Also get up to USD 888 worth of prizes and a 8% p.a. interest bonus from Tiger Brokers when you deposit and trade with your Tiger Brokers account. Valid till 31 Oct 2023. T&Cs apply.
Also receive up to 10 free shares worth up to USD 2,000 when you fund any amount within the campaign period and maintain the amount for 30 days. Valid till 31 Oct 2023. T&Cs apply.
For a limited time, get additional cash rewards worth up to USD 3,000 when you activate Moneybull, meet the funding requirements by 16 Oct 2023 and maintain your deposit until 31 Dec 2023. T&Cs apply.
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Also get up to S$730 worth in rewards and up to 5.8%^ p.a. guaranteed returns when you park you cash with Moomoo Cash Plus for up to 30 days. Valid till 31 Oct 2023. T&Cs apply.
With so many types of Investments available, it can get a little confusing. Here’s all the information you need about Investments to make smarter financial decisions.
Read the latest news about Online Brokerage products in Singapore and the best money saving tips.
An online brokerage facilitates the buying and selling of a financial instrument. You will need a brokerage account to buy and sell investment products, be it on the Singapore Exchange or in overseas markets. The products include equities, fixed income products, Exchange Traded Funds (ETFs) and more.
The online brokerage will execute your buy or sell transaction on the financial markets, based on your selection and inputs within their brokerage platform. This is done for a fee or commission. Unlike a Central Depository (CDP) account, you can open multiple brokerage accounts with different brokerage firms.
In Singapore, you can choose between a CDP-linked account or a custodian account. CDP-linked accounts are an option if you are purchasing Singapore stocks. A custodian account can be referred to as a pre-funded or cash upfront account. You have to use a custodian account if you are buying or selling overseas stocks.
Compare the pros and cons of a CDP-linked vs custodian account here.
You will incur a trading fee when you use an online brokerage account, which ranges from 0.08% to 0.275% per trade. CDP-linked brokerage accounts offer lower trading fees for larger trade sizes. If you are trading a small amount, do keep in mind that brokerages could impose a minimum commission fee of S$10 to S$25.
Custodian accounts have lower trading fees and minimum commission fees. However, you could incur an additional custodian fee or platform fee.
What constitutes the best online brokerage depends on your investment decisions and personal preference. Are you looking to buy stocks listed on the Singapore Exchange or on overseas markets? How often do you plan to trade?
To help you with your decision, you can check out this article on the best brokerage accounts in Singapore.
Depending on the online brokerage account you open, products available for you to trade include:
This would depend on your risk appetite, investment horizon and financial goals. If you have plans to make frequent trades, you can consider a brokerage that offers the lowest fees in order for you to incur lower costs with each trade.
If you have plans to hold the stocks for the long term, it’s best to use a CDP-linked account so that your holdings are consolidated in your CDP account and you avoid paying any custodian fees – they can stack up.
When you purchase stocks, you have to take ownership of the stocks, be it in your custodian or CDP account. When you trade a CFD, you do not own the underlying shares. Rather, you speculate on the share price by buying a contract between you and the CFD provider.
When trading CFDs, you also enjoy the use of leverage whereby you do not have to fork out the full market value of the share to make the trade.
You can choose a brokerage firm based on factors such as:
There are many different investing strategies which point towards different financial goals and appeal to different risk appetites. For example, some investors invest for capital gains while others might focus on building a dividend income stream.
An important factor is to understand whether you are investing for the short or long term as this would affect your investment horizon. One underlying investment strategy is to focus on time in the market, to start investing as early as possible and to stay invested despite market volatility.
© 2015 - 2023 SingSaver PTE LTD. All rights reserved. This online platform is operated by SingSaver Pte. Ltd. and by continuing to use www.singsaver.com.sg (the “SingSaver Website”) or by carrying out a transaction on the SingSaver Website, users are deemed to have agreed with the Terms and Conditions and Privacy Policy of the SingSaver Website. All insurance product-related transactions on the SingSaver Website are arranged and administered by SingSaver Insurance Brokers Pte. Ltd., a wholly owned subsidiary of SingSaver Pte. Ltd. SingSaver Insurance Brokers Pte. Ltd. is a licensed and authorised broker regulated by the Monetary Authority of Singapore (“MAS”). SingSaver Pte. Ltd. (which administers all other financial products on the SingSaver Website) is not regulated by MAS. SingSaver is located at Eon Shenton, 70 Shenton Way, 18-08, Singapore, 079118.
