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Using Schwab as a noob investor?

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  1. #1

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    Using Schwab as a noob investor?

    I've been recommended this company and app to do my first ETF investment.

    Basically, I'm going to invest 100% in the SP500 for the long term.

    Is there a minimum amount I need to start investing in the SP500 via this platform?

    Anything I should be wary about? Hidden charges, etc.

    Edit: I just saw Schwab do stock slices of the SP500.

    Last edited by periphery831; 05-07-2020 at 12:36 PM.

  2. #2

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    Step 3 - Fund Your Account A minimum of US$25,000 is required to open a Schwab Hong Kong Individual/Joint Account.

    Oops.

  3. #3

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    Quote Originally Posted by periphery831:
    Step 3 - Fund Your Account A minimum of US$25,000 is required to open a Schwab Hong Kong Individual/Joint Account.

    Oops.
    That's steep.
    periphery831 likes this.

  4. #4

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    If you're not ready to drop 25k USD into a trading account, SoFi HK and Futu offer trading on the US market with no minimums (Futu requires HK$20k to trigger lifetime comission free trading). One consideration about these brokers are they are HK and China based respectively.

    I am also heavily invested in SP500 and believe it's one of the best indices to invest in but consider whether you want 100% exposure to the US market or whether you want to diversify into European and emerging markets. Japan is also good for stability.

    Personally I am not hugely optimistic about Europe and the returns have been generally crap over the last decade but there may be a few rockets ready to go to the moon in the emerging markets (and also many ready to crash land - they are very risky).

    periphery831 likes this.

  5. #5

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    Thanks for the advise.

    How about www.interactivebrokers.com.hk?


  6. #6

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    They are the broker I use. For IB there's a monthly fee of iirc US$10/mo if your relationship balance is below US$100k.

    periphery831 likes this.

  7. #7

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    Quote Originally Posted by aw451:
    They are the broker I use. For IB there's a monthly fee of iirc US$10/mo if your relationship balance is below US$100k.
    I read there is a lite and pro version. The lite version has no monthly fees?

    Should I go pro or lite?

    https://www.interactivebrokers.com/en/index.php?f=45500
    Last edited by periphery831; 05-07-2020 at 01:43 PM.
    GentleGeorge likes this.

  8. #8

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    Quote Originally Posted by periphery831:
    I read there is a lite and pro version. The lite version has no monthly fees?

    Should I go pro or lite?

    https://www.interactivebrokers.com/en/index.php?f=45500
    Wasn't aware they had a lite version. Looked at the pricing table and it seems in line with the free HK based brokers here, if not better.

  9. #9

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    Quote Originally Posted by aw451:
    Wasn't aware they had a lite version. Looked at the pricing table and it seems in line with the free HK based brokers here, if not better.
    Can you figure out a way to change your account from Pro to Lite? Mine is currently Pro but I haven't connected my bank account yet. Want to change it before I start giving them access.

    Edit:

    Eligible clients can switch from IBKR Pro to IBKR Lite (and vice versa) from Client Portal/Account Management:

    • Log in to Client Portal/Account Management
    • Click on Settings followed by Account Settings
    • In the Configuration panel click on the Configure (gear) icon next to IBKR Pricing Plan
    • The IBKR Pricing Plan screen opens up
    • Select IBKR LITE or IBKR PRO
    • Click CONTINUE and follow the prompts on the screen.

    If you see an info icon instead of the gear icon then you do not currently qualify for IBKR Lite. Click on the info icon to see the reason for not qualifying.
    Please note, any outstanding “Good-til-Cancelled” (GTC) orders will be cancelled when an account is re-classified.
    Last edited by periphery831; 05-07-2020 at 05:25 PM.

  10. #10

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    Not sure HK residents are eligible though.

    The IBKR Lite will only be offered to direct US clients and any client of an Introducing Broker (fully disclosed and non-disclosed iBroker, but not omnibus brokers), including both Cash and Margin type accounts. Direct accounts have to be natural person (i.e. cannot be Legal Entity, Org, etc.). For standalone trust accounts, all trustees/beneficiaries on the account must be natural persons. For trust accounts that are under an advisor, the trustees/beneficiaries may be legal entities.
    If you are an employee of a firm using Employee Track then regardless of location you can have an IBKR Lite account.
    Account Types:

    • US resident individuals, joint, IRA and trust accounts.
    • US Financial Advisors and Family and Friends Advisors. (review eligibility)
    • Broker clients of any residency (broker must opt into IBKR Lite for all their clients). (review unsupported accounts)
    • Employee Track individuals, joint, IRA and trust clients of any residency.

    Note: For iBrokers, Financial Advisors, Friends and Family Advisors or Employee Track accounts, if an account has a residential address in Israel then they will not be eligible for IBKR Lite.

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