Wise or Instarem? - IBKR Funding Methods Compared!
Interactive Brokers (IBKR) is one of the most complete global brokers that I've used in my investing journey.
It offers users access to over 150 markets in 33 countries at a highly competitive commission. Moreover, IBKR users gain access to a huge variety of products/instruments such as stocks, bonds, ETFs, FX, futures.
As an IBKR user, I find Wise and Instarem to be 2 of the best methods to deposit funds to my IBKR account.
However, which one should you choose?
In this post, let me compare Wise and Instarem deposit methods, and see which is a more ideal IBKR deposit method!
RELATED:
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p.s. A word to fellow readers:
Dear friends, if you find this post helpful, I’d appreciate it if you can click on the button below to learn about IBKR via IBKR’s official site.
Doing so will help the earn the blog a small fee at no extra cost to you.
This will help supporting the blog in creating more useful content – thanks in advance my friends!
#1 Fees & Exchange Rate Comparison
Firstly, let's compare the fees and exchange rate if we were to use Wise and Instarem to fund our IBKR account.
Scenario #1: RM1,000 MYR-USD transfer
For this, I take similar RM1,000 MYR-USD transfers and see how much we have to pay in fees, as well as the exchange rate for both platforms:
Putting the info side-by-side, we can see that:
| Wise | Instarem | |
| Fee for RM1,000 MYR-USD transfer | RM8.90 | RM5.50 |
| Exchange Rate (as of 3/5/2023) | 0.224593 | 0.2243 |
| Final amount in USD | USD 222.59 | USD 223.07 |
- Instarem offers a cheaper fee of RM5.50 for my RM1,000 MYR-USD transfer.
- Wise offers a more competitive exchange rate of 0.224593 compared to 0.2243 from Instarem. (Rate as of 3/5/2023)
- That said, taking into account of fee + exchange rate, I'd still get slightly more USD from Instarem for my transfer.
Scenario #2: RM10,000 MYR-USD transfer
Let's see if a larger transfer amount of RM10,000 MYR-USD transfer would make any difference:
Does a larger transfer amount make any difference for the fees?
Putting the info side-by-side, we can see that:
| Wise | Instarem | |
| Fee for RM10,000 MYR-USD transfer | RM69.69 | RM60 |
| Exchange Rate (as of 11/5/2023) | 0.224090 | 0.2238 |
| Final amount in USD | USD 2225.28 | USD 2224.57 |
- Instarem still offers a cheaper fee of RM60 for my RM10,000 MYR-USD transfer.
- Wise still offers a more competitive exchange rate of 0.224090 compared to 0.2238 from Instarem. (Rate as of 11/5/2023)
- However, this time around, Wise is able to transfer slightly more USD in my RM10,000 MYR-USD transfer.
Summary: Use Instarem for smaller amount transfer, Wise for larger amount transfer
In essence, when you make a transfer in a small amount, Instarem's lower fee structure makes it up to a slightly high exchange rate.
On the other hand, in a bigger transfer, Wise's lower exchange rate is a better deal despite a higher fee.
#2 Deposit Process Comparison
There is a slight difference between Wise and Instarem when it comes to the deposit process to IBKR:
| Wise | Instarem | |
| Deposit Process | Transfer directly from Wise balance (easier) | ACH funding via Instarem |
Essentially, the biggest difference is when it comes to setting up the initial transfer.
- It is easier to set up a Wise transfer as IBKR users can make a transfer directly from their Wise account. Read about my full Wise-IBKR transfer guide HERE.
- As for Instarem, IBKR users will need to key in some additional details in order to set up an initial transfer. (though it is pretty simple as well) Read about my full Instarem-IBKR transfer guide HERE.
Summary: Wise provides an easier initial setup
Once the setup is done, all future transfers are very simple for both methods.
RELATED: Guide - How to fund your IBKR using Wise, Instarem, and SG bank account
#3 Deposit Speed Comparison
Fees aside, it is also important that my funds reached my IBKR account ASAP whenever I make my deposit.
So, how long does it take for my funds to reach my IBKR account with Wise and Instarem?
For this example, I did a transfer on both Wise and Instarem on the same day (3/5/2023), first with Wise, then Instarem a few hours later.
Let's look at the result:
(i) Wise-IBKR transfer: About 13 hours (<1 day)
I initiated my Wise transfer on 3/5/2023 after lunch and I receive my successful deposit notification from IBKR at 1:11am the next day (4/5/2023).
(ii) Instarem-IBKR transfer: About 14 hours (<1 day)
Meanwhile, I initiated my Instarem-IBKR transfer at late noon (4:38pm) on 3/5/2023. I received my successful deposit notification from IBKR at 6:33am the next day (4/5/2023).
Summary: Deposit speed is pretty much the same for Wise and Instarem
In essence, from my experience, there is no significant difference between the deposit speed of Wise and Instarem transfers.
I find both transfer experiences smooth and reliable.
Promotions for new Wise & Instarem users
(i) Wise: Get a free transfer on your first 500 GBP (~RM2600) transfer!
Use my Wise referral link below and get a free transfer on your first 500 GBP (~RM2600) transfer!
(ii) Instarem: Get 50% off for your first money transfer!
Open an Instarem account, and be sure to apply my Instarem referral code ‘NOMONEYLAH' during your transfer and get 50% off for your first money transfer (min. transfer of RM200 or SGD500)!
Verdict: Use Wise and Instarem to save on your IBKR deposit fee!
To summarize, for small amount transfers, Instarem-IBKR makes up for better value thanks to its lower fee structure. For bigger amount transfers, Wise-IBKR is better thanks to Wise's more competitive exchange rates.
Be it Wise or Instarem, both IBKR deposit methods allow users to save massively on fees & exchange rates compared to traditional foreign bank telegraphic transfer.
For new users of Wise and Instarem, I recommend taking advantage of the promotions so you can get more value out of your IBKR transfers!
Do you have any other tips on how to fund your IBKR account? Feel free to leave your tips and thoughts in the comment section below!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Complete Guide: How to deposit funds to Interactive Brokers (IBKR) via Wise, Instarem, and SG Bank
In this post, let's explore the cheapest and most efficient ways to deposit funds into your Interactive Brokers (IBKR) account.
This guide is suitable for non-US residents (eg. Singapore, Malaysia, and more) - any questions feel free to leave them in the comment section at the end of this post!
RELATED:
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p.s. A word to fellow readers:
Dear friends, if you find this post helpful, I'd appreciate it if you can click on the button below to learn about IBKR via IBKR's official site.
Doing so will help the earn the blog a small fee at no extra cost to you.
This will help supporting the blog in creating more useful content - thanks in advance my friends!
Best ways to deposit/fund your IBKR account
There are 3 key ways to fund your IBKR account, namely through (i) Direct transfer from Wise balance, (ii) Direct ACH funding via Instarem, or (iii) Funding your IBKR account through a Singapore (SG) bank account.
Method #1: Funding your IBKR account from Wise balance (Easiest)
This is my preferred way to fund my own IBKR account as I find it the most straightforward method (though not necessarily the cheapest).
Fees incurred:
- Wise transfer fee
- Currency exchange rate
Pre-requisite: Open a Wise account and make a deposit to your Wise balance
Before you begin, be sure to open a Wise account first if you do not have an account.
Be sure to use my Wise referral link below and get a free transfer on your first 500 GBP (~RM2600) transfer!
Step 1: Fund your Wise account
Firstly, log in to your Wise account. Select the currency that you'd like to fund your IBKR account and click 'Add'.
Then, key in the amount you'd like to add, and proceed to fund your Wise account via FPX through your own bank account.
Step 2: Log in to your IBKR account, select 'Deposit'
Select your deposit currency (for me, I choose USD), and select 'Transfer from Wise Balance'.
Step 3: Log in to your Wise account and proceed to transfer your funds
Once your Wise and IBKR accounts are linked, you can proceed with your fund transfer.
Step 4: Transfer done - now just wait for your funds to reach your IBKR account.
From personal experience, it usually takes about 1 working day for the funds to reach my IBKR account.
Method #2: Funding your IBKR account through direct ACH funding via Instarem (Cheapest)
Meanwhile, funding your IBKR account via Instarem is the cheapest option. Don't worry, the funding steps are quite simple as well.
Fees incurred:
- Instarem transfer fee
- Currency exchange rate
Pre-requisite: Open an Instarem account
Before you begin, be sure to open an Instarem account first if you do not have an account.
Be sure to apply my Instarem referral code 'NOMONEYLAH' and get 50% off for your first transaction fee (min. transfer of RM200 or SGD500)!
Step 1: Log in to your IBKR account, select 'Deposit'
Step 2: Select your deposit currency, then opt for 'Direct ACH Transfer from your Bank'
In this example, I am using USD as my deposit currency. But the method should work for other currencies.
A warning pop-up will appear, saying that you must deposit from a US bank account - just proceed by choosing 'Yes'.
Step 3: You'll get 3 key info - a Routing Number, Virtual Account Number, and IBKR's address (address is not displayed in the screenshot below)
Take down these details. In the next step, you will need to use these details to initiate your Instarem transfer.
Step 4: Log in to your Instarem account and begin initiating your transfer
Step 5: Be sure to apply my Instarem referral code 'NOMONEYLAH'.
Be sure to apply my Instarem referral code 'NOMONEYLAH' and get 50% off for your first transaction fee (min. transfer of RM200 or SGD500)!
Step 6: Transfer done - now just wait for your funds to reach your IBKR account.
From personal experience, it usually takes about 1-2 working days (sometimes even faster) for the funds to reach my IBKR account.
Once the funds are deposited in your IBKR account, you will receive an email update from IBKR.
Method #3: Funding your IBKR account through SGD via a Singapore Bank (eg. CIMB SG)
The 2nd method is an alternative for Singaporeans and Malaysian users with a Singapore bank account.
Fees incurred:
- IBKR currency conversion rate, if you want to convert your SGD to USD in IBKR
- IBKR currency conversion fee (~USD2.00 - 2.50), if you want to convert your SGD to USD in IBKR
Pre-requisite: Open a Singapore bank account (CIMB SG)
For Malaysians that wish to open a Singapore bank account, you can consider opening a CIMB SG account, which can be done 100% online.
RELATED: Guide - How to open a CIMB SG account online
Step 1: Log in to your IBKR account, select 'Deposit'
Step 2: Select SGD as deposit currency, and get instructions for 'Bank Wire'
Step 3: Key in your SG bank account details and the amount you wish to deposit
Step 4: Initiate transfer from your SG bank account
Use the bank wire instructions from IBKR to make your transfer from your SG bank account.
Log in to your bank account to initiate transfer.
Step 5: Return to your IBKR account and click 'Finish'.
That's all - now you just have to wait for your funds to arrive in your IBKR account.
From personal experience, it usually takes about 1-2 working days for the funds to reach my IBKR account.
Once the funds are deposited in your IBKR account, you will receive an email update from IBKR.
Step 6: Convert SGD to USD in IBKR
If you want to convert your SGD to USD in IBKR to trade USD-denominated stocks, you can do so with the currency conversion feature in IBKR for a small fee.
In your IBKR dashboard, select 'More'.
Use your existing currency balance to convert to USD.
There will be a currency conversion fee/commission of around USD2.00 - USD2.50.
Verdict - Funding your IBKR account is never easier
With platforms like Wise and Instarem, it is extremely convenient to fund your IBKR account at a minimal fee.
Do you have any other tips on how to fund your IBKR account? Feel free to leave your tips and thoughts in the comment section below!
Disclaimer:
This review is purely based on my personal experience and is updated as of the time of writing.
This article may contain affiliate links that will earn the blog a small fee if you click on them. This comes at no extra cost to you as a reader.
