What is DCA (Dollar Cost Averaging) and which brokerages should you choose in 2025?

Understanding the DCA Investment Strategy

Dollar-Cost Averaging (DCA) is a systematic investment method suitable for those aiming to build long-term financial stability. This approach allows beginner investors or those with limited capital to easily participate in the stock market.

DCA is an investment strategy where you purchase stocks or funds at a fixed amount at regular intervals, such as monthly, weekly, or quarterly, regardless of the asset’s price. For example, deduct 3,000 THB on the 15th of each month to buy stocks from a pre-selected list.

The advantage of this method is that when stock prices rise, you buy fewer shares; when prices fall, you buy more. This averaging technique helps keep the average cost at a reasonable level and prevents overpaying.

Who Is DCA Most Suitable For?

Individuals seeking regular income

For salaried employees, DCA is ideal because they have a steady income and can systematically allocate funds for savings and investments. Investors can set a fixed amount, such as 1,000 to 5,000 THB per month, for continuous investment.

Freelancers and busy individuals

DCA is also suitable for those who lack time to monitor the stock market regularly, as it does not require timing trades or complex market analysis. Simply select fundamentally strong stocks and let the system automatically deduct funds.

Key Benefits of DCA Investment

1. Accessible with limited funds

Most securities companies set the minimum investment at 1,000 to 5,000 THB, enabling those with limited capital to participate.

2. Builds disciplined saving habits

Automatic monthly deductions foster consistent saving and investing habits without relying on emotional decisions.

3. Reduces risk of buying at peak prices

Since purchases are spread out over time, there’s less risk of buying all shares at the highest price. The average cost remains reasonable.

4. Offers returns exceeding bank interest

Returns from stock investments generally outperform fixed bank interest, especially over the long term.

Limitations to Consider

Average cost may be higher than current market price

In the short term, the average cost might be above the current market price, especially if stock prices decline significantly toward the end.

Does not eliminate all risks

Choosing stocks with poor prospects or fundamental issues can still lead to losses despite using DCA.

Not suitable for market timing traders

DCA is a long-term strategy. Those seeking short-term profits or wanting flexibility in trading may find this approach unsuitable.

Characteristics of Stocks Suitable for DCA

Before investing via DCA, consider these criteria:

• Competitive business potential: The company should have strong qualities enabling sustainable competition in the market.

• Growth plans: The company should demonstrate continuous growth and clear expansion strategies.

• Consistent profits: Profits should trend upward or remain stable, with minimal volatility.

• Manageable debt levels: The company should not have excessive debt, which could affect liquidity and operations.

• Increasing retained earnings: Reflects good management and profitability.

• Cost control: Companies that efficiently manage costs tend to have better profit potential.

Example of DCA Performance

Suppose an investor invests 3,000 THB every month for 12 months, with stock prices fluctuating as shown below:

From this example, the average cost per share is 9.67 THB, which is lower than the closing price of 15 THB in month 12. The total shares accumulated are 3,940.69.

Conversely, if the investor had invested the full 36,000 THB in month 12 at 15 THB per share, they would have only 2,400 shares, which is significantly fewer than with DCA.

Securities Firms Offering DCA Services in Thailand

Note: These fees exclude stock exchange fees and 7% VAT.

Popular Securities Firms and Service Features

Securities of SCBS (

A highly flexible option with a minimum investment of 2,000 THB. Offers monthly and weekly investment options, allowing selection from SET100, TDEX, and BMSCITH. Fees are linked to the investment channels.

SBI Thai Online Securities

Known for the lowest fee )0.075%( and a minimum investment of only 1,000 THB. Invests in SET100 stocks, ideal for cost-conscious investors.

Kasikorn Securities )KS(

Provides services via K-Cyber Trade and Settrade Streaming. Supports stocks and ETFs, offering a wide range of options.

Recommended Stocks for DCA Beginners

PTT )PTT Public Company Limited(

Thailand’s national energy company with a comprehensive business scope from exploration and production to distribution. PTT is highly stable, pays regular dividends, and is suitable for long-term investors.

CPALL )CP All Public Company Limited(

Operator of over 13,000 7-Eleven convenience stores. The company has steady growth, good profitability, and regular dividend payments.

SCC )Siam Cement Public Company Limited(

A regional leader in cement, chemicals, and packaging with over 100 years of operation. Highly stable and consistently pays dividends.

INTUCH )Intouch Holdings Public Company Limited(

Invests in telecommunications and digital sectors, holding major shares in AIS. Generates steady cash flow and offers high dividends.

BBL )Bangkok Bank Public Company Limited(

A large commercial bank with extensive domestic and international networks, diverse customer base, stability, and regular dividends.

CPN )Central Pattana Public Company Limited(

Developer and manager of over 30 shopping malls with continuous growth. Stable income from rental spaces and adaptive to changing consumer behaviors.

Summary

DCA investing is an easy and effective method, especially for those seeking long-term financial security without market timing. When combined with choosing the right securities firm, investors can confidently participate in the stock market and increase their chances of wealth accumulation toward their goals.