To start investing in Singapore, we typically need two types of accounts – a Central Depository (CDP) account and a stock brokerage account. The CDP account is to hold our investments, be it stocks, REITs, ETFs, bonds or other types of listed securities on the Singapore Exchange (SGX).
Before we start holding the investments in our CDP account, we need to buy them. This is what our stock brokerage account does for us. Majority of the stock brokerages in Singapore also offer custodian accounts, and while this means the stocks we buy are held with the brokerage firm, they also maintain a sub-account with CDP on our behalf.
Read Also: What’s The Difference Between Stocks Held In A CDP Account Versus A Custodian Account?
Stock Brokerages In Singapore
When researching stock brokerage accounts to apply for, one of the first things we would notice that many of them are linked to banks in Singapore. These include:
- DBS Vickers
- UOB Kay Hian
- OCBC Securities
There will also be brokerage accounts linked to Malaysian banks, including:
- Maybank Kim Eng
- CGS-CIMB Securities
- RHB Securities
Then there are those linked to international banks, including:
- Citibank Brokerage
- Standard Chartered Online Trading
- Saxo Capital Markets
- KGI Securities (CTBC Bank)
Finally, we would also notice that there are several brokerage accounts that aren’t linked to any banks, including:
- Lim & Tan Securities
- Phillip Securities
- FSMOne
Read Also: Singapore Online Stock Brokerage Account Fees Comparison (2019 Edition)
Consolidation In The Stock Brokerage Industry In Singapore
The first thing we will notice is that several of the bank-linked brokerages in existence were non-bank stock brokerages in the past. For example, UOB Kay Hian was the result of a merger between Kay Hian Holdings and UOB Securities in 2000.
Similarly, Maybank Kim Eng was formed when Malaysian bank, Maybank, acquired stock brokerage firm, Kim Eng Securities, in 2011. RHB Securities also acquired DMG & Partners Securities to create a larger entity in 2015.
This consolidation in the brokerage industry is still ongoing with China Galaxy Securities buying a 50% stake in CIMB Securities to create CGS-CIMB Securities in 2017. Even KGI Securities was recently renamed from AmFraser Securities after being acquired by KGI Group in 2015.
Non-Bank Stock Brokerages In Singapore
Referring to the list above, there remain three non-bank stock brokerages in Singapore. The obvious question many of us would ask is whether we should use a brokerage account that is associated to banks, or whether we should use non-bank brokerages.
The short response is that non-bank stock brokerages should not be viewed as inferior simply because they are not associated to a multi-billion-dollar banking institution. The reason is that these banks themselves have shown that they acquired similar stock brokerages to beef their services in the past.
We take a look at the individual non-bank stock brokerages to find out more about their services.
Founded in:
Lim & Tan Securities was founded in 1973, and was among the pioneering brokerage houses to introduce online stock broking platforms as early as 1998.
Products:
Outside of its stock brokerage service, it also offers account for Contracts For Difference (CFD), Share Margin Financing and Cash Collateralised Trading (also known as cash upfront account).
Fees:
Cash Account (CDP):
| Contract Size | Rate |
| Up to $50,000 | 0.28% (or a minimum of $25) |
| More than $50,000 – $100,000 | 0.22% |
| More than $100,000 | 0.18% |
Cash Collateralised Trading (Cash Upfront and/or Custodian)
| Contract Size | Rate |
| Any | 0.18% (or a minimum of $18) |
Lim & Tan also runs it limtan Rewards Programme and its Plus! Programme to earn LinkPoints on a permanent basis. These programmes will reduce the brokerage fees for investors even further.
Markets:
Lim & Tan offers investors access to global markets including:
- Singapore
- US
- Hong Kong
- China (via the SH-HK Stock Connect)
- Malaysia
- Others (including Australia, Indonesia, Japan, Korea, Philippines, Shanghai B, Shenzhen B, Taiwan and Thailand)
Contact Details:
Lim & Tan Securities Pte Ltd
16 Collyer Quay
#15-00
Income At Raffles
Singapore 049318
Tel: 67998188
Email: [email protected]
Read Also: Step-By-Step Guide To Opening A Stock Brokerage Account In Singapore
Founded in:
Phillip Securities provides its stock brokerage services primarily via its online, and more well-known, POEMS platform. The brokerage firm began operations in 1975 (on Phillip Street!) and has strong presence in key financial markets in India, Dubai, Turkey, Cambodia, Thailand, Japan, Australia, Sri Lanka, Malaysia and Hong Kong.