Moomoo: 5 must-use features that will change how you invest!
Moomoo, one of the fastest-growing investment platform has recently expanded to Malaysia after obtaining an Approval-In-Principle (AIP) for the Capital Markets Services license (CMS) from the Securities Commission Malaysia (SC).
From now until the actual launch, users are not able to place trades via the moomoo app yet, BUT you can enjoy the suite of powerful features within the moomoo app to make better investment decisions.
In this post, let me show you my top 5 favorite features within the moomoo app that will help you become a better investor!
Highlights of Moomoo:
- Moomoo is an investment platform by NASDAQ-listed Futu Holdings.
- Moomoo was introduced in Singapore in June 2021, and has recently obtained an Approval-In-Principle (AIP) for the Capital Markets Services license (CMS) from the Securities Commission Malaysia (SC).
- Meanwhile, users can register for a moomoo account and start enjoying the powerful features within the app, such as FREE level 2 US market data, Industry Chain, Market Position Overview, and more!
My short summary:
I am pleasantly impressed by how the moomoo trading app is able to offer so many feature-packed tools while keeping the app so simple to navigate around.
It is truly one of the most feature-rich yet easy-to-use investing apps available in the market now.
My Top 5 Favourite Features of Moomoo app:
Feature #1: FREE level 2 US market data when you register for your moomoo account
While most brokers will make users pay for level 2 data, moomoo gives you level 2 US market data for FREE when you register for your moomoo account.
What exactly is Level 2 US market data?
Essentially, Level 2 US market data allows you to see transaction details (ie. Buy & sell activities) across multiple price levels:
Having level 2 US market data is equivalent to having an aerial view of the market. For instance, with Level 2 US market data, you can detect in real-time should buyers are buying aggressively (or vice versa) and make better entry decisions.
In short, with level 2 US market data, you can get a better gauge of market strength.
Feature #2: Get big-picture business views via 'Industry Chain'
'Industry chain' is also one of my favorite features in the moomoo app. With Industry chain, you can have a big-picture view of a specific industry.
For instance, you can instantly learn how the whole Electric Vehicle (EV) industry work, alongside companies that fall under each segment.
In addition, you can also discover what companies are there in a specific role in the business chain in an ecosystem.
Simply put, you can gain a big picture of any industry that you are interested to learn.
Where to find: 'Markets' > 'US' > 'Industry Chain'
Feature #3: Track the performance & insights of a specific theme with 'Concepts'
Concepts is a unique feature within the moomoo app that allows you to track the overall performance and news of companies that fall under a specific theme, such as 'EV charger', 'Gene Editing', 5G, and more:
As an example, check out how I can view the overall & individual performances of the companies that fall under the ‘EV Charger’ concept:
With Concepts, you can have a clear view of how certain themes perform, as well as research for a specific theme with ease - all within the moomoo app.
Where to find: 'Markets' > 'US' > 'Concepts'
Feature #4: See what other investors are doing with Market Position Overview
Another useful feature in the Moomoo app is Market Position Overview. Essentially, it shows the number of shares held at different prices by investors in an easy-to-see visual.
As an example, in this example of Apple (AAPL) stock below, we can see that most Apple shareholders are in a profitable position (shown in green), as their entry price is below the market price ($195).
In addition, you can also spot the price where most investors bought their shares based on how long the horizontal bar is:
Where to find: Search for a stock > 'Market Position Overview'
Feature #5: One of the most flexible stock screeners around
The stock screener within the moomoo app also impressed me. This screener can be super simple, or as sophisticated as you want.
From fundamental to technical filters, you can filter for stocks based on your preferred criteria:
It is definitely one of the most complete stock screeners within an investing app that I’ve used in my investing journey so far.
Where to find: 'Markets' > 'US' > 'Screener'
Other useful features within the moomoo app:
- #1 Gauge bearish sentiment via Short Sale Analysis
Short sale analysis is a solid feature that allows you to identify (i) the volume of a company’s shares that are being shorted in the market, and (ii) the percentage of shares that are being shorted but not yet closed (ie. People that are betting for the market to go down) in the market.
This is a very useful feature to gauge the market's bearish sentiment on a specific stock.
Where to find: Search for a stock > 'Short Sale Analysis'
- #2 Use Trade Overview to confirm your conviction
With Trade Overview, you can identify the movement of funds in and out of a specific stock.
Furthermore, you can go further by looking at the capital flow breakdown of XL, L, M, and S orders.
This can give you an idea of whether the stock you are looking to buy has the conviction of other players (big or small) in the market.
Where to find: Search for a stock > 'Trade Overview'
- #3 Get real-time, 24/7 financial news in the moomoo app
It is also extremely convenient to get the latest financial news in the moomoo app.
Even better, the news is real-time and updated 24/7, making it easy for you to get in touch with the latest updates of the market and the companies that you are investing in.
Where to find: 'Discover' > 'News'
🎁 Register for your Moomoo account today and enjoy special perks!
At this juncture, it is not possible to place a trade via the moomoo app (yet).
However, if you register for a moomoo account today, you can access the lineup of solid features within the moomoo app is all available for you to use and make better investment decisions!
Even better, unlock FREE Level 2 US market data (worth RM210) when you register for your moomoo account! (p.s. most other brokers will ask you to pay for it)
Disclaimers
All views expressed in this article are merely my own opinion and experience. Neither Moomoo nor its affiliates shall be liable for the content of the information provided.
Using the referral link in this article will earn the blog a small commission at no extra cost to you as a reader.
Versa Cash Review: A Great Alternative to Fixed Deposit (FD)!
Fixed Deposit, or FD, has always been people’s go-to way to save or deposit extra cash. The problem is, it locks your money in for a long period of time, or requires a high initial deposit to start with.
In this article, let’s look into Versa Cash, a great alternative to FD in Malaysia. Personally, I’ve been using Versa Cash since 2021 and I absolutely love it! In this post, let’s explore if Versa is for you!
[NEW: Get 4.3% promo return rate with Versa Cash! Find out more at the end of this post!]
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Highlights of Versa Cash
Established in 2021, Versa Cash is a digital cash management service that provides users competitive returns like FD, but without the troublesome restrictions:
- Regulated: Versa is regulated by the Securities Commission (SC) of Malaysia.
p - Competitive Return: Through Versa, users can earn a base net return of 3.55% per annum, which is on-par with the rates of Fixed Deposit (FD).
p - Low Risk: The underlying fund of Versa is the Affin Hwang Enhanced Deposit Fund. It is a money market fund that invests users’ money in highly liquid & low-risk cash instruments.
p - Flexible & Low Barrier of Entry: Malaysians aged 18 and above can start saving or investing via Versa from as low as RM1. Withdraw anytime without being charged penalty fees.
How does Versa Cash work?
So, how exactly is Versa Cash able to deliver returns that are on-par with FD?
This is possible because Versa helps invest users’ cash into money market funds (MMF). MMFs are funds that invest in Fixed Deposits and highly liquid, short-term cash equivalent instruments called Money Market Instruments.
Essentially, Money Market Instruments are short-term debts issued by banks in order to accumulate short-term cash-pile to make up for the shortfall in their daily deposit reserve. Simply put, MMFs are lending money to banks when they buy these Money Market Instruments.
These instruments are relatively low-risk as they are backed by the banks. Moreover, they are highly liquid with short maturity periods. Through regular redemption of matured Money Market Instruments, it allows MMF to provide a similar rate to FDs without having to lock up users’ capital.
For Versa, the underlying MMF that they invest in is the Affin Hwang’s Enhanced Deposit Fund. It is a low-risk MMF by Affin Hwang Asset Management.
In short, through Versa Cash, you can earn a similar rate to FD through low-risk MMF without having to lock up your funds, unlike conventional FDs. It is a great choice if you are looking for a competitive and flexible alternative to FDs.
Is Versa Cash Safe to Use?
When it comes to regulation, Versa is regulated by the Securities Commission (SC) of Malaysia. This ensures that Versa is always operating in Malaysia as per the guideline from the local authority.
As for the safety of funds, the cash deposits from users are held by a third party (trustee), which is HSBC (Malaysia) Trustee.
In other words, your deposits to Versa are separate from Versa’s company finances. As such, this ensures no deposits can be used for fraudulent purposes and you will always have full access and claim to them no matter what happens to Versa.
Versa Cash Fees & Charges
As a digital cash management platform, Versa Cash does not charge a fee to users. That said, the underlying MMF, Affin Hwang’s Enhanced Deposit Fund, does charge reasonable annual fees, as shown below:
| % per annum | |
| Management fee per annum |
-0.30% |
| Trustee fee per annum |
-0.05% |
| Base net return per annum (AFTER fees) |
3.54% |
Next question: Are there any fees on fund withdrawal via Versa?
Unlike FDs, there are no charges when you withdraw your funds from Versa. Withdrawals are expected to be reflected within 1-2 business days depending on the time of withdrawal (ie. before or after 2:30pm during business days).
At this point, perhaps a question that you have in mind is “So how does Versa make money?”.
Aside from Versa Cash (which is free to use), Versa also offers investment services via Versa Invest. Through Versa Invest, Versa will charge a small management fee which is their key income source.
READ MORE: Versa Invest Review
3 things I like about Versa Cash
#1 Performance on par with conventional Fixed Deposits (FDs)
Through Versa, interests are compounded daily and interest payout is made every month, which is re-invested into user’s fund.
All of this combined, through its underlying Affin Hwang Enhanced Deposit Fund, Versa offers a base net return of 3.54% return per annum (AFTER fees) for users.
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#2 Flexible & Low barrier of entry
2 amazing features about Versa are:
- Low barrier of entry: You can start investing or saving with Versa from as low as RM1. Even better, using my exclusive referral code VERSANML4, you can get RM10 credited into your Versa account when you make a minimum deposit of RM100!
p - Flexible: There are no charges to open a Versa account. In addition, you can withdraw your funds anytime and there are no fees on withdrawal.
Combined, both these features make a compelling edge against conventional FDs. Reason being, FDs usually have higher minimum deposits & they tend to lock in users for a period of time (and charge a penalty for early withdrawals).
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#3 Simple & clean user experience (suitable even for my retired mom!)
Perhaps my favorite experience with Versa is their simple and clean user interface.
As a simple digital cash management platform, I enjoy the design of the app that clearly shows the capital invested and payout.
In fact, when my retired mom was looking for a better FD alternative to save her idle cash, I recommended Versa without hesitation. This is because I know she can totally navigate the app with clarity & confidence.
Risks + What You Need to Know Before Investing in Versa Cash
In this part, let’s look at 3 things that you need to be aware of while investing your money with Versa:
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Market risk
While being a relatively stable investment, investing in Money Market Fund (MMF) via Versa still presents exposure to market risk.
One such risk is the fluctuation in interest rate. As an example, if Bank Negara Malaysia (BNM) increases interest rate, MMF is likely going to generate higher returns. On the flip side, if BNM reduces interest rate, it’ll also affect the returns of MMF as a result.
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Not protected by PIDM
While investing in Versa, it is important to remember that your fund is not protected by Perbadanan Insurans Deposit Malaysia (PIDM).
PIDM is an organization that protects deposits kept in banks and financial institutions that are a member of PIDM. Conventional bank FDs are usually protected by PIDM.
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Not shariah-compliant
In addition, Versa’s underlying MMF, Affin Hwang Enhanced Deposit Fund is not shariah compliant.
Hence, this is something that you need to be aware of prior to investing with Versa.
Improvement: ONE Feature Versa HAS to Add
As a Versa user myself (also having opened an account for my mom), there is one handy feature that I think Versa Cash lacks: Automatic Scheduled Transfer.
Being a digital cash management platform, I think having the convenience for users to automate their deposits every week/month should be a fundamental feature.
