Why is IBKR more worth it than Stashaway?

[muslim_terrorist]

I've looked through some post recently. One notable post that stood out was OP asking if DCAing RM100/RM200 monthly into IBKR for S&P500 was worth it or not. Some comments suggested Stashaway with a custom portfolio that uses the S&P 500.

Fees for Stashaway:

• 0.1% Conversion fees
• 0.8% Management fees P.A.= 0.067% per month ( I checked the website and it says 0.3% fees for Single ETF Flexible Portfolio, what does that mean? Is it like additional fees?)

Total Stashaway fees : 0.167% fees per month

Fees for Wise-->IBKR:

• ~0.67% Conversion Fees for MYR to USD (paid RM479.83, RM3.23 was charged as fees to convert to 100USD)
• 0.39 USD fees for Wise to IBKR
• At least 0.35 USD per share at IBKR

The conversion fees is already higher than Stashaway management fees. Wouldn't it be more worth it to DCA into Stashaway? What am I missing something or misunderstanding? I'm sorry, I'm really dumb.

I checked this post and OP assumed an account with RM50K would be charged RM400 per year. But Wise fees alone (based on the year OP made the comment) is already RM240 assuming he transferred ~RM4K (50K/12) every month. Including 28.2 USD (assume 1USD=4 MYR, 2 years ago) which is RM 112 plus 36 SGD (assume 1SGD=3 MYR) that is a total of RM240+RM112+RM108= RM460.

 

[mommyof3emblife]

@muslim_terrorist Stashaway is per month while IBKR is per transactions. So IBKR make sense for holding longer term. The same RM4K would be charged monthly for StashAway until you sell off, but only charged twice for IBKR (transactions of buy and sell).

So for a smaller amount and more frequent transactions, it may start to make sense to use StashAway otherwise your capital would be eaten up by transactions and forex fees.

 

[wil1975]

@muslim_terrorist StashAway charges AUM fees whilst IBKR does not... nuff said

 

[russman]

@muslim_terrorist Higher AUM + dividend withholding fees, not to mention poor market timing by managers

 

[schrute]

@muslim_terrorist If multiple small chuck every month, stashaway could be cheaper, but it will comes to a point 0.8% management fee is more expensive

 

[georgiew]

@muslim_terrorist I advocate for whatever is easier for you to invest regularly. If IBKR has too much friction for you. Stashaway it is.

 

[mattmanticus]

@muslim_terrorist Transaction fee wins management fees.imagine 0.3%annually on 100k account....200k..300k...

You might only have 50k now, how about 15 years from now?

 

[dancingwithgod85]

@muslim_terrorist Stash away is a start up with an approx valuation of $1B.

IBKR has been around for ages and has a market cap of $41.9B. It is also a listed company (regulated and scrutinized).

For long term investment stay away from small companies like stash away.

Always have to think, what if they close? Will they close?

 

[hiccup]

@dancingwithgod85 Funds are held by a custodial trustee instead of StashAway. So in the event where StashAway went bankrupt, your funds are still safe.

 

[blackfriar]

@muslim_terrorist 0.39 USD is flat rate