Stock investing has become increasingly popular among newer and young investors in the past year or so, especially because of the widespread focus on WallStreetBets investing saga and the stock markets’ record levels despite going through one of the worst economic and health crisis.
More experienced investors are also taking advantage of the higher volatility and seeking potential winners in a digital world.
When we invest, we choose a stock brokerage that offers us competitive commission charges as well as provide a platform and customer service that we are comfortable with. Apart from investing in stocks and other financial instruments through our favourite stock brokerages, we can also invest in our favourite stock brokerage.
Recent entrants into Singapore’s stock investing scene include Interactive Brokers (NASDAQ: IBKR), the Moomoo platform by Futu Holdings (NASDAQ: FUTU) and Tiger Brokers platform by Up Fintech (NASDAQ: TIGR). Even prior to these recent online stock brokerages entering the Singapore market, we’ve also been able to invest in stock brokerages such as UOB Kay Hian (SGX: A10) and iFAST (AIY), which offers its FSMOne platform.
Of course, other major banks in Singapore also offer brokerage services, and we can gain exposure to its stock brokerages through investing in the parent company. However, in this week’s edition of our weekly stock column, we look at 5 standalone stock brokerages and investment platforms in Singapore that we can invest in.
Interactive Brokers (NASDAQ: IBKR)
While many associate online brokerages as new entrants to the scene, Interactive Brokers is a pioneer in online trading and investing with over 40 years of track record. With a market capitalisation of over US$31 billion, Interactive Brokers (NASDAQ: IBKR) is also one of the largest investment platforms around.
In July 2020, Interactive Brokers expanded into Singapore, enabling investors here to invest in stocks listed in Singapore, US, and other regions. Investors can also use the platform’s integrated services to invest in bonds, futures, options, currencies and other investment instruments.
Interactive Brokers announced in its most recent FY2020 earnings release that its customer accounts base grew 56% to close to 1.1 million. On the back of this, revenue grew close to 14.5% to US$2.2 billion, while net income grew 8.3% to US$1.2 billion.
Currently, IBKR is trading at US$72.67. This is 19.3% higher in just 2021 alone, and in the past 1-year period before even COVID-19, its share price has risen 31.5%.
Futu Holdings (NASDAQ: FUTU)
Futu (NASDAQ: FUTU) is a wealth management platform in China which offers the moomoo platform. It is one of the latest investment platforms to enter Singapore, just in time to coincide perfectly with the Chinese zodiac – ushering in the year of the Ox in 2021.
Futu is listed on the NASDAQ and has a market capitalisation of nearly US$20 billion. In its most recent third quarter earnings release, it reported a 136.5% growth in paying clients to 418,000. It also delivered a revenue growth of 183% to HK$2.1 billion (US$274 million) in the first 9 months of 2020.
Futu’s share price has also performed well, rising 234.6% since the start of 2021 to US$147.57. In the last 1-year period, its share price has risen 1,067%.
Up Fintech Holding (NASDAQ: TIGR)
Up Fintech (NASDAQ: TIGR), a US$4.2 billion online brokerage firm, is behind the Tiger Brokers platform. Tiger Broker is also relatively new in the Singapore market, offering access to its platform in March 2020.
Riding on the growing interest in investment-related products, Tiger Brokers reported a 60.8% growth in customer accounts to 976,000 in September 2020. This translated into a revenue growth of 136.0% to US$91.3 million. Net income turned positive to US$10.1 million, from making a loss of $5.7 million at the same point in 2019.
Up Fintech’s share price has enjoyed a similarly buoyant year, as it rose to US$29.97 – which is 277.5% higher in 2021 alone. In the past 1-year period, its share price has soared 710.0%.
iFAST Corporation (SGX: AIY)
iFAST (SGX: AIY) is listed in Singapore and offers its digital investment platform via FSMOne. The group is one of the pioneering online investment platforms in Singapore with more than 20 years of experience in the space.
In its latest FY2020 financial announcement, iFAST reported a revenue growth of 35.5% to $169.9 million. Its profit rose 122.3% to $21.2 million. It also announced that it expects to see better performance in 2021 “barring unforeseen circumstances”.
Its good performance has also driven its stock price performance. In 2021 alone, its share price has risen 106.7% to $6.20. In the past 1-year period, iFAST’s shares have shot up 507.8%.
UOB Kay Hian (SGX: A10)
As its name suggests, UOBKH (SGX: A10) is the trading arm of UOB (SGX: A11). Needless to say, UOBKH is an entrenched brokerage firm in Singapore. While it may be seen as less digital, it may only be because it has physical presence and a track record that required such physical presence. Nevertheless, UOBKH’s platform is fully digital as well.
In the 1st half of 2020, UOBKH reported a 58.5% growth in revenue to $277.0 million. Its net profit rose 163.2% to $28.9 million. UOBKH said that retail-led trading volumes in its markets (apart from Indonesia) was the main driver of higher revenues.
Similarly, shares of UOBKH rose 7.7% in 2021, and spiked 26.4% in the past 1-year period.
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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.