Waiting for the EPF 10K, then i will lumpsum all (include April saving) to IBKR just to save some on the conversion fee. Then DCA accordingly for the next 3-4 months.
Lon3Rang3r00
post Apr 14 2022, 12:00 PM

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QUOTE(Davidtcf @ Apr 14 2022, 11:12 AM)
yes if it's me, I will transfer 10k in.. then slowly buy when prices drop, or just DCA once every few months.
likely prices will fluctuate due to rising interest rates. Inflation now at 8.5% at US. Fed already confirm will have 6 times interest rate hikes.

hope the Ukraine war will be over soon.. stocks will improve once there's no more war. Uncertainty only harms the stock market. Some are afraid of all out nuclear war with Russia.
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dry.gif I'm very new into investing, I don't have enough experiences to tell whether the market is good or bad now. But I'm sure that it will be OK for me as long as I'm investing now than never invest at all. The recent price fluctuating did take a toll on me, last week I'm jumping on Tesla boat when the price is $1120, happy just for a day then next thing i know it drop to $980 on Monday. Kind of lost myself not sure whether this is the First lesson of investing in the stock market = Be "Mentally Prepared".

Look like the Ukraine war won't stop anytime soon, US seems to intervened now by providing more weapons to Ukraine Military.
Lon3Rang3r00
post Apr 14 2022, 01:38 PM

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QUOTE(Davidtcf @ Apr 14 2022, 01:29 PM)
if you think stocks are tough.. wait till you see crypto prices. 24/7 trading and fluctuate even more since it relies on speculation (no fundamentals like stocks) sweat.gif
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I'm with those started Crypto last November... won't recover for awhile. That's what made me to look into investing in Real Company.
Lon3Rang3r00
post Apr 19 2022, 11:38 AM

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Curious to know, what happen if you sell a put options but don't have the money to fulfill the options when it hit the strike price? Banker/Broker will knock on your door and demand you to fulfill it? or there's a Penalty for doing so. Or you can't sell a put options if you don't have the money beforehand,
Lon3Rang3r00
post Apr 19 2022, 12:03 PM

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So Options is not an option for beginners until they have enough $$ to buy 100 shares of the shares on Cash account. So Margin account, will spend more time reading on it.
Lon3Rang3r00
post Apr 20 2022, 08:37 PM

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When you're about to transfer your money then you notice the spike in the conversion rate. I thought it's a mistake and google it... Ouch MYR depreciate.

user posted image

This post has been edited by Lon3Rang3r00: Apr 20 2022, 08:39 PM
Lon3Rang3r00
post Apr 20 2022, 10:46 PM

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QUOTE(Ramjade @ Apr 20 2022, 10:39 PM)
Of course as now us inflation very high so people expect fed to increase interest rate.
If US giving 8%pa for FD Vs your Malaysia 3%p.a you don't want to out FD in US?
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doh.gif all this while I thought inflation is making their currency weaker?

Lon3Rang3r00
post Apr 21 2022, 10:20 AM

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QUOTE(Davidtcf @ Apr 21 2022, 10:14 AM)
for me options is like trying to predict the future.. what if you use all the tools in the world and still predict wrong due to some unexpected event?
also a high entry point either need 100 shares or on margin.
for me I don't invest using margin, only what I have and ok with if meet losses. Can't afford to buy any stock or ETF x100 as well.

want simple, just stick to stocks or ETFs.

when retired one day got a lot spare cash and time, then go into options for some fun.
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I would prefer to do the trial run now then later, on cheaper but potential stocks. It's ok to lose $13,00 than to lose $400,000. (Actually not really losing, you're just buying the stock at the price you strike - the premium you earned).
Oh ya, can we do Options on Paper Account account?
Lon3Rang3r00
post Apr 21 2022, 11:15 AM

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QUOTE(AthrunIJ @ Apr 21 2022, 10:25 AM)
I feel you buddy.

Still waiting for my EPF withdrawal. I predict it will go up again...
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I can't wait, since EPF withdrawal already approved, I'll just transfer using my emergency fund to SG first, after that transfer to IBKR. The fund should allow me to continue DCA for another 3 months.
Meanwhile for Bursa, Since I'm using Rakuten Trade, just reinvest the dividend i got + topup to Rm999 to maximize de Rm7 fee.
Lon3Rang3r00
post Apr 21 2022, 12:17 PM

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QUOTE(AthrunIJ @ Apr 21 2022, 12:01 PM)
That is basically my portfolio haha.

So far so good minimal lost during covid
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sweat.gif I also keep Maybank share, reinvest when the stock price is low.
Now just need to control my itchy hand, can we set a recurring purchase where IBKR can help auto buy at market rate every end of the month?
Lon3Rang3r00
post Apr 21 2022, 02:13 PM

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QUOTE(Lon3Rang3r00 @ Apr 21 2022, 11:15 AM)
I can't wait, since EPF withdrawal already approved, I'll just transfer using my emergency fund to SG first, after that transfer to IBKR. The fund should allow me to continue DCA for another 3 months.
Meanwhile for Bursa, Since I'm using Rakuten Trade, just reinvest the dividend i got + topup to Rm999 to maximize de Rm7 fee.
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dry.gif Anyone has experience with this CIMB SG problem., suddenly it shows my Digital Token is not activate... but my apps there can still generate the code but there's no option for me to select to use Digital Token on the Bank Platform
Lon3Rang3r00
post Apr 21 2022, 10:49 PM

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QUOTE(Davidtcf @ Apr 21 2022, 09:59 PM)
Can call them during their office hours and ask. SG phone support is fast and efficient.
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Will try to call them tomorrow, hope can settle fast. I phobia talked with bank CS.. then waiting time can be very stressful.
Lon3Rang3r00
post Apr 22 2022, 08:49 AM

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QUOTE(AthrunIJ @ Apr 22 2022, 12:39 AM)
I had the same thinking until I called Maybank SG CS.

Mein gott it was so much better than local Maybank CS.
Thumbs up

Just did a wise transfer to IBKR. Will be a proud owner of VWRA soon 😆
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Next time i direct Wise transfer to IBKR.... sigh~ now waiting for the bank to open.

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