Hey everyone, I am a 21 years old guy from Uruguay. Recently I have been educating myself on investing. I would like to invest long-term through Interactive Brokers (VWRA / S&P 500 style ETFs).
I would like some perspective on whether the fees I’m paying are reasonable considering the country I am from, or if I should be optimizing something.
Here’s the full breakdown from earning → Wise → IBKR → ETF purchase:
Monthly savings: USD 500
Wise funding:
Wise funding fee (1.25%): USD 6.25
Wise fixed transfer fee (Wise → IBKR): USD 1.13
Total Wise-related fees: USD 9.08
Funds arriving at IBKR: USD 490.92
IBKR ETF commission: around USD 1.50–2.00 depending on exchange
So in total, I’m paying roughly:
USD 10.5–11 in fees
On USD 500 invested
Which is about 1.8 percent all-in
My questions to the community are the following :
1. Is around 1.8 percent total cost per contribution considered reasonable for a small monthly investor outside the US?
2. From a long-term, Boglehead-style perspective, does optimizing this further actually matter, or is it just noise?
3. Are there realistic alternatives in Uruguay that materially beat Wise without adding complexity or risk?
4. Would switching to bimonthly contributions to dilute fixed fees make sense, or is monthly still preferable?
My horizon is 30 to 40 years, fully passive, buy and hold, no trading.
I’m mainly trying to strike the right balance between minimizing costs, simplicity, and staying disciplined and invested.
Any insight from people investing internationally, from LATAM, or with small monthly contributions would be greatly appreciated.
Thanks in advance.