Stock Brokers Singapore: This is what you need to consider when choosing your stock broker
Singapore being one of the biggest economies in the world, boasts of one of the largest and most robust stock markets. Local and International investors look upon the country as their safest brokerage hub.
Selecting the right and reputable stock brokerage firm is thus key to any investor wishing to venture into the Singapore stock market. Stock brokers in the country vary widely depending on products, plans on offer as well as charges charged for each trade initiated
Choosing the right broker is thus key to any investors wishing to make a living out of the business of selling and buying shares, be it as a day trader or a long-term investor. Brokerage firms in Singapore just like in other parts of the world allow investors to buy and sell shares in the stock market both online and offline. In return, they charge fees for each transaction made.
The first step to trading stocks in Singapore involves opening a Central Depository (CDP) Securities account. To be eligible, one needs to be at least 18 years and not un-discharged bankrupt. The next step usually involves selecting brokerage firm through which trades are to be initiated
Stock brokerage and sites in Singapore come in plenty differentiated by commission fees charged, trading platforms and minimum capital required for one can open an account.
Below are some of the factors that one needs to consider before choosing a brokerage firm for investing in Singapore stock market.
The Monetary Authority of Singapore is tasked with the responsibility of regulating stock brokers in the country. Before settling on a broker, make sure it is important to ensure it is licensed and certified by the agency.
Commission fees get charged on every transaction be it a buy or a sale. Minimizing trading fees by choosing the right broker is essential if one is to generate maximum returns depending on the number of trades made.
Never chose a broker who charges exorbitant fees as this could lead to increased losses especially on losing trades. However, it is also not appropriate to open an account with a broker just because they offer the lowest fees, because there could be hidden charges. It is thus important to ensure there is a balance between the amount of money one wants to invest and the fees charged before settling on a broker.
Unlike in the past when one had to call a broker to initiate a trade, brokers nowadays offer online trading platforms for opening and closing trades at a touch of a bottom. Having a user-friendly stock trading platform that is always online is thus important when it comes to selecting a stockbroker.
Depending on trading strategy, there are brokers that offer sophisticated platforms with increased functions such as interactive charting platform and technical indicators worth considering.
A good broker is one that offers customer service throughout the day five days a week and always ready to assist. Doing a background check on a broker is thus important to ensure 0ne has a clear view on how they have interacted with clients in the past.
Below are some of the top stockbrokers regulated and certified by Momentary Authority of Singapore.
CIMB Securities iTrade
CIMB Securities iTrade is one of the most trusted stock brokers in Singapore with branches spread in 17 countries across the globe. However, their main market is Singapore and Indonesia. In addition to offering stock trading opportunities, the firm also has its footprint spread across the consumer banking and insurance sector.
The minimum fees to open an account with this broker is $25 and charges fees of up to 0.50% on up to SGD50,000
|Offline Via TRS||Online/Mobile|
|Up to SGD50,000||0.50%||0.275%||0.18%|
|SGD50,000 to SGD100,000||0.40%-0.50%||0.22%||0.18%|
|Above 100,000||0.25%- 0.50%||0.18%||0.18%|
Maybank Kim Eng
Maybank King Eng is a MAS regulated stockbroking firm and one of the oldest in Singapore with more than 39 years of service. It has branches in 11 countries and offers services including corporate finance securities broking and equity capital markets.
The firm offers an award-winning mobile app in addition to standard PC trading app that allows traders to access the market at anytime and anywhere. The trading platforms offer access to global stocks in addition to Singapore stocks as well as ETS a REITs
The broker charges a trading fee of 0.0075% on each contract value in addition to a clearing fee of $0.0325% on each contract value
|Online/Mobile Trades||Offline Trades|
|Contract Value||KE Trade Margin||Ke Trade Prefunded||KE Trade Margin/ Trade Prefunded|
|Up To SGD50,000||0.275%||0.12%||0.50%|
Philip Securities Singapore
The Philip Securities is one of the largest stock brokerage firms in Singapore that is MAS regulated. In addition to offering stock trading services, the firm also offers fund management services, insurance planning, and investment research. It also lets investors gain access to multinational companies stocks as well as Singapore stocks.
Fees and Charges
|Contract Value||Philip Investment Account Prepaid CC||Other accounts|
|Up to SGD50,000||0.18%||0.28%|
Saxo Capital Markets
Saxobank is highly recommended for people who wish to invest in stocks, forex and derivatives all from one well-designed platform. The broker offers comparative prices though not the cheapest in the market.
|Contract Value||Trading Fees|
|Up to SGD50,000||0.12%|
DBS Vickers is an award winning stock broker offering a wide range of services for Singapore investors looking to invest in the Capital markets locally and worldwide. Some of the services offered by the broker include online trading, margin financing, extended settlement contracts and structure warrants.
|Contract Value||By Phone||Online|| |
Clearing fee (CDP imposed): 0.0325%
SGX Trading Fee:0.0075
|Up to SGD50,0000||0.375%||0.28%|
|Above SGD 100,000||0.225%||0.18%|
UOB Kay Hian
UOB Kay Hian bills itself as the only listed stock broker in Singapore with regional operations. It is one of the country’s largest broker based on the number of registered trading representatives. The broker offers competitive trading rates for stocks as well as the financial and commodity markets.
|All Contract Types Except UTRADE Edge/Plus||Online Rates|
|Up to SGD50,000||0.275%|
|UTRADE Edge Accounts||Online Rates|
iFast Singapore is the latest entrant in the stock brokerage business in Singapore. A unit of Mainboard-listed iFast Corporation, the broker offers a stock-dealing service for Singapore listed stocks as well as Exchange Traded Funds on its online platform FSMOne.
The Broker charges a commission of 0.12% for stock trades and a minimum commission of S$10 per trade. ETFs on the other hand incur a commission of 0.08%