This article was written in collaboration with Futu Holdings. All views expressed in this article are the independent opinion of DollarsAndSense.sg based on our research. DollarsAndSense.sg is not liable for any financial losses that may arise from any transactions and readers are encouraged to do their own due diligence. You can view our full editorial policy here.
We look back at 2014 to 2015 as the years when private-hire cars expanded rapidly, becoming mainstay apps on our phones and a mainstream choice for our transportation needs. Today, overseas digital brokerages are penetrating the Singapore market in a similar fashion – driving brokerage costs lower and offering a viable platform for Singapore investors.
Following the launch of several brokerage platforms last year, investors can now look forward to a new player in the Singapore market – Futu Singapore, a capital markets services licence holder regulated by the Monetary Authority of Singapore that is a wholly-owned subsidiary of Futu Holdings Ltd (“Futu”).
A little about Futu first. While many of us in Singapore may never have heard about Futu because we have never interacted with them before, Futu is not new to the rest of the world. Founded in 2012, Futu is backed by multinational technology conglomerate Tencent, and has been listed on the NASDAQ since March 2019. Futu currently has a market capitalisation of about US$24 billion (about S$31 billion), as of 11 February 2021
In October 2020, Futu Singapore received its Capital Markets Services (CMS) License from the Monetary Authority of Singapore (MAS) to operate in Singapore and intends to use Singapore as a foothold to expand into Southeast Asia.
For investors in Singapore, it’s natural that many of us would be interested to know how we can benefit from Futu being launched in Singapore. Here’s what we can expect.
Futu Offers A Full Digital Investment Experience
Unlike traditional brokers in the past, Futu is a fully digitalised brokerage and wealth management platform. This means the investment solutions it provides are offered online. Investors can access these investment services via Futu’s moomoo app.
The moomoo app can be downloaded via mobile app on our smartphone.
Besides downloading the app on your smartphone, you can also install it on your laptop/desktop.
Beyond just allowing us to make trades in the financial markets, the moomoo app also allows us to follow relevant news in the financial markets. For example, based on the stocks that I added to my watchlist, the app feeds me the news that is relevant to these stocks. Think of this functioning like our Facebook feed, but curated specifically based on the stocks that we have indicated an interest in rather than friends or pages.
Similar to how we can follow our favorite companies and celebrities on Instagram and Twitter, moomoo also allows us to follow our favorite financial brands and financial influencers via its follow and streams feature. There is also a Calendar feature to keep us updated on economic data, earning announcements or any IPOs that are happening.
So, even if you are constantly on the move, the moomoo app by Futu is a great companion to have on your phone to keep yourself updated with the market, even if you are not looking to invest or trade as often.
Invest In U.S., Hong Kong & Singapore Markets At Exceptionally Low Fees
When you open an account with Futu Singapore, you gain access to the three major markets that most investors in Singapore would look at – the U.S., Hong Kong, and of course, the Singapore stock markets.
By leveraging on technology, Futu Singapore can operate a complete digital investment solution at a more cost-efficient amount compared to what traditional brokers would normally incur. In turn, the transaction costs it charges its customers can be much lower compared to the commission rates that we get from traditional brokers in Singapore.
We can buy Singapore stocks, ETFs and REITs with a commission fee of just 0.03%, or a minimum of $0.99. There is an added platform fee of 0.03% of the transaction, subject to a minimum of $1.50. So, in total, an investment in Singapore stocks, ETFs or REITs can cost you as little as 0.06% or $2.49, whichever is higher. For example, a $10,000 investment will cost just $6 in transaction fees (excluding nominal fees charged by SGX and GST).
Note: Singapore stocks trading will only be available on moomoo after Futu Singapore official launch in March 2021.
In comparison, many traditional brokers in Singapore have a minimum charge of around $25 per transaction when it comes to buying stocks, ETFs or REITs. And even if we are using a pre-funded account, the fees are typically still about $10.
For the U.S. markets, commission fees are even more competitive at just $0.0049 per share, with a minimum of $0.99 per order. There is also a platform fee of $0.005/share.
For Hong Kong stocks and ETFs, commissions are at 0.03% of the investment amount, or HK$3, whichever is higher. The platform fee is at HK$15 per order.
Access (Free) Level 2 Data Via moomoo
Level 2 market data provide investors with greater insights into the current bid-ask price of a security. Besides just seeing the current price, level 2 data allows us to see the depth of the order book (e.g. the demand and supply of either side of the trade), who the market participants are, and the size of their orders.
Typically a paid service, level 2 market data for US stocks will be available for free on moomoo
Tools & Graphs For Easy Charting & Analysis
Whether it’s a short-term trade or a long-term investment, it’s important for us to analyse the stocks we have shortlisted before investing. For those of us who enjoy chart analysis, moomoo offers charts in candlestick, line, bars and other indicators for our technical analysis.
And for those who prefer fundamental analysis, we were glad to see that moomoo provides us with graphical financial reports that give us a direct view of the company’s financial situation, instead of having to find and digest the individual company’s information published on the Form 10-K (i.e. the annual report for U.S. listed companies).
Sign Up For An Account With Futu Before 8 March 2021 To Enjoy A Welcome Bundle Worth S$180
If you are keen to trade with moomoo, you can open an account with Futu Singapore today. In fact, signing up with Futu as early as possible is probably the best thing you can do because Futu Singapore is offering a welcome bundle worth S$180 to new Singapore customers.
This includes 1) free level 2 market data for the US market, 2) one-year free commission trading in the U.S. and HK markets and 3) 1 free Apple Share (AAPL). To enjoy this, simply open an account with Futu and deposit US$2,000 (or approximately S$2,700) in your account before 8 March 2021.
Whether you are an existing investor looking to reduce your transaction costs when trading or investing in stocks, or a new investor who has never invested before, we think Futu is an excellent investment account to have. With the moomoo app downloaded on your phone (or installed on your laptop/desktop), it will not only be easy to follow the financial markets and the stocks on your watchlist, but even easier (and cheaper) to invest.