So, I've mentioned previously that SCB charges USD 13 per counter for outward share transfer of USD-denominated assets on foreign markets... which is true for the usual suspects of IWDA, VUSD, VWRD, etc. This could be useful for folks to buy all their shares on SCB, get to SCB priority banking faster for lower trading fees and no minimum commissions, and perhaps to do a transfer to IBKR to get to 100k AUM at one go instead of paying $10 monthly activity fees.
I've also chatted with Aiko O on IBKR to confirm that they have no fees for inbound transfers (and also no fees for outbound transfers of UK shares).
Since it's cheaper to transfer than to sell and buy back, I'm testing the waters with my VWRD. The needed details are here:
Standard Chartered's Share Transfer Form
Name of Counterparty: Interactive Brokers LLC [UK CREST ID: 6DKAV]
Name of Contact Person: Clearing Operations
Email:
assettransferservice@interactivebrokers.com
Telephone/Mobile Number: +41 41 726 9500
Fax: +41 41 726 9678
IB's Position Transfer Instruction
Account Management > Funding > Position Transfers
Transfer Method: International Assets
Type: Deposit
Instruction: Add New Instruction
Brokerage Firm / Bank Address Line 1: Wealth Management Operations, Standard Chartered Bank at Changi
Brokerage Firm / Bank Address Line 2: 7 Changi Business Park Crescent, Level 2
Brokerage Firm / Bank City: Singapore 486028
Brokerage Firm / Bank State/Province: Singapore
Brokerage Firm / Bank Country: Singapore
Contact Name: Eric Chow / Li Kay
Contact Email:
sgwm.assettransfer@sc.com
Contact Phone: +65 6242 5333
SC says they coordinate transfers over email and do not provide a phone number but Aiko O says this is mandatory, so I've inserted the SCB online tradinge general enquiries hotline
Contact Fax:
Left blank as it is optional, and SCB could not provide it
Yeah, I think I'll put the $10k together first. Would it be worth buying a bit of IWDA and CORP first on SC and then spend some time building up that pool of money? I foresee it will take me several months to build that up. Since time spent in the stock market seems to be key, I was thinking it might be a good idea to just get that initial foot in the stock market door first.
The US$20 fee is when Average Equity Balance is below US$2000, not US$10000.
https://www.interactivebrokers.com/en/index.php?f=4969
Since you have no need to trade on SGX, I think you should proceed with IB if you
- can put together the $2k
- can commit to at least one trade every month
- do not need to withdraw it (you should already have emergency funds set aside anyway)
On the other hand, you can buy on SCB first and transfer later, and the $26 fees to transfer 2 counters aren't that much in absolute terms, but it's still a significant percent of $2k.
My question is: what should my fresh funds investment amount for the next month be?
a.) $900 in fresh funds, and top up with the $100 dividends to be total of $1,000, or
b.) $1,000 in fresh funds as usual and then adding the $100 dividends for a total of $1,100?
I want to adopt the method that is the generally accepted way that investors use in order to generate comparable "with-dividends-reinvested" returns metrics.
Both options meet the definition of "with-dividends-reinvested" since the $100 dividends are reinvested. The amount of fresh funds you put in is outside the ambit of "with-dividends-reinvested", but the idea espoused here is to maintain the investments.
In both cases, I would still just use the total sum of money to buy the necessary ETFs to hit my target allocation ratio (i.e. whatever I'm short of), and not try and allocate the dividend to buy whichever ETF gave rise to that dividend, right?
Aye. This helps you keep you closer to your desired ratio and reduces the need to rebalance subsequently.
(Unless, of course, the $1100 is split over so many counters that the trading fees are too high)
