Online Brokerage Accounts for US Stock Market

I started investing since 2008. Besides reading up on books, there's also the nitty gritty stuff of choosing which online brokerage accounts and how to link up with you Singapore Bank Account. It's pretty confusing at times but luckily there are very detail breakdowns done by various writers. I will link them here as we go along. 

A few things to prepare before you open an Online Brokerage Account. 

1. Bank Account

Always have a separate bank account when you invest. 

And make sure that account can't be withdrawn by an ATM or debit card. The only money that goes out is to your Online Brokerage Account. 

Keep this separate from your other regular accounts. A decade ago, it would be pretty tedious because you would have to maintain the minimum amount the the account. If your account drops below the limit, they would charge you a fee. But it's alright because you can always call to waive off. 

These days, It's easier to open bank accounts and they are like opened instantly. Still some banks impose a fee if the value drops below the limit. 

It is still advisable to keep a separate account for investments. It forces you to regularly park money there. 

2. Online Brokerage for Targeted Markets

There is a huge range of choices for online brokerage accounts recently. Back in 2008, there wasn't much of a choice that offers low fees and no minimum account value. 

You could choose online brokerage from the local banks or online brokerages in your Targeted Market. In my case, my strategy was to grow my Investment Portfolio aggressively in US Stocks. So the online brokerage from local banks were generally charging fees higher than the online brokerages offer by Optionsxpress, 

There were other brokerages to choose but you can check the comparisons online. I chose Optionsxpress and it worked well for 8 years before they were acquired by Charles Schwab and the accounts were transferred to Schwab in 2017. That was when Schwab opened a branch here in Singapore. 

Then shit happens. Schwab closed Singapore Office in 2019. I was left scrambling for a new Online Brokerage Account. 

After months of checking and comparing and reviewing online brokerages, I decided on Interactive Brokers. There are many processes involved: 

a) How to link up the account to your bank account

b) How to transfer money from bank account to brokerage account. 

Those 2 websites are pretty well written and informative. 

3. Invest Within Your Means

Finally you must be aware of your limitations and not get carried away. Firm up a concrete savings plan and keep to it. Each month dedicate that amount of savings to the brokerage account and let it accumulate until it becomes a war chest. 

When the time comes, execute your Investment Strategy.

Until then, shore up your capital and be patient. 

~tschuss