Brokerage firm details in Singapore

I have compiled a list of brokerage firms in Singapore that focus on either Singapore Stock Market or US Stock Market. And along in the details are the brokerage charges for trading with them. Please note that opening an account with them is free. However for foreign broker firm, you would need to make a deposit before you can begin to trade. The trading limit is the amount of funds that you have transfered to your account. However, for local brokerage firm, the deposit can usually be waive by simply speaking to the staff.

The local brokerage firm provides foreign market trading as well, however, the brokerage fees would be higher as they are require to go through a middleman from the country that you are trading in order to facilitate your trade. Depending upon your strategy, you might wish to open up multiple account so that you can enjoy the best rates of trading in US and Singapore market.

Singapore Market Trading:

Phillip Securities

• Brokerage Fees: 0.28%/ Min SGD$25
• Website address: www.poems.com.sg

Lim & Tan

• Brokerage Fees: 0.28%/ Min SGD$25
• Website address: www.limtan.com.sg

OCBC Securities

• Brokerage Fees: 0.275%/ Min SGD$25
• Website address: www.iocbc.com

DBS Vickers

• Brokerage Fees: 0.28%/ Min SGD$25
• Website address: www.dbsvickers.com

Kim Eng

• Brokerage Fees: 0.275%/ Min SGD$25
• Website address: www.ketrade.com.sg

UOB Kay Hian

• Brokerage Fees: 0.275%/ Min SGD$25
• Website address: www.uobkayhian.com.sg

US market trading:

Optionxpress

• Brokerage Fees: USD$16.95 or USD$0.0175 per share, whichever is higher
• Website address: www.optionxpress.com.sg

eTrade

• Brokerage Fees: USD$19.99
• Website address: www.etrade.com.sg

There are more brokerage firms out there but these are the more common ones that I am aware about. Different brokerage firms strength lies in different aspect. Some are strong in their trading platform, whereas some are cheap on the brokerage cost. Based on my personal opinion, i prefer to work with a local broker because of the personalise service provided. The higher commission paid is justifiable in my personal context. My broker from OCBC is able to perform on my behalf, to watch and screen the market sentiment. To me, this is an invaluable source of info which can help me to make money. However, not all dealers and remisers for local brokerage firms are able to provide such service as it is highly dependent upon your relationship with them in order for them to provide such personalise service to you. Feel free to let me know if you need a broker, i can recommend my broker from OCBC to you. His service has not disappoint me to far.

As i am typing out this blog, the Singapore market is getting into position to resume rallying. Do hope that you are among the fortunate to be able to ride on this bull rally and profit from it.

Differences in local and foreign brokerage firm

As a beginner in stock trading, you would need to open up an account with a brokerage firm in order to begin trading stocks. In the case of Singapore, you have the option to open an account with a local brokerage firm or a foreign brokerage firm.

Should i go for the brokerage firm that has the lowest brokerage fees?

Depending upon your trading style, whether are you a contra trader (without too much capital onhand to buy stock outright), trader(with the capital to buy stock outright) or investors. Local brokerage firm allows you to pay for your stock on T+3 basis. This basically means that you are given a total of 4working days including the day that you bought the stock to pay up for them. However, do bear in mind that this goodwill could be void if you default on your payment. Local brokerage firm charges almost the similar rates for their brokerage service. I shall write up a post detailing the different in cost for these local brokerage firms. You can use your atm (via EPS), internet banking account and walkin to deposit funds into your account. The money will usually be transfer directly into your bank account unless you instructed for cheque when you need to withdraw funds. This process will usually take between 2 to 3 working days.

Foreign brokerage firm on the other hand requires you to place a deposit with them upfront and you can only trade using the amounts that you have deposit with them. Some of these foregin brokerage firm do allow margin trading (a form of credit facilities that allow you to trade x multiples of your deposit). The mode of payment is usually by wire transfer. To withdraw funds, you would usually need to wait for the cheque from them or you can simply request for wire transfer which in this case would require you to pay a fee for this service. The benefit of a foreign brokerage firm is that their brokerage fees are cheaper and you have wider variety of markets available that you can trade.

Where should I begin if I am new to stock trading?

A common problem facing newbie who wants to trade stock is where do I begin. Most of us are entice by the prospect of home based career offered by stock trading and the potentially fantastic income that come along with the stock trading business. Being your own boss and customising your own schedule is surely a carrot that is hard to resist.

To begin as a stock trader, you would need to know the operating hours of the stock exchange. Based on Singapore Local time, the operating hour for Singapore Stock Exchange will be from 9.00am to 5.00pm. The second thing to learn is to open up an account with a brokerage firm. I shall touch on the various difference among some of the brokerage firm for your understanding in the next post. Thirdly, you would need to learn how to read price/ volume charts, technical indicators and trendline. I would be sharing with you some of the more common usage of these indicators. Fourthly, you would require a trading log to help you record down your transactions for analysis purposes. Lastly, you need to know where to find information, news and corporate events. Shall do an analytical breakdown for you to decide on whether to subscribe for a paid service or to use a free service.