It was also the first company to offer CFD trading in the Singapore market in 2003.
Products:
Phillips also offers account for Contracts For Difference (CFD), Securities Financing and Prepaid account (also known as cash upfront account), Regular Savings Plan (RSP), Forex/Futures, Phillip Wealth (which incorporates unit trusts, corporate bonds, insurance and estate planning) and Phillip SMART portfolio (an actively managed low-fee portfolio, based on your online risk assessment).
Fees:
Cash Account (CDP):
| Contract Size | Rate |
| Up to $50,000 | 0.28% (or a minimum of $25) |
| More than $50,000 – $100,000 | 0.22% |
| More than $100,000 | 0.18% |
Phillip Investment Account – Prepaid (Cash Upfront and/or Custodian)
| Contract Size | Rate |
| Any | 0.12% (or a minimum of $10) |
Markets:
Phillip Securities offers investors access to global markets including:
- Singapore
- China (via SH-HK Stock Connect and SZ-HK Stock Connect)
- Australia
- Germany
- Hong Kong
- Indonesia
- Japan
- Malaysia
- Thailand
- Turkey
- US
- UK
- Others (Vietnam, Belgium, Canada, Shanghai B, Shenzhen B, France, Netherlands, Portugal, Philippines, South Korea and Taiwan)
Contact Details:
Phillip Securities Pte Ltd
250 North Bridge Road
#06-00 Raffles City Tower
Singapore 179101
Tel: 65311280
Email: [email protected]
Read Also: Step-By-Step Guide To Opening A CDP Account In Singapore
# 3 FSMOne
Founded in:
The company was founded in 2000. The online brokerage firm allows investors to plug in their entire financial portfolio in a single platform, offering investments in bonds, funds, managed portfolios and insurance, on top of its stock brokerage platform.
Products:
FSMOne also offers clients access to corporate bonds, unit trusts, managed portfolios (FSM MAPS) and insurance.
Fees:
Personal (Cash Upfront and/or Custodian)
| Contract Size | Rate |
| Any | 0.08% (or a minimum of $10) |
Markets:
FSMOne offers investors access to global markets including:
- Singapore
- Hong Kong
- US
Contact Details:
10 Collyer Quay, #26-01,
Ocean Financial Centre
Singapore 049315
Tel: 65572853
Email: [email protected]
Read Also: Singapore Brokerage Houses: Guide To Investing In Overseas Stock Markets
Choosing The Right Stock Brokerage Account
There really isn’t a big difference between the non-bank and bank linked stock brokerages. In fact, in some areas, non-bank brokerages may be more innovative. We should choose the stock brokerage account that we feel are able to meet our needs best.
For example, Lim & Tan Securities offers an innovative in-house rewards programme, coupled with both CDP-linked and custodian accounts, as well as a well-received trading platform for its clients.
Phillip Securities is one of the three remaining brokerages that offer a regular savings plan for investors, via its Share Builders Plan, with the other two being the DBS Invest Saver and OCBC Blue Chip Investment Plan (BCIP). It also offers innovative solutions across the financial services spectrum.
Also Read: Step-By-Step Guide To Investing Using Regular Shares Savings (RSS) Plan
FSMOne, while not a bank, can boast to offer many of the other services also offered by banks. In fact, in its version of the cash account, it offers 0.4% per annum returns on Singapore dollars held in the account, as well as an interest rate for multi-currencies account. This allows investors to earn an interest return while parking their funds with the stock brokerage firm, which may not be the case with other cash upfront account. In addition, it charges one of the lowest stock brokerage fees for clients.
This is not to say stock brokerages that are linked to banks are behind non-banks brokerages. At times, it may be more convenient to link our savings accounts and tap on our existing relationships that we already have with the bank. At the end of the day, we need to choose the stock brokerage account that is right for us.
Read Also: 8 Factors To Consider When Choosing A Stock Brokerage Account In Singapore
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