Moomoo Malaysia (MY): 5 must-use features that will change how you invest!
Moomoo Malaysia, one of the fastest-growing investment platforms has recently expanded to Malaysia and is open for trading for the US and Malaysia stock markets!
In this post, let me show you my top 5 favorite features within the Moomoo app that will help you become a better investor!
RELATED POST:
- Moomoo Malaysia (MY) review (coming soon!)
Highlights of Moomoo MY:
- Locally-regulated broker: Moomoo MY is regulated by the Securities Commission Malaysia (SC). This ensures that Moomoo MYâs operation and business are conducted within the rules set by the authority to protect Malaysian investors.
- Access to US and Malaysia stock markets: Invest in the US and Malaysia stock markets within the Moomoo app.
- Best fee structure for Malaysia-regulated brokers: Moomoo MY offers the most competitive fees for the US and Malaysia stock markets among Malaysia-regulated brokers, with 0 commission trading for all Moomoo users for the first 180 days.
- Powerful features: Investors of all levels and experience will appreciate the useful features that will alleviate their investing experience, such as a powerful stock screener, 24/7 news, Moo community, and more.
My short summary:
I am pleasantly impressed by how the Moomoo trading app can offer so many feature-packed tools while keeping the app so simple to navigate around.
It is truly one of the most feature-rich yet easy-to-use investing apps available in the market now.
My Top 5 Favourite Features of Moomoo MY:
Feature #1: FREE level 2 US market data when you register for your Moomoo MY account
While most brokers will make users pay for level 2 data, Moomoo MY gives you level 2 US market data for FREE when you register for your account.
What exactly is Level 2 US market data?
Essentially, Level 2 US market data allows you to see transaction details (ie. Buy & sell activities) across multiple price levels:
Having level 2 US market data is equivalent to having an aerial view of the market. For instance, with Level 2 US market data, you can detect in real-time should buyers are buying aggressively (or vice versa) and make better entry decisions.
In short, with level 2 US market data, you can get a better gauge of market strength.
Feature #2: Get big-picture business views via 'Industry Chain'
'Industry chain' is also one of my favorite features in the Moomoo app. With Industry chain, you can have a big-picture view of a specific industry.
For instance, you can instantly learn how the whole Electric Vehicle (EV) industry work, alongside companies that fall under each segment.
In addition, you can also discover what companies are there in a specific role in the business chain in an ecosystem.
Simply put, you can gain a big picture of any industry that you are interested to learn.
Where to find: 'Markets' > 'US' > 'Industry Chain'
Feature #3: Track the performance & insights of a specific theme with 'Concepts'
Concepts is a unique feature within the moomoo app that allows you to track the overall performance and news of companies that fall under a specific theme, such as 'EV charger', 'Gene Editing', 5G, and more:
As an example, check out how I can view the overall & individual performances of the companies that fall under the âEV Chargerâ concept:
With Concepts, you can have a clear view of how certain themes perform, as well as research for a specific theme with ease - all within the moomoo app.
Where to find: 'Markets' > 'US' > 'Concepts'
Feature #4: See what other investors are doing with Market Position Overview
Another useful feature of the Moomoo app is Market Position Overview. Essentially, it shows the number of shares held at different prices by investors in an easy-to-see visual.
As an example, in this example of Apple (AAPL) stock below, we can see that most Apple shareholders are in a profitable position (shown in green), as their entry price is below the market price ($195).
In addition, you can also spot the price where most investors bought their shares based on how long the horizontal bar is:
Where to find: Search for a stock > 'Market Position Overview'
Feature #5: One of the most flexible stock screeners around
The stock screener within the Moomoo app also impressed me. This screener can be super simple, or as sophisticated as you want.
From fundamental to technical filters, you can filter for stocks based on your preferred criteria:
It is definitely one of the most complete stock screeners within an investing app that Iâve used in my investing journey so far.
Where to find: 'Markets' > 'US' > 'Screener'
Other useful features within the Moomoo app:
- #1 Gauge bearish sentiment via Short Sale Analysis
Short sale analysis is a solid feature that allows you to identify (i) the volume of a companyâs shares that are being shorted in the market, and (ii) the percentage of shares that are being shorted but not yet closed (ie. People that are betting for the market to go down) in the market.
This is a very useful feature to gauge the market's bearish sentiment on a specific stock.
Where to find: Search for a stock > 'Short Sale Analysis'
- #2 Use Trade Overview to confirm your conviction
With Trade Overview, you can identify the movement of funds in and out of a specific stock.
Furthermore, you can go further by looking at the capital flow breakdown of XL, L, M, and S orders.
This can give you an idea of whether the stock you are looking to buy has the conviction of other players (big or small) in the market.
Where to find: Search for a stock > 'Trade Overview'
- #3 Get real-time, 24/7 financial news in the moomoo app
It is also extremely convenient to get the latest financial news in the moomoo app.
Even better, the news is real-time and updated 24/7, making it easy for you to get in touch with the latest updates of the market and the companies that you are investing in.
Where to find: 'Discover' > 'News'
Disclaimers
All views expressed are the independent opinions of myself, which are not necessarily shared by Futu Malaysia Sdn. Bhd. ("Moomoo MY"). No content shall be considered financial advice or recommendation. Moomoo MY links are included in this post, through which referrals are made and I may receive certain commissions. Please contact Moomoo MY for more information.
Guide: How to make your first trade on Interactive Brokers (IBKR)
Interactive Brokers (IBKR) is my go-to platform to invest in the US stock market, as well as accessing other markets such as the London and Canadian stock market.
In this guide, letâs go through 2 of my favourite ways on how to make your first trade on IBKR, either via IBKR's Client Portal or IBKR Mobile!
USEFUL IBKR TIPS & GUIDE:
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p.s. A word to fellow readers:
Dear friends, if you find this post helpful, I'd appreciate it if you can click on the button below to learn about IBKR via IBKR's official site.
Doing so will help the earn the blog a small fee at no extra cost to you.
This will help supporting the blog in creating more useful content - thanks in advance my friends!
Before you start: Fund your IBKR account
Make sure you have funded your Interactive Brokers (IBKR) account before placing your trades.
Check out my IBKR funding guide HERE.
#1 Placing trades via IBKR Client Portal
IBKR Client Portal is my favorite way to buy stocks/ETFs on IBKR as it is the most straightforward approach in my opinion.
Step 1: Log in to your IBKR Client Portal
Click HERE to log in to your IBKR Client Portal.
Step 2: Search for your stock/ETF
At the search bar, search for the stocks or ETFs that you want to invest in:
As an example, let's say I am looking to invest in the share of Apple.
Step 3: Next, click on the 'Buy' button.
Step 4: Determine your order type
Within IBKR, there are a few order types available for investors to choose from while executing trades. Check out the bottom section of this post where I explain more about the different order types on IBKR.
For this example, let's say I want to set a buy limit order for Apple shares at $180.00. Meaning, instead of trying to buy Apple shares at its market price, I am lining up to buy the share when the price drops to $180.00.
Buying via limit order indicates that I may miss my entry IF the price goes up and never pulls back to $180.00, but I will get a better price if it does pull back to my desired price level.
Step 5: Determine the number of units of shares to buy, OR simply key in the amount to invest in:
- 5a: Determine the number of shares you want to buy, and you'll be shown the amount required for you to buy the shares. In this case, buying 100 Apple shares at my limit price of $180.00 will require about $18,000 on my end (before commission).
- 5b: Alternatively, you can key in the amount you want to invest in, and you'll be shown the number of shares that you can buy. In this scenario, for $1000, I would be able to buy about 5.56 units of Apple shares.
Step 6: Determine Time-In-Force of your trade order
Next, decide the Time-In-Force of your order. Time-In-Force determines how long your trade order will stay valid.
There are 4 types of Time-In-Force mechanisms in IBKR Client Portal, but I will go through 2 most common ones, namely:
- Day: A 'Day' order will stay valid until the end of the trading session and cancel itself should the order is not filled. For instance, if my buy limit order of $180.00 for Apple share is not filled by the end of the trading session where I execute my order, my order will be canceled automatically.
