How to buy into S&P500 index, dow jones index and nasdaq index???

[lkjh00]

Please advise. . How to buy into S&P500 index, dow jones index and nasdaq index???

Hi newbie here, would appreciate any expert help and advise on how to buy into S&P500 index, dow jones index and nasdaq index???

What platform is preferable? Local Banks, stock brokers, online Trading?
Is there any minimum sum of money to open account? Any Minimum lot or quantity in order to purchase? In USD? Commission fee and brokerage fee? Any restrictions to worry about? Is it convenient to buy and sell? Able to transfer back from USD to SIN$ easily? What are the pros and cons?

Many many thanks

 

[BBCWatcher]

Hi newbie here, would appreciate any expert help and advise on how to buy into S&P500 index, dow jones index and nasdaq index???

First point, you shouldn't do this. It's called speculation, and I don't recommend it.

To answer your question directly, and assuming you are not a U.S. person, these funds track the three indices you mentioned:

U.S. S&P 500: CSPX
U.S. Dow Jones Industrial Average: CIND
U.S. NASDAQ 100: CNDX

These funds are listed and traded on the London Stock Exchange.

What platform is preferable? Local Banks, stock brokers, online Trading?

Generally speaking Interactive Brokers is the best, lowest cost choice. For infrequent purchases Standard Chartered sometimes has merit.

Is there any minimum sum of money to open account?

Interactive Brokers: No.
Standard Chartered: Yes, over on the bank account side.

Any Minimum lot or quantity in order to purchase?

1 share

In USD?

Yes.

Commission fee and brokerage fee?

Interactive Brokers: extremely low for both the currency conversion and brokerage commission, subject to a reasonable monthly minimum commission ("activity fee") for total account values below US$100,000.
Standard Chartered: minimum US$10.70 per trade plus currency conversion cost (about 0.4%). The minimum commission is lower for the bank's "preferred" customers.

Any restrictions to worry about?

The one that sometimes pops up is that these fund shares cannot be easily transferred in kind between brokers.

Is it convenient to buy and sell? Able to transfer back from USD to SIN$ easily? What are the pros and cons?

They're both fine. Interactive Brokers offers a choice of 5 different user interfaces, and you can choose the one that's best for you.

You should be able to open a margin account at Interactive Brokers if you insist, and they offer extremely low margin interest rates (currently 1.59% interest per year on U.S. dollars). However, see the first sentence I wrote.

Interactive Brokers offers some SIPC insurance coverage, and Standard Chartered does not.

Cash, in any currencies, held at any U.S. broker, including Interactive Brokers, is U.S. estate taxable. For non-U.S. persons the U.S. estate tax exemption is US$60,000, so if you wish to avoid U.S. estate tax then keep your total worldwide holdings of U.S. estate taxable assets (including cash, in any currencies, at U.S. brokers) at or below US$60,000. The funds listed above are not U.S. estate taxable unless held by a U.S. person (who shouldn't be holding those particular funds anyway, even if a speculator).

Another choice is to speculate on the indices you mentioned via the U.S. futures and options markets. Interactive Brokers is fantastic in supporting that other form of gambling.

 

[lkjh00]

First point, you shouldn't do this. It's called speculation, and I don't recommend it.

To answer your question directly, and assuming you are not a U.S. person, these funds track the three indices you mentioned:

U.S. S&P 500: CSPX
U.S. Dow Jones Industrial Average: CIND
U.S. NASDAQ 100: CNDX

These funds are listed and traded on the London Stock Exchange.


Generally speaking Interactive Brokers is the best, lowest cost choice. For infrequent purchases Standard Chartered sometimes has merit.


Interactive Brokers: No.
Standard Chartered: Yes, over on the bank account side.


1 share


Yes.


Interactive Brokers: extremely low for both the currency conversion and brokerage commission, subject to a reasonable monthly minimum commission ("activity fee") for total account values below US$100,000.
Standard Chartered: minimum US$10.70 per trade plus currency conversion cost (about 0.4%). The minimum commission is lower for the bank's "preferred" customers.


The one that sometimes pops up is that these fund shares cannot be easily transferred in kind between brokers.


They're both fine. Interactive Brokers offers a choice of 5 different user interfaces, and you can choose the one that's best for you.

You should be able to open a margin account at Interactive Brokers if you insist, and they offer extremely low margin interest rates (currently 1.59% interest per year on U.S. dollars). However, see the first sentence I wrote.

Interactive Brokers offers some SIPC insurance coverage, and Standard Chartered does not.

