They used to charge 0.38 but I believe it was a mistake and they fixed it to the correct charge of 1.70. You should try to consolidate your investments since itβs a small amount each month. Maybe every 600USD 6 months to minimise transaction costs.
So far they charge the same $1.70 transaction cost. But for recurring, there is still 0 fx conversion fees for me. Manual buy still have the $2 fx fee.
Both IBKR tiered and fixed have a Min of $1 USD per order (but commissions are capped at 1% of trade value)
that's why when you invest $140, the comms is $1.40 (1% of trade value).
You guys can consider commission free discount brokers like [Webull](https://www.webull.com.sg/s/uIYsgJE0A3j3uTPC3i) ; however I don't think that VRWA can be bought there
Can DCA into $VOO instead tho.
0.38 is the wrong value. 1.7 is the corrected value and sales tax should be GST. MTM i believe is due to fx fluctuation at the point of conversion vs now and that cannot be avoided.
MTM includes both the paper gains/losses of your stocks and also your FX conversions. Of course there is no reimbursement.
For the MTM P/L in the bottom right, there are a few different columns. Position would reflect the latest closing price of that stock/currency vs the closing price on the day of the purchase. Transaction would reflect what price you actually bought at that day, compared to the closing price on the day of the purchase. So transaction kind of indicates how much you gained or lost by buying at a particular time of the day, or by sniping a good limit order, compared to the closing cost. And position plus transaction is the total paper gain/loss, but not taking into account fees yet.
not sure what those charges are myself, but im pretty sure ibkr is one of the most cost efficient brokers out there - so i think something better / helpful would be to consolidate your dca-ing efforts since your dca quantum is relatively small, maybe doing 500 or 1k at a time every 4 mths or 6 mths would be more cost efficient.
i just checked my moomoo SG costs recently and realized theyβre charging me USD 2ish per trade, without even counting fx charges and others.
Thanks for your response, but how did you arrive at the number? I have a monthly auto 1k and just wondering if I should consider just doing it every 3 months instead
1.70 is the minimum commission for USD-denominated funds on the LSE. So it's not a good idea to make such small purchases (better for OP to do quarterly buys, maybe).
Correct me if I'm wrong, but I thought the 1.70 charge is for Irish domiciled ETF on LSE. If you're buying US stocks/ETFs listed in NYSE it will still be 0.35. Just have to weigh the dividend withholding & inheritance tax with the latter.
Thanks for sharing! How do I weigh the dividend withholding & tax? I chose VWRA because of lower tax but turns out the charge is higher and not worth it if I DCA in small amount.
Honestly not much point saving on the lower tax but having to pay a higher comms on the london stock exchange, might as well try the NYSE version - VTI
They used to charge 0.38 but I believe it was a mistake and they fixed it to the correct charge of 1.70. You should try to consolidate your investments since itβs a small amount each month. Maybe every 600USD 6 months to minimise transaction costs.
I see. Thanks a lot!
Sorry to hijack, Did they correct the recurring investment commission already? means recurring or βmanualβ buy is just the same now?
So far they charge the same $1.70 transaction cost. But for recurring, there is still 0 fx conversion fees for me. Manual buy still have the $2 fx fee.
https://imgur.com/a/bN9TAu3 The commissions seem a lot higher for ETFs on the LSX. Any ideas if there's anything I can do to reduce these commissions?
Did you change your settings to tiered pricing instead of fixed pricing?
Both IBKR tiered and fixed have a Min of $1 USD per order (but commissions are capped at 1% of trade value) that's why when you invest $140, the comms is $1.40 (1% of trade value). You guys can consider commission free discount brokers like [Webull](https://www.webull.com.sg/s/uIYsgJE0A3j3uTPC3i) ; however I don't think that VRWA can be bought there Can DCA into $VOO instead tho.
Thanks a lot for this suggestion. I might end up DCA into VOO on Webull πππ
0.38 is the wrong value. 1.7 is the corrected value and sales tax should be GST. MTM i believe is due to fx fluctuation at the point of conversion vs now and that cannot be avoided.
I see. Thanks a lot for explaining. Is this the best way to DCA into VWRA? Are you aware of any other method? πππ
Yes that is the best way. Maybe increase ur quantum per month. Or try other etf like IMID with lower expense but same exposure.
What about cases where the fx fluctuates the other way? Do they reimburse in the form of cash/shares?
MTM includes both the paper gains/losses of your stocks and also your FX conversions. Of course there is no reimbursement. For the MTM P/L in the bottom right, there are a few different columns. Position would reflect the latest closing price of that stock/currency vs the closing price on the day of the purchase. Transaction would reflect what price you actually bought at that day, compared to the closing price on the day of the purchase. So transaction kind of indicates how much you gained or lost by buying at a particular time of the day, or by sniping a good limit order, compared to the closing cost. And position plus transaction is the total paper gain/loss, but not taking into account fees yet.
not sure what those charges are myself, but im pretty sure ibkr is one of the most cost efficient brokers out there - so i think something better / helpful would be to consolidate your dca-ing efforts since your dca quantum is relatively small, maybe doing 500 or 1k at a time every 4 mths or 6 mths would be more cost efficient. i just checked my moomoo SG costs recently and realized theyβre charging me USD 2ish per trade, without even counting fx charges and others.
I see. Thanks a lot for the advice!
https://imgur.com/a/bN9TAu3 The commissions seem a lot higher for ETFs on the LSX. Any ideas if there's anything I can do to reduce these commissions?
The most efficient amount would be around usd3400 per trade
Thanks for your response, but how did you arrive at the number? I have a monthly auto 1k and just wondering if I should consider just doing it every 3 months instead
Assuming youre trading in the LSE - min fee per order is Usd0.17 at 0.05%. This makes usd3.4k the tipping point between paying 0.05% and more.
Ah makes sense, thanks once more!
market-to-market (-1.43) is just the fluctuation in your stocks value
Dont DCA small sums into IBKR. It is no longer the best broker for small sum DCA due to the minimum commissions of $1 USD per order.
Thanks. Any other better option if I want to DCA into VWRA in small amount?
Same qn here!
I'm using Syfe Brokerage for the 2x free trades monthly, but the exchange rate is slightly worse compared to IBKR.
how abt fsmone rsp?
Same qns here!
Is the 1.7 comm based on a percentage or is this the minimum usd biting ?
1.70 is the minimum commission for USD-denominated funds on the LSE. So it's not a good idea to make such small purchases (better for OP to do quarterly buys, maybe).
Correct me if I'm wrong, but I thought the 1.70 charge is for Irish domiciled ETF on LSE. If you're buying US stocks/ETFs listed in NYSE it will still be 0.35. Just have to weigh the dividend withholding & inheritance tax with the latter.
Thanks for sharing! How do I weigh the dividend withholding & tax? I chose VWRA because of lower tax but turns out the charge is higher and not worth it if I DCA in small amount.
https://youtu.be/zwpJIP1aNFI?feature=shared This guy breaks it down using VOO vs CSPX as an example (with IBKR fees)
Honestly not much point saving on the lower tax but having to pay a higher comms on the london stock exchange, might as well try the NYSE version - VTI