Official Shiny Things thread—Part III

[moolala]

If possible, do ask them to confirm whether GST will be payable on transactions relating to non-SG stocks on IBKR SG!

hmm any updates on this?

is the GST shown on the trade log (because I dont see any) or is it compiled each month at the end of the monthly report?

There is now an automated feature (manual transfers they don’t do anymore). Try it - it’s amazing.

i did this but in my inital account, I had some SGD. Did they automatically convert all the SGD to USD for u and were u using margin for USD?

Secondly, are you going to keep your IBLLC for flexibility? tia gong now sg residence cannot sign up for IBLLC,

which means no SPIC insurance and dunno whether they are following US SEC rules on selling order flow and other shenanigans

IBSG is basically an offshore broker not subject to US laws and regulations. I dont know if SG law is as rigorous as US laws or not on bucket shop. It just might be legal in SG

any expert on SG broker laws can clarify?

Sec school they are teaching basic budgeting and finance. Its too early to teach about stock market since they can't open an account anyway. But tertiary level, there are plenty of opportunities to learn. Even got investment clubs....

Econs is still part of Arts & Social Science - i'm sure as a Lit student you could take optional econs modules if you wanted.

Furthermore most unis, including local ones also allow students from other faculties to take optional econs modules like Money & Banking.

As for financial literacy, its just $8 for Shiny's book, or if you got no money, borrow it (and many other books about investing) from library.

Those that don't want to read can go and see their friendly insurance agent; people who are financially illiterate and too lazy to read investing books are their favourite type of customer. But there is nothing wrong with that. There is a huge financial services/advisory sector that caters for investors who don't want to DIY.

in uni can take up such mods? what's the name ah?

I go see if got open course or not

 

[cassowary18]

From what I see, FSM RSP can only buy from SG, HK and US exchanges. IWDA is unavailable as it trades on the LSE. London Stock Exchange.

The current recommendation for brokers would be Standard Chartered and Interactive Brokers.

Search around for the Google sheet calculator posted here before, that can help you break down the fees and determine which broker you should use.

General advice is 1K and below stick with SC, if above, can go for IB.

That advice was reasonable when IB didn't allow buying SG stocks. Now that they do, it may be a good idea to just stick with IB for everything.

 

[moolala]

That advice was reasonable when IB didn't allow buying SG stocks. Now that they do, it may be a good idea to just stick with IB for everything.

but IBSG doesn't have SIPC protection leh

u never know what can happen

 

[chrisloh65]

Plus IBSG is not a bank, little comfort in terms of security and safety.

but IBSG doesn't have SIPC protection leh

u never know what can happen

 

[lowveld]

i did this but in my inital account, I had some SGD. Did they automatically convert all the SGD to USD for u and were u using margin for USD?

Secondly, are you going to keep your IBLLC for flexibility? tia gong now sg residence cannot sign up for IBLLC,

which means no SPIC insurance and dunno whether they are following US SEC rules on selling order flow and other shenanigans

IBSG is basically an offshore broker not subject to US laws and regulations. I dont know if SG law is as rigorous as US laws or not on bucket shop. It just might be legal in SG

any expert on SG broker laws can clarify?


in uni can take up such mods? what's the name ah?

I go see if got open course or not

They transferred the usd and sgd over without conversion. So it’s a clean 1:1 transfer - if u had 1 usd then 1 usd gets transferred over to ibsg.

 

[moolala]

They transferred the usd and sgd over without conversion. So it’s a clean 1:1 transfer - if u had 1 usd then 1 usd gets transferred over to ibsg.

for me, they converted everything into from sgd to USD sia
wtf how to complain? I see no log no nothing of the conversion
don't even know what exchange rate they used

 

[flikmy]

There was dividend paid during that period

STI ES3 closing price:

25th March 2020 - $2.52
25th September 2020 - $2.50

Hundred bucks?

Looks a dividend of 5.9 cents paid on ex-div of 11th Aug and paid out 25th Aug.
So with div, ES3 is higher, but without, it is lower.
Though, ultimately, it is a rather disappointing performance for the STI compared to world stock or sp500.

To note, I'm still invested in STI though.

 

[chekseng80]

There is now an automated feature (manual transfers they don’t do anymore). Try it - it’s amazing.

Huh? U mean they auto convert us to ibkr sg?

 

[highsulphur]

Looks a dividend of 5.9 cents paid on ex-div of 11th Aug and paid out 25th Aug.
So with div, ES3 is higher, but without, it is lower.
Though, ultimately, it is a rather disappointing performance for the STI compared to world stock or sp500.

To note, I'm still invested in STI though.

