AMA The Fifth Person
Asked by Anonymous
Asked on 17 Feb 2019
Hi, I am thinking of starting a brokerage account since I have hit the legal age.
Which brokerage should I choose from since the fees are around the same? Currently looking at CDP-backed brokerages (should I consider custodian accounts?)
Also, whats the difference between a normal brokerage account and a cash-upfront one?
Thanks so much!
Read this for your questions: https://blog.seedly.sg/the-ultimate-cheatsheet-cheapest-stock-brokerage-in-singapore/
For the better brokerage account by current user review:
Normal bokerage account allow you to pay 2-3 days later after a stock purchase while the cash upfront account require you to deposit money in first before any purchase.
For cash upfront account, Fundsupermart seem competitive and easy to navigate but the downside is that they only can invest in Singapore, Hong Kong and US only.
Personally, I think that normal bokerage got not much difference as their price are all competitive.I think the service level of your broker is important. Personally, I use CIMB and Kim Eng.
21 Feb 2019
Try to go for brokerage that are cheaper in fees as fees can eat away your returns unless you have something you want in that brokerage that cant be find elsewhere.
Definitely should consider custodian because if you decide to buy overseas stocks, it will be custodian anyway. The bad part about custodian is you cannot participate in AGMs and stuff but fees tend to be lower like cash upfront.
Cash upfront cheaper but you need to have money in the account first before you can buy stocks. Normal brokerage account expensive but you can buy first before paying.
You just hit legal age, you might want to take your time and research first before buying. If you havent start working and no emergency funds or income, it might not be a good idea to start investing. Stocks are volatile and goes up and down. You must be ready to lose money. If you dont have income or emergency fund, you might panic sell when stock prices drops which is bad.
18 Feb 2019
I think this answers your question on the cash upfront brokerage account.
18 Feb 2019