Comparison of Stock Brokerages in Singapore

Many of us invest in equity markets directly and selecting the right broker is quite important to avoid hassles later on. The primary things to lookout for are the trading charges, the number of markets offered (depending upon your personal preference) and the mode of transactions (phone, Internet or Phone app based).

Among Singapore brokerages, the trading costs are largely similar with the notable exception of Standard Chartered Bank which does not impose a minimum trading fee.

Having no minimum fee means the size of the trade transaction does not impact the returns on the investment substantially. This is important and the reason is because if you were to do a single trade for an amount less than $50000, most brokerages charge about 0.25%.

Lets see how this would impact the investment return:

For an investment of $10000 you would pay 0.25% i.e. $25 which is the same as the minimum fee for most brokerages. For amounts between SGD10K-10K you will pay 0.25% of the trade size and this will be larger than the minimum fee. As such the only impact on the return is the 0.25% fee (plus another 0.25% on sale).

However, for many people who are starting to build a portfolio, the investment amount is often smaller than $10K. For these cases the minimum fee of $25 would apply since 0.25% of any amount less than $10K is less than $25.

This implies if someone does a small investment of $2,000 into a stock/ETF, they would pay a fee of $25 i.e. an effective fee of (25/2000) x 100 = 1.25% (plus another 25$ on sale assuming the investment value has not increased 5 times!)

In percentage terms, the impact on returns could be several percentage points and if you do a lot of trades of small values then the overall fee paid will make a noticeable difference in your portfolio.

So based on your investing style, and transaction size, choose your broker carefully.

 

Broker Online Transaction Costs(SGX-SGD) Market Access
AmFraser Minimum Fees $25 Singapore, Malaysia, NYSE/NASDAQ, Hong Kong, Tokyo, Korea, Australia, Indonesia and Thailand.
< $50k 0.275%
$50k-$100k 0.22%
> $100k 0.18%
CIMB Securities Minimum Fees $25 Singapore, Malaysia, NYSE/NASDAQ, Hong Kong, Indonesia and Thailand.
< $50k 0.28%
$50k-$100k 0.22%
> $100k 0.18%
Citibank Minimum Fees $18 Singapore, NYSE/NASDAQ and Hong Kong
< $50k 0.25%
$50k-$100k 0.20%
> $100k 0.18%
DBS Vickers Minimum Fees $25 Singapore, NYSE/NASDAQ, Canada, United Kingdom and Hong Kong
< $50k 0.28%
$50k-$100k 0.22%
> $100k 0.18%
DMG Online Minimum Fees $25 Singapore, Malaysia, AMEX/NYSE/NASDAQ and Hong Kong
< $50k 0.275%
$50k-$100k 0.22%
> $100k 0.18%
Kim Eng (Maybank) Minimum Fees $18 Singapore, Malaysia, NYSE/NASDAQ, Hong Kong and Thailand.Offline trading for 25 other markets
< $50k 0.18%
$50k-$100k 0.18%
> $100k 0.18%
Lim & Tan Securities Minimum Fees $25 Singapore, Malaysia, United States, Australia, Hong Kong, Indonesia, Japan, Korea, Philippines, Shanghai B, Shenzhen B, Taiwan and Thailand
< $50k 0.28%
$50k-$100k 0.22%
> $100k 0.18%
Phillip Securities Minimum Fees $25 Singapore, United States, China A, Australia, Hong Kong, Indonesia, Japan, Turkey, UK and Thailand
< $50k 0.28%
$50k-$100k 0.22%
> $100k 0.18%
OCBC Securities Minimum Fees $25 Singapore, Malaysia, Philippines, Indonesia, Thailand, Hong Kong, Shanghai A, Shanghai B, Shenzhen B, United States, Australia, New Zealand, Japan, Korea, UK , Taiwan, CanadaPlus  11 markets in Europe
< $50k 0.275%
$50k-$100k 0.22%
> $100k 0.18%
Saxo Capital Markets Minimum Fees $25 Singapore, Japan, Australia, Hong Kong, Canada, United StatesPlus  18 markets in Europe/S.Africa
< $50k 0.15%
$50k-$100k 0.15%
> $100k 0.15%
Standard CharteredOnly broker in Singapore with no minimum fee. Minimum Fees None. Singapore, Japan, Australia, Hong Kong, France, United States, Switzerland, Germany, UK and Netherlands
< $50k  0.18% for Priority Banking customers, and from 0.20% for
other customers on trades.
$50k-$100k
> $100k
UOB Kay Hian Minimum Fees $25 Singapore, Malaysia, Hong Kong and United States
< $50k 0.275%
$50k-$100k 0.22%
> $100k 0.20%

 

 

bhaskar@weinvest.net'

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