The Ultimate Cheatsheet: Cheapest Stock Trading/Brokerage Houses in Singapore (2020)
806
shares

The Ultimate Cheatsheet: Cheapest Stock Trading/Brokerage Houses in Singapore (2020)

Ming Feng
806
shares

As investors, I would think that at a basic level, all of us would want to maximise our investment returns. But, there are a few things in our way.

For one, we cannot avoid risk when it comes to investing.

invest
Source: Giphy

In addition to this risk, there’s another thing that can chip away at our profits — the cost of trading. This can include anything from fees to commissions which can all add up over the years. 

So you might be asking, can you actually put your money away and keep your expenses low?

We got you!

Cheapest Brokerages 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 provide you with excellent insight.

All You Need To Know About Stock Brokerage Accounts in Singapore

  • Brokerage accounts that hold your shares as a custodian, generally charge lower fees than if you own the stock. 
  • Investors should determine if he is willing to bear the risk of a custodian brokerage account.
  • For a seasoned investor, the functions of the online brokerage platforms will be something you should look at. 

Stock Brokerage Accounts in Singapore Fee Comparison

For this Singapore specific comparison, we will be looking at the popular brokerage accounts in Singapore that let you trade on the SGX.

If you would like to buy US stocks, check out our comprehensive guide to the cheapest brokers to buy US shares.

For this comparison, we are splitting up the online offerings from the brokerages into three main categories:

  1. Stock brokerage fees for Online Accounts (Cash Accounts)
  2. Stock brokerage fees for Pre-Funded Accounts/Cash Upfront Trading Accounts 
  3. Stock brokerage fees for Broker-Assisted Trading Accounts 

*Information accurate at the time of writing (19 Jul 2020).

Online Brokerage Accounts in Singapore: Cash Accounts Fee Comparison

Most of the online stock brokerages in Singapore offer cash accounts that let you purchase a stock without putting up cash beforehand or trade on a ‘contra’ basis.

But, you will still have to pay on T+2, where T is the transaction date and 2 refers to the number of days.

This account provides you flexibility for short term trading as you do not need to put up a cash deposit. However, you pay for this flexibility as commissions are generally higher.

For context, these cash accounts that we are comparing allow you to trade online or on mobile.

 

Cash AccountsMin. Commision
Fee
Trading Fee
<$50k
Trading Fee
$50k-$100k
Trading Fee
>$100k
Custodian or CDP Account?Extra Fees
CGS-CIMB Securities$250.275%0.22%0.18%CDP-
DBS Vickers$250.28%0.22%0.18%
KGI Securities $250.275%0.22%0.18%
Lim & Tan Securities$250.28%0.22%0.18%
Maybank Kim Eng Trade $250.275%0.22%0.18%
OCBC Securities
$250.275%0.22%0.18%
Phillip Securities (POEMS)$250.28%0.22%0.18%
RHB Securities $250.275%0.22%0.18%
UOB Kay Hian$250.275%0.22%0.18%
Citibank$280.25%0.20%0.18%Custodian0.0165% of monthly average stockholding balance,
payable every six months. Inclusive of GST.

Base on the above comparison, we can see that the rates are rather close to each other for these cash accounts that let you hold your shares via a CDP account.

The only exception is Citibank, who is the custodian for your shares.

Fees

Across the board, the minimum fees are $25 with a trading fee of:

  • 0.275-0.28% (<$50k)
  • 0.22% ($50k-$100k)
  • 0.18% (>$100k).

However, the only exception to this rule is Citibank with its lower trading fee of 0.25% but a higher minimum fee of $25.

Not to mention that they charge a custodian fee of 0.0165% of monthly average stockholding balance, which is payable every six months and inclusive of GST.

Real User Reviews On Brokerages (Cash Account)

Online Brokerage Accounts in Singapore: Cash Upfront Trading Accounts Fee Comparison

In Singapore, there have been a growing number of banks and stock brokerages offering up pre-funded accounts with more competitive rates.

These pre-funded accounts, or cash upfront trading accounts offer these rates with one major requirement.

CUT accounts require that you have to deposit money into your account before you can purchase stocks. Your buying power is also limited to how much you deposit into your trading account. However, this also means that you get to enjoy lower commissions.​​​

If you can live with this inconvenience, I would think that this is worth the savings.

To illustrate, let’s compare CGS-CIMB Securities cash account with their basic 0.275% trading fee and their CGS-CIMB iTrade CUT account with their basic 0.18% trading fee. 

