What is the difference between investing in ETFs via robo-advisors and brokers? - Seedly
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Anonymous

Asked 3w ago

What is the difference between investing in ETFs via robo-advisors and brokers?

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Maya
Maya, Content & Community at Kristal.AI
Level 4. Prodigy
Answered 2w ago

Hi Anon,

It depends on what you’re looking for!

Kristal.AI is not a pure broker, but we do give our clients a lot of freedom to choose among our curated selection of 200+ ETFs and ETF baskets. In addition, you can run our investment algorithm, which will give a recommendation for a portfolio that is suited to your exact risk profile and situation!

Also, we charge zero fees for the first $50,000 invested – that’s a big advantage, especially when just starting out on your investment journey! 😉

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Maya
Maya

2w ago

Hey Jackson, in addition to the number of algo runs, we can also track the number of clients who then invest in the portfolio recommended by the algo - this is of course the better indicator, but we don't disclose the numbers ;) Regarding performance record - since we don't offer pre-built portfolios, it's hard to provide meaningful performance records (every client will have a slightly different performance, right?!) However, we're currently working on providing more information about the performance of our algorithm!
Jackson Chan
Jackson Chan

2w ago

Sure. Look forward to it. I think it can attract more customers and give them better confidence.
Jackson Chan
Jackson Chan
Level 4. Prodigy
Answered 3w ago

More autonomy to invest via brokers, and a wider pool of selection.

Robos provide advice for you so you don't have to research yourself.

Just use a brokerage if you plan to do everything yourself.

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport
Top Contributor

Top Contributor (May)

Level 9. God of Wisdom
Updated 3w ago

Cheap Singapore (or U.S.) online brokers are superior, why using Kristal AI

to spend more fees for unkown risk reduction?

all the other performance reducing styles are (mostly) mentioned here:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy​​​

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport

3w ago

I guess the delay would then not be very important. if there are no other fees (account maintenance, currency conversion when they buy USD denominated ETFs for Your SGD cash, etc.) it should be o.k. And there is this fine print for "free": Limit of 25 client-initiated trades per calendar year post which custody and asset operating fee shall be at actuals for the Kristal Freedom account.
Question Poster

2w ago

Thank you for highlighting the limit of 25 trades per year. They do charge 0.3% of AUM after exceeding the limit.
Lok Yang Teng
Lok Yang Teng
Top Contributor

Top Contributor (May)

Level 9. God of Wisdom
Answered 3w ago
  1. Allocation

With roboadvisors, a portfolio allocation is made and tailored to your risk profile. This can include different asset and debt classes with different weightage. For brokerages however, you have to decide your own allocation.

  1. Flexibility/Autonomy

Most roboadviors have fixed portfolio structure and investors are unable to choose what they want to invest freely. Buying ETFs directly allow for more control and customisation of your portfolio.

  1. Goals

Some roboadvisors include an option of goal-based investing. It allows you to guage how much you need to invest given a certain rate of return. It is useful if you are clueless on how to work towards your target. Brokerages function purely as a buying and selling platform.

  1. Fees

Depends.

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