- Good till Cancel (GTC): A GTC order will stay valid until it is filled, or you cancel the order yourself.
Step 7: Fill outside Regular Trading Hours (RTH)?
Some markets tend to allow orders to be filled outside of RTH, such as pre-market open hours and after the market is closed.
Depending on your preference, you can allow your trade order to be filled outside RTH.
Step 8: Preview and submit your trade order
Clicking preview before submitting your order allows you to see the commission that'll incur for the trade. Once all details are good on your end, submit your trade.
Step 9: Check your order and Modify the order if needed
Once you placed your trade, you can head over to 'Trade' and select 'Orders & Trades' to check the status of your trade.
Should you want to modify your trades while it is not filled, you can do so by clicking the 3 dots on the far right, and select 'Modify':
#2 Placing trades via IBKR Mobile
If you are investing on the go, installing the IBKR Mobile app is a must for you.
In this section, let's look at how you can place your trade via the IBKR Mobile app:
Step 1: Install IBKR Mobile app
Next log in to your IBKR account HERE.
Step 2: At the search bar, search for the stocks or ETFs that you want to invest in:
Step 3: Next, click on the 'Buy' button.
Step 4: Determine your order type
Within the IBKR Mobile app, the default order types are 'Market' and 'Limit' order.
That said, users who need more advanced order types can select 'Show More Options' to access the different order types within the app. Refer to the next section to learn about the meaning of different order types.
Similar to the example in the prior section, let's say I want to set a buy limit order for Apple shares at $180.00.
Step 5: Determine the number of units of shares you want to buy:
You'll be shown the amount required for you to buy the shares.
In this case, buying 5 Apple shares at my limit price of $180.00 will require about $900 on my end (before commission).
Step 6: Determine Time-In-Force of your trade order
Next, decide the Time-In-Force of your order. Time-In-Force determines how long your trade order will stay valid.
The 2 most common Time-In-Force mechanisms are:
- Day: A 'Day' order will stay valid until the end of the trading session and cancel itself should the order is not filled. For instance, if my buy limit order of $180.00 for Apple share is not filled by the end of the trading session where I execute my order, my order will be canceled automatically.
- Good till Cancel (GTC): A GTC order will stay valid until it is filled, or you cancel the order yourself.
Step 7: Preview and submit your trade order
Clicking preview before submitting your order allows you to see the commission that'll incur for the trade. Once all details are good on your end, slide to submit your trade.
Note: What is IBKR Mandatory Cap Price?
Upon placing your trade, you might come across a pop-up to seek your acknowledgment on IBKR Mandatory Cap Price.
IBKR Mandatory Cap Price refers to IBKR's initiative to avoid traders placing trades at price levels at are way outside the normal level capped by IBKR.
One key benefit of IBKR Mandatory Cap Price is it helps traders avoid typo (by denying the order), such as me mistakenly typing my buy limit price of Apple shares at $18,000 instead of $180.
For me, I'll just go ahead and select 'Accept and Continue' when I get this pop-up while placing my trades.
Step 8: Cancel or Modify the order if needed
Once you placed your trade, you can adjust or cancel your trade if needed:
A beginner's Guide to Different Order Types on Interactive Brokers (IBKR)
While trying to place your trades on IBKR, you'll come across a variety of order types on the platform.
In this section, let's go through the 3 common order types that you may use while placing your buy trades on IBKR:
#1 Limit Order
A Buy Limit Order allows investors to line up their orders to buy shares at a specific price or better.
- Example: As shown in the screenshot below, Appleâs share price is $184.70.
- If you want to buy Apple shares at a lower price, say $180.00, then set your limit price to $180.00. Essentially, what you are doing is telling the system that âExecute Buy Order ONLY if the price drops to $180.00 or less.
#2 Market Order
A Buy Market Order allows investors to enter immediately at market price. In other words, to enter the market immediately, you as a buyer will need to accept whatever the Ask Price that the most immediate sellers are asking for.
- Example: In the screenshot below Apple's share price is $184.70, with Ask Price at $184.79.
- If you want to buy Apple shares immediately at market price, you will find yourself entering at the Ask price of $184.79, which is the price that the most immediate sellers are asking for.
#3 Stop Order
A Buy Stop Order is an order that is triggered when the price hits a specific level defined by the investor.
- For instance, Apple share price is priced at $184.70. I'd only like to buy the share once there is a bullish momentum that pushes the price above $190.00.
- To do this, I'll set a Buy Stop order at $190.00. Once Apple's share price reaches $190.00, my Buy Stop order will be triggered and my order will be filled at the most immediate available price at that moment.
- The downside of using a Stop Order is the execution price is NOT guaranteed. In a scenario where Apple's share price breaches above $190.00 in an aggressive market move where there are no sellers at $190.00, then I'd find my Buy Stop order being filled at a higher immediate price where there are sellers to meet my buy order (eg. $191, 192).
Verdict â Use IBKR to access the global stock market!
So there you have it - a detailed step-by-step guide on how to buy your first stock or make your first trade via Interactive Brokers (IBKR) Client Portal or the IBKR Mobile app!
I hope this is helpful and if you have any questions just leave them in the comment section below!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Interactive Brokers (IBKR) Long-Term Review: The BEST broker in the world?
Interactive Brokers (IBKR) is a global broker that offers users access to different asset classes across 150 markets.
I've been an IBKR user for some time and in this review, letâs learn about IBKR, and if it is for you!
RELATED:
Highlights of Interactive Brokers (IBKR)
- Strong regulation background: IBKR is a global broker regulated in 10 countries including the US, Canada, the UK, Ireland, Europe, Australia, Hong Kong, and Singapore.
- Global market access at highly affordable commission: IBKR offers access to over 150 markets in 33 countries, such as the US, UK, HK, Singapore, Australia, Canada, Europe, Singapore, Japan, and more at a highly competitive commission.
- Trade multi-assets with just one account: In addition, IBKR users also gain access to a huge variety of products/instruments such as stocks, bonds, ETFs, FX, futures, and options at a highly competitive commission.
- For who: IBKR is a no-brainer for investors looking to gain access to global markets at a low commission. However, IBKR's downside (in my opinion) is a platform design and user experience that is not as beginner-friendly as other investing platforms around.
Regulation and Safety
With financial scams on the rise globally, it is crucial to choose a broker that is well-regulated and reliable.
IBKR is one of the most reliable global brokers in the world as it is regulated by financial authorities in over 10 countries. Regulation by the major financial authorities in the world ensures that IBKR usersâ interests are always protected.
Some of the key regulations that IBKR has obtained include:
- US: Securities Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC)
- UK: The Financial Conduct Authority (FCA)
- Australia: Australian Securities and Investments Commission (ASIC)
- Hong Kong: Hong Kong Securities and Futures Commission
- Singapore: Monetary Authority of Singapore (MAS)
In addition, IBKR is a publicly-listed company in the US (NASDAQ: IBKR) with a strong presence globally. It handles over 2M client accounts worldwide.
4 reasons why IBKR is the best global broker
If you have been investing for a while, you should be familiar with Interactive Brokers (IBKR) among all other brokerages.
What exactly makes IBKR so well-known compared to other brokers in the market?
#1 IBKR offers a huge selection of markets + asset classes for new & seasoned investors
IBKR is truly a platform that accommodates the needs of beginners and experienced investors alike.
- Multi-assets: Aside from the usual stocks, ETFs, and bonds, IBKR users will get access to instruments such as futures, forex, mutual funds, and options. With an IBKR account, you are almost certainly going to find an investment vehicle that suits your need.
- Global market access: IBKR offers access to over 150 markets in 33 countries. Aside from the usual US market, you get access to markets in the UK, Europe, Canada, Hong Kong, Singapore, Japan, and more with just one account.
--
A personal note as an IBKR user:
The global access that IBKR brings to the table for everyday investors like myself is truly valuable. It brings a lot of flexibility to investors with investing options outside of the US.