While I enjoy using Versa, I think this improvement will make Versa a more complete financial app.
Eligibility + Is Versa Cash for You?
Versa is open to Malaysian citizens who are 18 years old and above with an NRIC/MyKad. This means that even young Malaysian adults can start building good financial habits by saving/investing from their phones – neat!
That said, is Versa for you?
To answer this question, it is best to first know what Versa is NOT:
- Versa Cash does not invest in stocks/equities (ie. Higher risk assets). Hence, do not expect mutual fund/robo-advisors-like returns.
- Versa Cash does not guarantee returns. Even though it invests in low-risk MMF, returns are still subjected to market fluctuation.
Hence, in my opinion, Versa Cash is great for:
- People looking for a flexible alternative to FD & typical savings account for general savings
- People looking to save for a specific goal (eg. house, car, wedding)
- People with extra cash and want to save it for the short-term
Versa Promo Code: VERSANML4
In collaboration with Versa, No Money Lah is bringing an exclusive deal for new users that are keen to start saving or investing with Versa!
Use my dedicated Versa referral code – VERSANML4, and you will get RM10 credited into your account* when you successfully make a minimum deposit of RM100 or more. That’s an instant 10% return on your investment.
How to open a Versa Account
Creating a Versa account is simple and straightforward:
Step 1: Click HERE to install the Versa app.
Remember to apply referral code ‘VERSANML4’ for an exclusive RM10 account-opening reward!
Step 2: Start your account opening process by keying in the necessary details such as a new display name, email address, and password.
Step 3: You’ll go through a simple identification process where you’ll be asked to verify your mobile number, IC, and personal details. This is a required process by the regulators to make sure it’s the real you that’s opening an account.
Step 4: It’ll take about 2-3 business days to verify your account. Once that’s done, you can start investing in Versa by making your first deposit!
Versa or StashAway Simple or KDI save?
In terms of offering, Versa’s closest competitor is certainly KDI Save and StashAway Simple. Both offer users flexible and low-barrier access to MMF that pays competitive FD-like rates.
I think this comparison deserves a full article on its own so I’ll attach a link HERE when I come out with a comparison article real soon!
Personally, I use both Versa, KDI Save, and StashAway Simple to save for different purposes and I am happy with them as an alternative to FD (I think you will, too!).
READ: The Ultimate FD-Killer Showdown: StashAway Simple vs Versa vs KDI Save vs TNG GOinvest
[LIMITED-TIME PROMO] Get 4.3% return on your savings via Versa Cash!
Looking to get more out of your cash? For time being, all Versa Cash users are eligible for a promotional rate of 4.3% p.a. on their cash!
How it works:
- Versa Cash’s 4.3% promotional rate is applicable to all new & existing Versa Cash users.
- As long as you maintain a min. of RM1000 in your Versa Cash and/or Cash-i account, the promotional rate is automatically applied to the first RM30,000 in your Versa Cash account. Any subsequent balance above RM30,000 will continue to earn Versa Cash’s base net return of 3.54% p.a.
- Promotional period: Ongoing until further notice.
- Refer to the full T&C for more info.
I think this is GREAT news if you are looking for a higher rate for your savings! Remember, there is no lock-in period for Versa Cash and you are free to withdraw your funds anytime!
No Money Lah’s Verdict
So there you have it, my review on Versa! If you are looking for an FD alternative to invest/save your cash, Versa is a platform that I can wholeheartedly recommend you to try.
Personally, I enjoyed using the platform and I think you will, too!
Disclaimers
Investment in a money market fund is not the same as placement in a deposit with a financial institution. There are risks involved and investors should consult a financial planner before making any investment decisions.
This post contains affiliate links/code that afford No Money Lah a small amount of commission (and help support the blog) should you sign up through my affiliate link/code.
How to invest in the S&P500 Index for non-US residents (via Ireland-Domiciled ETFs)
Are you looking for a (simple) investment that has proven itself over the past few decades?
How about one that makes money 76% of the time over the past 30 years?
The S&P500 index is perhaps one of the best testaments for simple, yet practical investment that has withstood the test of time (AND financial crises, AND Covid-19).
But what exactly is the S&P500, and how can you (as a non-US resident) invest in the S&P500 index?
In this post, let’s explore how you can invest in the S&P500, and the things that you need to know before investing in it!
Before this, here are some related posts that you may want to read:
- Interactive Brokers (IBKR review): Invest in the global market including Ireland-domiciled ETF!
- Malaysians’ guide to ETF investing
- Are you a dividend investor? Here are the best dividend-paying ETFs in Malaysia!
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What is the S&P500 Index?
The S&P500 index is a stock market index that has been tracking the performance of the top 500 largest US-listed companies since 1957.
Just like how the KLCI and STI are used to measure the performance of the Malaysian and Singapore stock markets respectively, the S&P500 is commonly used as a proxy to the US stock market.
In fact, since the US stock market is so dominant, the S&P500 is sometimes considered as THE stock market.
So, what are the key companies within the S&P500 index?
Apple, Microsoft, Amazon, Meta (formerly Facebook), Alphabet, Berkshire Hathaway, and JP Morgan – just to name a few.
Essentially, by investing in the S&P500, you’ll get exposure to the finest companies in the US stock market.
But is there more to the S&P500? In the section below, let me show you some surprisingly impressive feats about the S&P500 index!
Time-tested Performance: Why invest in S&P500
In 2020, Warren Buffett stated that “for most people, the best thing to do is to own the S&P 500 index.”
Personally, I think there are solid reasons to this statement. Here are 2 indications of why the S&P500 is a great long-term investment:
#1 The S&P500 produced gains 76% of the time over the past 30 years.
Over the past 3 decades (1992-2021), the S&P500 has ended up higher in 23 out of 30 years. This makes up to gains 76% of the time*!
That, ladies & gentlemen, is just you investing your money passively without having to manage them at all! Not sure 'bout you, but I think that's a fantastic deal relative to the effort required!
*Important: Past performance is NOT indicative of future performance.
#2 The S&P500 has grown by 1019%* over the past 30 years.
This translates to an 8.38% in annualized return (ie. 8.38% yearly COMPOUNDED return over the past 3 decades!)
*1992 to 2021
Now, if #1 and #2 aren’t good enough, consider this:
Over the past 3 decades, the S&P500 has survived the dot-com bubble (2000), global financial crisis (2008), the Covid-19 pandemic crisis (2020), many other smaller crises – and STILL grown by 1019%!
In other words, the S&P500 has not just overcome the biggest financial and health crises of the past decades, but still managed to thrive coming out of them.
If you are looking for a simple AND reliable way to grow your wealth, I am pretty sure the time and crises-tested S&P500 could find its place in your portfolio.
How to invest in S&P500 Index as a non-US resident
As an investor, we cannot invest directly in the S&P500 index.
Instead, the easiest way to invest in the S&P500 index is through investing in the S&P500 Exchange-Traded Funds (ETFs).
An ETF is an instrument that mirrors the performance of an underlying index. Similar to stocks, ETFs are also traded in the stock market.
In other words, you can buy/sell ETFs just like how you buy or sell stocks.
Before we proceed, as a non-US resident, it is not viable for us to invest in US-listed ETFs for the long-term due to tax reasons. More on why and what you can do about it in the following section.
RELATED READ: Guide to ETF Investing
Withholding & estate tax for investing in the US stock market
In the US, there are many popular S&P500 ETFs, such as:
- SPDR S&P 500 ETF (ticker: SPY)
- iShares Core S&P 500 ETF (IVV)
- Vanguard S&P 500 ETF (VOO)
These ETFs are especially popular among US investors as they track the performance of the S&P500 index closely.
However, it is not recommended for non-US residents (eg. investors from Malaysia or Singapore) to invest long-term in the US-listed S&P500 ETFs (eg. VOO, SPY, IVV).
Why?
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Withholding Tax on Dividends
As countries without tax treaty with the US, non-US residents investing in the US stock market are taxed 30% on dividends received.
So, let’s say you received $100 in dividends, you’ll only end up getting $70 due to withholding tax.
This is certainly not ideal if we invest in US-listed stocks or ETFs that pay out dividends.
Check the list of countries with tax treaty with the US HERE.
-
Estate tax
There is also a 40% estate tax in the US for foreign investors.
So, let’s say I pass away with $1 million worth of stocks, $400k will go to the US government, and only $600k will be received by my appointed nominee.
Ireland-Domiciled ETFs: The best S&P500 ETFs for non-US residents
Well, does that mean we are not able to invest in the S&P500 after all?
Not exactly. There are ways to go around this:
The easiest way for non-US investors (eg. Malaysians, Singaporeans) to invest in the S&P500 index is through Ireland-Domiciled ETFs.
Why?
Because Ireland-Domiciled ETFs benefit from the US-Ireland tax treaty of only 15% withholding tax on dividends. This is significantly lesser compared to the 30% withholding tax of US-listed ETFs.
(a) How many Ireland -Domiciled S&P500 ETFs are there?
The following are 8 Ireland-Domiciled S&P500 ETFs are ETFs listed in the London Stock Exchange (LSE) that tracks the S&P500 index.
Don’t worry, let me simplify this table and tell you which S&P500 ETFs are the best among all:
In the table above, there 6 things that you need to pay attention to:
(1) Trading Currency:
Most ETFs can be bought either in GBP or USD. Personally, I’d go for USD-denominated ETFs as USD is still the go-to global currency.
(2) Expense Ratio:
ETF providers charge a small annual management fee for their ETFs. In this case, all ETFs have a very low expense ratio so the difference is negligible.
(3) Fund Size:
In general, an ETF with a larger size fund size is a good indicator of the ETF’s durability as well as its popularity. Larger ETFs can also make use of economies of scale to lower their costs.
So, ETFs like CSP1 and CSPX are the obvious winner here. That said, other ETFs are also fairly respectable in size (billions) so you’ll be in good place regardless of which S&P500 ETF you select.
(4) Dividend Handling:
There are 2 approaches on how these ETFs manage dividends:
- Distributing: Your dividends are redistributed to you.
- Accumulating: Your dividends are reinvested automatically.
Choosing to invest in either ETF is your personal preference. Personally, I’d go for Accumulating ETFs as I want my dividends to be re-invested automatically, so I can compound my returns more efficiently.
(5) Unit Price:
Some ETFs are larger in terms of per unit share price. As an example, CSPX is USD 400+/share while VUAA is USD 80+/share.
If your investment capital is small, ETFs with smaller per unit price like VUAA would provide you more flexibility to invest in the S&P500.
(6) Trading Volume:
Here’s something that you may not know - the trading volume of an ETF has a minimal indication of the ETF’s liquidity.
Rather, it is the trading volume of the underlying component companies that truly affect the liquidity of an ETF (for S&P500 it’d be companies such as Apple, Microsoft etc.)
Hence, it’s okay to not put too much weightage into the trading volume of an ETF in our decision-making process.
(b) Which is the best Ireland-Domiciled S&P500 ETF?
Considering all the key factors, personally, I think CSPX or VUAA are the best Ireland-Domiciled S&P500 ETFs among all. Here are why:
- Both CSPX and VUAA are denominated in my preferred currency, USD.
- Both CSPX and VUAA have a very minimal expense ratio of 0.07%/annum.
- Both CSPX and VUAA will reinvest my dividends automatically (accumulating).
- Both CSPX and VUAA use a full replication approach. Meaning, I’ll get the most accurate representation of the S&P500 index when I invest in either of them.
- CSPX is the larger ETF compared to VUAA, but it has a larger per-unit price. This makes it less flexible to invest in it with a smaller capital.
- On the other hand, VUAA is a smaller ETF. However, it has a smaller per unit price, which is easier for investors to invest with a small capital.
