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Review of Fundsupermart (FSMOne) 2022

Founded in 2000, FSMOne is an online brokerage run by iFAST Corporation’s Fundsupermart. As a long-standing online brokerage, FSMOne has one of the most comprehensive range of investment products and services in Singapore. It offers traders access to over 1,600 funds and 900 bonds across the US, Hong Kong, Singapore, China, and Malaysia.

Fees and Charges

FSMOne has one of the lowest international trading fees compared to online brokerages run by banks.

Trading Fees:

*Rates above are from FSMOne’s official website and are subject to future changes.

FSMOne does not collect custody fees. However, it charges quarterly and annual fees based on the products you purchase.

Management Fees:

*Rates above are from FSMOne’s official website and are subject to future changes.

Pros and Cons of FSMOne

Pros

1. Fee Structure

Users are charged either a fixed percentage of their trade or a minimum amount, whichever is lower. This fee structure is good for investors who plan to trade large amounts. For example, a trade worth S$17,600 would cost S$8.80. That is a commission fee of just 0.05%, significantly lower than the industry average of 0.22%.

Unlike other brokers, FSMOne does not charge any inactivity fees or minimum deposit requirements. This reduces the barrier of entry for new users who want to start small.

2. AutoSweep Account

One of FSMOne’s best features is its AutoSweep account. By opting in, FSM automatically transfers all the excess profits from your sales, matured bonds, and dividends into a conservative interest-earning account. This is similar to Endowus’ Cash Smart and Syfe’s Cash+ where any inactive SGD-denominated cash in your wallet is put into an interest-earning account.

3. Regular Savings Plan

FSMOne offers users a Regular Savings Plan (RSP), which allows you to regularly invest a fixed amount of money into a selected financial product. It has the lowest RSP fee (0%) in the industry — currently a promotional rate of 0%.

An RSP is a useful automated trading tool and good for beginners who want to develop the habit of investing regularly.

Note that the RSP deduction happens once a month (8th of every month) and you need to have the required amount in your wallet, or the deduction will fail and you have to wait for the next month to invest your money.

4. Managed Portfolios

If you do not want to manage your portfolio on your own, you can consider FSMOne’s managed portfolios. Like a robo-advisor, managed portfolios build, monitor, and balance your portfolio based on your risk appetite.

FSMOne’s managed portfolio fees are one of the most competitive in the market — 0.0875% per quarter (conservative portfolio), and 0.125% per quarter (other portfolios), with a one-time processing fee of 0.03%.

5. Simple User Interface

While it does not have the fancy charts newer brokers provide, FSMOne’s user interface is relatively intuitive and user-friendly. You can easily access each financial product’s fact sheet, and there is a fee calculator within the FSMOne app to calculate your total fees.

6. Streamlined Mobile Integration

FSMOne’s mobile app is available on IOS, Android, and Huawei. This makes it easy for users to top-up and withdraw funds across different operating systems easily.

Cons

1. Fee Structure

FSMOne’s fee structure favours investors who make lump-sum payments. If you are someone who prefers to pay a percentage of your investment, the minimum fee of S$8.80 per trade will eat into your profits.

To fully enjoy FSMONE’s competitive rates, you need to invest at least S$11,000.

Compared to Tiger Broker and Moomoo, which charge S$3 and below (including platform fee), FSMOne’s fees may seem excessive. FSMOne is less suitable for users who trade in high volumes.

2. Limited market access and financial products

FSMOne provides a wide range of financial products, including stocks, bonds, and ETFs. This is sufficient for most retail investors.

But futures and options are still unavailable on the platform yet, which may deter investors with higher risk appetites.

3. Slow trade execution

FSMOne’s information and charts are updated less frequently than other online brokerages.

Trades on FSMOne also suffer from slight lags occasionally, and may delay your transactions.

If you are an intraday trader who depends on real-time information and fast transactions, FSMOne is not the most ideal brokerage.

4. Overwhelming web platform

Unlike its mobile app, FSMOne’s website is outdated and cluttered. Trading on the website can be overwhelming for beginners.

Account Opening Process

Like most modern brokers, FSMOne allows new users to create an account using MyInfo via Singpass. This reduces the hassle of manually filling up your personal information. Applications are processed quickly — you can expect your account to be ready within a day.

Why You Should Use FSMOne

FSMOne is suitable for two types of investors: Large account holders and beginners.

FSMOne’s rewards programme, FSMOne Prestige, rewards users with assets over S$200,000 with points from transactions that can be used to redeem vouchers, make charity donations, or score invites to exclusive events. Large trades also offer lower-than-average commission fees. Top-tier users are allowed to invest in restricted funds, subscribe to initial public offerings (IPOs) on the Singapore Stock Exchange (SGX) and Hong Kong Stock Exchange (HKEX), and are given more rebates on insurance products.

FSMOne is an all-in-one platform that is perfect for beginners to discover which investment style suits them most. The RSP is a good starting point for users who are just starting out, while those who prefer a professional to manage their investments can opt for managed portfolios.

Conclusion

FSMOne is still a relevant and secure brokerage. It is especially popular among those who are long-term holders of stocks and ETFs as the platform does not take custodian fees.

Those who trade more frequently and in higher volumes can use FSMOne with other low-fee brokerages like Tiger Brokers and Moomoo.

Originally published at https://plannerbee.co on May 11, 2022.

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Planner Bee

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