Interactive Brokers - SGD now available for funding

Status
Not open for further replies.

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,119
Reaction score
3,014
If im buying VTI through Interactive Brokers, as a Singaporean how does the taxation work-out for me?
Not well. Dividends will be subject to 30% tax withholding, and the whole fund is subject to the U.S. estate tax.

I read in bogleheads to buy it from a non-taxable account? From the US context how does this translate to Singapore?
It doesn't. U.S. tax advantaged accounts are not available to non-U.S. persons, with rare/esoteric exceptions that don't apply here.

VUSA and CSPX, traded on the London Stock Exchange, are pretty similar. They're both U.S. S&P 500 stock index funds, so they're not quite as broad across U.S. listed stocks as VTI is, but they're the lion's share of that. VUSA and CSPX pay (at the fund level; you don't worry about it) a 15% tax on dividends, and they are not subject to the U.S. estate tax.

....But why do you want only U.S. listed stocks? IWDA/SWDA or VWRL/VWRD are global stock index funds, including U.S. listed stocks.
 

kyrogue

Junior Member
Joined
Oct 14, 2008
Messages
87
Reaction score
0
Not well. Dividends will be subject to 30% tax withholding, and the whole fund is subject to the U.S. estate tax.


It doesn't. U.S. tax advantaged accounts are not available to non-U.S. persons, with rare/esoteric exceptions that don't apply here.

VUSA and CSPX, traded on the London Stock Exchange, are pretty similar. They're both U.S. S&P 500 stock index funds, so they're not quite as broad across U.S. listed stocks as VTI is, but they're the lion's share of that. VUSA and CSPX pay (at the fund level; you don't worry about it) a 15% tax on dividends, and they are not subject to the U.S. estate tax.

....But why do you want only U.S. listed stocks? IWDA/SWDA or VWRL/VWRD are global stock index funds, including U.S. listed stocks.

Correct me if im wrong,

So for VUSA and CSPX compared to VTI, the first two only track SPY 500?, VTI has more tracking across small and mid cap.

for IWDA/SWDA/VWRL/VWRD are world indexes, looking at the performance so far, US only performed better, however would be a risk for me if US tanks.

However if im looking at a more tax-efficient ETF, it would be better to go for either VUSA,CSPX(US) or IWDA/SWDA/VWRL/VWRD(world) instead of VTI is that right?

And the main difference between your mentioned etf is the way they distribute dividend(distributed, and reinvested?), and from different company, is that right
 

Wishdom

Arch-Supremacy Member
Joined
Sep 15, 2014
Messages
16,788
Reaction score
1,000
HeOkvbpl.jpg

Can anybody advise why there was this auto trade? I thought I had positive cash balances(albeit very low)..

Is this for the monthly fee? Auto trade happened on 4 nov. My last buy-in was around 26(?) Oct.

Sent from Ilovennp using GAGT
 
Last edited:

hyperbole

Master Member
Joined
Oct 10, 2004
Messages
3,672
Reaction score
89
HeOkvbpl.jpg

Can anybody advise why there was this auto trade? I thought I had positive cash balances(albeit very low)..

Is this for the monthly fee? Auto trade happened on 4 nov. My last buy-in was around 26(?) Oct.

Sent from Ilovennp using GAGT

Probably their activity fee which they usually deduct in base currency. So if you don't have enough sgd they will auto convert for you
 

crystalnox

Supremacy Member
Joined
Feb 2, 2006
Messages
7,890
Reaction score
1,673
HeOkvbpl.jpg

Can anybody advise why there was this auto trade? I thought I had positive cash balances(albeit very low)..

Is this for the monthly fee? Auto trade happened on 4 nov. My last buy-in was around 26(?) Oct.

Sent from Ilovennp using GAGT
Not enough SGD for monthly fee. I also kena a few times, but I think the conversion is free :D
 

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
20,119
Reaction score
3,014
So for VUSA and CSPX compared to VTI, the first two only track SPY 500?, VTI has more tracking across small and mid cap.
Yes, exactly as I wrote. VUSA and CSPX hold the 505 largest U.S. listed stocks, and VTI holds the 3,680 largest U.S. listed stocks. That seems like a big difference, but it's not big in terms of market capitalization. The small stocks are still collectively small, and if any of them become big enough, they pop into the S&P 500.

for IWDA/SWDA/VWRL/VWRD are world indexes, looking at the performance so far, US only performed better, however would be a risk for me if US tanks.
While investors have perhaps had their patience tested lately with non-U.S. listed stocks, I still think it's a good idea to maintain reasonable global diversification.

However if im looking at a more tax-efficient ETF, it would be better to go for either VUSA,CSPX(US) or IWDA/SWDA/VWRL/VWRD(world) instead of VTI is that right?
Right. VTI is subject to a higher dividend tax rate (30%) and to the U.S. estate tax. The other funds you've listed are not.

And the main difference between your mentioned etf is the way they distribute dividend(distributed, and reinvested?), and from different company, is that right
Some funds are "accumulating," and some are "distributing." That simply refers to what the fund managers do with the dividends. Accumulating funds automatically reinvested dividends to buy more shares for the fund. Distributing funds just pay out the dividends to shareholders.
 

Lex1989

Banned
Joined
Nov 15, 2008
Messages
19,906
Reaction score
2,502
MF.

Did a total of 2 transfer waited 2 weeks. Both rejected.

Bloody hell gonna close account already.