Regardless, I think either ETFs are great for you to gain exposure in the S&P500 index.
Recommended broker to invest in Ireland-Domiciled S&P500 ETFs: Interactive Brokers (IBKR)
To invest in Ireland-Domiciled S&P500 ETF, you’ll need to have a broker with access to the exchange where the ETF is listed.
In this case, all the ETFs that we discussed are listed on the London Stock Exchange (LSE).
For this, I use Interactive Brokers (IBKR) to invest in Ireland-Domiciled S&P500 ETFs listed in the LSE. In fact, IBKR gives investors access to 150 markets in more than 33 countries! (US, Hong Kong, China, Japan, UK, Singapore, Europe, and more!)
In my opinion: IBKR is a no-brainer for investors looking to gain access to global markets at a low commission.
RELATED READ: Interactive Brokers Long-Term Review
Open an Interactive Brokers (IBKR) account today:
Click the image below to explore Interactive Brokers' Low Commission:
No Money Lah's Verdict
So, what do you think? Isn't the S&P500 amazing, given how it has withstood the test of time and crises?
For me, I genuinely think that the S&P500 is a great long-term investment, be it as a standalone investment, or being part of a long-term investment portfolio.
Remember, if you want to invest in Ireland-Domiciled ETFs, be sure to check out Interactive Brokers for global market access at a competitive price!
Disclaimers
This article is produced purely for sharing purposes and should not be taken as a buy/sell recommendation. Past return is not indicative of future performance. Please seek advice from a licensed financial planner before making any financial decisions.
This post may contain promo code(s) that afford No Money Lah a small amount of commission (and help support the blog) should you sign up through my referral link.
Tiger Brokers Review: Affordable & Reliable Way to Invest in the Singapore, US and Hong Kong Stock Market!
In this article, let's look at my review of Tiger Brokers, a broker that provides affordable access to foreign stock market, while having strong regulations in place.
As an investor, I have always been looking for the most affordable way to invest in the overseas stock market.
This is especially true for me as a Real Estate Investment Trust (REIT) enthusiast, as having affordable access to Singapore, Hong Kong and the US stock market will allow me to invest in many attractive REITs globally.
At the same time, I also have concerns about the regulatory issue of foreign brokers, which of course relates to the safety of my funds.
Tiger Brokers come in to fit my needs nicely. Here's my updated review of Tiger Brokers after using it for more than 2 years:
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Tiger Brokers Highlights:
- Exposure to different markets & instruments with just one account. (Singapore, US, Hong Kong, Australia & China stock market, Futures, Warrants & Options)
- Highly competitive and attractive fees.
- 100% online account opening & management. No visit to the branch is required.
- Strong regulatory background + company is publicly listed on NASDAQ.
--
[PROMO] Commission-free trades + Free stocks!
Click the button below to use my Tiger Brokers referral link, and get the following when you open a new account (promo ending on 26/9/2023)!
a. Account Opening Rewards:
- (i) Unlimited commission-free trades for HK, SG, and China A-Shares for 365 days.
- (ii) Unlimited commission-free trades for US stocks for 180 days.
b. Account Funding Reward (Initial Deposit of SGD300 or more):
- (i) USD10 of Apple fractional shares (NYSE: AAPL)
c. Account Funding Reward (Initial Deposit of SGD1,000 or more + execute 5 BUY trades):
- (i) USD30 of Apple fractional shares (NASDAQ: AAPL)
- (ii) Get 1x free stock valued between SGD13 - SGD285
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Open A Tiger Brokers Account Today!
Tiger Brokers Regulation – How is Your Money Protected?
Let’s address the main concern of most investors when it comes to choosing a foreign broker – is it regulated by a proper/respected authority?
When it comes to their operation in Southeast Asia, Tiger Brokers is regulated by the Monetary Authority of Singapore (MAS), with a Capital Markets Services License to operate a legal brokerage business. Globally, Tiger Brokers is also regulated by the respective authorities from the US (SEC), Australia (ASIC), and New Zealand (FSPR) as well.
In short, Tiger Brokers is a well-regulated broker by proper authorities and is definitely way better than the brokers registered in some random African countries.
In regard to money/capital protection, there is strict segregation of clients’ capital and assets apart from Tiger Brokers’ own capital:
- Clients’ Capital: Kept by DBS Commercial Bank
- Clients’ Investment Assets:
- Singapore Stocks: Held by DBS Custodian Bank
- US Stocks: Held by Interactive Brokers
- HK Stocks: Held by Interactive Broker
To summarize, Tiger Brokers is held by a high standard of regulations and accountability towards clients’ assets and capital. As such, I have no problem recommending Tiger Brokers to fellow investors looking to invest in foreign markets.
Tiger Brokers Fees/Commission Comparison – Amazing Value & Highly Competitive Fees
Ultimately, what landed me on Tiger Brokers is its highly competitive commission.
While there are local brokers that offer exposure to foreign markets, they are super expensive (high barrier of entry), and the fee details are rarely available on their official websites (not transparent at all). As someone looking to invest affordably in the Singapore, US, and Hong Kong market, Tiger Brokers is certainly worth considering.
Below is the commission comparison table of Tiger Brokers alongside some other equally regulated (by MAS of Singapore) alternatives:
|
2022 Fees charged by respective brokers* |
Tiger Brokers (SG) |
Moomoo (SG) |
POEMS Starter by Phillip Securities (SG) |
Maybank Global Investing (Malaysia)*** |
|
Singapore Market |
0.03%, or min. SGD1.00/trade |
0.06%, or min. SGD2.49/trade |
0.08%, or a minimum of SGD 10/trade**. (**No minimum charge until 31/12/2022) |
SGD25, or minimum 0.40%/trade – whichever is higher. |
|
US Market |
USD 0.005/share, or a minimum of USD 1.00/trade. |
USD 0.01/share, or a minimum of USD 1.99/trade. |
Flat USD 3.88/trade |
SGD25, or minimum 0.40%/trade – whichever is higher. |
|
Hong Kong Market |
0.03%, or a minimum of HKD 8/trade. |
0.03%, or a minimum of HKD 18/trade. |
0.08%, or a minimum of HKD 30/trade. |
N/A |
*Stated are fees charged by the brokers themselves. Please note that there are also additional (albeit minimal) fees charged by the respective exchanges in a transaction. (More details HERE) ***Based on my best research since I cannot find any official foreign stock fee structure from local brokers’ website. If you are interested, do approach your respective local brokers for more info.
Open A Tiger Brokers Account Today!
How to Open a Tiger Brokers Account?
a. Account Types
There are 2 types of trading accounts offered by Tiger Brokers, namely:
-
- Margin Account (eligibility: 21 – 65 y/o)
Margin Account supports margin trading and short selling (intraday leverage up to 4x; overnight leverage up to 2x).
-
- Cash Upfront Account (eligibility: 18 – 75 y/o)
Cash Account only allows trading stocks with cash. Margin trading and short selling are unavailable.
In short, you invest or trade with what you have deposited in your account.
If you are below 21 y/o currently, you can open a Cash Upfront Account first, then upgrade to a Margin Account once you reach 21, along with a full-time job.
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b. Account Opening Process
The account opening process does take some time, but it is simple & straightforward. Spare around 15 – 20 minutes to prepare the documents needed to smoothen your account-opening process.
If this is your first time opening a foreign brokerage account, I highly recommend you to follow the steps below – as I’ll explain some potential terms that you may not be familiar with:
Step 1: Prepare for the Documents/Details
-
- Nationality/Full Name/Current Residential Address/Citizenship/Date of Birth/IC Information
- Employer’s name and address
- Details of assets and income
- Investment objectives and experience
- Proof of Identity (IC/Passport)
- Proof of Residential Address (IC/Residential Estate Certification/Utility Bills - eg. Water/Phone Bill within the past 6 months, showing your full name & address)
- Bank Statement (issued within the past 6 months, showing your full name & address)
Step 2: Open a Tiger Brokers Account
Click HERE to use my Tiger Brokers referral link so you can enjoy account opening rewards!
When you click on the referral link, the rewards will be automatically applied and you can start your account opening process.
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Step 3: Key in Your Nationality & Tax Residency Country.
Tax Identification Number (TIN) is your local tax number. If you are still studying, or do not have an account yet, just tick ‘I don’t have a TIN’ and state your reasoning.
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Step 4: Key in Your Personal Info & Employment Details.
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Step 5: Decide if you want to open a Margin Account or a Cash Account.
Also, decide if you need access to instruments like Futures and Warrants (p.s. just tick ‘No’ if you don’t know what these are).
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Step 6: Read and proceed after you agree to the conditions of the W8-Ben form*.
*What is W-8Ben form?
Filling in the W-8 Form is a requirement by the US Inland Revenue Service for account holders to declare that the beneficiary owner of the amount received from US sources is not of US origin. For clients who want to trade the U.S. markets, they will need to complete this form.
Step 7: Upload the necessary documents.
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Step 8: Verify your identity by scanning your face. Follow the steps as shown below:
Step 9: You are done!
Generally, the account will be opened within 1 to 3 business days after the account opening application is submitted.
You will receive an SMS & email notification upon a successful account opening. Alternatively, you may log in to Tiger Brokers' official website to check your account opening status.
How to Fund Your Tiger Brokers Account
After your account is approved and opened, the next thing that you’d want to do is to fund your account. There are 2 main ways for you to fund your Tiger Brokers account:
Method 1 (recommended): Funding Tiger Brokers via a Singapore Bank Account (CIMB SG)
The first, and my recommended way to fund your Tiger Brokers account is through a Singapore bank account.
The deposit experience is fast, and you'll also save on the expensive intermediary banking fees (SGD20/USD30) that incur when you use FTT via a Malaysia bank account.
Check out my detailed guide on:
- How to open a Singapore bank account online
p - How to fund your Tiger Brokers account via a Singapore bank account
The whole process may take some time but trust me, the savings are going to be worth it.
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Method 2: Funding Tiger Brokers via Foreign Telegraphic Transfer (FTT) through Malaysia banks
In the following section, I'll show you how to fund your Tiger Brokers account via FTT through local banks. That said, I do not recommend this method due to expensive intermediary banking fees (SGD20/USD30) per transfer.
If this is your first time, the process may be a little intimidating for you so I’ve created a step-by-step for you below:
Step 1: Open your Tiger Brokers app
Step 2: Select ‘Me’ at the bottom right corner > Tiger Account
Step 3: Select ‘Deposit’
Step 4: Select to deposit in the currency of your choice (SGD/USD/HKD).
Step 5: Select ‘Other Overseas Bank Accounts’
Step 6: You’ll be shown the remittance/transfer details.
Remember to key in the payment reference correctly when you do your transfer in Step 7!
Step 7: Do the remittance from your bank via FTT.
A standard FTT fee will be charged for every FTT transfer. Aside from that, there are 2 things to take note of:
- Generally, the transfer will take between 1 – 3 days but from my experience, it only took several hours for my deposit to reflect in my Tiger Brokers account.
p - For all these FTT transfers, Tiger Brokers do not charge for the whole funding process. However, our banks’ appointed intermediary bank will be charging a clearance fee (varies according to banks). For me (Maybank FTT), it is SGD20 for SGD transfers and $30 for USD transfers.
In short, the total cost for my FTT transfer via Maybank is (1) Standard FTT fee + (2) SGD20 (SGD transfer)/$30 (USD transfer). Again, this is NOT a fee from Tiger Brokers but it's a clearance fee charged by the banks.
As you can see, this is the reason why I do not recommend funding your Tiger Brokers account via local FTT. Instead, save on these fees by checking out my guide on how to fund your Tiger Brokers account through a Singapore bank account.
