In order to start investing, we need a stock brokerage account. This enables us to buy listed securities, such as stocks, REITs, ETFs and bonds, as well as derivatives such as DLCs on the Singapore Exchange (SGX). Through our brokerage account, we can typically also invest in other major global stock exchanges – mainly, the US and Hong Kong stock markets.
As there are many stock brokerages we can use, one of the major factors many of us compare is the commission fees that they charge.
Read Also: Step-By-Step Guide To Opening A Stock Brokerage Account In Singapore
Types Of Fees When Investing In SGX-Listed Stocks
There are typically four main types of fees that we have to pay for when we invest in stocks in Singapore. These are
1) a CDP Clearing Fee of 0.0325% of your contract value is imposed by the Central Depository (CDP);
2) an SGX Trading Fee of 0.0075% of your contract value is imposed by the SGX;
3) an SGX Settlement Fee of $0.35 or equivalent in foreign currency per contract; and
4) a Commission Fee (and other fees) imposed by individual brokerage accounts when you make a transaction.
In addition, we also have to pay GST of 8% on these four charges.
The only cost component that may vary is the commission fees charged by the brokerage firm we use. It is also the largest cost component when we buy and sell stocks. If we buy stocks listed on overseas exchanges, we will incur different fees associated with our trades.
Stock Brokerage Account Commission Fees Comparison
In Singapore, there are nearly 20 online stock brokerage accounts that we can use. With all of them vying for our business, brokerage commission fees that they charge can be highly competitive. Most stock brokerages charge commission fees within a relatively narrow range of 0.08% to 0.28% of our contract value. Commission fees for offline trades (if we make trades by calling our brokers) are usually higher than online trades. For many online brokerages, there may not even be an offline option.
Here is the list of major stock brokerage accounts in Singapore, and the commission fees that they charge.
| Brokerages | Minimum Commission Fees | Trading Fees |
| CGS-CIMB Securities | Cash Account: $25 | Up to $50,000: 0.275% $50,001-$100,000: 0.22% Above $100,000: 0.18% |
| Pre-funded: $18* | 0.18% | |
| Citibank Brokerage * | Pre-funded: $28 | Up to $50,000: 0.25% $50,001-$100,000: 0.20% Above $100,000: 0.18% |
| DBS Vickers | Cash Account: $27 | Up to $50,000: 0.28% $50,001-$100,000: 0.22% Above $100,000: 0.18% |
| Pre-funded: $10 | 0.12% | |
| FSMOne | $8.80 (flat fee) | |
| HSBC * | Pre-funded: $10 | 0.15% |
| KGI Securities | Cash Account: $25 Pre-funded: $25 |
Up to $50,000: 0.275% $50,001-$100,000: 0.22% Above $100,000: 0.18% |
| 0.18% | ||
| LIM & TAN Securities | Cash Account: $25 | Up to $50,000: 0.28% $50,001-$100,000: 0.22% Above $100,000: 0.18% |
| Pre-funded: $18 | 0.18% | |
| Maybank Kim Eng | Cash Account: $25 | Up to $50,000: 0.275% $50,001-$100,000: 0.22% Above $100,000: 0.18% |
| Pre-funded: $10 | 0.12% | |
| OCBC Securities | Cash Account: $25 | Up to $50,000: 0.275% $50,001-$100,000: 0.22% Above $100,000: 0.18% |
| Pre-funded: $18* | 0.18% | |
| Phillip Securities (POEMS) | Cash Account: $25 | Up to $50,000: 0.28% $50,001-$100,000: 0.22% Above $100,000: 0.18% |
| Pre-funded: No minimum | 0.08% | |
| SAXO Capital Markets * | Pre-funded: $5 | 0.08% |
| Standard Chartered | Pre-funded: $10 | 0.20% |
| UOB Kay Hian * | Cash Account: $25 | Up to $50,000: 0.275% $50,001-$100,000: 0.22% Above $100,000: 0.20% |
| Pre-funded: $10 | 0.12% | |
| Interactive Brokers (IBKR)
|
Pre-funded: $2.50 | 0.08% |
| Tiger Brokers | Pre-funded: $1.99 | 0.06% |
| moomoo | Pre-funded: $1.98 | 0.06% |
| ProsperUs (by CGS-CIMB) * | Pre-funded: No minimum | 0.10% |
| Syfe Trade * | Pre-funded: $1.98 | 0.06% |
| uSMART | Pre-funded: $2.88 | 0.06% |
| Webull | Pre-funded: No minimum | No Commission |
Note: All prices are listed in SGD. Where applicable, fees are for trading SGX-listed stocks.
All cash accounts store your stocks within CDP. All pre-funded accounts store your stocks within a custodian account, except for DBS Vickers, which continues to store your stocks in CDP.
