Saxo Markets' Regular Savings Plan: Singapore's Top RSP?
Saxo Markets' Regular Savings Plan: Singapore's Top RSP?
ValueChampion Rating 
Pros
- Individuals seeking professionally managed RSP
- Those planning to contribute S$100 each month
Cons
- Individuals that prefer the cheapest possible savings plan
- Individuals unable to contribute S$100 each month
Saxo's Regular Savings Plan (RSP) is one of the best available to consumers in Singapore. Not only does Saxo partner with BlackRock and Lion Global to offer professionally managed savings plans, Saxo's RSPs only require a monthly contribution amount of S$100 and charge significantly lower fees than other professionally managed accounts.
| Summary of Saxo Capital Markets Online Brokerage |
|---|
| Low Minimum Monthly Contribution: S$100 |
| Partnership with BlackRock: Managed ETF Portfolios |
| Portfolios tailored by risk preference |
Table of Contents
- What Makes Saxo's Regular Saving Plans Stand Out?
- What Type of Portfolios Does Saxo Offer?
- Eligibility Requirements
What Makes Saxo's Regular Savings Plans Stand Out?
Not only does Saxo Markets offer Singapore's leading online brokerage, its new regular savings plan product is another excellent option. First, the product is a low-cost way to have your savings expertly managed. Saxo Markets partners with BlackRock, the largest asset manager in the world, and Lion Global, a leading Singapore-based fund asset manager, to provide affordable savings plans built on market-leading investment data and analysis.
While Saxo requires an initial investment of S$2,000, this is significantly lower than most traditional wealth managers require and even less than many leading robo advisors. After this initial investment, Saxo's RSP customers can contribute from just S$100 each month. This regular investment allows them to put their savings on auto-pilot and take advantage of dollar-cost averaging (DCA). This technique allows you to spread the risk of each amount you invest by spreading out your purchases over a period of time. Therefore, RSPs can be a good option for those that want to gradually invest without having to worry about timing the market.
| Initial Investment Requirement | S$2,000 |
| Minimum Monthly Contribution | S$100 |
| Annual Service Fee | 0.25% (LionGlobal) |
| 0.75% (BlackRock) | |
| Transaction Fees | N/A |
For those seeking the RSP with the lowest initial investment requirement, Saxo is not the best choice. For instance, there are a handful of plans that require as little as S$0 to open an account. Also, if you'd rather take your investment strategy into your own hands, we'd recommend using Saxo's online brokerage platform. However, these alternatives do not offer the same expertise and strategic management of Saxo's RSPs.
What Type of Portfolios Does Saxo Offer?
In order to determine which portfolio best suits their customer, Saxo offers a brief portfolio questionnaire. This helps individuals ensure that they are investing their funds appropriately. For example, individuals can ultimately choose between low-high risk ETF-based portfolios. While past performance is not indicative of future results, the table below helps highlight the varying risk and reward profiles of each portfolio type. It is also important to keep in mind that an RSP is designed to be a long-term savings plan.
| Saxo's RSP Portfolios | Risk Exposure | 2017 | 2018 | 2019 | 2020* |
|---|---|---|---|---|---|
| BlackRock Defensive | Low | -0.86% | -1.74% | 8.90% | 6.41% |
| BlackRock Moderate | Medium | 1.58% | -4.86% | 15.20% | 7.41% |
| BlackRock Aggressive | High | 7.30% | -6.32% | 19.2% | 7.49% |
| LionGlobal Dynamic Growth: Asian Perspective | High | 16.76% | -5.51% | 20.94% | 23.79% |
In terms of portfolio composition, the Saxo Defensive RSP portfolio is typically composed of low-risk investments, like bonds. Meanwhile, its Moderate and Aggressive portfolios focus on a mix of stocks, bonds, and alternative investments. All portfolios aim to achieve positive, long-term returns by investing in low-cost ETFs.
Saxo also offers The LionGlobal Dynamic Growth Portfolio, which is an Asian Perspective Portfolio. Its funds are managed by BlackRock, along with Aberdeen Standard Investments, Goldman Sachs Asset Management, and Pimco and Schroders. With a minimum investment of S$2,000, your money will be 60% invested in equities, 30% in bonds, and 10% in gold. The fund is also available to trade in USD. Moreover, there is no lock-in period and a low service fee of 0.25%. While the minimum initial investment is on the high side compared to other RSPs, the LionGlobal plan is a great plan for investors who tolerate high-risk accounts and who want to target Asia as an investment region.
Saxo's Regular Savings Plans Eligibility Requirements
- Minimum Initial Investment
- S$2,000
- Minimum Monthly Contribution
- S$100
In order to be eligible for Saxo's Regular Savings Plan, individuals must make an initial investment of S$2,000 (previously $10,000) and make monthly contributions of at least S$100. Saxo's RSPs are available to Singaporeans, Permanent Residents (PR) and expats. In order to enroll in a regular savings plan with Saxo, simply click any of the buttons on this page.
- Initial Investment: S$2,000
- Monthly Contribution: S$100
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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.