Why Are There So Many Brokerage Firms In Singapore, And How To Decide Which One Is Right For You?

If you have ever tried opening a brokerage account in Singapore, you would probably have noticed just how many options there are.

There are easily more than 20 brokers to choose from, ranging from local bank-backed brokerages and standalone online platforms to international names that have entered the Singapore market. Each one promises lower commissions, broader market access and a better user experience.

So why are there so many brokerage firms in Singapore? More importantly, how do you decide which one actually suits your investing needs?

Why Does Singapore Have So Many Brokers?

Singapore has a well-developed regulatory framework under MAS and a relatively affluent investor base. This creates strong demand for access to both local and overseas markets, making Singapore an attractive market for domestic and international brokers.

The more established “legacy” brokers include the brokerage arms of local banks, such as DBS Vickers, OCBC Securities and UOB Kay Hian. These firms built their businesses on existing banking relationships. For many investors from an earlier generation, opening a brokerage account through their bank was simply the default way to start investing.

Then came the rise of digital-first platforms. The likes of iFAST (via Fundsupermart, now known as FSMOne) were pioneers in showing how investments could be accessed, compared and transacted online.

Next, low-cost online brokers such as Interactive Brokers (IBKR), Tiger Brokers, moomoo and Webull entered the Singapore market with lower commissions, fractional share investing and sleek mobile apps aimed at younger investors.

Interactive Brokers, while not new globally, also became far more accessible to retail investors in Singapore and built a strong following among those looking for lower-cost access to overseas markets.

The result is a highly competitive market where brokers constantly compete on pricing, features and the range of assets they offer.

You can see this in the generous sign-up promotions and account-opening incentives many platforms offer. While this competition is generally good for investors, it can also make choosing a broker more confusing.

CDP Vs Custodian Accounts: Why This Matters

Before comparing commissions and app features, there is one important structural difference many investors overlook: how your shares are held.

When you buy Singapore-listed stocks through traditional brokers such as DBS Vickers or Lim & Tan, your shares are typically held in your own Central Depository (CDP) account.

The CDP, operated by SGX, acts as the direct custodian of your holdings. This means the shares are registered in your name. The trade-off is that these brokers tend to charge higher fees and may not offer features such as fractional share investing.

Most newer online platforms use a custodian or omnibus account model instead. Under this arrangement, your shares are held in the broker’s nominee account alongside other clients’ holdings. This is not inherently risky, and many reputable brokers globally operate this way.

Client assets are generally segregated from the broker’s own funds under MAS regulations. However, if the broker becomes insolvent, recovering your assets may take longer and involve greater administrative complexity than with a CDP-held account. That’s because you cannot use another broker to access and sell your shares when they’re held in a custodian account, as opposed to being in your own CDP account.

That does not mean custodian brokers are unsafe. It simply means investors should understand how their assets are held before choosing a platform.

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

What To Consider When Choosing A Broker

Once you understand the difference between CDP and custodian accounts, the next step is choosing a broker that matches your investing habits.

Market Access: If you mainly invest in Singapore-listed stocks and REITs, both CDP-linked and custodian brokers can work well. However, if you want access to US, Hong Kong or European markets, platforms such as Interactive Brokers, Tiger Brokers and moomoo generally offer broader access at competitive rates. Some brokers offer strong access across multiple markets, while others are more specialised. It helps to know where you plan to invest before opening an account.

Trade Size and Frequency: Commission structures vary significantly. Some brokers charge flat fees per trade, while others charge a percentage of your transaction value with a minimum commission. If you are investing smaller amounts regularly, such as a few hundred dollars each month, minimum commissions can have a meaningful impact on your returns.

Ease Of Use Vs Advanced Features: Many newer platforms offer intuitive mobile apps and beginner-friendly interfaces. These are often well-suited for investors who are just getting started or who prefer a simpler investing experience. Interactive Brokers, on the other hand, offers more advanced tools and broader product access, including options, bonds and sophisticated order types. That depth can be valuable for experienced investors, but it can also feel overwhelming if you are just starting out. Choose a platform based on what you will actually use.

Fractional Shares: A growing number of brokers now offer fractional shares. This allows you to invest a fixed dollar amount into a stock or ETF, even if you cannot afford a full share. It’s especially useful for higher-priced US stocks and certain overseas-listed ETFs.

How Are Foreign Currency Transactions Handled?

When you buy overseas-listed stocks or ETFs, you will usually need to convert Singapore Dollars into the relevant foreign currency. Some brokers automatically convert your funds at the point of purchase. Others allow you to manually exchange currencies first.

Either way, currency conversion often comes with an FX spread, which is the difference between the market exchange rate and the rate your broker offers. This is one of the ways brokers earn revenue.

If you invest regularly in overseas markets, these FX costs can quietly add up over time. It is worth understanding exactly what your broker charges.

Which Brokerage Platform Makes The Most Sense For You?

Most investors in Singapore fall into a few broad categories.

If you are a beginner looking to start small, invest monthly, and keep things simple, a low-cost platform with fractional-share support and an easy-to-use app may be the most practical option.

Platforms such as moomoo, Webull and Tiger Brokers are popular for this reason, and their account-opening promotions can make getting started more affordable.

If you are a more experienced investor holding both Singapore and overseas assets, you may prefer a split approach.

Some investors use a CDP-linked broker such as FSMOne for SGX holdings while maintaining a separate account with Interactive Brokers for overseas investments. Managing two accounts adds some administrative work, but it can offer greater flexibility.

If your focus is long-term, low-cost ETF investing, Interactive Brokers is often a strong choice because of its low trading costs and access to a wide range of global markets.

For investors buying Irish-domiciled UCITS ETFs to manage potential US estate tax exposure, access to London Stock Exchange-listed funds can also be an important consideration.

Read Also: Singapore Online Stock Brokerage Account Fees Comparison

Photo Credit: DollarsAndSense/Raymond Quek