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Step 8: Inform Tigers Broker to check for your deposit upon transfer + upload transfer receipt
Step 9: You are done! You will receive an email once your deposit is accepted.
How to withdraw from Tiger Brokers
Personally, I'd recommend withdrawing your funds from Tiger Brokers via a Singapore bank account, for several key reasons:
- Direct withdrawal to a local bank (non-SG banks) will incur an expensive intermediary banking fee of around SGD35 (SGD withdrawal) or USD25 (USD withdrawal). In comparison, there are no fees on withdrawal to a Singapore bank account.
p - Direct withdrawal to a local bank (non-SG banks) can take about 1 - 3 days. On the other hand, withdrawal to a Singapore bank account (during business hours) can happen within the same day (though officially it mentions 1-3 business days).
Again, if this is your first time planning to open a foreign stock account, just know that these caveats (fees) on deposit & withdrawals apply to all foreign stock brokers, not just Tiger Brokers. That's why I highly recommend opening a Singapore bank account if you are planning to invest overseas.
READ: How to withdraw funds from Tiger Brokers to a Singapore bank account
Who Should Open a Tiger Brokers Account?
As a whole, Tiger Brokers offers investors exposure to various foreign markets at an affordable package, while retaining the much-needed regulatory aspects at the same time.
As such, Tiger Brokers is suitable for:
1. Investors with some experience in the local stock market, and are looking to diversify to (either/or) the Singapore, US, Hong Kong, China, and Australia market at an affordable rate.
2. Investors that are currently using expensive local brokers to invest overseas, and are looking for a more competitive rate to reduce investing cost.
3. Investors that are ready to invest in foreign markets and want their broker to be regulated by proper authorities.
My Tiger Brokers Experience + Things to Improve
Having used Tiger Brokers for almost 2 years now, my experience with them has been largely decent.
Execution of trades is smooth and fund transfers are also easy. That aside, I’d want to focus this discussion on 3 particular parts of Tiger Brokers: the mobile app, desktop app & customer support.
(a) Tiger Trade Mobile App
For the most part, I love the mobile app from Tiger Brokers. The interface is relatively simple and intuitive, and most of the functions you need are easy to navigate and find.
Personally, even as someone that does not execute trades on mobile apps (I still prefer web/desktop), I find the design language of the mobile app better than the desktop interface.
(b) Tiger Trade Desktop App
Personally, when it comes to execution, I still prefer to stick with the desktop/web app of my brokers.
That said, at first glance, Tiger Brokers' desktop app can be a tad more daunting than its mobile counterpart. This is because the layout tends to be more informative compared to the mobile app.
In other words, new investors may get overwhelmed at first. There is some learning curve involved, but it is definitely manageable – and you’ll come to appreciate the layout once you are familiar with how everything works.
(c) Customer Support
There are 2 ways to reach out for help to Tiger Brokers, namely via their hotline (tel:+65 6950 0591) or email support ([email protected]).
I have been using the email support service for inquiries many times (personal inquiries & also in preparation for this article), and the response time has been decent. Generally, most of my emails during working hours are responded to within an hour or 2, or else they’ll be replied to on the next day.
One thing that I hope could be improved though, is how they explain/clarify questions. There are instances where when I asked about a more technical issue/jargon, and was replied with a more expanded (not simplified) explanation.
With businesses going online nowadays, I think it is more important than ever for companies to invest in improving customer support, especially in understanding customers’ perspectives and providing simplified support to inquiries.
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(d) Can't access or log in to your Tiger Brokers account/platform?
Lately, several readers have reached out to me with an issue where they are unable to log in to their Tiger Brokers account/platform.
Personally, I do not have this problem but I am made aware that this is an issue with selected internet providers (eg. Unifi) that randomly blocked out certain sites for no logical reasons.
To solve this problem, simply download a VPN application on your computer and phone (eg. Proton VPN, Windscribe, and many more). Then use the VPN software to connect to another country.
Once you have done that, accessing your account shouldn't be a problem anymore.
Tiger Coins - Tiger Brokers' Built-In Reward System
Tiger Brokers has recently launched its built-in reward system - Tiger Coins, where you can collect when you complete certain tasks.
With Tiger Coins, you can redeem attractive rewards from Stock Vouchers to commission-free trades!
No Money Lah’s Verdict
So here you go – my in-depth review of Tiger Brokers!
As someone looking to gain exposure in foreign markets, Tiger Brokers is truly a decent overall package that offers highly competitive fees with solid regulatory backing.
Having invested via Tiger Brokers for almost 2 years now, Tiger Brokers is my go-to broker for foreign stock investments and I have no problem recommending them to investors that is keen to gain foreign market exposures – all without paying expensive commissions.
If you have any questions on Tiger Brokers, feel free to leave a question in the comment section below! Constructive feedback are welcomed as well :)
Tiger Brokers Referral Link
Planning to open an account?
Click the button below to use my Tiger Brokers referral link, and get the following when you open a new account (promo ending on 26/9/2023)!
a. Account Opening Rewards:
- (i) Unlimited commission-free trades for HK, SG, and China A-Shares for 365 days.
- (ii) Unlimited commission-free trades for US stocks for 180 days.
b. Account Funding Reward (Initial Deposit of SGD300 or more):
- (i) USD10 of Apple fractional shares (NYSE: AAPL)
c. Account Funding Reward (Initial Deposit of SGD1,000 or more + execute 5 BUY trades):
- (i) USD30 of Apple fractional shares (NASDAQ: AAPL)
- (ii) Get 1x free stock valued between SGD13 - SGD285
Open A Tiger Brokers Account Today!
READ: How to make your first trade on Tiger Brokers?
Disclaimer:
This post contains affiliate link(s). As always, I’d only recommend tools and financial solutions that I personally use AND/OR are interesting & provide unique value to my readers. Every article takes a long time and effort to write and when it comes to financial solutions, I’ll only invest time in writing about good and relevant products.
Rakuten Trade Fractional Shares Trading Overview + FAQ: Buy a slice of your favorite US stocks!
Have you ever looked at a US stock (eg. Apple, Microsoft), and found it too expensive to buy for your budget?
Fred not, as Rakuten Trade is the FIRST Malaysia-regulated broker that released the much-awaited fractional share trading for US stocks! This is a rare feature even among global stock brokers these days.
This is a major news for investors as fractional share trading makes investing in US stocks more capital-friendly and flexible.
So, what is fractional trading all about? Should you consider buying fractional shares? Let’s find out!
RELATED POSTS:
What is Fractional Share Trading?
Essentially, fractional shares allow investors to own a portion of a whole share of a stock. (imagine getting a slice of pizza, instead of the whole piece)
As an example, 1 full unit of Apple share may cost $170. With fractional trading on Rakuten Trade, you can buy Apple shares for as small as 0.01 unit for just $1.70 (0.01 units * $170).
When you invest in fractional shares, you receive the same benefits as the other investors with full shares.
In other words, you’ll make gains when the stock price rises, as well as dividends should the stock you own pay them.
Why should you consider fractional share trading?
#1 Own popular stocks regardless of your investing budget
When I first started investing, I was not able to buy the shares of US-listed companies like Apple and Microsoft as their share price were simply too high for me to afford.
With fractional shares, investors can now buy a portion of the full share regardless of their capital.
From as small as 0.01 units of fractional shares, owning the shares of big companies is easier than ever on Rakuten Trade!
#2 Build a diversified portfolio regardless of your capital
With fractional trading on Rakuten Trade, it is also possible to build a diversified portfolio even with small capital.
For instance, let's say you have RM200/month (~USD 44.45)** to invest, you can easily build an Apple-Tesla-Microsoft portfolio with fractional trading:
| Stocks | Fractional Units | Share Price (USD)* | Capital (USD) |
| Apple | 0.08 | 175.05 | 14 |
| Tesla | 0.08 | 176.89 | 14.15 |
| Microsoft | 0.05 | 318.52 | 15.93 |
| Total (USD) | 44.08 |
As you can see, the sky is the limit when it comes to how you can use fractional share trading to form your ultimate portfolio!
3 things about fractional share trading on Rakuten Trade
#1 Fractional shares are offered for selected US stocks & ETFs
Users of Rakuten Trade can now buy fractional shares of selected US stocks and ETFs on Rakuten Trade.
This means fractional units of major names like Apple, Microsoft, Tesla, and ETFs like the S&P500 (VOO) and Nasdaq-100 (QQQ) are all available.
The slight limitation though, is that the list of fractional tradable share list is subject to change tentatively every quarter. Users can't buy a particular share in fractions once it is removed from the list.
Note: US shares priced below USD 1/unit are only tradeable in a whole unit.
#2 Buy and sell in small units
Buy US stocks or ETFs from as small as 0.01 units and sell them at 0.0001 units.
#3 Tips: Earn & Use RT Points to offset your brokerage fees
While buying fractional shares on Rakuten Trade, it is also possible for you to offset your brokerage fee via RT points when you trade in MYR.
Meanwhile, for every RM1 brokerage fee spent, you will earn 1 RT Point (equivalent to RM0.01 brokerage fee)!
Fees while buying fractional shares on Rakuten Trade
In line with the launch of fractional shares, Rakuten Trade has adjusted its fee structure to make it more flexible and fee-friendly for users.
Rakuten Trade users have the flexibility to use either MYR or USD to trade US stocks:
Rakuten Trade brokerage fee in MYR:
Rakuten Trade brokerage fee in USD:
When to use MYR or USD to buy US stocks?
Whether to use MYR or USD to buy US stocks depends on your trading value.
I have compiled the different scenarios of trading value and which is a better currency to use to trade:
| Trading Value (RM/USD) | Fee (RM) | Fee (USD)* | Use |
| RM100 ($22.2) | 1.00 | 1.88 (RM8.46) | RM |
| RM500 ($111.1) | 5.00 | 1.88 (RM8.46) | RM |
| RM700 ($155.6) | 9.00 | 1.88 (RM8.46) | USD |
| RM1,000 ($222.2) | 9.00 | 1.88 (RM8.46) | USD |
| RM5,000 ($1111.1) | 9.00 | 1.88 (RM8.46) | USD |
| RM10,000 ($2222.2) | 10.00 | 2.22 (RM10) | RM or USD |
| RM20,000 ($4444.4) | 20.00 | 4.44 (RM20) | RM or USD |
How to buy fractional shares on Rakuten Trade
For new Rakuten Trade users OR users that HAVE NOT activated foreign share trading, proceed to Step 1.
For existing Rakuten Trade users, please proceed to Step 2.
Step 1: Register for a Rakuten Trade account & activate foreign stock trading
If you are new, you’ll have to sign up for a Rakuten Trade Cash Upfront account.
Consider using my Rakuten Trade referral link by clicking the button below, and you’ll get 1000 RT points (RM10) which can be used to offset your brokerage fee!
If you need help, click HERE for my step-by-step guide to open a Rakuten Trade account.
Step 1b: Activate foreign share trading on Rakuten Trade:
Once your account is activated, log in to your Rakuten Trade account either via the website or Rakuten Trade’s iSpeed app.
You can locate the Foreign Trading activation button easily within the Rakuten Trade platform.
If you need help, click HERE for my step-by-step guide to activate foreign share trading on Rakuten Trade.
Step 2: Search for the US-listed stocks you want to buy
Step 3: Fill in the details of your trade
To know whether the stock you want to trade is eligible for fractional trading, just look at the 'Quantity' row - you will spot the lowest minimum unit is 0.01.
For a full guide (eg. what is 'limit order' and 'validity') on how to buy your first US share on Rakuten Trade, click HERE.
Step 4: Once done, confirm and execute your trade
You can check the status of your order and/or amend them under the 'Order' section:
Summary: Build your portfolio with fractional trading on Rakuten Trade!