Example: As a non-US citizen that wants to invest in the S&P500, in order to avoid the 30% withholding tax that the US government charges on dividends, I have to opt for Ireland-domiciled S&P500 ETF listed in the London Stock Exchange (eg. CSPX, VUAA) instead of US-listed S&P500 ETFs (eg. VOO, SPY).
Since most brokers do not offer access to the UK stock market, IBKR comes in as a solid choice.
#2 Highly competitive commission plans
On top of global market access, IBKR offers these markets at a highly competitive commission.
In my opinion, IBKR is the platform to go for investors looking for affordable access to the global market.
Refer to the next commission section of this article for more detailed elaboration.
#3 Fractional Trading
IBKR offers access to fractional shares in the US and European stock market, which is a rare feature among brokers.
Fractional trading allows investors to buy stocks at a fraction of the price via smaller units. Hence, it makes owning expensive stocks much easier for everyday investors.
#4 Beginner + advanced trading platforms
To accommodate different investors, IBKR offers several trading platforms for users to select from. 3 of the more commonly used IBKR platforms are:
- Client Portal (web)
Client Portal is the desktop interface that all IBKR users will come across when they log in to their IBKR account.
Client Portal offers a straightforward and featureful interface for users to view their portfolios and execute simple buy and sell orders.
Investors who prefer a simple investing interface would find the Client Portal the most convenient way to navigate around IBKR.
- IBKR Mobile
IBKR Mobile is the simplified mobile version of IBKR's Client Portal. It makes it easy for users to trade on the go via their mobile devices.
- IBKR Trader Workstation (TWS)
TWS is IBKRâs dedicated trading platform for a more in-depth customization and trading experience.
Traders that require more in-depth charting and a platform that is highly customizable could opt for TWS as their go-to platform.
IBKR Commission/Pricing for Stocks & ETFs
When it comes to commission, IBKR offers several commission plans - mainly Tiered or Fixed fees for non-US residents.
In other words, the commission you pay when you trade will differ based on the plans that you choose.
Letâs look at the commission plans for some of the familiar stock markets below:
US market:
Monthly Volume (shares) | IBKR Pro - Tiered | IBKR Pro - Fixed | IBKR Lite (only for US residents) |
---|---|---|---|
⤠300,000 | USD 0.0035 | USD 0.005 | USD 0.00 |
300,001 - 3,000,000 | USD 0.0020 | USD 0.005 | USD 0.00 |
3,000,001 - 20,000,000 | USD 0.0015 | USD 0.005 | USD 0.00 |
20,000,001 - 100,000,000 | USD 0.0010 | USD 0.005 | USD 0.00 |
> 100,000,000 | USD 0.0005 | USD 0.005 | USD 0.00 |
Min. per order | USD 0.35 | USD 1.00 | USD 0.00 |
Maximum per order | 1% of trade value | 1% of trade value | USD 0.00 |
Additional 3rd party fees | Regulatory fees, exchange fees, clearing fees, pass-through fees | Regulatory fees | Regulatory fees |
Canada market (for CAD-denominated stocks/ETFs):
Monthly Volume (shares) | Tiered | Fixed |
---|---|---|
⤠300,000 | CAD 0.008 | CAD 0.01 |
300,001 - 3,000,000 | CAD 0.005 | CAD 0.01 |
3,000,001 - 20,000,000 | CAD 0.004 | CAD 0.01 |
20,000,000 | CAD 0.003 | CAD 0.01 |
Min. per order | CAD 1.00 | CAD 1.00 |
Maximum per order | 0.5% of trade value | 0.5% of trade value |
Additional 3rd party fees | Regulatory fees, exchange fees, clearing fees | None |
p.s. Click HERE for IBKR's commission on USD-denominated CAD stocks/ETFs.
UK (GBP-denominated stocks/ETFs):
Monthly Trade Value (EUR) | Tiered | Fixed â IB SmartRoutine | Fixed - Direct Routing |
---|---|---|---|
⤠40,000,000 | 0.05% of trade value | 0.05% of trade value | 0.10% of trade value |
40,000,000.01 - 80,000,000 | 0.03% of trade value | 0.05% of trade value | 0.10% of trade value |
80,000,000.01 - 400,000,000 | 0.02% of trade value | 0.05% of trade value | 0.10% of trade value |
> 400,000,000 | 0.015% of trade value | 0.05% of trade value | 0.10% of trade value |
Min. per order | GBP 1.00 | GBP 3.00 | GBP 4.00 |
Additional 3rd party fees | Regulatory, Exchange & clearing fee | None | None |
UK (for USD-denominated stocks/ETFs):
Monthly Trade Value (EUR) | Tiered | Fixed â IB SmartRouting | Fixed - Direct Routing |
---|---|---|---|
⤠50,000,000 | 0.05% of trade value | 0.05% of trade value | 0.10% of trade value |
50,000,000.01 - 100,000,000 | 0.03% of trade value | 0.05% of trade value | 0.10% of trade value |
100,000,000.01 - 500,000,000 | 0.02% of trade value | 0.05% of trade value | 0.10% of trade value |
> 500,000,000 | 0.015% of trade value | 0.05% of trade value | 0.10% of trade value |
Min. per order | USD 1.70 | USD 4.00 | USD 6.00 |
Additional 3rd party fees | Exchange & clearing fee | None | None |
Hong Kong (HKD-denominated stocks/ETFs):
Monthly Trade Value (HKD) | Tiered | Fixed |
---|---|---|
⤠15,000,000 | Tier I - 0.05% of Trade Value | 0.08% of Trade Value |
15,000,000.01 - 300,000,000 | Tier II - 0.05% of Trade Value | 0.08% of Trade Value |
300,000,000.01 - 900,000,000 | Tier III - 0.03% of Trade Value | 0.08% of Trade Value |
900,000,000.01 - 2,000,000,000 | Tier IV - 0.02% of Trade Value | 0.08% of Trade Value |
> 2,000,000,000 | Tier V - 0.015% of Trade Value | 0.08% of Trade Value |
Min. per order | Tier I - HKD 18.00 Tier II - HKD 12.00 Tier III - HKD 8.00 Tier IV - HKD 6.00 Tier V - HKD 4.00 |
HKD 18.00 |
Maximum per order | 0.5% of trade value | 0.5% of trade value |
Additional 3rd party fees | Regulatory fees, exchange fees, clearing fees | Regulatory Fees |
p.s. Refer HERE for IBKR's commission on China RMB-denominated stocks/ETFs listed in Hong Kong.
Singapore (SGD-denominated stocks/ETFs):
Monthly Trade Value (SGD) | Tiered | Fixed |
---|---|---|
⤠2,500,000 | Tier I - 0.08% of Trade Value | 0.08% of Trade Value |
2,500,000.01 - 50,000,000 | Tier II - 0.05% of Trade Value | 0.08% of Trade Value |
50,000,000.01 - 150,000,000 | Tier III - 0.03% of Trade Value | 0.08% of Trade Value |
> 150,000,000 | Tier IV - 0.02% of Trade Value | 0.08% of Trade Value |
Min. per order | Tier I - SGD 2.50 Tier II - SGD 1.60 Tier III - SGD 1.20 Tier IV - SGD 0.90 |
SGD 2.50 |
Additional 3rd party fees | Exchange fees | None |
p.s. Refer HERE for IBKR's commission on USD, GBP, HKD, and EUR-denominated stocks/ETFs listed in Singapore.
IBKR Commission for Futures, Options, Forex, CFD, Mutual Funds, and more
Aside from stocks, IBKR also offers access to instruments such as Futures, Options, Forex, CFD, Bonds, Mutual Funds, and more.
Feel free to view IBKR's full list of commission below:
Which IBKR commission plan to choose?
As you can see, IBKR offers access to a lot of markets, alongside different plans, mainly Tiered and Fixed.
The question is, which IBKR fee structure should you choose?
In my opinion, IBKRâs Tiered plan makes the most sense for most investors. This is because it has a lower minimum commission per trade, and it gets cheaper as your trade value or trade volume increases.
While opening your IBKR account, you will be asked to select the kind of account (Tiered/Fixed) you are planning to open. But donât worry, you can always change your account types once you open an account.
