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Singapore Online Stock Brokerage Account Fees Comparison (2018 Version)

Here is the comprehensive list of the fees charged for Singapore stock brokerage accounts in 2018.

 

This post was updated on 23 May 2018 to include updated information.

Stock brokerage accounts give us access, via the brokerage houses, to the Singapore stock Exchange (SGX), as well as other major global stock exchanges, to start buying and selling stocks and other listed securities in Singapore.

When comparing stock brokerage accounts, one of the major factors many of us look at is the commission fees they charge.

Types Of Fees When We Invest In Stocks

There are three main types of fees that we have to pay for when we invest in stocks. These are

1) a clearing fee of 0.0325% of your contract value is imposed by the Central Depository (CDP);

2) a trading fee of 0.0075% of your contract value is imposed by the SGX; and

3) a commission fee (and other fees) imposed by individual brokerage accounts when you make a transaction.

The only cost component that may vary is the commission fee charges by our stock brokerage accounts. It is also the largest cost component when we buy and sell stocks.

Read Also: Step-By-Step Guide To Opening A Stock Brokerage Account In Singapore

Stock Brokerage Account Commission Fees Comparison

In Singapore, the online stock brokerage account space is already a highly competitive space. Most brokerage houses charge commission fees that range in a narrow band of 0.12% to 0.28% of your contract value. Of course, commission fees for offline trades are typically higher than online trades.

Here is the list of major stock brokerage accounts in Singapore, and the commission fees that they charge.


Minimum Commission Fees Trading Fees Stocks credited to your CDP account?
Under $50,000 $50,001-$100,000 Above $100,000
CGS-CIMB Securities Cash Account $25 0.275% 0.22% 0.18% Yes
Pre-funded $18 0.18% No (Custodian Account)
Citibank Brokerage $28 0.25% 0.20% 0.18% No (Custodian Account)
DBS Vickers Cash Account $25 0.28% 0.22% 0.18% Yes
Pre-funded^ $10 0.12% 0.12% 0.12%
FSMOne^^ $10 0.12% No (Custodian Account)
KGI Securities Cash Account $25 0.275% 0.22% 0.18% Yes
Pre-funded 0.18% No (Custodian Account)
LIM & TAN Securities Cash Account^^^ $23.75 0.266% 0.209% 0.171% Yes
Pre-funded $18 0.18% No (Custodian Account)
Maybank Kim Eng Cash Account $25 0.275% 0.22% 0.18% Yes
Pre-funded $10 0.12% No (Custodian Account)
OCBC Securities Cash Account $25 0.275% 0.22% 0.18% Yes
Pre-funded $18 0.18% No (Custodian Account)
Phillip Securities (POEMS) Cash Account $25 0.28% 0.22% 0.18% Yes
Pre-funded^^^^ $25 0.12% No (Custodian Account)
RHB Securities $25 0.275% 0.22% 0.18% Yes
SAXO Capital Markets* $15 0.12% No (Custodian)
Standard Chartered**^^^^^ $10 0.20% No (Custodian)
UOB Kay Hian Cash Account $25 0.275% 0.22% 0.20% Yes
Pre-funded^^^^^^ $10 0.12% No (Custodian)

Note: All prices are listed in SGD.

* 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

^ DBS Vickers Cash Upfront Account is offering a promotional rebate of $5 for every trade till 30 June 2018.

^^ FSMOne is offering a flat fee of $10 per trade for its Diamond and Gold members.

^^^ Lim & Tan Securities is offering a promotional rate.

^^^^ Phillip Securities is offering a promotional trading rate of 0.12% (subject to a minimum of $10 charge) for all trades till 30 June 2018. The standard rate is 0.18%.

^^^^^ Standard Chartered is offering its Priority Private Banking Clients with Accredited Investors Status at brokerage trading fee of 0.15% with a minimum commission fee of $0, and its Priority Banking Clients a brokerage trading fee 0.18% with a minimum commission fee of $0.

^^^^^^ UOB Kay Hian is offering a promotional trading rate of 0.12% (subject to a minimum of $10 charge) for all trades till 30 June 2018.

 

Pre-Funded Accounts

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 from the table, majority of the pre-funded accounts levy 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 CDP account.

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. This means that 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 due to the following reasons:

1) You are obliged to be loyal to them, unless you pay a fee to transfer your shares out of the custodian account. You have to sell the investments kept in your custodian account with the same broker.

2) You are more likely to continue future investments with your 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.

3) 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 account, 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

Very often, new investors choose their stock brokerage accounts based on recommendations made by peers, their parents use or choosing the brokerage arm of the bank they currently have an existing 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:

  • 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?
  • Access to overseas markets. Does your stock brokerage account give you access to major overseas markets that you wish to invest in?

Read Also: Singapore Brokerage Houses: Guide To Investing In Overseas Stock Markets

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.

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