The Ultimate Cheatsheet: Cheapest Stock Trading/ Brokerage House In Singapore
A stint in Bloomberg gifted me with a beer belly, which only grew larger when I moved on to become a Professional Trader. Now I turn caffeine into digestible finance-related content and am an owner of 100 belts. You can contribute your thoughts like Ming Fenghere.
Assuming you are all ready to kickass in your investing journey, there are a few things you need to consider to get started.
With your CDP account settled, one can go shopping for the best brokerage account. Very much like opening asavings account, there are a few factors one should look out for.
The brokerage fee is charged by the platform provider to conduct transactions between buyers and sellers.
Most brokerage firms charge based on a percentage of the size of transactions and involve a minimum fee, whichever is higher. We will compare them to provide you with the cheapest brokerage account later in this article.
The CDP securities account is where all the stocks you bought are deposited.
One can be using multiple brokerage firms to trade, but all the stocks bought will be stored in one CDP securities account.
Stocks deposited in a CDP account belong to your name. In contrast, stocks in a custodian account belong under the name of the brokerage firm.
Brokerage accounts that hold your shares as a custodian are the cheapest.
Investors should, however, determine if he is willing to bear the risk.
DBS Vickers Cash Upfront account is definitely worth looking at, should you have the sum of money you wish to invest.
Whereas, if you are a more seasoned investor, the functions of the platforms which each firm provides may be something you wish to look at.
We compiled a table of the popular brokerage firms in Singapore and their fees. All the trading fees comparison are based on online or mobile trades carried out in the Singapore market using the below 3 types of trading methods:
For trading fees based on onlinetrades done in the Singapore market.
Base on the above comparison, we can see that the rates are rather close to each other for CDP accounts. Holding your stocks in a custodian account is cheaper as compared to holding them in the CDP, but one will risk losing all his stocks should he trade with a custodian account that ends up going bankrupt.
For investors who usea broker for their trading, the comparison is as per below:
(Broker Assisted)Minimum FeesTrading Fees (based on contract amount)
Real User Reviews On Brokerages (Broker Assisted)
Lastly, for those looking for cash upfront service. Cash up front requires an investor to deposit cash upfront into an account with the brokerage firms before he is able to buy stocks. The reason that it is generally cheaper is due to the risk of a customer not paying for the shares he bought being zero.
For cash up front, DBS and UOB KayHian is the cheapest. The main difference, however, is that for DBS cash upfront investments you own the shares while for other banks, the bank is the custodian for your shares.
Real User Reviews On Brokerages (Cash Upfront)
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