I'm Roger from FSMOne.com. Usually, overseas listed ETFs are considered to be listed SIP products. You will need to pass the requirements (either one of investments, educational and working) in order to start investing in listed SIPs without any restriction.
For investors who do not meet the requirements for CAR assessment, you will need to acknowledge the potential implications and consequences and subject to an investment limit of S$50,000 (max) on all accounts on FSMOne.com before you can proceed to place online transaction orders.
You can find out more about CKA/CAR information from our FAQ.
Alternatively, you can also contact our friendly client services team (6557 2853) for more information too.
If you study a bit you will pass the CKR/CAR
otherwise: in the U.S. the commission fees for stock and ETF transactions are already 0.00 USD since 10/2019 and only f.ex. with TD Ameritrade the account management fees are already 0.00 USD.
Should you buy U.S. ETFs denominated in U.S. dollar in your FSMone brokerage account don't buy them with SGD of your brokerage account (because the brokers have inferior currency conversion fees/rates, that You possibly do not directly find on your transaction statements a percentage added to the standard interbank rate).
Instead use Transferwise (much cheaper for conversion, fast & safe):
you send SGD to Transferwise, they send USD into Your FSMone brokerage account.
1 more comments
29 Nov 2020
Hi, it's rather self explaining. you open up an account with them including an app, which all is free. on the webpage you specify what currency and amount you want to send to which account number and initate this transactions. afterwards a window appears where you are given Transferwise's own account number and what SGD to transfer to them from your bank account. you receive a confirmation when the transfer is completed. there is one thing with Singapore brokers: they do not like to have a transfer in without your name on the transfer slips (they want to exclude money laundering), and they don't like that TransferWise does a cheaper currency switch than themselves, so they lose income. TransferWise from my experience are cheap, fast and reliable. Only when you transfer very large sums they must ask some questions to exclude money laundering. just for checking out whether FSMOne accepts that mode you could ask them on the phone or just try a very small pilot transfer.
30 Nov 2020
Thank you Frankie. I have a follow-up question. I checked Transferwise's platform and yes they offer a more competitive exchange rate. For SGD to USD, they offer a rate of 0.747636, while FSMOne offers a rate of 0.745701. However, Transferwise has a transfer fee of 0.44%. So once this is taken into account, FSMOne actually has a better exchange rate, at least for small sums. I am thinking Transferwise will be more useful to exchange large sums of money?