FSM One announced that it will permanently reduce processing fees for SGX stocks and ETFs to just $8.80 per trade, regardless of trade amount.
This pricing is permanent for all investors, and it further reduces the cost barrier to investing. Before this change, FSM charges $10 per transaction, in-line with competitors like Stanchart Online Trading and DBS Vickers Cash Upfront.
For non-SGD transactions, the following rates apply: USD 8.80, AUD 8.80, EUR 8.80, GBP 8.80, CNY 50, HKD 50, JPY 800.
Although the pricing is still not the lowest in the market – that’s where discount brokerages like Tiger Brokers (review) shine, FSM One is the cheapest brokerage for selling stocks/ETFs in your CDP account.
If you’re looking to dollar cost average into ETFs, FSM One is still my preferred choice for ETF regular savings plans because it’s the cheapest all around.
It is also running a promotion from 8 February 2021 to 8 July 2021 where investors can enjoy a 0% processing fee when you transact via a RSP in these ETFs listed on SGX, HKEX and US exchanges.
Regular Savings Plans on FSM One take place on the 8th of the month, and you can read my earlier review about it.
Overall, industry competition and the rise of roboadvisors and Chinese trading apps like Tiger Brokersand Moomoo will continue to put pressure on the local brokerage scene. It’s crazy to pay $25 per trade via traditional brokerages – these will all die as they have been reluctant to innovate and keep themselves competitive.