Tuesday, April 29, 2014

US ETFs Updates from OCBC and DBS

In my previous post, I talked about US listed ETFs as well as the brokerage charges of trading them. Since then, I've sent out a few emails (instead of calling, so that they can direct my mail to the right person instead of me hanging on the line) and I've got back some answers.

Truth be told, both DBS and OCBC replied decently quickly, though I must say that OCBC wins in terms of clarity and dis-ambiguity of their answers. So, let me start you off with the currency conversion costs:

OCBC: 60bps bid/off or about spot + 0.23% per buy or sell

DBS: spot + 0.18% per buy or sell
spot ref on 22/4/14 at 11.22 was 1.2544

Personally, I find both of these direct currency transaction costs rather favourable.

However, there can be only one winner, because I am only going to invest with one broker to consolidate my holdings and minimize the custodian fees that I am paying per ticker! All things considered, DBS is the final winner because of:
- lowest currency conversion costs
- lowest commission rate (tied with Phillip)
- mid range minimum commission (US$25)
* potentially even better currency rates if investing over SGD 50,000


Next, what about the ETFs that I am interested in?

DBS:


OCBC:


Phillip:


So there you go, all of them have the Cambria ETFs that I am interested in, so I guess it doesn't really matter then, right? Anyway, not going to get into that for a while, I would like to see some more track record on my both GVAL and FYLD, as well as max out the $50k cash limit in my OCBC 360 account before I decide to start taking on more risks in this crazy investing environment. I hope this posts helps anyone trying to figure out what to look for in a local broker when thinking of making US trades!

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