Must I open an account with a foreign broker if I want to trade foreign stocks not listed on SGX?

Hi Financial Blur,

​

Nope. As long as your broker has access to the market, you'll be able to trade foreign stocks. However, do note that your shares will be held under custodian, and you'll have to be aware of the custodian fees that this may inccur. You will also have to deal with forex spreads and any other charges related to the specific market you wish to trade, for example, US shares have a dividend withholding tax, HK market has stamp duty, etc.

​

You'll also need to acknowledge a risk warning statement to trade overseas listed investment products. (at least for POEMS)

Hi financialblur, the clear cut answer is no, you can go through local brokers, foreign brokers with local licenses and pure foreign brokers.

The more pertinent questions to consider are perhaps on
a. your money transfer preference - example as a beginner I started on posb account and dbs vickers since both are accessible through one online platform, so no hassle during bank transfer and payment,
b. if you prefer custodian account,
c. size of transaction versus
d. transaction charges,
e. foreign exchange spread - of course smaller better.

Over time I have tried a few more brokerages for different purposes and the learning is saying, to start with the one we understand best with ease of access to platform helpline then over time to explore others.