P.S. its not rejected by the bank, its rejected by IB.

Bitch
 

MikeDirnt78

High Supremacy Member
Joined
Jun 16, 2002
Messages
47,621
Reaction score
8,163
MF.

Did a total of 2 transfer waited 2 weeks. Both rejected.

Bloody hell gonna close account already.

P.S. its not rejected by the bank, its rejected by IB.

Bitch

Something must be wrong with your account which you probably didn't tell us.

IB must have a very good reason on why it is rejected.
 

limster

Arch-Supremacy Member
Joined
Oct 31, 2000
Messages
11,419
Reaction score
2,431
Something must be wrong with your account which you probably didn't tell us.

IB must have a very good reason on why it is rejected.

I have not seen anyone in MM/SSI to have his funds rejected by IB. This guy is the first, so there must really be something wrong with his account, or maybe his nationality.. North Korea or some other country with US sanctions.

The simplest explanation to funds rejected is account number entered wrongly. But I suppose he had checked carefully since he sent twice... if after checking twice he still can key in wrong account number then maybe IB is not a suitable trading platform for him.
 

MikeDirnt78

High Supremacy Member
Joined
Jun 16, 2002
Messages
47,621
Reaction score
8,163
I have not seen anyone in MM/SSI to have his funds rejected by IB. This guy is the first, so there must really be something wrong with his account, or maybe his nationality.. North Korea or some other country with US sanctions.

The simplest explanation to funds rejected is account number entered wrongly. But I suppose he had checked carefully since he sent twice... if after checking twice he still can key in wrong account number then maybe IB is not a suitable trading platform for him.

I will be more worried if a seasoned or regular user had his funds withdrawal rejected.

The best way forward is to talk to IB and ask why rejected.
 

hwmook

Arch-Supremacy Member
Joined
Dec 12, 2002
Messages
24,410
Reaction score
1,126
MF.

Did a total of 2 transfer waited 2 weeks. Both rejected.

Bloody hell gonna close account already.

P.S. its not rejected by the bank, its rejected by IB.

Bitch

I just did a withdrawal last week and got the money into my bank account yesterday. You probably did something wrong.
 

Lex1989

Banned
Joined
Nov 15, 2008
Messages
19,906
Reaction score
2,502
I just did a withdrawal last week and got the money into my bank account yesterday. You probably did something wrong.

I tried the ACH/GIRO function twice. Bloody took a week to process for each transaction.

Today angry, use the wire function sua.

Lets see. Another week to process? Diu nia sing
 

limster

Arch-Supremacy Member
Joined
Oct 31, 2000
Messages
11,419
Reaction score
2,431
I just did a withdrawal last week and got the money into my bank account yesterday. You probably did something wrong.

I just did a withdrawal in GBP from IB to my UK bank account. It was same day transfer with zero charges.

I'm pretty sure he did something wrong. Could be something as basic as trying to withdraw everything but not leaving enough money to pay for the transfer fee (IB only one transfer each month is free, so if you have already transferred, need to leave some money behind to pay for the transfer...)
 

MikeDirnt78

High Supremacy Member
Joined
Jun 16, 2002
Messages
47,621
Reaction score
8,163
Yup mine was same day transfer for SGD.

I think IB will reject if you try to withdraw all the money.
 

Lex1989

Banned
Joined
Nov 15, 2008
Messages
19,906
Reaction score
2,502
I just did a withdrawal in GBP from IB to my UK bank account. It was same day transfer with zero charges.

I'm pretty sure he did something wrong. Could be something as basic as trying to withdraw everything but not leaving enough money to pay for the transfer fee (IB only one transfer each month is free, so if you have already transferred, need to leave some money behind to pay for the transfer...)

See you are not telling the whole story. I thought you just opened this IB account if I recall correctly ?

To close an account, you must do this

https://www.interactivebrokers.com/en/software/am/am/manageaccount/howtocloseyouraccount.htm

Did wired this morning.

Received S$15.00 less then what i have transfer. Done.

Tonight i login IB follow and close account.

I hold this account for quite sometime already. Very inactive. Decided to cash out
 

MikeDirnt78

High Supremacy Member
Joined
Jun 16, 2002
Messages
47,621
Reaction score
8,163
Did wired this morning.

Received S$15.00 less then what i have transfer. Done.

Tonight i login IB follow and close account.

I hold this account for quite sometime already. Very inactive. Decided to cash out

You held for some time but only recently you tried to withdraw?

Weird you got a $15 charge. I have withdrawn more than 10 times.

Not a single charge for the 1st withdrawal of the month. Your charge must be the 2nd wire for the month.
 

Lex1989

Banned
Joined
Nov 15, 2008
Messages
19,906
Reaction score
2,502
You held for some time but only recently you tried to withdraw?

Weird you got a $15 charge. I have withdrawn more than 10 times.

Not a single charge for the 1st withdrawal of the month. Your charge must be the 2nd wire for the month.

I never used the wire before. My first ever time.

Only tried GIRO option twice and failed.

Forget it, gone for good!
 

Lex1989

Banned
Joined
Nov 15, 2008
Messages
19,906
Reaction score
2,502
Create new bank information on the Funding > Fund Transfers screen, then return to this screen to close your account. We will issue a withdrawal based on your saved bank information

Funding > Fund Transfer where can i find? No option to do account closure leh.

Lousy!
 
Status
Not open for further replies.
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Community Guidelines and Standards, Terms of Service and Member T&Cs for more information.
Top