facebookShould I go with SCB or Kristal.AI if I want to invest lump sum about 10k USD, DCA 200 monthly for at least 5 years in CSPX or IUIT? - Seedly

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Anonymous

15 Feb 2021

General Investing

Should I go with SCB or Kristal.AI if I want to invest lump sum about 10k USD, DCA 200 monthly for at least 5 years in CSPX or IUIT?

Understand that Kristal has cheaper fees but worried that its not sustainable, also aware that SCB is slightly more expensive

Discussion (1)

What are your thoughts?

thefrugalstudent

thefrugalstudent

15 Feb 2021

Founder at thefrugalstudent.com

Hi Anon,

In my opinion, it would make more sense to use SCB over Kristal but instead of DCA, perhaps do a periodic lump sum instead of monthly DCA. The reason for this is because SCB charges a min commission fee of 10USD/trade. If you were to DCA on your own with $200, this ends up being 5% in fees, which is a ridiculous amount to be paying. So in order to reduce this, saving up a few months' worth of investment money to do a lump sum every few months will help.

Unless you happen to be a SCB Priority banking client, in which case you are not charged this minimum commission fee, you can go ahead with monthly DCA.

I agree that Kristal is less sustainable because of the management fees that it charges for portfolios 10k USD. It won't feel like much at first, but it will only become more and more expensive as your portfolio grows. In that sense, SCB is better because it charges no custody fees.

Hope this helps!

Regards,

thefrugalstudent

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