Cash, in any currencies, held at any U.S. broker, including Interactive Brokers, is U.S. estate taxable. For non-U.S. persons the U.S. estate tax exemption is US$60,000, so if you wish to avoid U.S. estate tax then keep your total worldwide holdings of U.S. estate taxable assets (including cash, in any currencies, at U.S. brokers) at or below US$60,000. The funds listed above are not U.S. estate taxable unless held by a U.S. person (who shouldn't be holding those particular funds anyway, even if a speculator).

Another choice is to speculate on the indices you mentioned via the U.S. futures and options markets. Interactive Brokers is fantastic in supporting that other form of gambling.

ERR many thanks . . Trying very hard to digest EVERYTHING now

 

[lkjh00]

Ok I maybe need a dry-run scenario and hope u can help before I put down my money!

Singapore dollar $100,000

Standard chartered:

Assuming I have $100,000 and want to invest in S&P500 index currently at 3,124.74. I go down standard chartered open a saving account, deposits in my $100,000 and open a trading account.
Instruct my stand chart broker to buy S&P500 at my desire price point and quantity. 1 share is US$3124.74, I buy 10 shares at US$31247.40. Brokerage fee USD$10.70 and currency conversion fee 0.4% at US$124.99. Upon my instruction to buy, bank will transfer my money from saving to trading account and do the necessary trade, currency conversion to USD and fee deduction. Am I correct so far?

Is there a maintenance fee with trading account with stand chart? Can I hold my 20 shares of S&P500 for more than 1 year?

Thanks

 

[kram62]

Ok I maybe need a dry-run scenario and hope u can help before I put down my money!

Singapore dollar $100,000

Standard chartered:

Assuming I have $100,000 and want to invest in S&P500 index currently at 3,124.74. I go down standard chartered open a saving account, deposits in my $100,000 and open a trading account.
Instruct my stand chart broker to buy S&P500 at my desire price point and quantity. 1 share is US$3124.74, I buy 10 shares at US$31247.40. Brokerage fee USD$10.70 and currency conversion fee 0.4% at US$124.99. Am I right so far?

No 10.70 is only the minimum commission, and applies for small orders. Given the huge investment in your example, you will be charged more commission based on the commission percentage (not sure what it is for buying on the London stock exchange at SCB though, need to check price conditions)

 

[wutawa]

Hi, i am currently invested in cspx. U can find many s&p500 etf in different markets.

Pro
1. Cspx less hassle to reinvest
2. Cspx more capital gain

Con
1. Vusd price lower (i have U$200 idling because my broker doesnt allow fractional share)
2. Vusd able to see div gain directly

 

[BBCWatcher]

....Assuming I have $100,000 and want to invest in S&P500 index currently at 3,124.74. I go down standard chartered open a saving account, deposits in my $100,000 and open a trading account.
Instruct my stand chart broker to buy S&P500 at my desire price point and quantity. 1 share is US$3124.74, I buy 10 shares at US$31247.40.

First of all, while a Standard Chartered broker might be friendly, she is friendly because if you're calling her on the phone to buy something the commission is even higher. The lowest commissions are only available with online trading.

Second, you cannot buy the index itself. You can buy a fund that tracks the index, such as CSPX for the U.S. S&P 500. Or you can trade futures and options, which are other securities that track the index. Both are speculative (or in simple terms "gambling") at least if you're not planning to retire in a U.S. dollarized country (or a country with a convertible currency firmly pegged to the U.S. dollar), which you wouldn't be if you don't have a clear right of abode in such a country.

Brokerage fee USD$10.70 and currency conversion fee 0.4% at US$124.99. Upon my instruction to buy, bank will transfer my money from saving to trading account and do the necessary trade, currency conversion to USD and fee deduction. Am I correct so far?

Kram62 is quite correct that Standard Chartered's commission is much higher on such a large amount. Interactive Brokers will have the lower commission for both currency and the fund. Make it US$100,000 (total account value), at least eventually, and there's no possible way Standard Chartered will win this particular cost competition.

Is there a maintenance fee with trading account with stand chart? Can I hold my 20 shares of S&P500 for more than 1 year?

Standard Chartered does not have a maintenance fee as such, although there's a minimum monthly balance requirement in the paired bank account to avoid a fall below fee. Neither does Interactive Brokers. Interactive Brokers has a minimum monthly commission (what they call an "activity fee") for accounts with a total value under US$100,000. At Interactive Brokers you are charged actual (low) commissions OR the activity fee, whichever is higher. Not both.

