Which is a better platform to trade in the US market? FSMOne or SAXO?

As I consider myself as a long-term investor (5 years or longer) and I'm worried about the custodian fees. Am I right that we need to pay the custodian fee every few months?

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Chris

18 Mar 2021

Owner and Writer at Tortoisemoney.com

It depends really.

If you're just buying index ETFs, you can consider FSMOne's RSP. The commissions are actually quite competitive under the RSP and the range of ETFs are pretty decent. The comms are at 0.8% min USD1 whereas SAXO's min is at USD 4 (if I recall right). Moreover, SAXO still charges 0.12% custody fee, which is a real pain.

However, of course, if you wish to purchase individual stocks, FSMOne's normal comms are much higher at min USD 8.80 per transaction.

Note also that FSMOne has dividend handling fee (1% of gross dividend, min USD2.50 max USD25). But FSMOne has a much better FX rate (spot rate) vs SAXO's spread.

But if I were to suggest a broker, I would go for TD Ameritrade or Tiger Brokers instead. Both have competitive FX rates, low commissions and no custody fees, making them great for long-term investors.

You can also check out my review of brokers here if you wish to look at other options.

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