Are there any circumstances wherein DBS Vickers Cash Upfront wouldn't be a better option than a regular DBS Vickers account? - Seedly
Seedly logo
Seedly logo
 

Stocks Discussion

Investments

Payments

Savings Accounts

Anonymous

Asked on 08 Jan 2020

Are there any circumstances wherein DBS Vickers Cash Upfront wouldn't be a better option than a regular DBS Vickers account?

Assuming one has the lump sum they are intending to invest at the ready, would it be safe to say that DBS Vickers Cash Upfront would be the superior brokerage account since it has lower fees than a regular DBS VIckers account?

0 comments

5 answers

Answer Now

Answers (5)

Sort By

Hi anon,

Pretty much yes, if you have the lump sum ready, then a cash upfront account (in general), regardless of broker, will offer a lower commission.

However, this money needs to be in the account already, so take note that. Be aware that if DBS is the custodian of your holdings, you won't be entitled attend AGMs and corporate actions will likely have to be acted on through the broker, as opposed to doing it yourself.

0 comments

👍 1
Jack
Jack
Level 4. Prodigy
Answered on 10 Jan 2020

Yes. If you have a lump sum by all means use DBSV cash upfront. I personally use it for ALL my purchases for SGX listed stocks. I don’t see any disadvantage in using it at all.

0 comments

👍 1
Choon Yuan Chan
Choon Yuan Chan
Level 9. God of Wisdom
Answered on 13 Jan 2020

No. DBS vickers cash upfront is superior in all fronts as compared to regular DBS vickers account.

The only circumstances i can think of is if you want to play contra because DBS Cash upfront requires you to pay upfront cash while contra is merely buying and selling within 2 market days

0 comments

👍 0
Bjorn Ng
Bjorn Ng
Level 9. God of Wisdom
Answered on 13 Jan 2020

Hey there,

Yes you are right. If you have the cash upfront, it's better to use DBS Cash Upfront because of the lower commissions. The difference between the regular Vickers is that you have 3 days to "pay up" (sounds like a loan shark but that's how it works lol). So yeah, in the long run, your commissions savings will definitely add up!

0 comments

👍 0
Adriel Thin
Adriel Thin
Level 4. Prodigy
Answered on 13 Jan 2020

If you want to lock in a price for a stock but do not have the cash available, putting in an order could be more beneficial than a cash upfront method. However, this should only be done if you're sure to have the cash to settle the position by the due date. Note also the increased commission fees, if the trade amount is high enough and the commission fees is too small of a percentage to be significant then the regular trade method could be better.

0 comments

👍 0