With the launch of fractional share trading, Rakuten Trade makes US stock investing more accessible, especially for Malaysians with small capital.
This is an amazing feature that I foresee more Malaysian investors will take advantage of in their investing journey!
Will you give fractional trading a try? Let me know in the comment section below!
If you are keen to open a Rakuten Trade account, consider using my referral link below! For that, you’ll get:
- 1000 Rakuten Trade (RT) points worth RM10 to offset your brokerage fee
- + 150 RT points when you deposit a min. of RM1,000 within 5 days
- + 1000 RT points when you transfer your shares from other brokers to Rakuten Trade
- + 1x brokerage fee rebate when you place your 1st trade within 30 days after your account is activated.
Aside from that, Rakuten Trade users get +1 RT points for every RM1 brokerage paid!
LIMITED-TIME Promo: Get 1,288 RT Points when you successfully activate your foreign trading account! (Ending: 31/12/2023)
For a limited time, Rakuten Trade is giving out 1,288 RT points to users. Here's how to get it:
- Eligibility: New Rakuten Trade users, or existing Rakuten Trade users that have yet to activate foreign share trading services.
- How to claim:
- New users: Open a Cash Upfront Rakuten Trade account and activate foreign share trading.
- Existing users: Activate foreign share trading.
For more details, check out the T&C of this giveaway campaign HERE.
Rakuten Trade Fractional Shares FAQ
Q1: Why invest in fractional shares?
Fractional shares make it possible for investors like you and me to own a fraction of popular US stocks that are usually too expensive to buy in full units.
Q2: Is fractional trading applicable to Exchange-Traded Funds (ETFs) on Rakuten Trade?
Yes. It is possible to invest in fractional units of popular ETFs available on Rakuten Trade such as VOO (S&P500) and QQQ (Nasdaq-100).
Q3: Can I receive dividends on my fractional shares?
Yes.
Q4: Can I sell my fractional shares?
Yes. The selling process is similar to the selling of a full unit of share.
Disclaimer:
This post contains affiliate links, which afford No Money Lah a small referral (and in return, support this blog) if you sign up for an account using my referral link.
The information stated above is based on my personal experience and for purpose of sharing such experience only. It is not intended as professional investment advice. Please contact Rakuten Trade for more information.
StashAway Flexible Portfolios Review: Customize your favourite portfolios in 4 steps!
Life only gets busier as we grow up.
In the final year of my 20s in 2023, I am occupied with work, family, and health matters (yeap, I’ve been sick for 4 months now) – not to mention A LOT of weddings to attend (8 for the year, so far).
Realizing that life only gets busier has changed how I approach investing compared to when life was more carefree in my early 20s:
Is there a way to build my own portfolio that I like, and automate my investments on a consistent basis (eg. monthly) – all while I focus on more important things in life?
In this post, I’d like to walk you through StashAway Flexible Portfolios, and why it makes much sense for busy investors!
Highlights:
- StashAway Flexible Portfolio allows you to customize your own portfolios based on the large selection of Exchange-Traded Funds (ETFs) available on StashAway.
- Investors that value customization and making investment a regular routine will find Flexible Portfolios highly convenient.
- Compared to buying your own ETFs via stock brokers, Flexible Portfolios are more capital-friendly as there is no minimum investment amount required.
What is a StashAway Flexible Portfolio?
StashAway Flexible Portfolios is a feature by StashAway that allows you to customize your own portfolios based on the large selection of Exchange-Traded Funds (ETFs) available on StashAway.
StashAway’s ETF selection consists of more than 55 different asset classes ranging from US stocks, bonds, real estate, developed and emerging market stocks, and more.
In addition, there is no limit on the portfolios that can be created. As such, you can customize as many Flexible Portfolios as you wish.
In essence, with Flexible Portfolios, you can build one or more portfolios that belong entirely to you.
Here is a tip of the iceberg of ETFs that you can choose from to build your Flexible Portfolios:
| US Equities |
| S&P500: iShares Core S&P500 ETF (ticker: IVV) |
| Nasdaq 100: Invesco QQQ Trust Series 1 (ticker: QQQ) |
| Dow Jones: SPDR Dow Jones Industrial Average ETF Trust (ticker DIA) |
| Real Estate |
| US REITs & Real Estate: Vanguard REIT ETF (ticker: VNQ) |
| Global Equities |
| Total World Market: Vanguard Total World Stock ETF (ticker: VTI) |
| Asia excluding Japan: iShares MSCI All Country Asia ex Japan ETF (ticker: AAXJ) |
| China Tech: iShares Hang Seng Tech ETF (ticker: 09067) |
| Thematic |
| AI & Robotics: Global X Robotics & AI ETF (ticker: BOTZ) |
| Blockchain: Amplify Transformational Data Sharing ETF (ticker: BLOK) |
| Healthcare: iShares Global Healthcare ETF (ticker: IXJ) |
| Bonds |
| US aggregate bond: iShares Core US Aggregate Bond ETF (ticker: AGG US) |
| Investment grade bonds outside of US: Vanguard Total International Bond ETF (ticker: BNDX) |
| Commodity |
| Gold: SPDR Gold Trust (ticker: GLD) |
Check out the StashAway app or website for the full list of available ETFs.
3 Key Benefits of StashAway Flexible Portfolios
For investors, Flexible Portfolios offer the best of both worlds: Customization and Automation.
#1 Customize your portfolios – from scratch, or from readily available templates
With Flexible Portfolios, you are free to build an ETF portfolio that is entirely yours.
This means you have 100% control over what is invested, as well as the portfolio’s allocation.
Even better, you can tweak the asset allocation and even change the ETFs in your portfolio whenever you want, not just during the setup - that's flexibility at its best!
Not quite sure how to start?
StashAway has prepared multiple readily made templates, such as a Passive Income template for passive income investors, a World Index Tracking template for global markets, as well as a Risk-Focused template for globally diversified exposure:
#2 Automate your investment
Personal or work life can be overwhelming at times, and many people tend to forget their investing routine.
Not anymore when you invest via StashAway.
With StashAway, you can plan for a regular investment schedule via direct debit from your bank account.
In other words, you can plan for your investment to be done automatically every month or quarter, all while you focus on important things in life.
#3 Invest with any amount. No minimum balance is required.
Another convenient feature of Flexible Portfolios is there’s no minimum amount required for you to invest and maintain.
So, be it RM50, RM500, or RM5,000 you can build an investment portfolio of your choice regardless of your capital.
4 steps to set up & automate your investment in Flexible Portfolios:
Step 1: Sign up for a StashAway account via my referral link below:
Existing StashAway users can proceed to Step 2.
Step 2: Select ‘Create’ > ‘Customize a portfolio’
Step 3: Build your Flexible Portfolios from ready-made templates, or from scratch.
As a note, you can create multiple Flexible Portfolios as there is no limit on how many portfolios you can create.
(a) Ready-Made Templates:
There are 4 templates for you to get started with. You have absolute freedom to make adjustments to the templates.
(b) Build your Flexible Portfolio from scratch:
- Start customizing your Flexible Portfolio from an ETF collection of over 55+ asset classes.
Note: 1% of your portfolio will be allocated to cash to handle portfolio rebalancing and platform fees.
- Adjust the allocations of each ETF in your portfolio:
- Preview and confirm your Flexible Portfolio:
Check the risk, past performance, as well as sector & region exposure of your portfolio combination.
Note: You will get a reminder if the risk profile of your Flexible Portfolio exceeds the recommended risk level for you. Click ‘I Understand’ to proceed if you are okay with this, or go back to readjust your portfolio as you see fit.
Step 4: Schedule a one-time or recurring deposit plan
You can set up a one-time deposit, or schedule a recurring deposit to your Flexible Portfolios via Direct Debit from your bank account.
If you want to automate your Flexible Portfolios' investment, select ‘Schedule a Recurring Deposit’ and link your bank account accordingly.
You can schedule a monthly or quarterly automatic deposit plan at any amount you like.
StashAway fees + Flexible Portfolios fee waiver promotion
There are 3 fees that you need to take note of while investing with Flexible Portfolios.
These fees are deducted automatically from your portfolio value so there is no extra hassle on your end.
- Expense ratio charged by the fund manager (not StashAway) of the underlying Exchange-Traded Fund (ETF) that you invest in. (Approx. 0.2% per annum).
- Currency conversion fee of about 0.1% on the spot exchange rate for USD & GBP portfolios.
- StashAway management fees of 0.2% - 0.8% per year based on your total investment amount.
Flexible Portfolios Promotion: Free investing till 30 June 2023
StashAway is currently running a Free Investing promotion for Flexible Portfolios, where all StashAway management fees on all funds deposited are waived until 30/6/2023!
Invest on your own vs Flexible Portfolios
At this point, some investors may wonder:
“Why use Flexible Portfolios when I can invest in these ETFs myself through a stock broker?”
I think this is certainly a valid question. In my opinion, both approaches are meant for different types of investors.
Flexible Portfolio is meant for investors who value customization and the convenience of automation.
#1 Flexible Portfolios make it capital-friendly to invest in a custom ETF portfolio
There is no minimum investment requirement to invest via Flexible Portfolio.
So, let’s say I have RM200/m to invest, and I want to build a portfolio consisting of the S&P500 (IVV) and Nasdaq-100 index (QQQ).
With RM200/m, I can absolutely build and invest in an S&P500 + Nasdaq-100 portfolio on a Flexible Portfolio.
Meanwhile, investing via most stock brokers will require you to invest in 1 full unit for each ETF:
| ETF | Price/unit (USD) |
| iShares Core S&P500 ETF (IVV) | $414 (as of 21/4) |
| Invesco QQQ Trust (QQQ) | $317 (as of 21/4) |
| Total Required | $731 |
#2 You can automate your investment on Flexible Portfolios
It is easy to forget about investing regularly when life gets busy.
With Flexible Portfolios, you can automate your investment on a monthly or quarterly basis so your investment is done regularly – all while you focus on more important things in life (family, career etc).
In fact, I’ve been recommending Flexible Portfolios to many close friends that are busy with life, and I think they love the convenience!
#3 Flexible Portfolios reinvest your dividends automatically
With Flexible Portfolios, your dividends are reinvested automatically on your behalf. In comparison, with a stock broker, you’ll have to do so yourself.
In addition, you have the flexibility to cash out your dividends when they reach a monthly amount of RM25 or more – so you have access to your dividends anytime!
#4 Flexible Portfolios maintain your portfolio allocation according to your preference
Let’s say you have set up a Flexible Portfolio to be 50% - 50% allocation between S&P500 (IVV) and Nasdaq-100 (QQQ), it will be maintained in that way while you invest.
Meanwhile, it is a hassle to maintain such a specific allocation on our own as market swings can lead to changes in the value of each ETF, which can cause the percentage allocation to go off our initial allocation.
#5 Fees: Brokerage vs StashAway management fee
When it comes to fee differences, you pay a brokerage fee while investing with a stock broker, while you are charged an annual management fee while investing through StashAway.
| Fee | StashAway Flexible Portfolio | Stock Broker |
| Annual management fee based on your total investment (0.2% - 0.8%) | Brokerage fee for each trade |
In addition, StashAway's currency conversion fee (to USD or GBP) of about 0.1% on the spot exchange rate is more competitive compared to banks that may charge expensive fx spreads to transfer to overseas stock brokers.
To summarize, I think Flexible Portfolio is a good fit if:
- You are looking to customize your investment portfolios with a flexible investment amount.
- You want to automate your investment routine so you can invest regularly while being occupied in life.
Bonus - Flexible Portfolios Ideas:
Below, I list down a few practical ideas to use Flexible Portfolios:
Idea #1: Automate your investment in the S&P500 and/or Nasdaq-100 ETF via Flexible Portfolios
I am often asked by friends and readers how to invest in the S&P500.
