Advertisement

Anonymous

10 Aug 2020

∙

How do I manage high transactional cost when investing in a roboadvisor?

I am currently investing in an overseas roboadvisor. However, every transaction costs me about 60USD due to intermediary bank fees.

For example, I make a transfer of 1000USD. However, only 940USD will be invested after the fees. This means that my investment will have to rise 6% to break even. This is definitely not ideal.

Would it better if I try and accumulate 6000USD to reduce the fees percentage rate to 1% or is there a better solution? Any advice is welcomed, thank you.

7

Discussion (7)

What are your thoughts?

Learn how to style your text

Gordon Lim

05 Aug 2020

If it has to be this roboadvisor, then you’ll just have to accept their pricing. With such high transactional costs, I doubt this roboadvisor “supports” dollar cost averaging for sums below $6000. Are there really aren’t any other roboadvisors offering a similar portfolio? Perhaps you could share the roboadvisor/portfolio and the community can advise you on cheaper alternatives.

Reply

Save

Andy Chan

05 Aug 2020

Generally the existing roboadvisors in Singapore are more cost efficient than the one you're investing in. May I know why you're investing in an overseas roboadvisor?

Reply

Save

View 5 replies

Write your thoughts

Related Posts

Recently i heard a lot of negative views on ILPs (High distribution costs, fees etc). Is it really better to just get a term and invest with low cost. investment platform. ILPs really have no value?

How high is too high for actively managed investments management fee with a financial advisor?

What are some of the alternatives to use to reduce the weightage of the transaction costs has on my overall investments as im currently still investing with a small amount 2-3k each time?

Who pays for the spread and expense ratio if you invest in robo advisors like Stashaway? I understand they charge a 0.5% management fee, are there hidden costs like the spread and expense ratio that Stashaway is not making clear to investors?

Fiancé & I splitting reno costs 50:50. I can pay my 50 while he can’t. If I pay for the diff, both of us have $0 savings & I need to delay investment plans. Thinking of reno loan but wary of high interest rates. What should we do?

Related Products

StashAway

4.7

1297 Reviews

StashAway Simple Guaranteed 3.55% p.a. (Guaranteed rate)

Cash Management

INSTRUMENTS

None

ANNUAL MANAGEMENT FEE

None

MINIMUM INVESTMENT

3.5%

EXPECTED ANNUAL RETURN

Mobile App

PLATFORMS

Endowus

4.7

657 Reviews

Syfe

4.6

935 Reviews

Related Posts

Recently i heard a lot of negative views on ILPs (High distribution costs, fees etc). Is it really better to just get a term and invest with low cost. investment platform. ILPs really have no value?

How high is too high for actively managed investments management fee with a financial advisor?

What are some of the alternatives to use to reduce the weightage of the transaction costs has on my overall investments as im currently still investing with a small amount 2-3k each time?

Who pays for the spread and expense ratio if you invest in robo advisors like Stashaway? I understand they charge a 0.5% management fee, are there hidden costs like the spread and expense ratio that Stashaway is not making clear to investors?

Fiancé & I splitting reno costs 50:50. I can pay my 50 while he can’t. If I pay for the diff, both of us have $0 savings & I need to delay investment plans. Thinking of reno loan but wary of high interest rates. What should we do?

Advertisement