Asked 2w ago
Thank you in advance! :)
If you are looking to pay as little commissions as possible, I think having more than one brokerage account is going to be inevitable. I personally have 5 different brokerage accounts, each for their own purposes:
DBS Vickers (Cash Upfront) - Buy SG stock for long-term holding in CDP
FSMOne - Sell SG stock from CDP
Tiger Brokers - Buy/sell SG stock, short/mid-term holding in custodian account
Interactive Brokers - Buy/sell Irish-domiciled ETFs on LSE
TD Ameritrade - Buy/sell US stock
Each person has their own needs when it comes to investing. For example, for Irish-domiciled ETFs, people who invest in less frequent intervals may find Standard Chartered to be cheaper. It is best that you formulate a plan to invest and then find brokers that align with your plan.
One additional thing to watch out for is recurring fees. Interactive Brokers has this in the form of minimum monthly commissions, and Saxo has this in the form of a custody fee. Many local brokers do this for custody of foreign securities and charge for dividend handling fees as well.
I have 6 brokerage accounts.
DBS Vickers - Buy SG stocks
FSMOne - Sell SG stocks
POEMS (I plan to close this one soon)
TD Ameritrade (not closing it even tho' I'm not using it, b'cos I waited 1.5 months for the approval 🤣)
UOB Kay Hian (for CPFIS due to Endowus)
I use IB most frequently as I can access to global markets.
It is always great to have options. I have a few brokerage accounts on different platforms. On top of the good answers found like:
different accounts/platforms concentrated on their own purpose/specialised "field"
prices & fees
other noteworthy points from me would be:
in the unfortunate event of a platform being "down" or under maintenance, I still have the freedom to execute any trades I wish to make on other platforms
if transacting terms start to get unfavourable, I have the freedom to make a almost seamless switch to another platform as I have multiple accounts already opened
Yes it's definitely a good move to have several brokerage accounts for different needs. It depends on your use type and if you intend to trade different markets.
If you are just looking to trade sgx, pretty much the same across the local brokers. Some may offer lower rates for prefunded accounts so it's worthwhile to see.
For US market, nothing beats Td Ameritrade as its now free commission for stock trading and it has the lowest comm for options as well. Account opening may take some time though due to the influx of applications.
For me personally I have a few accounts for sgx though I primarily use maybank ke. For US market, I use Td for mainly options trading.
I have three main and one dormant:
Poems, have been with the broker for more than 10years and I appreciate his efforts and advice. So buying SG stock would go through him and seek his advice before buying.
FSMOne, selling SG stock. I don't sell much of my SG holdings as they are usually super long term holdings. But when I do, it's through here.
TD Ameritrade, using it to trade US stock and options. Platform is easy to use, the approval took quite awhile(2-3wks) but the online support during market hours are good. Costs have come down quite a bit but that's pretty much across board most accounts.
Tiger Brokers, just for fun and see what's the hype. Have not done any trades yet.
It really depends on why you would want to have more than one account.
Having multiple brokerage accounts is to maximise the main features/benefits of each brokeage account without compromising your investment returns.
For example you want to use Interactive brokers to buy UK index fund (e.g VUSD) that tracks the S&P 500 index, which reduces the tax payable from 30% to 15%, and have another brokerage account like TD Ameritrade for individual stocks due to zero commission fee and monthly activity fee.
In general, you can have multiple accounts for different investment purposes, such as children education, retirement, house/marrriage.
Feel free to check out here for more investing and savings tips :)
I currently use:
DBS Vickers CashUpfront for SG stocks (Long term holding in CDP)
FSMone to sell SG stocks in CDP
Firstrade: For US Stocks due to $0 commissions and free Morningstar Premium analysis.
If you are curious about Firstrade, I wrote an article on it here.
You could use a mix if you are doing different things and the various brokers offer better services for that specific segment.
For example, TD Ameritrade has 0 commission fee but that only aaplies to US shares.
If I want to tap into say the Chinese market I may use interactive brokers or DBS vickers for local markets.
Different commission fees and products offered.
I like to segregate my investments into 2 categories, namely growth and income.
I invest in the international market for growth and the Singapore market for income. Hence, I use two brokerages for these 2 kinds of investment.
Tiger Brokers - Growth (US, HKEX)
DBS Vickers Cash Upfront (CDP-linked) - Income (SG)
You can have multiple brokerages for multiple purposes and also to maximise the benefits of each brokerage. For example, you can utilise FSMOne for ETF RSP since its fees are the lowest for that service.
Hope this helps! 😀
There are advantages to having more than one brokerage account as different brokers have different pricing methods and market access.
For myself, I use DBS Vickers to buy my SG stocks at S$10 and use FSMone to sell my SG stocks at S$10. For US stocks, I am currently using TD Ameritrade which provides commission-free trades.
Theres actually one advantage if you have multiple brokerage accounts for CDP, you can buy from DBS vickers (commission $10) and sell from fsmone (Commission $10). Not sure about custodian or other advantages tho (maybe more insights?)