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Singapore Stock Brokerage House Comparison 2017

Do you stick to one stock brokerage house or do you have multiple accounts to use based on the promotions offered?

 

Extension Of Promotions

Recently DBS Vickers has announced that they will be extending their lower rates on US and SG online trades. From 1 July 2017 to 31 December 2017, DBS Vickers clients enjoy a promotional commission rate of 0.18% for US and Hong Kong trades online. The minimum fees for cash upfront trade stands at SGD$10 or 0.12%. In addition, Vickers clients are entitled to a SGD$5 cash rebate on each trade made online.

Similarly, POEMS have extended their promotion of 0.12% or $10 minimum commission for online trades in Singapore stocks till 31 December 2017. This is strictly applicable for trades that are pre-paid.

Read Also: How Singaporeans Can Start Investing In The US, Hong Kong Or Other Major Overseas Stock Markets

Stock Brokerage House Comparison

Besides the clearing fee (CDP imposed) of 0.0325% and SGX trading fee of 0.0075%, there are also minimum commission fees and trading fees that will be charged. Here is the comparison of the fees charged by each brokerage house, including the newly launched FSMOne platform (devised by online unit-trust distributor Fundsupermart).


Minimum Commission Fees Trading Fees Stocks credited to your CDP account?
<$50,000 $50,000-$100,000 >$100,000
CIMB Securities $25 0.275% 0.22% 0.18% Yes
Citibank $28 0.25% 0.20% 0.18% Yes
DBS Vickers $25 0.28% 0.22% 0.18% Yes
FSMOne* $10 0.12% 0.12% 0.12%  No (Custodian)
KGI Securities (Previously AmFraser Securities) $25 0.275% 0.22% 0.18% Yes
LIM & TAN Securities $25 0.28% 0.22% 0.18% Yes
Maybank Kim Eng $25 0.275% 0.22% 0.18% Yes
OCBC Securities $25 0.275% 0.22% 0.18% Yes
Phillip Securities (POEMS) $25 0.28% 0.22% 0.18% Yes
RHB Securities $25 0.275% 0.22% 0.18% Yes
SAXO Capital Markets** $15 0.12% 0.12% 0.12% No (Custodian)
Standard Chartered*** $10 0.20% 0.20% 0.20% No (Custodian)
UOB Kay Hian $25 0.275% 0.22% 0.20% Yes


Note: All prices are listed in SGD.

*As of 9 June 2017, iFast Singapore was officially admitted as Trading Member of SGX-ST and Clearing Member of CDP.

**As of 1 April 2017, all Singapore Citizens, PRs and Singapore Incorporated Entities who trade SGX stocks will be subject to pay a USD5 monthly custody fee. (Source: Saxo Capital Markets website).

***From 1 August 2016 – Standard Chartered Introduces Minimum Commission Fees For Online Brokerage Trades

FSMOne is the latest stockbroking service to be introduced. FSMOne requires investors to have cash in their FSMOne cash account before they can trade. By eliminating contra trading, the risk faced by the company is reduced and they are able to offer lower commission fees.

Read Also: Fundsupermart Is Making Big Waves (Again) With FSMOne

Local brokers will credit the stocks you purchase through them to your linked CDP account. However, some brokerage firms such as FSMOne, Standard Chartered and SAXO Capital Markets act as a custodian and your stocks will not be credited to your CDP account. Before setting up an account, be sure to check if your stock purchased with the brokerage would be held in a custodian account or your own CDP account.

Read Also: Custodian Account – What You Are Giving Up In Exchange For Lower Commission Charges

Choosing A Stock Brokerage House

For many new investors to the stock market, creating a stock brokerage account is the very first step. Which account should you choose? Very often, new investors choose based on recommendations made by peers, following the brokerage house their parents use or choosing the brokerage arm of the bank they currently have an account with.

Besides having a look at the fees charged by each brokerage house in the table above, here are a few other things to consider:

  • Broker assigned. Do you want a broker that gives you timely market updates?
  • Charts provided. Are the charts user-friendly?
  • Technical Indicators provided. Does it have all the tools you require?
  • Web/mobile layout. How intuitive is the website or mobile app?
  • Speed of live information. Delays with information provided make a big difference especially when it comes to trading.
  • Investor education provided. Does your brokerage house provide educational materials, analyst research papers or seminars for its clients?

Consider some of these things a brokerage house can do to value-add to your investing journey before starting a new account.

What other factors do you consider before setting up a new brokerage account?

Read Also: Step-By-Step Guide On Getting Started On Investing In Singapore

 

 

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