A Regular Savings Plan (RSP) is a low-threshold investment tool that allows you to automatically invest funds on a recurring schedule. This handy feature uses fractional shares trading to help lower the average amount you spend on investments and reduce the impact of volatility. The investment threshold for US stock RSP can be as low as USD 10, making it an effective way to build wealth over time.
A Regular Savings Plan (RSP) has the following benefits.
1.1.1 Lower cost for buying quality stocks
Regular Savings Plan (RSP) has a relatively lower investment cost and supports a list of stocks, which are mostly NASDAQ-listed and may pay dividends regularly. The entry threshold for stock RSP is as low as USD 10 per month, so you can get started building a diversified investment portfolio with fractional shares trading.
1.1.2 Flexibility
RSP allows you to set investment amounts according to their own capabilities, depending on your personal situation. At the same time, it allows you to set investment periods, such as monthly, weekly, or daily payments. Through RSP, you can also adjust their investment amounts, pause or stop your investment plans at any time, and easily adjust their investment portfolios.
1.1.3 Dollar-cost averaging
The dollar-cost averaging method used in RSP can mitigate the impact of short-term market fluctuations on investments. By investing a fixed amount of money each month, more shares can be purchased when the stock price is low, and fewer shares can be purchased when the stock price is high. Over time, the average purchase price of the stock will be averaged out, which can help to reduce short-term risk.
1.1.4 Frees up your time
As RSP through periodic investment involves fixed amounts, investors do not need to constantly monitor market conditions after selecting their preferred stocks. This saves them time and effort in researching when to enter the market and accumulating enough funds.
A Regular Savings Plan (RSP) with FUTU offers you the most flexible investment schedule, you can invest daily, weekly, or monthly, and adjust, pause, or stop the plan at any time. Fractional shares trading helps you steadily build your portfolio while reliably tracking your average cost to monitor gains and losses.
1.2.1 Handling fees
Trade Size | Commission & Platform Fees |
< 1 Share | 0 Commission Fees Platform Fees at 0.99% * Amount, capped at $0.99 per order. |
≥1 Shares | Commissions and Platform Fees are charged based on the Standard US stock trading fees. |
Here's how to create your plan in 3 steps.
a. Open the app, and go to Account > More > RSP
b. Create an investment plan or pick a stock from RSP Rankings.
c. Choose "Paying Account", "Stock Symbol", "Investment Amount", "Contribution Frequency"
You can also tap "i" to view the specific rules of a stock RSP, and adjust, pause, or stop the plan at any time.
All investments carry risks, and it is possible to lose some or all of your principal investment.
Investors should carefully consider the investment objectives, risks, charges, and expenses of any securities before investing. This information can be found in the prospectus and summary prospectus, which should be reviewed before making any investment decisions. Past performance does not guarantee future results. If necessary, seek independent legal, tax, financial, and other professional advice before making any investment decisions.
