INVESTING STRATEGY
Minimum purchase price
Is the minimum purchase price $500 for all shares? Are there benefits other than saving brokerage fees when investing smaller vs larger amounts?
Stephanie Penning
27 July 2022
5 Comments
Cathy Sun
PEARLER
about 2 years ago
Hi Stephanie,
Thanks for this great question!
The ASX does tend to have an issue with people holding small parcels of stock (under $500 worth) over a long period of time. This usually isn’t a problem for most of our Shares investors. However, to prevent that from ever becoming an issue, Pearler has a requirement that the first investment into any share/ETF needs to meet the minimum marketable parcel size of $500.
Once this initial requirement is met though, any following investments into the same share/ETF will only have a minimum order size of $100.
The one exception to this rule is when brokerage-free ETFs are involved. Pearler’s free ETFs will always have a minimum buy order size of $500 for every transaction. When selling brokerage-free ETFs, there are no minimum requirements.
The next topic of investing smaller vs larger amounts is quite a personal one. Brokerage fee is obviously a big factor. Another factor you may want to consider is the concept of Dollar Cost Averaging and if you wanted to make that a part of your investing strategy🤑
Hope this helps and happy investing!
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ReplyCathy Sun
PEARLER
over 1 year ago
Hi Brendan,
For Autoinvest, ASX minimums apply if you select the lowest share investment strategy, which invests in the ONE asset that is the lowest weighted share (furthest away from its target %) in your pool of assets. If you select the rebalance portfolio investment strategy, the minimums don’t apply assuming you already hold over $500 of an asset :)
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ReplyJessica Pearson
INVESTOR
4 months ago
I’ve just set up auto-invest with $400 every fortnight, split between 2 x ETF’s. One of the ETF’s is new for me (I haven’t done a $500 minimum first-buy). So how will the auto-invest treat this ETF if it requires a $500 minimum first buy?
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0
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ReplyCathy Sun
PEARLER
4 months ago
Hi Jessica,
The default minimum for Autoinvest setup is $650 per share/ETF so orders have the best chance of executing successfully, especially when it is a first investment and minimum parcels requirements need to be satisfied.
As an example, if you are investing into one ETF every time Autoinvest is triggered, you’ll need to invest a minimum of $650.
If you are investing into two ETFs every time Autoinvest is triggered, you’ll need to invest a minimum of $1300.
If you want to invest into multiple ETFs overall but only want to invest $650 at a time, you can select our popular “lowest share” Autoinvest strategy that allows for this by rotating through your portfolio and invests into just one ETF every time Autoinvest is triggered.
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