No delay in cash (sgd) transfer to increase purchasing power. I heard tiger has a fee if u use the foreign currency immediately after converting? Ibkr mthly fee is bad for ppl who seldom trade.
To be honest, is the monthly fees of US$10 charged by IB really a huge issue? Let’s compare:
Scenario 1: Assuming you are a non SC priority client and you don’t have $100k AUM in IB. All currency in US$
Buying 1 share of Amazon
Standard chartered commission - $3093 x 0.25% = $7.73. Since this is lesser than the min, you pay $10.70
IB commission = 1 share x $0.005 = $0.005. Since this is lesser than the min, you pay $1
Assuming you do:
(1) 1 purchase per year - $10.70 vs $120 ($10 platform fees a month)
(2) 12 purchases per year - $128.4 vs $120
The breakeven point is about 11 purchases
Some may say lim bei buy pennies stocks like 2000 shares of nano dimensions at $10 then how?
Standard charted commission = $20000 x 0.25% = $50
IB commission = 2000 x $0.005 = $10
Wow! Cheaper wo! Add in platform fees is $50 (SC) vs $120 (IB)
The breakeven in this case is about 2 trades
Scenario 2: Assuming you are priority customers of SC (AUM$250k) and IB (AUM $100k)
Buying 1 share of Amazon
Standard chartered commission - $3093 x 0.2% = $6.18 (no min)
IB commission = 1 share x $0.005 = $0.005. Pay $1 due to min but no platform fees.
So can see IB is cheaper already right?
If one buy 2000 shares of nano dimensions at $10
Standard charted commission = $20000 x 0.2% = $40
IB commission = 2000 x $0.005 = $10
Is IB more expensive?
To conclude:
(1) SC slightly cheaper if you do less than 12 purchase/ sales a year. To be honest quite rare unless you are a newbie
(2) If you are have AUM of $100k, just go with IB. Much cheaper
(3) Some may argue that I am a priority client at SC and I do monthly investment of $100 hence I only pay $0.2 commission. Lol! In this case, nothing to say if you DCA till like this
Happy to hear from others. Thanks