facebookIs now a good time to transfer my funds from Syfe into IBKR? - Seedly

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Anonymous

05 Oct 2021

General Investing

Is now a good time to transfer my funds from Syfe into IBKR?

I have been DCA-ing regularly into robo advisors since I started working, $500 a month. Majority of my investments are done through Syfe now, through their Equity 100 portfolio. Ever since I have heard that IBKR removed its $100 000 min sum requirement, I've been thinking of doing my investments through IBKR instead, to reduce expenditure on robo-advisor fees.

My question: My Syfe investments have gone from around 5% portfolio returns to 1% return last time I checked today. My rationale is that if I invest in similar funds through IBKR as Syfe, it won't matter when I transfer the funds over, am I right?

On another note, are there stocks you would recommend to buy using IBKR for long-term investments? I'm currently informed of VWRA, looking to hear about more as well. Thank you!

Discussion (2)

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Nicholas Beh

Edited 06 Oct 2021

Student Ambassador 2020/21 at Seedly

Equity100 holds a basket of ETFs as determined by Syfe's "Smart Beta" strategy. This is important to note when switching - if you were to exactly replicate the portfolio (consisting of 13 ETFs), I doubt it would be cost-efficient for you.

When it comes to DIY investing, most suggest the use of Irish-domiciled index ETFs such as VWRA, IWDA, EIMI, CSPX and ISAC. These differ from Equity100, where their goal is to track a specific index. If you strongly believe Equity100 will outperform these indexes and feel that the manageement fee is worth it, then you may not want to switch.

All things aside, the main risk you will face when switching would be price slippage. Syfe will take some time to process your withdrawal and the transfer of currency to IBKR would take some time as well. This could be an issue if the market is volatile.

Additionally, Syfe offers fee-free USD withdrawals to DBS multi-currency accounts, and you should choose this option in order to minimize losses due to currency exchange. USD transfers to IBKR via DBS are also free as well.

Hi Anon, I think that IBKR is an excellent brokerage to use to DCA into ETFs if you are thinking of cutting out the middle man.

VWRA is an excellent option! I personally investing in it as well.
I also DCA into CSPX, an accumulating ETF that tracks the S&P500 index. If you'd like to read more about IBKR and a comparison into Irish domiciled ETFs, check out my opinion piece here on Seedly!

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