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Interactive Brokers (IBKR), IBKR users, welcome!
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xenonarc99
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 May 30 2024, 11:03 PM
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Getting Started
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Hello guys, I'm looking to buy some Ireland-domiciled ETFs on IBKR.
I have changed the pricing structure to tiered.
But when I'm just prodding around in the app using the calculator icon, the sum showed is more than $1.9 and increases with the size of the investment amount. Can somebody tell me how much they acutally charge and how much should I invest to make the most out of it?
Is a monthly DCA of around RM1,000 - RM1,500 makes the fees worthwhile?
Thank you!
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xenonarc99
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May 31 2024, 11:57 AM
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Getting Started
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QUOTE(TOS @ May 30 2024, 11:14 PM) Hello, you should ask in the IBKR thread over here https://forum.lowyat.net/topic/4843925/+7700With the T+1 settlement in US onshore market and thus the mismatch with UK/Europe's T+2 settlement, it's best to stick to onshore US market ETFs like VOO, QQQ etc. for peace of mind... I don't buy using the app so can't comment. But if you use the Trader Workstation software, you get to choose which exchange to route your orders to. It's generally advised to choose ECNs like Turquoise, CHI-X or BATS Europe as their charges are cheaper compared to the original electronic boards/exchanges whose stocks are listed. DCA-wise, let me ping Medufsaid. Thanks for your explanation! |
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xenonarc99
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May 31 2024, 12:08 PM
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Getting Started
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QUOTE(Medufsaid @ May 31 2024, 08:23 AM) my strategy is to buy USA etfs using recurring investment, then once a year, liquidate that ETF and buy CSPX | Month | Action | Fees | | Jan | buy USA etf | $0.35 | | Feb | buy USA etf | $0.35 | | Mar | buy USA etf | $0.35 + $0.34 (34 cents because your money in USA etf so additional 15% deduction) | | Apr | buy USA etf | $0.35 | | May | buy USA etf | $0.35 | | Jun | buy USA etf | $0.35 + $0.68 (you have twice as much money now) | | Jul | buy USA etf | $0.35 | | Aug | buy USA etf | $0.35 | | Sep | buy USA etf | $0.35 + $1.02 | | Oct | buy USA etf | $0.35 | | Nov | buy USA etf | $0.35 |
| Dec |
- buy USA etf
- sell USA etf & buy LSE etf (we'll do double work to utilise the free conversion fees of recurring investment)
| | buying purely LSE will cost you $20.40 yearly. the difference is only $11.90 or RM55.93. use this to calculate in excel | | A | B | C | | 1 | Amount | Tiered | Fixed | | 2 | <<Enter your amount here>> | =min(max(1.7, A2 * 0.0005),39)+max(0.13, A2 * 0.000045)+0.08 | =max(4, A2 * 0.0005) |
Thanks for the informative explanation! Sorry I couldn't understand: 1. "+$0.34, + $0.68", which I understand to be related to dividend, but why the specific number $0.34? " 2. "utilise the free conversion fees of recurring investment". Are you referring to currency conversion fee? Thank you for your time! |
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xenonarc99
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May 31 2024, 02:34 PM
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Getting Started
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QUOTE(Medufsaid @ May 31 2024, 12:53 PM)
- every 3 months, you have fresh deposits into $IVV worth RM3,000. that's $637.21
- $637.21 will buy you 1.2129 shares of $IVV
- assuming dividend of $1.90 per share that's $2.304 in dividend https://www.nasdaq.com/market-activity/etf/...ividend-history
- 15% of $2.304 is $0.345. this is the extra amt you pay bcos you are in USA etf with 30% WHT
after 6 months you have RM6k, 9 months RM9k and so onyes Thank you for your explanation. Assuming a monthly investment of RM1,000 (~$212), I can't buy a whole share of IVV, and for fractional shares, their maximum charge is 1%, does that mean that I have to pay $2.12 instead of $0.35? |
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