What I donât like about IBKR
Despite all the good things about IBKR, it is not a perfect platform.
The irony is, IBKR's biggest downside stems from its pursuit of offering every market and feature available in the investing world to the users.
As a result, it makes IBKR rather not beginner-friendly to navigate around. As a new IBKR user, it is easy to feel overwhelmed to use IBKR.
You will most likely need to google for guides on most things relating to IBKR (in order to do it right) - from account opening, funding & withdrawals, how to make a trade, and more.
The bright side?
Resources and guides around IBKR are plentiful on the internet so it is not the end of the world.
However, the fact that I have to google around for guides just to navigate around the IBKR platform is still annoying at times.
Is Interactive Brokers (IBKR) for you?
In my opinion. IBKR is the most featured-packed investing platform that the investing world can offer so far.
As such, it is more than fair to say that IBKR is created for all investors and traders â beginners to seasoned alike.
If I need to be more specific, here are 3 reasons why you should consider IBKR over other brokers:
- You want to have affordable access to global markets aside from the usual US market offered by all other brokers. (eg. I get access to Ireland-domiciled ETFs on the London Stock Exchange via IBKR)
- You want to invest in a reliable platform that has gone through the test of time.
- You want to trade different instruments (eg. Forex, futures, options) aside from the usual stocks and ETFs offered by most of the other brokers.
How to open an Interactive Brokers (IBKR) account: A step-by-step guide
Before you open an account, you will need to create a username & password on IBKR.
Click the button below to start creating your username and password. Once done, you will need to verify your email address.
Once done, login to IBKR and begin your application.
Step 1: Personal Information
Select your account type (Individual) and key in your personal information.
You will also be required to key in your Tax Identification Number (TIN) [LHDN number if you are from Malaysia].
Tips: Do not have a TIN?
If you are a student or do not have a TIN for some reason (eg. Housewife), click 'Not Applicable' and justify why you donât have a TIN under âOtherâ (eg. I am still a student).
Next, select the base currency (USD) for your account.
This streamlines all the figures displayed in your IBKR account in USD. Donât worry too much about this, as your IBKR account can hold other currencies and you can still trade in different currencies.
Step 2: Configure your trading account.
Account type: Cash or Margin
In this step, you will be asked if you want to open a Cash or Margin account.
- IBKR cash account: You will only be using your existing funds in IBKR to trade. Hence, you have to ensure that your funds cover the cost of the stocks and commission. A key downside is:
- Trading limitation: You cannot trade products that require margin, such as futures. You also cannot day-trade US stocks.
- IBKR margin account: You get access to margin and hence, can trade in margin (ie. loaned money). But it is not necessary to trade in margin even though you have a margin account. Upsides include access to more instruments and products and the ability to day-trade US stocks.
Personally, I opened a Margin account myself (even though I do not trade with margin) as there are certain product/service limitations with a Cash account. (eg. You need a margin account to day-trade US stocks)
Income & Worth, Investment Objectives, Trading Experience:
Your answer to these questions determines the kind of products/markets you will gain access to. Donât worry this can still be updated once you open your trading account.
Select the assets/instruments that youâd like to invest in or trade. Whether you are eligible to trade these assets depends on your income, investment objectives, and experience:
Step 3: Regulation and Tax
Confirm that you are not a public figure with any conflict of interest.
Then, decide if you want to opt-in for IBKRâs Stock Yield Enhancement Program which will pay you interest by loaning your shares to IBKR. This is optional.
Then, confirm your tax residence and whether you qualify for treaty benefits with other countries based on the country of your residence.
Step 4: Review and sign agreements
Step 5: Upload documents & fund your IBKR account
Funding your IBKR account
Refer HERE to a full guide on how to fund your IBKR account.
Step 6: You will receive an email once your account is approved.
For me, my IBKR account is approved within 1 working day.
Verdict - IBKR is the only global broker you need (to get used to)
As an investor and reviewer, I have tried and used many brokers in my investing journey.
Of all, it is not exaggerating to say that IBKR is the most complete global broker that the investing world has to offer to everyday investors right now.
With just one account, IBKR allows me access to almost all tradable instruments in the financial market at an affordable price.
If you can get used to its overwhelming features, IBKR is THE account you must have as an investor in the global market.
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Wise or Instarem? - IBKR Funding Methods Compared!
Interactive Brokers (IBKR) is one of the most complete global brokers that I've used in my investing journey.
It offers users access to over 150 markets in 33 countries at a highly competitive commission. Moreover, IBKR users gain access to a huge variety of products/instruments such as stocks, bonds, ETFs, FX, futures.
As an IBKR user, I find Wise and Instarem to be 2 of the best methods to deposit funds to my IBKR account.
However, which one should you choose?
In this post, let me compare Wise and Instarem deposit methods, and see which is a more ideal IBKR deposit method!
RELATED:
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p.s. A word to fellow readers:
Dear friends, if you find this post helpful, Iâd appreciate it if you can click on the button below to learn about IBKR via IBKRâs official site.
Doing so will help the earn the blog a small fee at no extra cost to you.
This will help supporting the blog in creating more useful content â thanks in advance my friends!
#1 Fees & Exchange Rate Comparison
Firstly, let's compare the fees and exchange rate if we were to use Wise and Instarem to fund our IBKR account.
Scenario #1: RM1,000 MYR-USD transfer
For this, I take similar RM1,000 MYR-USD transfers and see how much we have to pay in fees, as well as the exchange rate for both platforms:
Putting the info side-by-side, we can see that:
Wise | Instarem | |
Fee for RM1,000 MYR-USD transfer | RM8.90 | RM5.50 |
Exchange Rate (as of 3/5/2023) | 0.224593 | 0.2243 |
Final amount in USD | USD 222.59 | USD 223.07 |
- Instarem offers a cheaper fee of RM5.50 for my RM1,000 MYR-USD transfer.
- Wise offers a more competitive exchange rate of 0.224593 compared to 0.2243 from Instarem. (Rate as of 3/5/2023)
- That said, taking into account of fee + exchange rate, I'd still get slightly more USD from Instarem for my transfer.
Scenario #2: RM10,000 MYR-USD transfer
Let's see if a larger transfer amount of RM10,000 MYR-USD transfer would make any difference:
Does a larger transfer amount make any difference for the fees?
Putting the info side-by-side, we can see that:
Wise | Instarem | |
Fee for RM10,000 MYR-USD transfer | RM69.69 | RM60 |
Exchange Rate (as of 11/5/2023) | 0.224090 | 0.2238 |
Final amount in USD | USD 2225.28 | USD 2224.57 |
- Instarem still offers a cheaper fee of RM60 for my RM10,000 MYR-USD transfer.
- Wise still offers a more competitive exchange rate of 0.224090 compared to 0.2238 from Instarem. (Rate as of 11/5/2023)
- However, this time around, Wise is able to transfer slightly more USD in my RM10,000 MYR-USD transfer.
Summary: Use Instarem for smaller amount transfer, Wise for larger amount transfer
In essence, when you make a transfer in a small amount, Instarem's lower fee structure makes it up to a slightly high exchange rate.
On the other hand, in a bigger transfer, Wise's lower exchange rate is a better deal despite a higher fee.
#2 Deposit Process Comparison
There is a slight difference between Wise and Instarem when it comes to the deposit process to IBKR:
Wise | Instarem | |
Deposit Process | Transfer directly from Wise balance (easier) | ACH funding via Instarem |
Essentially, the biggest difference is when it comes to setting up the initial transfer.
- It is easier to set up a Wise transfer as IBKR users can make a transfer directly from their Wise account. Read about my full Wise-IBKR transfer guide HERE.
- As for Instarem, IBKR users will need to key in some additional details in order to set up an initial transfer. (though it is pretty simple as well) Read about my full Instarem-IBKR transfer guide HERE.
Summary: Wise provides an easier initial setup
Once the setup is done, all future transfers are very simple for both methods.
