ETF cheap commisions

[mmchaisi]

How much are the commissions for buying ETF? best broker?
Thanks.

 

[Shiny Things]

How much are the commissions for buying ETF? best broker?
Thanks.

Same as the commissions for buying any other stock, mostly (except for the clowns at Fundsupermart, who charge higher fees for ETFs to offset the cannibalisation of their phat margins on unit trusts. Idiots).

Anyway, depends on which country the ETFs are listed in, but generally Interactive Brokers is going to be your best bet for anything outside Singapore. Which country are you after, and what sort of volumes are you talking about?

 

[mmchaisi]

Same as the commissions for buying any other stock, mostly (except for the clowns at Fundsupermart, who charge higher fees for ETFs to offset the cannibalisation of their phat margins on unit trusts. Idiots).

Anyway, depends on which country the ETFs are listed in, but generally Interactive Brokers is going to be your best bet for anything outside Singapore. Which country are you after, and what sort of volumes are you talking about?

Thanks for your reply, probably go with IB as I won't be dripping in regularly.

Another question, who owns the stocks in the ETF? Surely buying an ETF or any fund poses greater risk than buying single company stocks.

What happens if the ETF fund manager goes bust?

What happens if the custodian broker holding your ETF goes bust?

 

[Shiny Things]

Thanks for your reply, probably go with IB as I won't be dripping in regularly.

Another question, who owns the stocks in the ETF? Surely buying an ETF or any fund poses greater risk than buying single company stocks.

What happens if the ETF fund manager goes bust?

What happens if the custodian broker holding your ETF goes bust?

You'd be surprised how often we get this one. Frankly, I'm surprised how often we get this one, given that the answer is "it's not a problem".

Here's the scoop.

Holding your stocks at a custodian broker is exactly the same as holding cash at a bank - if anything, it's even safer than cash in the bank, because brokers are required to hold their clients' assets in a segregated account. (If you're trading on margin, this answer is slightly different, but let's assume you're not using any margin loans.)

If the broker goes out of business, usually what happens is that another broker buys the old broker's book of business, and everything, including your stocks and your cash, gets transferred over to the new broker.

US brokers, like Interactive, have insurance as well - so even if there's malfeasance, the insurer will cover the losses to client accounts.

If the ETF fund manager goes out of business, one of two things will happen: either the ETF will sell all its holdings, wind up, and hand you back the cash equivalent of your holdings; or the ETF management will get transferred to another fund manager, and everything will truck on as if nothing had happened.

 

[Perisher]

I'm surprised how patient you are in answering the same question repeatedly...

 

[mmchaisi]

You'd be surprised how often we get this one. Frankly, I'm surprised how often we get this one, given that the answer is "it's not a problem".

Here's the scoop.

Holding your stocks at a custodian broker is exactly the same as holding cash at a bank - if anything, it's even safer than cash in the bank, because brokers are required to hold their clients' assets in a segregated account. (If you're trading on margin, this answer is slightly different, but let's assume you're not using any margin loans.)

If the broker goes out of business, usually what happens is that another broker buys the old broker's book of business, and everything, including your stocks and your cash, gets transferred over to the new broker.

US brokers, like Interactive, have insurance as well - so even if there's malfeasance, the insurer will cover the losses to client accounts.

If the ETF fund manager goes out of business, one of two things will happen: either the ETF will sell all its holdings, wind up, and hand you back the cash equivalent of your holdings; or the ETF management will get transferred to another fund manager, and everything will truck on as if nothing had happened.

thanks for your reply, and your patience. google failed to come up with satisfactory answer, hwz search sucks and couldn’t find it in your book, or missed it.