* Some things to note about the individual accounts:
– CGS-CIMB charges a $20 administrative fee per quarter for its custodian account.
– Citi charges a custodian fee of 0.0165% of your monthly average stockholding balance, payable every six months.
– HSBC does not charge a custody fee.
– OCBC Securities charges a CPD Sub-account Maintenance Fee of $2 per counter per month.
– There is a custodian fee of $15 per quarter if there are no trades within the quarter.
– Saxo has five tiers of plans – Bronze, Silver, Gold, Platinum, and Diamond – each charging incrementally lower brokerage commission.
– UOB Kay Hian charges a CDP Quarterly Sub-account Maintenance Fee of $15.
– ProsperUs (by CGS-CIMB) charges a commission rate based on our assets held with them. For a Rookie account (with assets of under $20,000), the brokerage commission is 0.10%; for All-Star account (with assets of between $20,000 to $50,000), the brokerage commission is 0.08%; for Hall of Fame account (with assets above $51,000), the brokerage commission is 0.06%.
– Syfe Trade offers 2 free trades each month.
Read Also: Interactive Brokers (IBKR) Opens Singapore Office: Here’s What It Means For Investors In Singapore
Pre-Funded Accounts
Many online brokerages have entered the Singapore market, offering primarily pre-funded-only stock brokerage services. Pre-funded accounts, also commonly termed cash collateralised accounts or cash upfront trading (CUT) accounts, require you to pre-pay for your investments in order to enjoy a lower commission fee.
As you can see in the table above, majority of the pre-funded accounts charge a lower brokerage trading fee as well as a lower minimum trading fee. You also have to note that majority of the pre-funded accounts will credit your stock holdings with their custodians rather than your own CDP account. This means potentially having to fork out a custodian fee as well as locking your trades with the stock brokerage firm.
CDP-Linked Accounts VS Custodian Accounts
Another consideration when investing in stocks is where they will ultimately be held – in your CDP account or a custodian account.
In Singapore, when you open your first brokerage account, you’re usually asked to open a CDP account as well. Many of you may overlook this account as you’re only dealing with your brokerage firms.
What actually happens when you buy and sell shares is that they are either kept in your CDP account or custodian account. The SGX manages investors’ CDP accounts, while individual stock brokerages manage their custodian accounts. When investing via pre-funded accounts, for its lower brokerage fee, your stocks will typically be kept in a custodian account. When investing in overseas-listed stocks, your holdings will also be kept in a custodian account.
You can only have one CDP account, but many custodian accounts with the individual brokerage houses.
Read Also: Custodian Account – What You Are Giving Up In Exchange For Lower Commission Charges
Stock brokerage accounts that credit your investments into your CDP accounts generally charge higher commission fees. Custodian accounts are able to offer a more cost-effective solution because of the following reasons:
– You can sell the investments in your custodian account with the same broker. This means you are obliged to be loyal to them, unless you pay a fee to transfer your shares out of the custodian account.
– You are more likely to continue future investments with the existing stock brokerage firm, especially if majority of your investments are in a custodian account managed by them. This way, you can also monitor your investments more conveniently, in one account. You may also be kept within the ecosystem, investing in other products.
– As your shares are held with the stock brokerage firm, they will have to handle transactions on your behalf. They may potentially earn additional fees from these transactions, if they happen, in the future.
This is why it’s important to understand the difference between the two accounts, and ensure to check if your stock investments with the brokerage account would be held in a custodian account or your own CDP account.
Choosing A Stock Brokerage House To Make Your Investments
Very often, new investors choose their stock brokerage accounts based on recommendations made by peers or their parents, or end up choosing the brokerage arm of the bank they already have an existing financial relationship with.
The “best” brokerage account doesn’t just offer the cheapest commission fees. Beyond just the commission fees that the stock brokerage firm charge, you should look at factors that provide added convenience and value to your investing journey.
These could include:
Access to overseas markets: Does your stock brokerage account give you access to major overseas markets that you wish to invest in?
Web/mobile layout: How user-friendly is the web or mobile app?
Charts provided: Are the charting tools comprehensive/ useful?
Technical Indicators: Does it have all the tools you require?
Broker assigned: Do you prefer having a dedicated broker that gives you timely market updates?
Speed of live information: Delays with information provided make a big difference especially when it comes to trading.
Investor education: Does your brokerage house provide educational materials, or seminars for its clients?
Access to analyst reports: Does the brokerage firm have a strong research team that will provide you high quality research reports on listed companies?
Read Also: 8 Factors To Consider When Choosing A Stock Brokerage Account In Singapore
Finally, there are no limitations to setting up stock brokerage accounts with different brokerage houses. You should test-drive several stock brokerage accounts before settling on one that you intend to use as your primary account.
This post was first published on 14 July 2017 and updated to include the latest information for 2021 stock brokerage fees in Singapore.
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