RELATED: Guide - How to fund your IBKR using Wise, Instarem, and SG bank account
#3 Deposit Speed Comparison
Fees aside, it is also important that my funds reach my IBKR account ASAP whenever I make my deposit.
So, how long does it take for my funds to reach my IBKR account with Wise and Instarem?
For this example, I did a transfer on both Wise and Instarem on the same day (3/5/2023), first with Wise, then Instarem a few hours later.
Let's look at the result:
(i) Wise-IBKR transfer: About 13 hours (<1 day)
I initiated my Wise transfer on 3/5/2023 after lunch and I receive my successful deposit notification from IBKR at 1:11am the next day (4/5/2023).
(ii) Instarem-IBKR transfer: About 14 hours (<1 day)
Meanwhile, I initiated my Instarem-IBKR transfer at late noon (4:38pm) on 3/5/2023. I received my successful deposit notification from IBKR at 6:33am the next day (4/5/2023).
Summary: Deposit speed is pretty much the same for Wise and Instarem
In essence, from my experience, there is no significant difference between the deposit speed of Wise and Instarem transfers.
I find both transfer experiences smooth and reliable.
Promotions for new Wise & Instarem users
(i) Wise: Get a free transfer on your first 500 GBP (~RM2600) transfer!
Use my Wise referral link below and get a free transfer on your first 500 GBP (~RM2600) transfer!
(ii) Instarem: Get 200 InstaPoints (worth RM12) for your money transfer!
Open an Instarem account via my referral link by clicking on the button below, and get 200 InstaPoints (worth RM12) which can be redeemed for your money transfer (no min. transaction amount required)!
Verdict: Use Wise and Instarem to save on your IBKR deposit fee!
To summarize, for small amount transfers, Instarem-IBKR makes up for better value thanks to its lower fee structure. For bigger amount transfers, Wise-IBKR is better thanks to Wise's more competitive exchange rates.
Be it Wise or Instarem, both IBKR deposit methods allow users to save massively on fees & exchange rates compared to traditional foreign bank telegraphic transfer.
For new users of Wise and Instarem, I recommend taking advantage of the promotions so you can get more value out of your IBKR transfers!
Do you have any other tips on how to fund your IBKR account? Feel free to leave your tips and thoughts in the comment section below!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Complete Guide: How to deposit funds to Interactive Brokers (IBKR) via Wise, Instarem, and SG Bank
In this post, let's explore the cheapest and most efficient ways to deposit funds into your Interactive Brokers (IBKR) account.
This guide is suitable for non-US residents (eg. Singapore, Malaysia, and more) - any questions feel free to leave them in the comment section at the end of this post!
RELATED:
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p.s. A word to fellow readers:
Dear friends, if you find this post helpful, I'd appreciate it if you can click on the button below to learn about IBKR via IBKR's official site.
Doing so will help the earn the blog a small fee at no extra cost to you.
This will help supporting the blog in creating more useful content - thanks in advance my friends!
Best ways to deposit/fund your IBKR account
There are 3 key ways to fund your IBKR account, namely through (i) Direct transfer from Wise balance, (ii) Direct ACH funding via Instarem, or (iii) Funding your IBKR account through a Singapore (SG) bank account.
Method #1: Funding your IBKR account from Wise balance (Easiest)
This is my preferred way to fund my own IBKR account as I find it the most straightforward method (though not necessarily the cheapest).
Fees incurred:
- Wise transfer fee
- Currency exchange rate
Pre-requisite: Open a Wise account and make a deposit to your Wise balance
Before you begin, be sure to open a Wise account first if you do not have an account.
Be sure to use my Wise referral link below and get a free transfer on your first 500 GBP (~RM2600) transfer!
Step 1: Fund your Wise account
Firstly, log in to your Wise account. Select the currency that you'd like to fund your IBKR account and click 'Add'.
Then, key in the amount you'd like to add, and proceed to fund your Wise account via FPX through your own bank account.
Step 2: Log in to your IBKR account, select 'Deposit'
Select your deposit currency (for me, I choose USD), and select 'Transfer from Wise Balance'.
Step 3: Log in to your Wise account and proceed to transfer your funds
Once your Wise and IBKR accounts are linked, you can proceed with your fund transfer.
Step 4: Transfer done - now just wait for your funds to reach your IBKR account.
From personal experience, it usually takes about 1 working day for the funds to reach my IBKR account.
Method #2: Funding your IBKR account through direct ACH funding via Instarem (Cheapest)
Meanwhile, funding your IBKR account via Instarem is the cheapest option. Don't worry, the funding steps are quite simple as well.
Fees incurred:
- Instarem transfer fee
- Currency exchange rate
Pre-requisite: Open an Instarem account
Before you begin, be sure to open an Instarem account first if you do not have an account.
Open an Instarem account via my referral link by clicking on the button below, and get 200 InstaPoints (worth RM12) which can be redeemed for your money transfer (no min. transaction amount required)!
Step 1: Log in to your IBKR account, select 'Deposit'
Step 2: Select your deposit currency, then opt for 'Direct ACH Transfer from your Bank'
In this example, I am using USD as my deposit currency. But the method should work for other currencies.
A warning pop-up will appear, saying that you must deposit from a US bank account - just proceed by choosing 'Yes'.
Step 3: You'll get 3 key info - a Routing Number, Virtual Account Number, and IBKR's address (address is not displayed in the screenshot below)
Take down these details. In the next step, you will need to use these details to initiate your Instarem transfer.
Step 4: Log in to your Instarem account and begin initiating your transfer
Step 5: Transfer done - now just wait for your funds to reach your IBKR account.
From personal experience, it usually takes about 1-2 working days (sometimes even faster) for the funds to reach my IBKR account.
Once the funds are deposited in your IBKR account, you will receive an email update from IBKR.
Method #3: Funding your IBKR account through SGD via a Singapore Bank (eg. CIMB SG)
The 2nd method is an alternative for Singaporeans and Malaysian users with a Singapore bank account.
Fees incurred:
- IBKR currency conversion rate, if you want to convert your SGD to USD in IBKR
- IBKR currency conversion fee (~USD2.00 - 2.50), if you want to convert your SGD to USD in IBKR
Pre-requisite: Open a Singapore bank account (CIMB SG)
For Malaysians that wish to open a Singapore bank account, you can consider opening a CIMB SG account, which can be done 100% online.
RELATED: Guide - How to open a CIMB SG account online
Step 1: Log in to your IBKR account, select 'Deposit'
Step 2: Select SGD as deposit currency, and get instructions for 'Bank Wire'
Step 3: Key in your SG bank account details and the amount you wish to deposit
Step 4: Initiate transfer from your SG bank account
Use the bank wire instructions from IBKR to make your transfer from your SG bank account.
Log in to your bank account to initiate transfer.
Step 5: Return to your IBKR account and click 'Finish'.
That's all - now you just have to wait for your funds to arrive in your IBKR account.
From personal experience, it usually takes about 1-2 working days for the funds to reach my IBKR account.
Once the funds are deposited in your IBKR account, you will receive an email update from IBKR.
Step 6: Convert SGD to USD in IBKR
If you want to convert your SGD to USD in IBKR to trade USD-denominated stocks, you can do so with the currency conversion feature in IBKR for a small fee.
In your IBKR dashboard, select 'More'.
Use your existing currency balance to convert to USD.
There will be a currency conversion fee/commission of around USD2.00 - USD2.50.
Verdict - Funding your IBKR account is never easier
With platforms like Wise and Instarem, it is extremely convenient to fund your IBKR account at a minimal fee.
Do you have any other tips on how to fund your IBKR account? Feel free to leave your tips and thoughts in the comment section below!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Guide: How to open a CIMB Singapore account for Malaysians
In this guide, I want to share how you can open a Singapore bank account online, without visiting physical branches in Malaysia or Singapore. In particular, this guide is about opening a CIMB Singapore FastSaver account online.
So, letâs get straight into the topic!
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Highlights of CIMB SG FastSaver Account:
- The only way for Malaysians to open a Singapore bank account through fully online application. A Shariah-compliant version to the conventional FastSaver account is also available.
p - Minimum initial deposit of SGD1,000
p - No minimum balance needed
p - No monthly fees
Why open a Singapore Bank Account?