One way that I’d usually recommend is to set up a pure S&P500 ETF (IVV) portfolio on a Flexible Portfolio, and automate their investment through recurring deposits.
In my opinion, this is the most convenient way to invest in the S&P500 regularly.
Idea #2: Build dividend income with Flexible Portfolios
Use Flexible Portfolios’ existing passive income templates, or tweak it to your liking:
StashAway Referral Link & Code: P-NOMONEYLAH-MY
No Money Lah is working with StashAway to bring new users an exclusive 50% off your fees for the first RM100,000 invested for 6 months.
To be eligible for this deal, sign up for your StashAway account through my referral link HERE (or apply code 'P-NOMONEYLAH-MY'). (or HERE if you are from Singapore)
Verdict – Build and automate your investment with StashAway Flexible Portfolios!
The beauty of StashAway Flexible Portfolios is it makes customizing an investment portfolio very simple regardless of your capital.
Even better, building a regular investment routine is also very convenient on StashAway via recurring debit.
Are you on Flexible Portfolios? If not, are you going to give it a try? Let me know your thoughts in the comment section below!
Disclaimers
This post is sponsored by StashAway. Past performance is not indicative of future performance.
This post is produced for general information purposes only. It is not intended to constitute professional advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances.
Best FD Alternatives: StashAway Simple vs Versa Cash & Cash-i vs KDI Save vs TNG GOinvest
Fixed Deposit (FD) has always been the go-to place for many Malaysians to save their cash.
However, most FDs require a high deposit, and they lock in your money for a long time (+charges a penalty on early withdrawal).
That said, over the past year, we are seeing the emergence of more money market funds, which is a flexible alternative to FD over the past year.
In this article, let's compare my top 5 Fixed Deposit (FD) killers: StashAway Simple, Versa Cash (and Versa Cash-i), KDI Save, and TNG GOinvest!
p.s. This is a comprehensive comparison, so feel free to use the menu below to skip to the part you are interested in reading, enjoy!
Overview:
- StashAway Simple is a cash management offering from well-known robo-advisor, StashAway. It is part of the offering within the StashAway app. Check out my in-depth review of StashAway Simple.
- Versa Cash was launched in 2021 and it offers a return on-par with FDs. In April 2023, Versa Cash-i, the Shariah-compliant version of Versa Cash is launched. Check out my detailed review of Versa Cash HERE.
- KDI Save is a cash management offering. It is part of the offering within the latest Kenanga Digital Investing (KDI) robo-advisor app.
- GOinvest is a newly introduced cash management feature within the Touch 'n Go e-Wallet in 2022. GOinvest allows users to save and get attractive returns easily within the app.
What is a Money Market Fund?
All the products we are comparing today achieve returns on-par or higher than FD by investing in Money Market Fund (MMF).
Money market funds (MMF) are funds that invest in a mix of (i) Fixed Deposits, (ii) bonds, and highly liquid, short-term cash equivalent instruments called (iii) Money Market Instruments.
Quick Intro: Money Market Instruments
Essentially, Money Market Instruments are short-term debts issued by banks in order to accumulate short-term cash-pile to make up for the shortfall in their daily deposit reserve.
- Simply put, MMFs are lending money to banks when they buy these Money Market Instruments.
- These instruments are relatively low-risk as they are backed by banks. Moreover, they are highly liquid with short maturity periods.
- Through regular redemption of matured Money Market Instruments, it allows MMF to provide a similar rate to FDs without having to lock up users’ capital.
In short, through StashAwaySimple, Versa Cash & Cash-i, KDI Save, and GOinvest, you can earn a similar rate to FD through low-risk MMF without having to lock up your funds, unlike typical FDs.
They are great options if you are looking for a competitive and flexible alternative to FDs.
Similarities: StashAway Simple, Versa Cash & Versa Cash-i, KDI Save & GOinvest
What are the similarities or common traits when you place your money with these apps?
1. Regulated
All StashAway, Versa, KDI, and GOinvest are regulated by the Securities Commission (SC) of Malaysia. This ensures that these services are always operating in Malaysia as per the guideline from the local authority.
2. Flexible & Low barrier of entry
Generally, most FDs require a high minimum deposit to get started. Moreover, FDs lock in our funds for a period of time and charge a penalty for early withdrawal.
In contrast, every app in this article has a low minimum deposit of RM0 (Simple) and RM10 (Versa, KDI Save, GOinvest).
Furthermore, they do not lock in your funds as FD does. Meaning, you are free to deposit and withdraw anytime without penalty.
In short, with a small capital, anyone can start saving flexibly and enjoy rates that are on par with FD.
3. Competitive returns to FD
As a whole, all apps provide returns that are similar and/or competitive to traditional Fixed Deposits (FDs).
I will go through a detailed comparison in the next section, but safe to say they are all great alternatives to FDs.
One thing to be aware of, is none of them guarantee returns. Even though they invest in low-risk MMF, returns are still subjected to market fluctuation.
4. Not protected by PIDM
Another thing to note is that none of the apps are protected under Perbadanan Insurans Deposit Malaysia (PIDM).
PIDM is an organization that protects deposits kept in banks and financial institutions that are a member of PIDM. Conventional FDs are usually protected by PIDM.
Comparison Part 1: Returns & Fees
In this section, let’s compare the returns and fees of these apps. I will assign a winner at the end of each section:
Each app has an underlying money market fund, namely:
- Eastspring Investment Islamic Income Fund for StashAway Simple
- Affin Hwang Enhanced Deposit Fund for Versa Cash
- Affin Hwang Aiiman Enhanced i-Profit Fund for Versa Cash-i
- Proprietary Money Market Instruments from Kenanga for KDI Save
- Principal Islamic Money Market Fund for TNG GOinvest
Below, let’s compare the returns of these funds:
| StashAway Simple | Versa Cash | Versa Cash-i | KDI Save | TNG GOinvest | |
|---|---|---|---|---|---|
| Return | 3.8% p.a. Projected Return (AFTER fees) | 4.3% (AFTER fees) |
4.3% (AFTER fees) | 4% Effective Annual Rate (NO fees) | 3.28%** p.a. Projected Return (AFTER fees) |
| Total Annual Fees* | 0.115% | 0.35% | 0.52% | FREE | 0.42% |
(**GOinvest markets its projected return to be 3.7% p.a. BEFORE fees, so I took 3.7% - 0.42% fee to get 3.28% of projected annual return AFTER fee)
From this comparison above, I think the difference in returns between each app is minimal.
However, some of these apps have their own ongoing promo:
| Promo | Versa Cash & Cash-i | KDI Save | TNG GOinvest |
| Returns | 4.3% p.a. promotional rate for the first RM30k + maintain RM1,000 in Versa Cash and/or Cash-i | 4% Effective Annual Rate is for the first RM50k only. Then, 3.5% thereafter until RM200k and 3% thereafter. | - |
Winner: Versa Cash & Cash-i
In my opinion, Versa's 4.3% projected annual return still makes it the best offering among the others.
In the next sections, we’ll explore an equally important aspect of these apps: User Experience.
Comparison Part 2: User Experience
In this section, we’ll explore the overall user experience of these apps, from fees, how long it takes to deposit and withdraw, and so on:
(A) Interest Payout Frequency, Minimum Deposit
As for interest payout, KDI Save pays out users’ interest on a daily basis. Meaning, you’ll receive your interest payout daily from KDI Save.
This is followed by StashAway Simple, Versa Cash & Cash-i, and TNG GOinvest (monthly).
| StashAway Simple | Versa Cash & Cash-i | KDI Save | TNG GOinvest | |
| Interest Payout Frequency | Monthly | Monthly | Daily (W) | Monthly |
(B) Deposits & Withdrawals
All 4 apps do not charge any fees on deposits and withdrawals. In addition, all of them have a low barrier for deposits, of which I think the differences are negligible.
As such, an important discussion here would be how fast we can receive our money in our bank account during a withdrawal.
Of course, the earlier we can receive our funds, the better:
| StashAway Simple | Versa Cash | Versa Cash-i | KDI Save | TNG GOinvest | |
| Min. Deposit | No min. deposit | RM10 | RM10 | RM100 initial deposit (RM10 thereafter) | RM10 |
| Deposit Speed | 2-3 business days | 2-3 business days | 2-3 business days | 1-2 business days | 2 business days |
| Withdrawal fee & Speed | No. 3-4 business days | No. 1-2 business days | No. 0-1 business day | No. 1-2 business days | No. 2 business days |
| Min. Withdrawal Amount | No. | RM50 | RM50 | RM10 | RM10 |
When it comes to speed, Versa Cash-i leads with same-day withdrawal if it is done before 10:30am.
Another less-talked-about comparison would be the minimum withdrawal amount. Versa has the highest minimum withdrawal amount of RM50, followed by KDI Save and GOinvest (RM10). Meanwhile, Simple does not have such restrictions in place.
In my opinion, there is no clear edge for either app in this comparison. That said, if you prefer that have access to your cash faster, Versa Cash-i is the way to go.
2d. User-Friendliness
I enjoy using well-designed apps. For me, I genuinely enjoy using Versa and StashAway Simple as their navigation is straightforward and works as intended.
In particular, for cash management & saving purposes, Versa nailed it in terms of simplicity as it is a pure cash management app.
2e. Others (Shariah-Compliance)
In this comparison, StashAway Simple, Versa Cash-i, and TNG GOinvest are shariah-compliant while KDI Save and Versa Cash do not come with such compliance.
Winner: Versa Cash-i
Versa Cash-i wins in its fast withdrawal speed, shariah-compliancy, and superior user experience.
Comparison Part 3: Special features/promo
- Limited-Time Promo: Get up to 4% on your savings (KDI Save)
For a limited time only, get 4% Effective Annual Rate (EAR) when you save with KDI Save!
Do note that the promotional rate of 4% EAR is tiered, as of below:
| Deposit amount | Rate |
| First RM50,000 | 4% EAR |
| > RM50k – 200k | 3.5% EAR |
| > RM200k |
3% EAR |
- Limited-Time Promo: Get up to 4.3% on your savings! (Versa Cash & Versa Cash-i)
Looking to get more out of your cash? For a limited time, all Versa users are eligible for a promotional rate of 4.3% on their cash!
How it works:
- Versa Cash and Cash-i's 4.3% promotional rate is applicable to all new & existing Versa users.
- Maintain RM1,000 in your Versa Cash or Cash-i account, and the promotional rate is automatically applied to the first RM30,000 in your Versa Cash & Cash-i account. Any subsequent balance above RM30,000 will continue to earn Versa Cash’s base net return rate of 3.95% p.a., and Versa Cash-i's base net return of 3.08% respectively.
- Promotional period: Ongoing until further notice
- Refer to the full T&C for more info.
I think this is GREAT news if you are looking for a higher rate for your savings! Remember, there is no lock-in period for Versa Cash and you are free to withdraw your funds anytime!
Use my dedicated Versa referral code – VERSANML4, and you will get RM10 credited into your account* when you successfully make a minimum deposit of RM100 or more. That’s an instant 10% return on your investment.
- Investment integration (StashAway)
One thing I love with StashAway is its seamless savings (StashAway Simple) and investment (StashAway) integration.
So, let’s say you have RM50,000 in cash and would like to invest them. However, you do not want to invest the whole RM50,000 at once and would like to spread it over time (dollar-cost average).
Through the StashAway app, you can place your funds in Simple (low-risk + earn stable interest), then automate a weekly or monthly transfer from Simple to your main StashAway investment portfolio.
I think this is a brilliant feature from StashAway, which is one of the reasons why it is my favorite go-to robo-advisor at the moment.
