I did a review between kristal.AI and FSMOne's ETF RSP last year. Here's the article:
https://frugalyouthinvestsg.wordpress.com/2019/...
There are few reasons why I decided to use FSMOneās ETF RSP instead of kristal.AI even though the latter is free for the first US$50k are as follows.Ā
Firstly, you can buy fractional shares using FSMOneās ETF RSP but not kristal.AI. With FSMOneās ETF RSP, you can buy into VOO with just $50. On the other hand, kristal.AI requires a minimum amount of 1 share to start their Systematic Investment Plan. What this means is that if VOO is getting more expensive every month, with FSMOneās ETF RSP you will receive less fractional shares while you have to fork out more capital to own that minimum 1 share of VOO with kristal.AI.Ā
Secondly, even though kristal.AI offers zero commission for the first US$50k which can be quite enticing for many, their commission structure is different from each other. kristal.AI charges investors based on AUM while FSMOne charges based on trades commission. In the long run, once US$50k is hit, kristal.AI will be more expensive as one has to pay more in fees when their portfolio gets bigger. On the other hand, for FSMOne, since investors are charged by the order amount, the cost will be cheaper in terms of percentage over the total capital outlay in the long run.Ā
You might argue that one should buy into kristal.AI until it reaches US$50k and switch to other brokerages to continue their RSP but I believe in the long run and the convenience that one will have if they buy using FSMOne ETF RSP from the start. The deal breaker for myself is the minimum share of 1 for using kristal.AIās SIP in the sense that I have to fork out more capital if the share price goes up. I would rather own less of the shares than to fork out more cash.
I did a review between kristal.AI and FSMOne's ETF RSP last year. Here's the article:
https://frugalyouthinvestsg.wordpress.com/2019/...
There are few reasons why I decided to use FSMOneās ETF RSP instead of kristal.AI even though the latter is free for the first US$50k are as follows.Ā
Firstly, you can buy fractional shares using FSMOneās ETF RSP but not kristal.AI. With FSMOneās ETF RSP, you can buy into VOO with just $50. On the other hand, kristal.AI requires a minimum amount of 1 share to start their Systematic Investment Plan. What this means is that if VOO is getting more expensive every month, with FSMOneās ETF RSP you will receive less fractional shares while you have to fork out more capital to own that minimum 1 share of VOO with kristal.AI.Ā
Secondly, even though kristal.AI offers zero commission for the first US$50k which can be quite enticing for many, their commission structure is different from each other. kristal.AI charges investors based on AUM while FSMOne charges based on trades commission. In the long run, once US$50k is hit, kristal.AI will be more expensive as one has to pay more in fees when their portfolio gets bigger. On the other hand, for FSMOne, since investors are charged by the order amount, the cost will be cheaper in terms of percentage over the total capital outlay in the long run.Ā
You might argue that one should buy into kristal.AI until it reaches US$50k and switch to other brokerages to continue their RSP but I believe in the long run and the convenience that one will have if they buy using FSMOne ETF RSP from the start. The deal breaker for myself is the minimum share of 1 for using kristal.AIās SIP in the sense that I have to fork out more capital if the share price goes up. I would rather own less of the shares than to fork out more cash.