Here is the comprehensive list of the fees charged for Singapore stock brokerage accounts in 2019.

This post was updated on 11 March 2019 to include the latest information.

Stock brokerage accounts give us access, via the brokerage houses, to the Singapore 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.

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

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

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

3) acommission fee (and other fees) imposed by individual brokerage accountswhen 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

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 0.08% 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.

* All Singapore Citizens, PRs, and Singapore Incorporated Entities trading SGX stocks who opt to have access to SGX stocks will be subject to a USD5 monthly custody fee, regardless whether SGX stocks are held or traded or not. The custody fee of USD5 will be waived from 1 April 2019. (Source:Saxo Capital Markets).

^ FSMOne is offering a permanent 0% sales charge on all funds and managed portfolios for all clients.(Source:FSMOne)

^^ Phillip Securities is offering a promotional trading rate of 0.12% (subject to a minimum of $10 charge) for all trades till 30 June 2019. The standard rate is 0.18%.(Source:POEMS)

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

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

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.

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, youre usually asked to open a CDP account as well. Many of you may overlook this account as youre 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 its 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.

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 doesnt 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.

Are the charting tools comprehensive/ useful?

Do you prefer having a dedicated broker that gives you timely market updates?

Delays with information provided make a big difference especially when it comes to trading.

Does your brokerage house provide educational materials, or seminars for its clients?

Does the brokerage firm have a strong research team that will provide you high quality research reports on listed companies?

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

Read Also:8 Factors To Consider When Choosing A Stock Brokerage Account In Singapore

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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