Official Shiny Things thread—Part III

[RuiQi_91]

But from the message it seems you are trying to use all your USD cash to buy in a market order. As I already explained earlier this won't work because for market order IBKR requires some more money in case the price increases suddenly when the order is processed.

So what you should do is use a limit order. Then the requested extra cash security margin will be much smaller.

And don't try to use up all your USD, better to leave a bit for the monthly fee (like 50 USD).

Thank you for the help.

1) I have set the limit order to be 1% higher as advised by Shiny.
2) I also reduced the amount to purchase in USD from 2792 to 2750.
3) I have checked that I do not have any pending orders in the "order and trades" menu. Only filled and canceled trades.

I still receive the same error message.

"BUY 2750 USD IWDA LSEETF @53.4500 CASH AVAILABLE (SETTLED CASH): 2792.00; CASH NEEDED FOR THIS ORDER AND OTHER PENDING ORDERS: 3475.25"

Why does it require so much more cash? Buying the IWDA 1% higher should not spike up the price from 2750 to 3475.25. I am still puzzled to what the extra 725.25 USD is for.

EDIT: Edited point (3)

 

[kram62]

Thank you for the help.

1) I have set the limit order to be 1% higher as advised by Shiny.
2) I also reduced the amount to purchase in USD from 2792 to 2750.
3) I have checked that I do not have any pending orders in the "order and trades" menu. Only trades i.e. completed transactions.

I still receive the same error message.

"BUY 2750 USD IWDA LSEETF @53.4500 CASH AVAILABLE (SETTLED CASH): 2792.00; CASH NEEDED FOR THIS ORDER AND OTHER PENDING ORDERS: 3475.25"

Why does it require so much more cash? Buying the IWDA 1% higher should not spike up the price from 2750 to 3475.25. I am still puzzled to what the extra 725.25 USD is for.

Okay now it's weird. Sorry but I don't know what is happening. Usually I am able to use all my cash minus about 50 to 100 usd when buying. You're on the cash account type right? And on tiered pricing?

 

[kram62]

Thank you for the help.

1) I have set the limit order to be 1% higher as advised by Shiny.
2) I also reduced the amount to purchase in USD from 2792 to 2750.
3) I have checked that I do not have any pending orders in the "order and trades" menu. Only trades i.e. completed transactions.

I still receive the same error message.

"BUY 2750 USD IWDA LSEETF @53.4500 CASH AVAILABLE (SETTLED CASH): 2792.00; CASH NEEDED FOR THIS ORDER AND OTHER PENDING ORDERS: 3475.25"

Why does it require so much more cash? Buying the IWDA 1% higher should not spike up the price from 2750 to 3475.25. I am still puzzled to what the extra 725.25 USD is for.

Oh wait are you trying to buy based on a cash amount?

Maybe try buying based on a number of units (that's about 51 or 52 units of IWDA (2792/53.45 rounded down or 2750/53.45 rounded down))

 

[Duhlazer]

any idea which trading platforms offers SWRD? I'm using OCBC and it only seems to have IWDA.. I'd prefer SWRD for the lower expense ratio. Not sure if it's worth it starting a separate trading account just for SWRD, or just go with IWDA

 

[RuiQi_91]

Oh wait are you trying to buy based on a cash amount?

Maybe try buying based on a number of units (that's about 51 or 52 units of IWDA (2792/53.45 rounded down or 2750/53.45 rounded down))

Thank you for your patience and help That has worked. Curious why the error message popped up when trying to purchase using SGD. Must I have enabled fractional shares before purchasing using USD?

Also, what do the numbers 5 and 2.85 mean in the picture mean? Are these the commission fees? https://imgur.com/N4SDrk9

 

[kram62]

Thank you for your patience and help That has worked. Curious why the error message popped up when trying to purchase using SGD. Must I have enabled fractional shares before purchasing using USD?

Also, what do the numbers 5 and 2.85 mean in the picture mean? Are these the commission fees? https://imgur.com/N4SDrk9

Yes, 2.85 SGD (= ~2 USD) for the forex conversion and 5 USD for the ETF trade. You seem to be on the fixed pricing mode. You should change it to tiered to save on commissions (it would have been 1.91 USD fee if you were on tiered pricing mode)

This can be changed on the account management pages (a bit harder to find, but you can Google it to get help)

 

[RuiQi_91]

Yes, 2.85 SGD (= ~2 USD) for the forex conversion and 5 USD for the ETF trade. You seem to be on the fixed pricing mode. You should change it to tiered to save on commissions (it would have been 1.91 USD fee if you were on tiered pricing mode)

This can be changed on the account management pages (a bit harder to find, but you can Google it to get help)

Wow I was not aware of that. I knew the pricing was cheap through reading the shiny things threads but was not aware that I had to manually swap to a different pricing mode. I have changed it now but it will only start to apply tomorrow.

