The Ultimate Cheatsheet: Cheapest Stock Trading/ Brokerage House In Singapore
Assuming you are all ready to kickass in your investing journey, there are a few things you need to consider to get started.
Cheapest Brokerage in Singapore
If you are wondering which brokerage firm is the best in Singapore on top of just brokerage fees and charges, the real user reviews on the various brokerages will be able to give you a good insight.
All You Need To Know About Brokerage Account
- Brokerage accounts that hold your shares as a custodian are the cheapest.
- Investors should determine if he is willing to bear the risk of a custodian brokerage account.
- If you have the sum of savings all ready to invest, DBS Vickers Cash Upfront account is definitely worth looking at.
- For a seasoned investor, the functions of the online brokerage platforms will be something you should look at.
Comparison of Online Brokerage Fees in Singapore
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:
- Stock brokerage fees for online trading
- Stock brokerage fees for broker-assisted trading
- Stock brokerage fees for cash upfront
Fees and Charges of various stock brokerages in Singapore (Online)
For trading fees based on online trades done in the Singapore market.
Stock Brokerage/ Trading platforms (online) Fees Comparison in Singapore
|Brokerages Firm||Minimum Fees|
|Trading Fees (based on contract amount)
|Up to $50,000||$50K to $100K||$100K|
|Stock Holding: CDP|
|Maybank Kim Eng||$25||0.275%||0.22%||0.18%|
|Lim & Tan Securities||$25||0.28%||0.22%||0.18%|
|Phillips Securities (Poems)||$25||0.28%||0.22%||0.18%|
|Stock Holding: Custodian|
|Saxo Capital Markets||$9-$15||0.10% to 0.12%||0.10% to 0.12%||0.10% to 0.12%|
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.
Fees and Charges of various stock brokerages in Singapore (Broker Assisted)
For investors who use a broker for their trading, the comparison is as per below:
- In this case, DBS Vickers is the cheapest. Reviews on DBS Vickers Securities have also been generally positive.
Stock Brokerage/ Trading platforms (Broker Assisted) Fees Comparison
|Minimum Fees||Trading Fees (based on contract amount)
|<$50K||$50K to $100K||>$100K|
|Maybank Kim Eng||$40||0.50%||0.40%||0.25%|
|Lim & Tan Securities||$40||0.50%||0.40%||0.25%|
|Phillips Securities (Poems)||$40||0.50%||0.40%||0.25%|
Fees and Charges of various stock brokerages in Singapore (Cash Upfront)
Lastly, for those looking for cash upfront service. Cash upfront 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.
Stock Brokerage/ Trading platforms (Cash Upfront) Comparison
|Minimum Fees||Trading Fees|
|Lim & Tan Securities||$12||0.12%|
|Maybank Kim Eng||$10||0.12%|
(0.08% if you trade more than $250,000)
($8 if you trade more than $250,000)
For cash upfront, DBS and UOB KayHian are 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.
Other Fees Applicable
On top of the brokerage fees which one needs to take note of, there will also be Clearing fees, SGX Trading Fee on the gross contract amount, and SGX Settlement Instruction (SI) Fee.
Clearing Fees (CDP imposed) will be at 0.0325%, SGX Trading Fee at 0.0075% on the gross contract amount and SGX Settlement Instruction (SI) Fee will be S$0.35 for each settlement.
Opening A Brokerage Account – What Are The Factors To Consider?
With your CDP account settled, one can go “shopping” for the best brokerage account. Very much like opening a savings account, there are a few factors one should look out for.
What Are The Brokerage Fees?
Also known as the stock trading or trading fee, the brokerage fee is charged by the platform provider to conduct transactions between buyers and sellers. That is the fundamental of how a brokerage firm makes money.
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.
CDP vs Custodian: Who Holds The Stocks?
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.