The extreme openness and small size of our economy are our biggest disadvantages in this covid crisis. Understandably that's why our stock market is under performing compared to the larger economies who can self sustained a recovery on their own

 

[cassowary18]

but IBSG doesn't have SIPC protection leh

u never know what can happen

Well you can't sign up for IB US now, so that's a moot point. And I don't think IB SG is subject to fewer regulations than say SCB.

 

[chrisloh65]

IB is a stock broker. In the past, we had seen several stock brokers being shut down, but never a bank.
Also in the past decades we also see new relatively unknown brokers allowed to open and operate, but not a new relatively unknown bank!

Obviously a bank is so much more heavily regulated than a broker, so simple also don't understand?

Well you can't sign up for IB US now, so that's a moot point. And I don't think IB SG is subject to fewer regulations than say SCB.

 

[newjersey]

You're absolutely right! So many people here giving dumbo comments... they're really so self-absorbed and think they're hot stuff when they're actually just numb-skulls. Such a pity!

so u belong to the VHNWI club too, to pass such comments?
or are u one tier up?

let me know, cause i smell that u are probably at the L club instead.

lol

 

[kingsfall]

Hi ST, have you heard about Catherine Wood and Ark Invest?

What's your view on "actively managed" ETF such as ARKK with high expense ratio? Are they avaialble so that they can suck retail in and because no institutional investor want it or are they reliable enough that a credible pension/soverign fund (just example) would buy and hold?

What are the downside risks to be aware of such "actively managed ETF"?

Since TECH stocks are must have staples now in our growth markets, what are you guys take on tech etfs like QQQ, ARK, etc. How many % diversified are you guys in it?

 

[cre8ate]

Well you can't sign up for IB US now, so that's a moot point. And I don't think IB SG is subject to fewer regulations than say SCB.

Recently created a joint account on IBKR. Initially i thought it was on IBSG but turns out it was on IBUS when i couldn't buy stocks on SGX. Contacted IBKR and was told there is no joint account for IBSG yet. So for those who want to be on IBUS, that's one way.

 

[moolala]

Recently created a joint account on IBKR. Initially i thought it was on IBSG but turns out it was on IBUS when i couldn't buy stocks on SGX. Contacted IBKR and was told there is no joint account for IBSG yet. So for those who want to be on IBUS, that's one way.

very interesting, can u convert the joint into individual later on?

need do more paperwork?

I think ppl who really want the SIPC protection can get it this way

 

[DreamingSheep]

2. However, if the "dividends" helps in allaying your fears, then perhaps thats the right move, hence best you opt for distributing ETFs such as VWRD, VUSD, etc.

i see, of course i'm hoping for a high returns down the road.

4. I will start 20/80 AA. 20% VWRD, 80% MBH. Purpose of this fund is to finance your HDB BTO. Reinvest all proceeds asap.

Sorry to ask but what is AA? Is there any reason to go into VWRD instead of IWDA? I am not sure if i will be getting a HDB at 35 either because i'm single and i prob only can BTO for singles flat at this rate.

If that so, should i do it the normal way as ST mentions in his book? ES3 IWDA and MBH?

9. Take in other people's opinion before committing. These next four months are fantastic times to start. Lots of volatility aka crashes and fear.

Considering the covid now, as well as the US elections in nov, should i be putting my money in?

10. Be wary of possible interest rate rises in year 3 or 4. You might wish to shift some to cash especially when close to HDB purchase. The closer it gets, the close you must have your assets in cash like instruments ie SAFE as hell.

11. However, if HDB is a forgone goal. Then, I'm likely to aim 100% equity spread over next 1-2 years.

instruments and equity? I think I stick with understanding ETFs first.

 

[lowveld]

Huh? U mean they auto convert us to ibkr sg?

You’ve to trigger the process under account settings -> account transfer. The process is then automated.

 

[lowveld]

for me, they converted everything into from sgd to USD sia
wtf how to complain? I see no log no nothing of the conversion
don't even know what exchange rate they used

That’s strange. When did U do the transfer? The automated process was only introduced recently. Maybe ask CSO what happened?

 

[moolala]

That’s strange. When did U do the transfer? The automated process was only introduced recently. Maybe ask CSO what happened?

I used the "account transfer" via the account settings page. Did it on last thursday

My account was levered, meaning my USD was short(negative) while I used SGD for my levered USD. I was borrowing on margin in that sense but had SGD to back it up. (Didn't want to convert since I was waiting for the exchange rate to drop further due to unlimited QE by fed)

Personally I dont really have a big problem. Didn't check in with them since its a trivial issue since I saw that my networth/liquidation has about the same USD value as before

 

[aYu82]

Hi, may i know if it is true that there is no US withholding tax for US corporate bond ETF interest payment to foreigner?