Verdict: Which FD alternative should you choose?
Personally, I’ve been using all Versa Cash & Cash-i, Simple, KDI Save, and GOinvest. All platforms are unique in their own way. Question is, which one should you use?
#1 Versa Cash & Versa Cash-i: For pure savings purposes
Versa as a pure cash management app offers a straightforward user experience. Its underlying low-risk money market fund is also a fantastic alternative to FD.
As a whole, if you are looking for a low-risk way to save your cash, I highly recommend Versa.
p
#2 KDI Save & StashAway Simple: For savings & investing
StashAway and KDI are robo-advisors that offer both cash management (Simple & KDI Save) and investment services (StashAway & KDI Invest).
Within both app, users can easily transfer money from their savings to investments, which is really convenient.
Furthermore, I think both KDI Save and StashAway Simple are equally capable alternatives to FD for savings purposes.
p
#4 StashAway Simple & Versa Cash-i : If you need shariah-compliancy
Muslim friends looking for alternatives to FD can consider StashAway Simple and Versa Cash- i as they are shariah-compliant.
EXCLUSIVE Promo codes/referral link (KDI Save, Versa Cash & Cash-i, StashAway)
If you find this post useful, do consider using my promo codes/referral links to open your account(s)!
This will greatly help me in sustaining my blog and keep on working on quality content like this one:
- KDI Referral Code: 101183
Use my dedicated KDI referral code – 101183, and you will get RM10 credited into your KDI Invest portfolio* when you successfully make a minimum deposit of RM250 on KDI Invest!
*Note: RM10 credit will be made within 60 days upon successful verification & deposit.
Open Your KDI Account HERE.
- Versa Referral Code: VERSANML4
In collaboration with Versa, No Money Lah is bringing an exclusive deal for new users that are keen to start saving or investing with Versa!
Use my dedicated Versa referral code – VERSANML4, and you will get RM10 credited into your account* when you successfully make a minimum deposit of RM100 or more. That’s an instant 10% return on your investment.
Open Your Versa Account HERE.
- StashAway Referral Link & Code: P-NOMONEYLAH-MY
No Money Lah is working with StashAway to bring new users an exclusive 50% off your fees for the first RM100,000 invested for 6 months.
To be eligible for this deal, sign up for your account through my StashAway referral link HERE (or apply code 'P-NOMONEYLAH-MY'). (or HERE if you are from Singapore)
Disclaimers:
Investment in a money market fund is not the same as placement in a deposit with a financial institution. There are risks involved and investors should consult a financial planner before making any investment decisions.
This post contains affiliate links/codes that afford No Money Lah a small amount of commission (and help support the blog) should you sign up through my affiliate link/code.
StashAway Simple Review: The Fixed Deposit (FD) Killer?
Fixed Deposit, or FD, has always been people’s go-to way to save or deposit extra cash. The problem is, it locks your money in for a long period of time, or requires a high initial deposit to start with.
In this article, let’s look into StashAway Simple, a great alternative to FD. Personally, I’ve been using StashAway Simple since mid-2020, and in this post, let’s explore if StashAway Simple is for you!
Highlights of StashAway Simple
StashAway Simple (or 'Simple') is a cash management offering from robo-advisor StashAway. It provides users competitive returns like FD, but without the troublesome restrictions:
- Regulated: StashAway Simple is regulated by the Securities Commission (SC) of Malaysia.
- Competitive Return: Through Simple, users can earn up to 3.8% interest per annum, which is comparable to the rates of Fixed Deposit (FD).
- Low Risk: The underlying fund of Simple is the Eastspring Investment Islamic Income Fund. It is a Shariah-compliant fund that invests in very low-risk money market funds.
- Flexible & Low Barrier of Entry: Malaysians aged 18 and above can start saving or investing via Simple. There is no minimum on how much you need to save with Simple. Withdraw anytime without being charged penalty fees.
How does StashAway Simple work?
So, how exactly is Simple able to deliver returns that are on-par with FD?
All of this is possible because Simple invests users’ cash into money market funds (MMF).
MMFs are funds that invest in Fixed Deposits and highly liquid, short-term cash equivalent instruments called Money Market Instruments.
Essentially, Money Market Instruments are short-term debts issued by banks in order to accumulate short-term cash-pile to make up for the shortfall in their daily deposit reserve.
Simply put, MMFs are lending money to banks when they buy these Money Market Instruments. These instruments are relatively low-risk as they are backed by banks. Moreover, they are highly liquid with short maturity periods.
Through regular redemption of matured Money Market Instruments, it allows MMF to provide a similar rate to FDs without having to lock up users’ capital.
For Simple, the underlying MMF that they invest in is the Eastspring Investment Islamic Income Fund, which is a Shariah-compliant money market fund.
In short, through Simple, you can earn a similar rate to FD through low-risk MMF without having to lock up your funds, unlike conventional FDs.
It is a great choice if you are looking for a competitive and flexible alternative to FDs.
Is StashAway Simple safe to use?
When it comes to regulation, Simple is regulated by the Securities Commission (SC) of Malaysia. This ensures that Simple is always operating in Malaysia as per the guideline from the local authority.
As for the safety of funds, your funds in Simple are held by a third party (trustee), which is Deutsche Trustees Malaysia Bhd.
In other words, your deposits to Simple are separate from StashAway’s company finances. As such, this ensures no deposits can be used for fraudulent purposes and you will always have full access and claim to them no matter what happens to StashAway.
StashAway Simple Performance, Fees & Charges
StashAway Simple does not charge any platform or service fee to users. That said, the underlying MMF, Eastspring Investment Islamic Income Fund, does charge reasonable annual fees, as shown below:
- Annual Management Fee: -0.25%
- Annual Trustee Fee: -0.04%
- Annual Projected Return AFTER fees & rebate: 3.8%
A thing worth noting is that StashAway does get fee rebate from Eastspring, likely due to the size of capital that StashAway Simple can channel to the fund (p.s. just my opinion).
As such, when Eastspring rebates StashAway, they’ll re-distribute this full rebate to users.
Next question: Are there any fees when you withdraw your funds from StashAway Simple?
Unlike FDs, there are no charges when you withdraw your funds from StashAway. Withdrawals are expected to be reflected within 3-4 business days.
4 things I like about StashAway Simple
#1 Returns on par with conventional Fixed Deposits (FDs)
Through Simple, returns are compounded daily and interest payout is made every month, which is re-invested into user’s fund.
All of this combined, through its underlying Eastspring Investment Islamic Income Fund, Simple projects about 3.8% return per annum (after fees) for users.
#2 Flexible & low barrier of entry
There are 2 things that I absolutely love with Simple:
- Low barrier of entry: There is no minimum amount to start using Simple. Meaning, you can start investing or saving with Simple with any amount you want.
- Flexible: There are no charges to open a StashAway Simple account. In addition, you can withdraw your funds anytime and there are no fees on withdrawal.
Combined, both these features make a compelling edge against typical FDs.
Reason being, FDs usually have higher minimum deposits & they tend to lock in users for a period of time (and charge a penalty for early withdrawals).
#3 Integration with StashAway main investment ecosystem
Another reason why I enjoy using StashAway is its seamless savings (StashAway Simple) and investment (StashAway) integration.
So, let’s say you have RM50,000 in cash and would like to invest them. However, you do not want to invest the whole RM50,000 at once and would like to spread it over time (dollar-cost average).
Through StashAway app, you can place your funds in Simple (low-risk + earn stable interest), then automate a weekly or monthly transfer from Simple to your main StashAway investment portfolio.
I think this is a brilliant feature from StashAway, which makes it the most versatile robo-advisor at the moment.
#4 Intuitive user experience
As an app catered for the general public, StashAway is really simple to use.
Even if you need any help, StashAway’s customer support is one of the best I’ve ever experienced when it comes to financial products.
Risks + What you need to know before investing in StashAway Simple
In this part, let’s explore 3 things that you need to be aware of while investing your money with Simple:
1. Market risk
While being a relatively stable instrument, investing in Money Market Fund (MMF) via Simple still presents exposure to market risk.
One such risk is the fluctuation in interest rate. For instance, if Bank Negara Malaysia (BNM) increases interest rate, MMF is likely going to generate higher returns. On the other hand, if BNM reduces interest rate, it’ll also affect the returns of MMF as a result.
2. Not protected by PIDM
While investing in Simple, it is important to remember that your funds deposited on StashAway are not protected by Perbadanan Insurans Deposit Malaysia (PIDM).
PIDM is an organization that protects deposits kept in banks and financial institutions that are a member of PIDM. Conventional bank FDs are usually protected by PIDM.
Improvement: 2 Improvements Needed for StashAway Simple
Having been a Simple user since its launch, I think there are 2 improvements needed for Simple to compete with competitors like Versa:
1. Automatic scheduled transfer
One thing that puzzled me with StashAway is, I can schedule a routine transfer to my normal StashAway investment portfolio from my bank account, but I cannot do so for Simple.
I think having the convenience for users to automate their deposits every week/month into Simple should be a fundamental feature.
While I enjoy using Simple, I think this improvement will make StashAway a more solid financial app.
2. Withdrawal speed
StashAway Simple has a 3-4 business days withdrawal speed. While this is reasonable, it falls behind competitors like Versa that has a 1-2 business days withdrawal.
I think this is a space that StashAway can improve on as well.
READ: Versa Review: A Great Alternative to Fixed Deposits (FD)!
Eligibility + is StashAway Simple for you?
The minimum age required to open an account with StashAway is 18 years old. Meaning, even young Malaysian adults can start building good financial habits by saving/investing from their phones – neat!
That said, is StashAway Simple for you?
To answer this question, it is best to first know what Simple is NOT:
- Simple does not invest in stocks/equities (ie. Higher risk assets). Hence, do not expect mutual fund-like returns.
- Simple does not guarantee returns. Even though it invests in low-risk MMF, returns are still subjected to market fluctuation.
Hence, in my opinion, Simple is great for:
- People looking for a flexible alternative to FD & typical savings account.
- People looking to save for a specific goal (eg. house, car, wedding)
- People with additional cash and want to save it for the short-term
- People with a stash of cash looking to invest, but would like to spread the investment across time. (StashAway & StashAway Simple is perfect for this)
StashAway Simple or Versa or KDI save?
In terms of offering, StashAway Simple’s closest competitor is certainly KDI Save and Versa. Both offer users flexible and low barrier access to MMF that pays competitive FD-like rates.
I think this comparison deserves a full article on its own so I’ll attach a link here (it's up!) when I come out with a comparison article real soon!
Personally, I use StashAway Simple, Versa, and KDI Save to save for different purposes and I am happy with them as an alternative to FD (I think you will, too!).
READ: The Ultimate FD-Killer Showdown: StashAway Simple vs Versa vs KDI Save vs TNG GOinvest!
StashAway Referral Link & Code: P-NOMONEYLAH-MY
No Money Lah is working with StashAway to bring new users an exclusive 50% off your fees for the first RM100,000 invested for 6 months.
Since it is Simple is free to use, this deal is applicable if you eventually use StashAway robo-advisor portfolio to invest.
To be eligible for this deal, sign up for your StashAway account through my referral link HERE (or apply code 'P-NOMONEYLAH-MY'). (or HERE if you are from Singapore)
No Money Lah’s Verdict: Simple is the New Breakthrough
With the rise of innovations in the financial solution space, it is refreshing to keep seeing new, innovative products from robo-advisor platforms like StashAway.
In many ways, in the financial services industry, Simple is indeed the new breakthrough that consumers need. With Simple, everyday consumers can enjoy returns on par with FD without the typical restrictions.
Personally, I have always enjoyed using StashAway, and I highly suggest you to check it out too!