FSMOne: Fundsupermart’s Investment Brokerage Tool Review
Making money on the stock market sure sounds a lot more fun than sitting behind a desk every day and waiting till your boss transfers your salary to you at the end of the month.
But before you start investing, you’ll need to choose an investment brokerage. Here’s how FSMOne stacks up as a trading platform.
What is FSMOne?
FSMOne is a trading platform by fintech company Fundsupermart. So they’re the hip start-up version of a traditional investment brokerage.
The main strength of FSMOne’s platform is its user-friendly interface. You can compare, buy and sell online, as well as do research on the platform using their tools and by reading their articles. Their commission rate are also very competitive.
Logging in to one single account, you can manage your entire investment portfolio including stocks, bonds, unit trusts and ETFs, including those offered on SGX. You can also manage your investments on your smartphone by downloading their mobile app.
How to invest with FSMOne?
Sign up for an account on Fundsupermart and you’ll be given access to the FSMOne platform.
You can fund the account once it is opened, but if you want to withdraw money from the FSM Cash Account, you will have to verify your banking details online. This takes about 3 days, and after that you can withdraw money without additional waiting time.
The handy thing about FSMOne is that you can use MyInfo and open an account within minutes.
Once your account has been verified, you can transfer money to your FSMOne account through internet banking, using your local bank’s FAST Transfer or PayNow function. There is no minimum balance, so you can start as small as you like.
You don’t even need to open a CDP Account to trade on FSMOne, which makes it easier and faster for first-time investors.
One of FSMOne’s biggest strengths is their low fees, as follows.
- Processing fee/sales charge for SGX stocks/ETFs in SGD: 0.08% with minimum of $10
- Clearing fee for stocks and ETFs: 0.0325%
- Trading fee: 0.0075%
- GST: 7%
As you can see, their minimum fee of $10 is very low compared to other brokerages, which makes them ideal for smaller transactions.
If you wish to use their portfolio management services, their management fees range from 0.20% to 0.5% per annum.
FSMOne trading platforms
Being a tech start-up, FSMOne offers a straightforward and user-friendly online experience compared to traditional brokerages.
You can access all of their functions from either your desktop or mobile device. Their mobile app is available on both Android and iPhone and has received rave reviews for its ease of use.
One thing to note, however, is that all your investments are typically held by FSMOne in a custodian account rather than transferred to your CDP account, unless you link your CDP account to your FSMOne account.
Linking up your CDP account to your FSMOne account allows you to sell CDP holdings at FSMOne’s competitive rates. Do take note that the trades are not held by CDP and will not show up in your CDP statement.
You’ll need to fill in and mail them a form to do so, and the process takes about one week from receipt of the form.
Who should use FSMOne?
FSMOne is ideal for young tech-savvy investors who are just starting out and who’re looking for an easy-to-use interface that can be accessed on the go.
One of their most attractive features is their low fees. The $10 minimum is a lot lower than what you’ll be charged at most traditional brokerages, where a common minimum fee is about $25. This makes it perfect for those who don’t have tons of money and who wish to execute smaller trades.
Their platform’s interface and mobile app are also much more intuitive than most traditional brokerage’s online platforms, and also let you manage all your investments in one single account rather than have to log in to a separate account to check on your bonds or unit trusts. This makes them a less intimidating choice for beginners who wish to DIY their own investments.
How to choose the right investment brokerage?
Not sure what factors to compare when trying to pick an investment brokerage? These three should be on your list of things to consider.
1. Commission fees
Commission fees affect the profitability of your trades. High commission fees can make your trades a lot less profitable if you buy and sell frequently. On the other hand, if you just buy and hold for the long term, you won’t be affected as much by commission fees.
Also pay attention to the minimum fees, especially if you’re making smaller trades. Higher minimum fees can seriously affect the profitability of smaller trades. FSMOne only has a minimum fee of $10, which is suitable if you’re making small and frequent trades.
2. Trading platform
Most brokerage firms now let you manage your investments online, with some offering mobile apps that enable you to trade and check stock prices on your phone.
However, not all online platforms are created equal. Some are easier to use than others. And If you’re an iPhone user, you’ll want to ensure that whatever brokerage you’re considering has an iOS app instead of just Android and vice versa.
3. CDP or custodian accounts
You’ve probably heard that you need to open a CDP account before you start trading. Most traditional brokerages link your account with them with your CDP account, so your stocks will be held in your name.
However, a few firms, such as FSMOne, might hold your stocks on your behalf in a custodian account rather than transferring them into your CDP. While this is usually fine, some people prefer to have hold their stocks in their own CDP account just in case something happens to the brokerage.
What’s your favourite investment brokerage? Share your recommendations in the comments!