There are many reasons why one would have access to a Singapore bank account:
- It could be that your work requires you to receive or transact via SGD.
p - Most international stock brokers accept deposits/funding via SGD, and not Malaysian Ringgit (MYR). While you can still fund your broker via foreign telegraphic transfer (FTT) on your local bank account, it incurs expensive FX conversion and intermediary banking fees.
Documents Needed & Expectation
To start, it is best for you to have the following details with you:
- Your Malaysia IC
- Your Tax Identification Number (TIN)
- A CIMB Malaysia account
- SGD1,000 worth of MYR
If everything is smooth, the whole registration process will take about 2 weeks. Hence, be patient and please note that this is not something you can settle in a day.
Opening a CIMB Malaysia Account
To open a CIMB SG FastSaver account, you will first need an existing CIMB Malaysia account.
If you already have a CIMB Malaysia account, skip this part and move on to the next section.
Otherwise, you can open a CIMB Savings account easily online. Check out my step-by-step guide to register for a CIMB Savings Account below.Â
READ: Step-by-step guide to open a CIMB Savings Account (without going to bank!)
[Update 17/2/2022: It seems like CIMB has reactivated the online account opening of CIMB Octosavers Account-i for non-CIMB customers (it was paused prior to this). Feel free to proceed and open your account online!]
Opening a CIMB SG FastSaver Account
Step #1: Register for your account online
i. Check out the details of CIMB FastSaver account. Once you are done, proceed to complete the application form online.
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ii. During the registration process, you are required to:
- Upload a copy of your IC.
- Provide your Tax Identification Number (TIN) if you are a taxpayer (ie. You pay tax to LHDN).
- Upload your e-signature.
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iii. Once you are done, youâll receive an email containing (1) a password-protected PDF, and (2) the next action steps.
At the same time, youâll also receive an SMS from CIMB SG containing the password to unlock the PDF file. Once you open the PDF, youâll find details of your account number.
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Step #2: Link your Singapore account
i. Proceed to link your CIMB SG FastSaver account to your CIMB Clicks Malaysia. Once you log in to CIMB Clicks, under âServicesâ, select âSingapore Accountâ under the Account Linking section.
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ii. Next, key in your IC number. (Note: Please remove the dash '-' while keying in your IC)
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iii. Upon submission of your account linking request, itâll take about 1-2 working days to get approved. To check the approval status, click âSingapore Accountâ.Â
Note: If you check your linking request it shows you the input screen again (like what you saw in Step 2ii), this means your application has been rejected.
In this case, contact the customer service of CIMB Malaysia and let them know that you need to have this account linked in order to perform an ASEAN Transfer for e-KYC verification requested by CIMB SG.
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Step #3: Perform an initial transfer
Once your account linking is approved in Step 2, move on to perform an initial transfer of SGD1,000 via your CIMB Malaysia account.
For this step, it is also possible for you to perform a small initial transfer of, say, SGD10 via your CIMB Malaysia account, and the rest (SGD990) via platforms like Wise (details HERE). This will help you save on the FX rates.
[Update Feb 2024: Some readers have reached out to me as CIMB SG states that the initial transfer of SGD1,000 needs to come directly from CIMB MY. As per my update, you can certainly do a small initial transfer (eg. SGD10) via CIMB MY, and the rest via Wise to save on FX rates.
The initial transfer (regardless of amount) acts as a standard Know-Your-Customer (KYC) process - so as long as your 1st transfer is from CIMB MY, you can still fund the rest via Wise.]
Once you are done, you can view your CIMB SG account balance by clicking the Singapore flag icon.
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Step #4: Application verification
Once you have done your initial deposit in Step #3, the next thing to do is to wait for verification on CIMB SG's end. Meaning, you'll have to:
- Expect a call from CIMB SG (ie. +65 number) to verify your identity and the purpose of opening an account. They'll ask questions like your IC number and how are you planning to use the CIMB SG account.
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It took about 3 business days for me to receive this verification call from the day I performed my initial deposit in Step #3.
p - After the call, you'll have to wait for CIMB SG's end to process your verification. This wait is longer as it took about 7 business days for me to receive my (a) account activation email & (b) SMS for my CIMB SG activation code (more on this in Step #5).
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All in all, be prepared that Step #4 will take about 10 business days of waiting. During this period, I got several email reminders from CIMB SG that I have not completed my CIMB SG application, claiming that (1) I have yet to transfer my initial deposit (I have done so), or (2) I did not provide valid documents for account opening (I did).Â
If you have done everything mentioned in the email, just ignore the email and wait for the verification call from CIMB SG. If the wait is too long be sure to call or email CIMB SG for help.Â
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Step #5: CIMB SG First-time login
Finally, now that your CIMB FastSaver account is activated, it is time to log in to CIMB SG to initiate your first-time login. In Step #4, you should have received an SMS containing an activation code for CIMB Clicks (SG). Now:
- Go to CIMB Clicks SG. Click 'First Time Login'.
p - Create your username & password for CIMB Clicks SG, and key in the activation code that you got from Step #4 here.
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- Once you are done, download the CIMB Clicks SG app to activate your Digital Token. Setting this up is important so you can proceed with future transactions.
OKAY, now you have a fully functional Singapore bank account! The CIMB SG Clicks interface has a really outdated design but it gets the job done for any simple transfers and transactions.Â
Withdrawing funds from CIMB SG to CIMB Malaysia
Withdrawing funds from CIMB SG back to your CIMB Malaysia account is easy.Â
Step 1: Link your CIMB Malaysia account with CIMB SG
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Step 2: Wait about 3 working days for the linking to be approved.
Step 3: Head over to 'CIMB Malaysia Transfer' > 'To My CIMB A/C' and proceed with your withdrawal.
Wise: A cheaper way to add funds to your CIMB SG Account (+ Referral Link!)
[Update April 2022: Some readers have reached out to me as CIMB SG states that the initial transfer of SGD1,000 needs to come directly from CIMB MY. As per my update, you can certainly do a small initial transfer (eg. SGD10) via CIMB MY, and the rest via Wise to save on FX rates.
The initial transfer (regardless of amount) acts as a standard Know-Your-Customer (KYC) process - so as long as your 1st transfer is from CIMB MY, you can still fund the rest via Wise.]
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Now that you have opened your CIMB SG account, it is likely you'll need to keep transferring funds to this account in the near future. For our initial deposit, we are required to fund our CIMB SG account via CIMB Malaysia, which incurs a more expensive FX conversion rate.
For better savings, I highly recommend that you do a small initial transfer (eg. SGD10) via CIMB MY, and the rest (SGD990) via Wise to save on FX rates.
For all future fundings, you can go through platforms like Wise to get a cheaper FX rate. Use my Wise referral link and get a fee-free transfer of up to 500 GBP (~RM2,900) in your first transfer!!Â
Open a Wise account and get a free transfer today!
FX Rate Comparison: CIMB RM3,148.50 = SGD1,000 vs Wise RM3122.14 = SGD1,000
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Rate Comparison: Check out the rates between Wise and our local banks below (RM3,000 to SGD):
Open a Wise account and get a free transfer today!
How to use your Singapore bank account to fund your foreign stock broker/accounts
One major benefit of having a Singapore bank account is many foreign brokers accept the SGD currency compared to MYR. In other words, you can save on the expensive FX and intermediary banking fees by funding your broker via a Singapore bank account.
Check out this guide on how I fund (and withdraw) my go-to foreign stock broker, Tiger Brokers and Singapore robo-advisor Syfe with my CIMB SG account!
ALSO READ: Tiger Brokers review
ALSO READ: Syfe Robo-Advisor Review
No Money Lah's Verdict
So here you have it - a detailed guide on how to open a Singapore bank account for Malaysians!
CIMB FastSaver is the easiest way for you to open a Singapore bank account at the moment, and I highly recommend opening an account especially if you look to fund your overseas stock brokerage account.