 

[beefjerky]

Btw if you do indeed buy on IB, you should search for "CSSPX" with the additional S.

 

[lkjh00]

Oh mine . . . Let me digest first

I search on many funds, futures and options that track s&p500 but all seem up and down doesn’t reflect actual movement of s&p500!

Am I missing something? Newbie here and sorry for the trouble bros.

Yes am Singaporean And regarding the max for US tax for US$60000, should I be concerned? Meaning I can’t hold more than US$60000 worth of USD or shares? Is there a calendar year for US Gov to tax non-US citizen? Many thanks

 

[reddevil0728]

Oh mine . . . Let me digest first

Maybe before you complicate yourself, why not share how much you know about investing in Singapore???

 

[moolahloolah]

i use POEMS account to by Vanguard S&P 500 "VOO". Buy it as if you buy any other equity.

Small custodian fee paid quarterly.

 

[lkjh00]

Maybe before you complicate yourself, why not share how much you know about investing in Singapore???

Well . . . Not much and not active in shares or other investment in Singapore other then a fully paid apartment and saving from pass 20 yrs working life!!

Been reading and seeing markets up and down, fluctuate a lot for the pass 6 months. With US election coming in a few months, on-going US/China Trade War, World-wide Corona Pandemic, World Oil Crisis, North Korea instability, Hong Kong Crisis, India/China Border Crisis, etc, it does seem to be an opportunity to buy when markets collapses and hold it for at least a year.

Any opinion or advise? Many thanks

 

[lkjh00]

Is this “CSPX.L”the closest I can buy to reflect current S&P500 index?

https://sg.finance.yahoo.com/quote/CSPX.L/

 

[3dfxplayer]

Oh mine . . . Let me digest first

I search on many funds, futures and options that track s&p500 but all seem up and down doesn’t reflect actual movement of s&p500!

Am I missing something? Newbie here and sorry for the trouble bros.

Yes am Singaporean And regarding the max for US tax for US$60000, should I be concerned? Meaning I can’t hold more than US$60000 worth of USD or shares? Is there a calendar year for US Gov to tax non-US citizen? Many thanks

Futures are adjusted for dividends and interest, and some funds are accumulating so the dividends are reinvested, these funds will not mirror the S&P500 tick for tick but they do track the index very closely.

You should go with CSPX or VUSD because those have a 15% WHT compared to US domiciled holdings' 30% WHT i.e for every $1 dividend thats paid out to you, 0.30 goes to the US govt.

There is no need to worry about estate taxes, none of those things apply to you if you are just buying CSPX or VUSD.

 

[elf108]

Wall of text from expert.
Open fund super Mart (fsm) instant approval via myinfo sg.
Top up money via fast to USD currency account.
Enter bid price for VOO s&p500.
1 unit currently is 287 USD.
Sit back relax.

 

[makav31i]

Wall of text from expert.
Open fund super Mart (fsm) instant approval via myinfo sg.
Top up money via fast to USD currency account.
Enter bid price for VOO s&p500.
1 unit currently is 287 USD.
Sit back relax.

If you want to DCA, VOO is available on FSM RSP which is 0.08% or minimum $1 in fees...Minimum amount to invest each month is S$50...The only advantage is FSM allow holding fractional shares for their RSP...

 

[lkjh00]

Hi newbie here, would appreciate any expert help and advise on how to buy into S&P500 index, dow jones index and nasdaq index???

What platform is preferable? Local Banks, stock brokers, online Trading?
Is there any minimum sum of money to open account? Any Minimum lot or quantity in order to purchase? In USD? Commission fee and brokerage fee? Any restrictions to worry about? Is it convenient to buy and sell? Able to transfer back from USD to SIN$ easily? What are the pros and cons?

Many many thanks

Thanks all bros for the valuable inputs and advices, need time to digest all the financial acronyms and jargons first

Wish all a happy dinner

 

[Kaypohji]

Hmm I seldom hear ppl over here recommend this.

They like to recommend just buy cspx or similar directly

Is this by fsm good ?

If you want to DCA, VOO is available on FSM RSP which is 0.08% or minimum $1 in fees...Minimum amount to invest each month is S$50...The only advantage is FSM allow holding fractional shares for their RSP...

 

[sanzhu]

Dun waste time

Buy qqq

Most solid

 

[wutawa]

Hmm I seldom hear ppl over here recommend this.

They like to recommend just buy cspx or similar directly

Is this by fsm good ?

Fsm doesnt have lse mah.