If you invested S$10,000, you would have saved S$9.50. This amount will also scale up the more your invest.

For context, these cash upfront accounts that we are comparing allow you to trade online or on mobile.

Pre-funded/ Cash Upfront AccountsMin. Commision
Fee
Trading Fee
<$30k
Trading Fee
$30k-$100k
Trading Fee
$100k-$250k
Trading Fee
>S$250k
Custodian or CDP Account?Extra Fees
DBS Vickers Cash Upfront*$100.12%CDP-
CGS-CIMB iTrade$180.18%Custodian-
FSMOne**$100.08%-
KGI Connex (Pre-funded)$250.18%-
Lim & Tan Securities: Cash Collateralised Trading***$10 | $120.18%-
Maybank Kim Eng Trade (Pre-funded)****$100.12%-
OCBC Securities: Equities Plus Account
$180.18%Quarterly sub-account fee (waived for >$250k)
$2 + GST (a/c without holdings)
$15 + GST (a/c with holdings).
Phillip Securities: POEMS Cash Plus*****Waived: No minimum0.12%0.10%0.08%$15 quarterly account maintenance fee waived.
Saxo Capital Markets$100.08%0.12% p.a. custody fee
Standard Chartered: Online Trading$100.20%0.18% (>$200k)-
Tiger Brokers: Tiger TradeWaived: No minimum0.08%-
UOB Kay Hian: UTRADE Plus$100.18%Quarterly sub-account fee
$2 (a/c without holdings)
$15 (a/c with holdings).

*DBS Vickers Cash Upfront is only applicable to buy trades. For sell trades, the commission to sell is $25.

**You can link your CDP account to your FSMOne account. However, this is limited to ‘Sell’ orders only.  

***Promotional rate is valid until 30 Sep 2020 for customers who opened a new CCT account.

****Maybank’s promotional rate is valid until 31 Dec 2020. 

*****Account also has a stand-by margin facility of S$50,000, the promotion is valid until 31 Dec 2020.

At the moment for cash upfront trading accounts, Tiger Brokers are offering the cheapest rates at the moment with a waived minimum fee and 0.08% trading fee.

If you would like to own your stocks in your CDP account, your only option is DBS Vickers cash upfront with its $10 minimum fee and 0.08% trading fee. 

However, with this account, take note that you can only use it to conduct buy trades. If you want to conduct sell trades, you will be charged a commission of $25.

One way to get around this would be to buy stocks on your DBS Vickers cash upfront account and sell it with your FSMOne account; which has a lower $10 minimum fee and 0.08% trading fee. 

Real User Reviews On Brokerages (Cash Upfront)

Broker Assisted Brokerage Accounts in Singapore Fees Comparison 

Clearly, online brokerage accounts offer better rates than offline broker-assisted accounts.

However, if you are not comfortable with a do-it-yourself approach to trading and would want help from a human — broker-assisted accounts are the way to go.

For investors who use a broker for their trading, the comparison is as per below: 

Brokerages
(Broker Assisted)
Minimum FeesTrading Fees (based on contract amount)
(S$)
  Custodian or CDP Account?
<$50K$50K to $100K>$100KCDP
CGS-CIMB Securities$400.50%0.40%0.25%
DBS Vickers$400.375%0.30%0.23%
KGI Securities
$400.50%0.40%0.25%
Lim & Tan Securities$400.50%0.40%0.25%
Maybank Kim Eng$400.50%0.40%0.25%
Phillips Securities (POEMS)$400.50%0.40%0.25%
OCBC Securities$400.50%0.40%0.25%
RHB Securities$400.50%0.40%0.25%
Citibank$500.50%0.50%0.40%Custodian

If you really need this service — DBS Vickers offers the lowest broker-assist fees.

Real User Reviews On Brokerages (Broker-Assisted)


Other Considerations

Also, if you are wondering which brokerage firm is the best in Singapore, you can check out our real user reviews on the various brokerages

These reviews will be able to provide you with excellent insight to help you choose which brokerage is best for you.

We urge you to pick wisely and test out several brokerages before choosing one to use as your primary brokerage account.

Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock. The writer may have a vested interest in the companies mentioned.

About Ming Feng
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.
You can contribute your thoughts like Ming Feng here.

Still have more questions after reading the article? Fret not, ask our community here!

Stay updated with the latest finance tips!
Receive bite-sized finance on Telegram here.

What's Popular

    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
Comments
806
shares

What's Popular

    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles
    • Loading articles

Still have more questions after reading the article? Fret not, ask our community here!