Before you go, remember to use my Wise referral link and get a fee-free transfer of up to 500 GBP (~RM2,900) in your first transfer! As a disclaimer, No Money Lah will get a small referral reward if you use my referral link, which will help the blog and keep producing useful content like this one!Â
If you find this guide useful, please share it with your friends & family too!Â
Disclaimer:
This article is accurate as of the time of writing. Please let me know if you notice any changes to the process and I'll update this guide accordingly.
This article also contains referral link that will reward No Money Lah on every successful referral. This will help sustain the blog so I can keep producing quality guides and content like this.Â
A thought on Social Media & Self-Esteem
Back then, I studied in a high school full of kids from really wealthy family backgrounds (children of big figures, business person, etc).
Funnily, I'm not aware of most of them until many years later via social media.
Aside from the fact that my peers are really well-taught & low profile with their backgrounds, I think a big part is social media was still really new back then.
Looking back, I'm grateful that my teenage years are pretty much clear from the social media scene that we living in today.
As a kid from the M40 group, I could make friends with anyone without feeling overwhelmed by the differences in our backgrounds. And there's less pressure trying to catch/copy the latest material stuff & trends, and instead allowing my curiosity to prosper.
I think the major challenge of the parents of our generation is to figure out how to teach our kids to not take social media too seriously, and how to not let social media influence their ego and self-esteem.
And most importantly, how to build confidence without having to rely on social media for self-validation.
Gonna be a tricky hurdle given how even we, supposedly mature adults, are equally influenced by social media anxiety as well, don't you think?
Why figuring out what's important to you in life is so crucial
My recent revelation: You gotta spend time thinking about what's important to you.
Knowing your priorities will tone down a lot of the anxieties that we have in our adulthood life.
I spent my 20s figuring out that (i) PEACE of mind + (ii) pursuing my CURIOSITY are things I value A LOT.
For me, peace of mind means I don't rush myself into a relationship just because most of my best friends got engaged/married last year. (9 weddings, no joke)
It also means I don't/stop investing in things that can disturb my mental peace (eg. Properties , individual stocks), regardless of what my peers/other Youtubers are doing.
It also means I don't take up financial commitments simply because my peers are doing 'em. ()
Letting go of FOMO granted me the peace to pursue my genuine curiosity in work and life - be it the market, learning about love/relationship, traveling, and more without feeling guilty or I'm 'later' in my adulthood life than the peers around me.
Finally, knowing what I want also means I can truly be happy for other people's wins in life without being sour.
Why? Because there's no point comparing to someone else's life that you do not see yourself living.
Life's more fruitful and less overwhelming when there are clear priorities, cheers.
How to invest in the S&P500 Index for non-US residents (via Ireland-Domiciled ETFs)
Are you looking for a (simple) investment that has proven itself over the past few decades?
How about one that makes money 76% of the time over the past 30 years?
The S&P500 index is perhaps one of the best testaments for simple, yet practical investment that has withstood the test of time (AND financial crises, AND Covid-19).
But what exactly is the S&P500, and how can you (as a non-US resident) invest in the S&P500 index?
In this post, letâs explore how you can invest in the S&P500, and the things that you need to know before investing in it!
Before this, here are some related posts that you may want to read:
- Interactive Brokers (IBKR review): Invest in the global market including Ireland-domiciled ETF!
- Malaysiansâ guide to ETF investing
- Are you a dividend investor? Here are the best dividend-paying ETFs in Malaysia!
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What is the S&P500 Index?
The S&P500 index is a stock market index that has been tracking the performance of the top 500 largest US-listed companies since 1957.
Just like how the KLCI and STI are used to measure the performance of the Malaysian and Singapore stock markets respectively, the S&P500 is commonly used as a proxy to the US stock market.
In fact, since the US stock market is so dominant, the S&P500 is sometimes considered as THE stock market.
So, what are the key companies within the S&P500 index?
Apple, Microsoft, Amazon, Meta (formerly Facebook), Alphabet, Berkshire Hathaway, and JP Morgan â just to name a few.
Essentially, by investing in the S&P500, youâll get exposure to the finest companies in the US stock market.
But is there more to the S&P500? In the section below, let me show you some surprisingly impressive feats about the S&P500 index!
Time-tested Performance: Why invest in S&P500
In 2020, Warren Buffett stated that âfor most people, the best thing to do is to own the S&P 500 index.â
Personally, I think there are solid reasons to this statement. Here are 2 indications of why the S&P500 is a great long-term investment:
#1 The S&P500 produced gains 76% of the time over the past 30 years.
Over the past 3 decades (1992-2021), the S&P500 has ended up higher in 23 out of 30 years. This makes up to gains 76% of the time*!Â
That, ladies & gentlemen, is just you investing your money passively without having to manage them at all! Not sure 'bout you, but I think that's a fantastic deal relative to the effort required!
*Important: Past performance is NOT indicative of future performance.
#2 The S&P500 has grown by 1019%* over the past 30 years.Â
This translates to an 8.38% in annualized return (ie. 8.38% yearly COMPOUNDED return over the past 3 decades!)
*1992 to 2021
Now, if #1 and #2 arenât good enough, consider this:
Over the past 3 decades, the S&P500 has survived the dot-com bubble (2000), global financial crisis (2008), the Covid-19 pandemic crisis (2020), many other smaller crises â and STILL grown by 1019%!
In other words, the S&P500 has not just overcome the biggest financial and health crises of the past decades, but still managed to thrive coming out of them.
If you are looking for a simple AND reliable way to grow your wealth, I am pretty sure the time and crises-tested S&P500 could find its place in your portfolio.Â
How to invest in S&P500 Index as a non-US resident
As an investor, we cannot invest directly in the S&P500 index.
Instead, the easiest way to invest in the S&P500 index is through investing in the S&P500 Exchange-Traded Funds (ETFs).
An ETF is an instrument that mirrors the performance of an underlying index. Similar to stocks, ETFs are also traded in the stock market.
In other words, you can buy/sell ETFs just like how you buy or sell stocks.
Before we proceed, as a non-US resident, it is not viable for us to invest in US-listed ETFs for the long-term due to tax reasons. More on why and what you can do about it in the following section.
RELATED READ: Guide to ETF Investing
Withholding & estate tax for investing in the US stock market
In the US, there are many popular S&P500 ETFs, such as:
- SPDR S&P 500 ETF (ticker: SPY)
- iShares Core S&P 500 ETF (IVV)
- Vanguard S&P 500 ETF (VOO)
These ETFs are especially popular among US investors as they track the performance of the S&P500 index closely.
However, it is not recommended for non-US residents (eg. investors from Malaysia or Singapore) to invest long-term in the US-listed S&P500 ETFs (eg. VOO, SPY, IVV).
Why?
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Withholding Tax on Dividends
As countries without tax treaty with the US, non-US residents investing in the US stock market are taxed 30% on dividends received.
So, letâs say you received $100 in dividends, youâll only end up getting $70 due to withholding tax.
This is certainly not ideal if we invest in US-listed stocks or ETFs that pay out dividends.
Check the list of countries with tax treaty with the US HERE.
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Estate tax
There is also a 40% estate tax in the US for foreign investors.
So, letâs say I pass away with $1 million worth of stocks, $400k will go to the US government, and only $600k will be received by my appointed nominee.
Ireland-Domiciled ETFs: The best S&P500 ETFs for non-US residents
Well, does that mean we are not able to invest in the S&P500 after all?
Not exactly. There are ways to go around this:
The easiest way for non-US investors (eg. Malaysians, Singaporeans) to invest in the S&P500 index is through Ireland-Domiciled ETFs.
Why?
Because Ireland-Domiciled ETFs benefit from the US-Ireland tax treaty of only 15% withholding tax on dividends. This is significantly lesser compared to the 30% withholding tax of US-listed ETFs.
(a) How many Ireland -Domiciled S&P500 ETFs are there?
The following are 8 Ireland-Domiciled S&P500 ETFs are ETFs listed in the London Stock Exchange (LSE) that tracks the S&P500 index.
