Interactive Brokers (IB) or Standard Chartered (SC) for investing internationally?

[Shiny Things]

I think IB charges a min of 20 usd per month for their services from how I read it

Not correct. The charge is ten bucks a month, but that gets waived if you do more than $30 of brokerage in any given month.

 

[SpeedingBullet]

Hahahaha the lengths we go to to legally avoid taxes.

 

[Sutcliffe]

http://ibkb.interactivebrokers.com/article/833

This is where I get my info.
In cases 2 n 3 (from the table I linked), the total charge is $20(monthly commission+minimum activity fee+data fee)

Correct me if I am wrong. I am still investigating this IB platform.
I am concerned about this cause I dun think I can generate $10 commission every month to cancel out the min activity fee

 

[Shiny Things]

http://ibkb.interactivebrokers.com/article/833

This is where I get my info.
In cases 2 n 3 (from the table I linked), the total charge is $20(monthly commission+minimum activity fee+data fee)

Correct me if I am wrong. I am still investigating this IB platform.
I am concerned about this cause I dun think I can generate $10 commission every month to cancel out the min activity fee

Yeah, sorry - you're right, I was wrong.

Basically you'll pay $10 per month, minus whatever brokerage you pay - so if you do $2 in brokerage in a month, you'll pay $8 in minimum activity fees for that month. You do $6 in brokerage, you pay $4 in activity fees; you do $200, you pay zero, etc etc etc.

The US market data package is over and above that - that gets rebated if you do $30/mo commissions.

This does make IB a bit worse than Stanchart if you're buying and holding the SPY, but it doesn't change my recommendation: IB for active traders and large accounts; Stanchart for everyone else.

 

[Asphodeli]

Hate to bump old threads, but if I don't trade regularly, is still SCB the best choice so far?

 

[Shiny Things]

Hate to bump old threads, but if I don't trade regularly, is still SCB the best choice so far?

Yep, though with a twist because IBKR now waives its fees in certain cases, and they've cut the minimum market data fees.

The rule now is "Stanchart if you have less than $100k USD; IBKR if you have more than $100k USD".

 

[lasnoblur]

Yep, though with a twist because IBKR now waives its fees in certain cases, and they've cut the minimum market data fees.

The rule now is "Stanchart if you have less than $100k USD; IBKR if you have more than $100k USD".

SHiny Things,

Actually still can use IB ba, just maintain 10 minimum trades (1 minimum trade = 1 usd) per month.

 

[lasnoblur]

Unless buy and hold type then need 100k.

quoted from IB the following:
Waive monthly inactivity fee for single accounts
The first three full calendar months
or
Accounts whose Net Liquidation Value >= USD 100,000 (or non-USD equivalent)

 

[Kyo19]

so VWRL and VWRD is LSE equivalent of VT .Does anyone know which etf in LSE is equivalent to VTI and SPY ?

 

[Shiny Things]

so VWRL and VWRD is LSE equivalent of VT .Does anyone know which etf in LSE is equivalent to VTI and SPY ?

Here's the Vanguard list. Short answer:
* VTI: there isn't one
* SPY: VUSD (USD-denominated; you want this one) or VUSA (GBP-denominated).

 

[calvinchin]

Bumped into this thread as am considering opening an online account to trade on UK market infrequently.

Considering SCB and others. Currently with Etrade but as my account is currently above the threshold where estate taxes will matter in an uneventful demise, leaning heavily towards SCB and IB is also US-domiciled like Etrade.

Any thoughts on this?

Am in the midst of making a large transfer from my etrade account in USD. If I am considering a large purchase of VWRD in USD, can it be deposited in USD with SCB trading account? I don't wish to lose in currency conversions. Thanks for your insights folks.

 

[matilda123]

Yep, though with a twist because IBKR now waives its fees in certain cases, and they've cut the minimum market data fees.

The rule now is "Stanchart if you have less than $100k USD; IBKR if you have more than $100k USD".

Hi Shiny Things,

1) if I intend to dca the vwrd (and/or other international etfs) with a monthly investment of ~2000 and holdings are <$100k..the best choice will be to use SCB?

2) Will the currency exchange incur a significant penalty? If so, what would you suggest is the best way around it?

Appreciate your advice.

M

 

[Shiny Things]

Hi Shiny Things,

1) if I intend to dca the vwrd (and/or other international etfs) with a monthly investment of ~2000 and holdings are <$100k..the best choice will be to use SCB?

Yes, though at $25k a year it won't be long until you're through the IBKR line. Use Stanchart for now, and re-evaluate in a couple of years.

2) Will the currency exchange incur a significant penalty? If so, what would you suggest is the best way around it?

Yes (well, "significant" means 0.5%-1%), and there isn't really a way around it. I mean, I don't know if there's a way you can take USD from outside Stanchart and transfer it into the USD settlement account at Stanchart - if there is that might be your end-run around the Stanchart FX rates - but that's all I can think of.

 

[matilda123]

Yes, though at $25k a year it won't be long until you're through the IBKR line. Use Stanchart for now, and re-evaluate in a couple of years.



Yes (well, "significant" means 0.5%-1%), and there isn't really a way around it. I mean, I don't know if there's a way you can take USD from outside Stanchart and transfer it into the USD settlement account at Stanchart - if there is that might be your end-run around the Stanchart FX rates - but that's all I can think of.

Thanks. Have almost enough confidence to start my dca strategy....just that both vwrd and sti are at their all time high which makes me a little nervous.

Should I wait for a correction? Or will that be contrary to the emotional element a dca strategy aims to eliminate?

 

[flikmy]

Yes (well, "significant" means 0.5%-1%), and there isn't really a way around it. I mean, I don't know if there's a way you can take USD from outside Stanchart and transfer it into the USD settlement account at Stanchart - if there is that might be your end-run around the Stanchart FX rates - but that's all I can think of.

There is a way, which is to open a USD savings account with SCB and then TT the USD from another account in. This only works if you're able to get USD externally at a better rate than SCB's and including the TT fees still make it cheaper than doing the FX via SCB. Once the USD account is created, you can transfer the USD to the SCB USD trading account.

Another note, the USD account that you open on SCB might have a min balance of USD 2000 else you will get charged a fee.

 

[matilda123]

There is a way, which is to open a USD savings account with SCB and then TT the USD from another account in. This only works if you're able to get USD externally at a better rate than SCB's and including the TT fees still make it cheaper than doing the FX via SCB. Once the USD account is created, you can transfer the USD to the SCB USD trading account.

Another note, the USD account that you open on SCB might have a min balance of USD 2000 else you will get charged a fee.

Ah yes I have heard rumors of such a workaround. Any idea how much it will cost to do so? Fees etc

 

[flikmy]

Ah yes I have heard rumors of such a workaround. Any idea how much it will cost to do so? Fees etc

Think TT is about SGD 30 and then the FX transaction costs at your own bank. You'll probably need to check with your own bank as they can differ quite drastically.

 

[Shiny Things]

Thanks. Have almost enough confidence to start my dca strategy....just that both vwrd and sti are at their all time high which makes me a little nervous.

Should I wait for a correction? Or will that be contrary to the emotional element a dca strategy aims to eliminate?

Here's a thing, though: all-time highs tend to be followed by more all-time highs.

You don't know when a correction's going to come. It might be tomorrow; it might be a year from now; and in that time you might have missed out on some substantial gains. The best bet is to start now.