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SingaporeChap

Asked on 09 Jun 2020

Does it make sense to have multiple brokerages?

I much prefer to keep all in one brokerage as it is simpler but knowing (however remote) that there is a risk of bankruptcy of brokerage firm (despite CDP/custody law) do people use multiple brokerage firm? Eg: 200K SGD each.

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Nicholas B
Nicholas B
Level 5. Genius
Answered on 09 Jun 2020

If your stock is in CDP, you have absolutely nothing to worry about as you are in direct ownership of the stock. Either way, even if your broker goes bankrupt, your holdings in custody should not be affected.

Instead you should go with brokers that suit your needs and preferences, such as low commissions, platform quality and reputation. In fact, some brokers will give you preferential rates and benefits if your AUM is beyond a certain amount. For example, Standard Chartered offers Priority status if your AUM is $200k.

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SingaporeChap

09 Jun 2020

Thank You! I guess for foreign shares it will always be held under custody?
Nicholas B
Nicholas B

09 Jun 2020

Yes, foreign shares will be held in custody.
Tay WenHao
Tay WenHao
Level 7. Grand Master
Answered on 09 Jun 2020

I use multiple trading platforms but not so much avout bankruptcy.

More for flexibility in case 1 platform's server error, or overloaded, unable to buy/sell. Can still use other platforms. This is very common especially when there's some huge announcement which cause many investors to flood the webpage.

Thats why its important to choose platforms that credits the shares to CDP instead of custodian. So you can sell thru other platforms.

I use DBS Vickers Cash upfront to purchase shares. Lowest sales charge with CDP crediting.

As for selling of shares, I used FSM one, lower sales charge compared to DBS Vickers.

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Royalchem
Royalchem
Level 5. Genius
Answered on 09 Jun 2020

Yes.

I use dbsv to trade sgx

I use ibkr to trade us

I use poem to trade hkse

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