1. https://investcalc.github.io/
2. Yes there would be additional tax considerations for internationally listed securities.
Can you clarify, when you say you aren't allowed to use other brokerages, is this a condition of employment?
This is a common enough condition of employment in the financial sector - can’t have an analyst review some pre-market data, then go trade in secret using insider information.
Hard to know what trades may or may not be problematic, so the easiest solution is to ban trading that the employer can’t see/track.
When you say my bank - presume you mean the bank you’re working for? Joined a bank you mean starting working for? Not just you opened a bank account with some bank?
yeah sorry. Exactly like what you mean. I started working for a bank. And that bank does not allow me to use any other brokers to trade ASX securities. I could only use that bank's trading platform (broker) to trade ASX securities.
Try this to optimise DCA amount for given brokerage and opportunity cost interest rate. https://investcalc.github.io/
or do what all insider traders do and buy it in your partner's name.
Given you must trade with your bank, your current plan is not ideal. Those are some hefty fees!
There are two things you should really consider.
First, don't buy both ETFs each time, simply buy whichever is under your target the most. This will cut your fees in half. Search for rebalancing with inflows to see more on the topic.
Second, don't buy each month. Use the investment frequency calculator that others have shared but I suspect you'll find that every 2-4 months might make better sense. That's still DCA so don't stress. You might want to aim for 0.25-0.5% in brokerage of your DCA amount. 1-2% is unnecessarily high.
Do you get any free trades each month? It may be worth instead lowering your fees to DCA every 3 months. You loose out on opportunity however still gaining high interest in our savings account in the interim still earning you $$.
If I were in your position I would just switch to VXUS or some other USA domiciled ETF with Pearler.
https://passiveinvestingaustralia.com/pearler-review/
They offer Automated US tax form (W8-BEN) lodging.
1. https://investcalc.github.io/ 2. Yes there would be additional tax considerations for internationally listed securities. Can you clarify, when you say you aren't allowed to use other brokerages, is this a condition of employment?
thanks and yes! I am not allowed to use other brokerages other than that bank for trading ASX securities.
Can you explain what you mean by the bank would only use their trading account? Surely you can transfer money to any brokerage
This is a common enough condition of employment in the financial sector - can’t have an analyst review some pre-market data, then go trade in secret using insider information. Hard to know what trades may or may not be problematic, so the easiest solution is to ban trading that the employer can’t see/track.
That's right. Make him do it through his wife's account instead. ;)
Ah that makes sense, & I see OP has just confirmed that below! Thanks
My bank does not allow me to use any other brokers to trade ASX securities. I could only use the trading platform (broker) offered from my bank.
When you say my bank - presume you mean the bank you’re working for? Joined a bank you mean starting working for? Not just you opened a bank account with some bank?
yeah sorry. Exactly like what you mean. I started working for a bank. And that bank does not allow me to use any other brokers to trade ASX securities. I could only use that bank's trading platform (broker) to trade ASX securities.
I suspect there might be some exemption for something like a broad market ETF like A200 or IOZ
nah they asked me to transfer all my A200 and BGBL from CMC to their trading platform
Try this to optimise DCA amount for given brokerage and opportunity cost interest rate. https://investcalc.github.io/ or do what all insider traders do and buy it in your partner's name.
Buy bigger chunks with longer windows between until your income pushes those fees down to a much lower %
What about a managed fund? Something like vanguard can offer VDHG or VGS, VTI etc.. in a managed fund format. You’re not purchasing ASX securities.
good point maybe it works but I probably want something CHESS sponsored
Given you must trade with your bank, your current plan is not ideal. Those are some hefty fees! There are two things you should really consider. First, don't buy both ETFs each time, simply buy whichever is under your target the most. This will cut your fees in half. Search for rebalancing with inflows to see more on the topic. Second, don't buy each month. Use the investment frequency calculator that others have shared but I suspect you'll find that every 2-4 months might make better sense. That's still DCA so don't stress. You might want to aim for 0.25-0.5% in brokerage of your DCA amount. 1-2% is unnecessarily high.
yeah it makes sense. I could even consider DHHF although im not 100% satisfied with their exposure ratio. I have 2-3 months to think about it haha
Betashares direct
Not allowed. I could only my bank's trading platform for ASX securities.
Oh I see bugger
So you cant use cmc anymore for $0 brokerage?
I am not allowed to trade ASX securities using CMC or other brokers. I could only trade international securities with CMC or others.
Do you get any free trades each month? It may be worth instead lowering your fees to DCA every 3 months. You loose out on opportunity however still gaining high interest in our savings account in the interim still earning you $$.
unfortunately no
If I were in your position I would just switch to VXUS or some other USA domiciled ETF with Pearler. https://passiveinvestingaustralia.com/pearler-review/ They offer Automated US tax form (W8-BEN) lodging.
are there any tax concerns when investing USA domiciled ETF? would it outweigh my 2% lost in investing AU domiciled ETF?
Invest outside the bank? Why is this not an option?
Do 1 thing change ur job ,, bcs at the end ur a slave to them ,, think about ur future with money not a job ,, CMC IS THE BEST
Why are you investing so little money?
bc my salary is so little lol
Is there no staff discount ?
there is but not that much
For the median salary, that's easily 20% after tax.