Low cost entry strategies to stock investing

Recently I did a big revamp to my portfolio. The idea stems from the way investment linked plans work – dollar cost averaging. While there is a couple of brokerage offering single market monthly investment programs, there is also another offering multi market plans. While I am not going to do a comparison, I wish to highlight the importance of dollar cost averaging even more.

Being a Super small fry in investing – yes, I’m not a finance blogger. I write what I please. So here is my lay down of what I view as sustainable ways to investing locally and across the horizon.

Using Cash for investing:

  • Singapore – Maybank KE
  • Thailand – Maybank KE
  • USA – Maybank KE
  • Malaysia – Maybank KE

Cost to invest is 1% or $1 min per trade. There is ongoing custody fee of S$2 per counter per month. Waived with 6 trades per quarter.

  • Hong Kong – HSBC HK

At time of writing the cost to invest is waived along with other fees and taxes. However, there is a fixed HKD30 custody fee payable monthly.

The pitfalls?

Every too good to be true plans has its pitfalls. Just like buying insurance, there is the early exit fees that goes lower with the years. While being on monthly investment plans provides you lower entry fees, be prepared to hold it long term. Some fees to consider is the monthly custody fees and dividend payment fees. These could eat up the cost of investment in the Long term – unless you are prepared to keep buying and holding for a Long term.

How do I manage it?

For myself, I buy into 2 counters on KE monthly investment plan to skip the custody fees. While investing monthly in HK for the zero brokerage fees.

For Malaysia stocks that I buy into, I would usually buy them directly from Bursa Malaysia – not using Maybank KE. The brokerage fees way cheaper to purchase directly from Maybank Invest bank Malaysia at RM8 per trade – of course with at least RM1000 to effect a higher dollar cost averaging. Another reason being for Bursa Malaysia, each account to link to only one agent bank, unlike the SG CDP where all you need is 1 account and you can trade shares and bonds from any brokerage or financial institution that offers it (except for custody accounts).

Hope this information helps when choosing what to invest as the markets turns bear soon.


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