Donât worry, let me simplify this table and tell you which S&P500 ETFs are the best among all:
In the table above, there 6 things that you need to pay attention to:
(1) Trading Currency:
Most ETFs can be bought either in GBP or USD. Personally, Iâd go for USD-denominated ETFs as USD is still the go-to global currency.
(2) Expense Ratio:
ETF providers charge a small annual management fee for their ETFs. In this case, all ETFs have a very low expense ratio so the difference is negligible.
(3) Fund Size:
In general, an ETF with a larger size fund size is a good indicator of the ETFâs durability as well as its popularity. Larger ETFs can also make use of economies of scale to lower their costs.
So, ETFs like CSP1 and CSPX are the obvious winner here. That said, other ETFs are also fairly respectable in size (billions) so youâll be in good place regardless of which S&P500 ETF you select.
(4) Dividend Handling:
There are 2 approaches on how these ETFs manage dividends:
- Distributing: Your dividends are redistributed to you.
- Accumulating: Your dividends are reinvested automatically.
Choosing to invest in either ETF is your personal preference. Personally, Iâd go for Accumulating ETFs as I want my dividends to be re-invested automatically, so I can compound my returns more efficiently.
(5) Unit Price:
Some ETFs are larger in terms of per unit share price. As an example, CSPX is USD 400+/share while VUAA is USD 80+/share.
If your investment capital is small, ETFs with smaller per unit price like VUAA would provide you more flexibility to invest in the S&P500.
(6) Trading Volume:
Hereâs something that you may not know - the trading volume of an ETF has a minimal indication of the ETFâs liquidity.
Rather, it is the trading volume of the underlying component companies that truly affect the liquidity of an ETF (for S&P500 itâd be companies such as Apple, Microsoft etc.)
Hence, itâs okay to not put too much weightage into the trading volume of an ETF in our decision-making process.
(b) Which is the best Ireland-Domiciled S&P500 ETF?
Considering all the key factors, personally, I think CSPX or VUAA are the best Ireland-Domiciled S&P500 ETFs among all. Here are why:
- Both CSPX and VUAA are denominated in my preferred currency, USD.
- Both CSPX and VUAA have a very minimal expense ratio of 0.07%/annum.
- Both CSPX and VUAA will reinvest my dividends automatically (accumulating).
- Both CSPX and VUAA use a full replication approach. Meaning, Iâll get the most accurate representation of the S&P500 index when I invest in either of them.
- CSPX is the larger ETF compared to VUAA, but it has a larger per-unit price. This makes it less flexible to invest in it with a smaller capital.
- On the other hand, VUAA is a smaller ETF. However, it has a smaller per unit price, which is easier for investors to invest with a small capital.
Regardless, I think either ETFs are great for you to gain exposure in the S&P500 index.
Recommended broker to invest in Ireland-Domiciled S&P500 ETFs: Interactive Brokers (IBKR)
To invest in Ireland-Domiciled S&P500 ETF, youâll need to have a broker with access to the exchange where the ETF is listed.
In this case, all the ETFs that we discussed are listed on the London Stock Exchange (LSE).
For this, I use Interactive Brokers (IBKR) to invest in Ireland-Domiciled S&P500 ETFs listed in the LSE. In fact, IBKR gives investors access to 150 markets in more than 33 countries! (US, Hong Kong, China, Japan, UK, Singapore, Europe, and more!)
In my opinion: IBKR is a no-brainer for investors looking to gain access to global markets at a low commission.
RELATED READ: Interactive Brokers Long-Term Review
Open an Interactive Brokers (IBKR) account today:
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Click the image below to explore Interactive Brokers' Low Commission:
No Money Lah's Verdict
So, what do you think? Isn't the S&P500 amazing, given how it has withstood the test of time and crises?
For me, I genuinely think that the S&P500 is a great long-term investment, be it as a standalone investment, or being part of a long-term investment portfolio.
Remember, if you want to invest in Ireland-Domiciled ETFs, be sure to check out Interactive Brokers for global market access at a competitive price!Â
Disclaimers
This article is produced purely for sharing purposes and should not be taken as a buy/sell recommendation. Past return is not indicative of future performance. Please seek advice from a licensed financial planner before making any financial decisions.
This post may contain promo code(s) that afford No Money Lah a small amount of commission (and help support the blog) should you sign up through my referral link.
Guide & Tips: How to withdraw funds from Interactive Brokers (IBKR) via Wise
In this post, letâs explore how to withdraw the funds from your Interactive Brokers (IBKR) account via Wise.
This is the fastest and most convenient way to withdraw funds from your Interactive Brokers (IBKR) account.
This guide is especially suitable for non-US residents (eg. Singapore, Malaysia, and more) â any questions feel free to leave them in the comment section at the end of this post!
RELATED:
Part 1: Withdraw funds from Interactive Brokers (IBKR) via Wise
In this guide, I will demonstrate how to withdraw USD from my IBKR account via Wise. Using Wise to withdraw funds from IBKR is the fastest and most convenient method.
Perk: 1x FREE Wise withdrawal every month
What's great about withdrawal with Wise is that 1x FREE withdrawal is allowed every calendar month.
Hence, you do not have to pay additional fees if you only withdraw occasionally from your IBKR account.
Any subsequent withdrawal within a calendar month will have a small charge of USD 1.
Overall fee/cost involved for IBKR to Wise withdrawal:
- Part 1: IBKR to Wise withdrawal: 1x FREE withdrawal every calendar month, USD 1 for each subsequent withdrawal.
- Part 2: Wise to local bank account: Exchange rate + Wise fee.
Pre-requisite: Open a Wise account and make a deposit to your Wise balance
Before you begin, be sure to open a Wise account first if you do not have an account.
Be sure to use my Wise referral link below and get a free transfer on your first 500 GBP (~RM2600) transfer!
Step 1: Log in to your Interactive Brokers (IBKR) account, and select 'Withdraw'
Step 2: Select your withdrawal currency (USD, for this example), and select 'Transfer to Wise Balance'.
Step 3: Cross-check your Wise account details before proceeding.
Step 3 will be a one-time process. Once done, you will be able to skip this step in all your future IBKR-Wise withdrawals.
[Note for new Wise-IBKR users] If this is your first time using Wise with your IBKR account, you might not see the screenshot above. Don't worry, there is just an additional step that requires you to connect your Wise account with IBKR first, and you will be good to go.
To learn more about how to connect your Wise account to IBKR, check out Step 3 of my Wise-IBKR deposit guide HERE.
Next, you will be required to check and confirm your Wise account details again. Once done, leave your signature AND username & password to confirm the details.
Then, you'll be shown that your Wise bank account details have been confirmed. Select 'Finish'.
Step 4: Proceed with our IBKR withdrawal via Wise
Select 'Make a Withdrawal'.
Select 'Transfer to Wise Balance'.
Proceed to key in the amount you want to withdraw from your IBKR account.
For this demonstration, I will withdraw USD 55 from my account.
You will be shown the screen below once your IBKR-Wise withdrawal is done:
Step 5: Check your Wise withdrawal status under 'Transaction Status'
Step 6: Money arrived at your Wise account
It took about 1 working day for the withdrawal to reach my Wise account
Part 2: Transfer money from your Wise account to your bank account
Once your fund reaches your Wise account, the next thing is to transfer the fund back to your local bank account in your local currency.
For my case, I will have to convert & transfer my USD 55 IBKR withdrawal to Malaysian Ringgit (MYR) in order to send it back to my local bank account. But this method should work for most other currencies.
Step 1: Log in to your Wise account, and select 'Send'
Step 2: Choose to send money from your Wise balance (USD)
Step 3: Determine your transfer amount, check for the fees incurred (Wise fee + Exchange rate), and select 'Continue'
Step 4: Choose to send money to your local bank account.
Step 5: Review and confirm your transfer. You should receive your transfer in your bank account immediately once done.
Verdict - Withdrawing from your IBKR account is never easier
With platforms like Wise, it is extremely fast & convenient to withdraw from your IBKR account.
Do you have any other tips on how to withdraw from your IBKR account? Feel free to leave your tips and thoughts in the comment section below!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.