Maybe u should calculate the real cost for Ibkr path first. You conveniently ignored all those currency exchange fee from wise and use 0.35usd to compare it with 1usd fsmone. Very unfair lol.

Please don't take me wrongly. I am not here to diss or promote one platform over the other. I am not saying that FSM RSP is a lot more expensive than IBKR. Initially that may be my impression of FSM RSP, but after doing further calculation, my opinion is that it is only slightly more expensive than IBKR's, but it is still a decent choice if your goal is to set up a monthly RSP. I may still be wrong for all I know. So if you have the numbers and don't mind sharing the calculations, it may do good to everyone. Who knows, maybe you would have shed some light to everyone and this FSM RSP may prove to be a competitive platform to the existing options. Again, I am not trying to be sarcastic here, in case my typing come across as that.

Even through IBKR, I do not do monthly transactions since I am trying to minimize my cost. Therefore, I only do a transaction every few months after pooling sufficient money to reduce the commission to an acceptable amount personally. This is what I was comparing to when I mentioned that FSM fees are more expensive that IBKR, especially if you conduct transactions outside of the your RSP (USD8.80 per transaction).

To be fair, in making my previous statements and assessments I should have also mentioned that I do not invest in USD denominated ETF. I mainly invest in GBP denominated ETF. The cost here is only the minimal fee at Wise and the brokerage commission. Therefore, I am may not have been aware of the costs involved for ACH wise direct from MYR to USD. Are there additional fees or is the rate as shown as when we check on Wise front page? Perhaps you can share your knowledge with me.


On a side note, Wise fees for RM400 to SDG only costs ~RM4. Why do you quote up to RM15. Is that the cost for a different platform?



This post has been edited by RayleighH: Jun 16 2022, 08:43 PM

To summarize.

Use FSMone if:
1. You want to DCA every single month (not few months)
2. Your DCA amount is small. Few hundreds
3. You don't want offshore broker
4. You want automation, set it and forget
5. You want convenience

Use IBKR if:
1. You don't mind DCA Quarterly. fee is high if do frequent
2. You have large sum to invest
3. You want Ireland domiciled ETF to enjoy low dividend WHT.
4. You don't mind the process to convert
5. You don't mind money at offshore account

Ibkr offers lowest fee if portfolio is huge. Saving from WHT

FSMone is good automation alternative to stashaway which charge 0.8% per year + hidden fee from currency exchange + trading fee

Just trying to do some calculations for the sake of it. Perhaps I may learn something new here too. Therefore, if there are any mistakes or any costs that I may have left out, I would appreciate if anyone were to point it out. The calculation will be updated to reflect an accurate comparison.

Comparing the converted amount between Wise and FSMone, we can probably agree that FSMone has better rates or lesser forex fee.
FSMone: USD90.30
Wise: USD89.93
Difference: USD0.37

I am not familiar with USD ACH so if there are additional fees on top of those quoted by Wise, I may have missed it out. Do inform me otherwise and I can update the calculation.


With USD90.30 in FSMone, after deducting processing fee (USD1.00) and stamping fee (USD0.23), one is left with USD89.07 to purchase fractional ETF shares. Fees percentage comes to 1.36%

With USD89.93 is IBKR, after deducting ACH fee (USD0.50) (Update 1: thanks to izati87 for the information) and commission fee (USD0.35), one is left with USD89.08 to purchase fractional ETF shares. Fees percentage comes to 0.94%.

If the calculation so far is accurate, IBKR is, perhaps arguably, marginally cheaper. That 0.43% difference may be substantial to some, while to others they may not be bothered by that.

So for now, prior to any correction from anyone, it seems that FSM RSP benefits are mainly automation, local brokerage and convenience.

Update 2:
After another round of correction, it seems that FSM RSP may in fact be competitive or cheaper than IBKR for small amounts.

Update 1:
Clearing fee for NYSE is rather minimal for this comparison of 1.XX shares. So in my opinion, it can be considered negligible for the sake of this calculation.


This post has been edited by RayleighH: Jun 16 2022, 10:05 PM

I was comparing to the converted amount mentioned by an earlier poster. In any case, I have updated the converted amount for FSM RSP to USD90.30.

I agree. That was one unintended omission on my side during the calculation.

Don't trust. Verify.
I never believe brokers/ banks/ remittance FX rates. I always compare with reputable independent 3rd parties, likexe.com

Brokers, banks and remittance services are all profit oriented. There's always some fee involved. Some fees are hidden in the FX spread and are unknown to the investor, until they compared it to an independent source. Over time, these hidden fees do add up, and can be costly if the investor is not careful.

This post has been edited by pigscanfly: Jun 16 2022, 10:31 PM

Hi, any minimum and maximum amount to use direct ach from wise?

Don't think have minimum. But maximum seems like RM20k as per bank negara guidelines. But I was able to send more than RM20k per day which is odd.

Edit

After transferring some money
Min is RM10
Max is RM30k per day as per Bank negara rule

This post has been edited by AthrunIJ: Jun 17 2022, 04:46 PM

Did you send direct or deposit into usd account first? May be send direct somehow skipped the 20k limit?

Actually let me edit it lol.

Min is RM10
Max is RM30k per day as per bank negara rules

This post has been edited by AthrunIJ: Jun 17 2022, 04:46 PM

Hello everyone,
I'm currently invested in these local ETFs:
- TRADEPLUS MSCI ASIA EX JAPAN REITS
- ABF Malaysia Bond Index Fund (0800EA)

Understand that many Malaysians think these ETFs may have bad liquidity, though some say the market makers mitigates that problem. The idea of a Malaysian-domiciled ETF of foreign funds is very attractive to me. (Currently just plugging into VT)

What's your opinion of Malaysian ETFs? Any of you invested in local ETFs? Do you think it's worth it to do so?

I do.

I hold the Tradeplus Gold and Tradeplus New China in my portfolio. Tradeplus is managed by Affinhwang asset management.

I used to own the abfmy bond and got good returns in 2019, but already exited long time

The thing bothers me is oversea platform like IBKR is locked to one person access.

Say I, msian, suddenly accident, memory loss, turned vege or passed away, the fund is locked away.

Unless write down username, password.. Pass it on family member to keep, but high potential will kena songlap by own family member even when own self still alive

You can open a joint account with IBKR.

Too bad your family members are like that.

For IBKR, you can add a Trusted Contact Person. Not sure if this is similar to KWSP's nomination or this person will have easier time to retrieve your investment in the event of incapacitation.

Your concern are valid. This is why I read investors willing to fork out more comm fees and go for local brokers. Actually I find Msian investor a bit limited options, IBKR Webull all setup shop in Spore but why not Msia I don't understand. This cause so much hassle for Msian investors so no choice go for overseas brokers. Although I'm Sporean I really sympathize with you all. Maybe in future IBKR Webull will setup shop in Msia. Afterall StashAway done that what is stopping others?

I suspect cos the right "arrangements" have not been made in the corridors of power, if you know what I mean...

may i know where do we add this trusted contact person

For me, because I haven't assign one, it keeps on popping up in a notification window whenever I sign in through their web portal.

This post has been edited by RayleighH: Jun 24 2022, 12:40 PM