I need to do a lot more reading and hope that I won't make costly mistakes in the future. Thank you

 

[cassowary18]

any idea which trading platforms offers SWRD? I'm using OCBC and it only seems to have IWDA.. I'd prefer SWRD for the lower expense ratio. Not sure if it's worth it starting a separate trading account just for SWRD, or just go with IWDA

Any broker that has access to LSE will have access to SWRD. And why are you using OCBC as your broker? It's expensive as hell to buy foreign stocks (and to be fair, local stocks too).

 

[Shiny Things]

Thank you for your patience and help That has worked. Curious why the error message popped up when trying to purchase using SGD. Must I have enabled fractional shares before purchasing using USD?

I suspect what happened was either:

1) You tried to purchase IWDA (which is traded in USD) before your SGD-to-USD conversion had settled; or,

2) You tried to purchase using a market order, and IBKR assumed a worst-case scenario for the price you’d get filled at. This is why you want to use limit orders, and specify the number of shares to buy rather than the dollar value you want to spend.

 

[Torenoo]

Do we have the change the settings as well to allow for Dividends Reinvestment for IWDA as well? Thanks guys

 

[BBCWatcher]

Do we have the change the settings as well to allow for Dividends Reinvestment for IWDA as well?

IWDA doesn’t distribute dividends. It already has dividend reinvestment: it’s an accumulating fund.

Even if you have something that distributes dividends, and even if dividend reinvestment is an available option, you probably don’t want it unless the commission is zero. Just lump your dividends into your next monthly purchase so that you pay only one commission.

 

[Torenoo]

Thanks BBC, always helpful as ever.
so should just leave it unchanged at "no" under default settings yeah?

we dont have to do anything for IWDA re-investment, IWDA does in on their end with no changes to the number of our purchased lots, we just see in in terms of the value of the ETF going slightly higher on its own right ?

Have a great day!

 

[Duhlazer]

Any broker that has access to LSE will have access to SWRD. And why are you using OCBC as your broker? It's expensive as hell to buy foreign stocks (and to be fair, local stocks too).

Hmmm I'm currently working there so I just opened an account there.. I can't seem to find it though.. I'll ask around, thanks

 

[BBCWatcher]

so should just leave it unchanged at "no" under default settings yeah?

I don’t think that setting even applies to anything London listed. For the reason I described, leave it alone.

we dont have to do anything for IWDA re-investment, IWDA does in on their end with no changes to the number of our purchased lots, we just see in in terms of the value of the ETF going slightly higher on its own right ?

The fund managers simply buy more shares of stock with the net dividends, exactly what you would do presumably. Over time their additional share purchases should increase the value of each fund share, yes, although of course that’ll depend on the value of the increasing shareholdings themselves — which in turn depends in part on dividend distributions, also a variable.

 

[kennycancan]

Hi Shiny Things, I have finished reading the book Rich by Retirement. Any further book recommendations for someone who's interested in pursuing a career in the asset management industry?

Sent from Google PIXEL 3 XL using GAGT

 

[cassowary18]

Hmmm I'm currently working there so I just opened an account there.. I can't seem to find it though.. I'll ask around, thanks

Hmm, if you get a preferential rate from working there, then carry on I guess. Otherwise Standard Chartered (if investing less than $1K per month) or Interactive Brokers (if investing more than $1K per month) is what most people recommend.

 

[Duhlazer]

Hmm, if you get a preferential rate from working there, then carry on I guess. Otherwise Standard Chartered (if investing less than $1K per month) or Interactive Brokers (if investing more than $1K per month) is what most people recommend.

Ok thanks, will check those out

 

[limster]

Hmmm I'm currently working there so I just opened an account there.. I can't seem to find it though.. I'll ask around, thanks

Even OCBC employee must come to MM/SSI and ask about how to find stocks in iOCBC website. MM/SSI Reputation +100. If you are OCBC VP and above, MM/SSI Reputation +1000

 

[sgdividends]

Just a thought,what if people distrust USD and it stops becoming the reserve currency in future, how will this impact stock assets denominated in USD?

 

[BBCWatcher]

Just a thought,what if people distrust USD and it stops becoming the reserve currency in future, how will this impact stock assets denominated in USD?

The predicate is most unlikely, but the answer is no direct impact. Why should a quotation currency of a globally traded, non-currency asset matter as long as the currency is convertible? Do you (or does anyone else) have any problem buying and selling stocks and other assets that happen to be quoted in Hong Kong dollars, British pounds, euro, and Japanese yen?