What is DCA stock investing? How to choose a good securities company in 2025

Understand DCA Better

DCA stands for Dollar-Cost Averaging. It is a consistent investment strategy where you invest the same amount of money at regular intervals, such as on the 15th of each month or every month after payday. You don’t need to worry about the stock price being high or low at the time.

For example, if you set aside 1,000 THB each month to buy selected stocks, when the price is high, you buy fewer shares; when the price drops, you buy more. This method helps to reduce the average cost and build disciplined savings without being affected by market volatility.

This concept is especially suitable for salaried individuals because regular income makes it easier to plan savings. You can start with a small amount, such as (from 1,000-5,000 THB per month), which is ideal for beginners with no investment experience.

What are the benefits of DCA savings?

Clear advantages

1. Start with a small fund: No need to wait until you save enough for a lump sum. Just allocate a portion of your income monthly, and you begin investing. When stock prices fall, you can buy more, reducing the risk of buying at high prices.

2. Learn from experience: DCA is a good starting point to understand how the stock market works. You don’t need deep technical or fundamental analysis knowledge because patience and discipline are more important.

3. Better returns than savings interest: Over the long term, good company stocks tend to outperform bank deposits, plus you may receive dividends (even after taxes).

4. Suitable for young and working people: No need to monitor the stock board all day. Just set your savings schedule and let the system handle the rest. Broker experts can help select stocks with good prospects.

Limitations to be aware of

Although DCA is a good method, it’s not perfect.

Average cost may not be the best price: If you pick the wrong stocks, even after years of saving, your average cost could still be higher than the current market price.

If focusing on highly volatile stocks: Your portfolio will fluctuate with the market. Increasing savings each month might lead to fewer shares bought if your income doesn’t grow with the stock prices.

Not suitable for traders who want to time the market: If you prefer controlling your buy and sell timing, DCA might feel restrictive.

Which stocks should you choose for DCA savings?

Before starting, understand what types of stocks are worth investing in.

Look at the business: The company should be competitive and not easily overtaken by rivals.

Check growth prospects: Does it have a clear business plan? Is it in a growing future trend (such as clean energy, healthcare, digital systems), or at risk of being replaced?

Consistent profits: A good company should generate steady profits, not volatile.

Low debt levels: Excessive debt risks repayment issues, especially during tough times when the business might need to pay interest repeatedly.

Accumulated profits: Indicates good financial management.

Cost control: Companies that manage costs well are more efficient.

Real example: How DCA reduces costs

From this example, if you save 3,000 THB monthly for 12 months, your average cost per share is 9.67 THB, much lower than the last month’s price (15 THB).

If you had used 36,000 THB to buy all shares at 15 THB, you’d get only 2,400 shares. But with DCA, you get 3,941 shares, which is a significant difference.

Where to open a DCA stock savings account?

SCBS offers a minimum of 2,000 THB, with options for SET100, TDEX, and BMSCITH, with commissions of 0.157% if online, or 0.257% via broker.

SBI starts at just 1,000 THB, with a 0.075% commission for SET100 stocks if using Cash Balance.

Phillip requires at least 1,000 THB, with a list of 36 recommended stocks reviewed every 6 months, with a 0.257% fee.

KS needs a minimum of 5,000 THB, with options for SET100 or ETFs, with commissions of 0.157-0.207%.

Nomura starts at 1,000 THB, investing in SETHD and other assets announced by CNS, with a fee of 0.15-0.25%.

KTBS begins at 1,000 THB, investing in SET and mai stocks, with a 0.25% fee.

Bualuang requires at least 5,000 THB, investing in BMSCITH, BSET100, or E1VFVN3001 funds, with a 0.30% fee.

Maybank Kim Eng minimum 5,000 THB, options for SET50 or SET100, with a 0.15% fee.

KSS starts at 2,000 THB, investing in SET100 stocks, with a 0.15% fee.

6 Recommended Stocks for Beginners Using DCA

1. PTT - PTT Public Company Limited

Thailand’s national energy company with a comprehensive business from exploration, production, to distribution of oil and natural gas. It also has subsidiaries in petrochemicals and renewable energy. A large, stable company that pays regular dividends, ideal for long-term DCA.

2. CPALL - CP All Public Company Limited

Operator of over 13,000 7-Eleven stores nationwide, with additional businesses like distribution centers, wholesale, and education. Continually growing with good profits and steady dividends, making it popular among DCA investors.

3. SCC - Siam Cement Public Company Limited

Leading ASEAN company with core businesses in cement, chemicals, and packaging. Over 100 years of operation, highly stable, adaptable to technology, suitable for long-term DCA.

4. INTUCH - Intouch Holdings Public Company Limited

Invests in telecommunications, IT, and digital sectors. Major shareholder of AIS (a mobile and internet provider). Also invests in satellites and other tech, with stable cash flow, high and continuous dividends, ideal for income-focused long-term investors.

5. BBL - Bangkok Bank Public Company Limited

One of the largest commercial banks with extensive domestic and international branches. Strong and diverse customer base, pays regular dividends, a good choice for bank sector DCA.

6. CPN - Central Pattana Public Company Limited

Developer and manager of 30 shopping malls, also involved in real estate like office buildings, hotels, and residences. Steady growth, stable rental income, adapts to consumer behavior, suitable for long-term DCA.

Key takeaways

DCA investing in stocks is not a get-rich-quick method but a way to build discipline in savings and accumulate assets over the long term. With patience and selecting fundamentally strong stocks, the returns can surpass deposit interest rates, plus dividends may add further income. It’s a worthwhile strategy for anyone starting their investment journey.