Asked on 04 Oct 2019
I'm looking to invest in some European stocks, which are not covered by SCB which I'm currently using. Was looking at Saxo. It seems relatively safe but fees wise lose out to interactive brokers, which has a less user-friendly platform (according to reviews- https://brokerchooser.com/best-brokers/best-online-brokers)
What would be the key factor for you? Additionally, anyone knows if Saxo & IB have custodian fees & how much?
If it may help you, although POEMS has a custody charge, idle funds in POEMS account will earn returns in a money market fund, which does help clients offset their custody fee.
As an alternative way to look at it, returns from a good stock will more than pay for the custody fee, so the custody fee helps you to be more critical of what shares to buy.
Just do an excel sheet and compare the trading commissions, fixed fees etc for the amounts you plan to invest and trades. Will take 15min to figure out the cheapest.
IBKR has another advantage - really cheap FX conversions. Add that to your sheet too.
IBKR has a PC version, a mobile app and a simpler Web trader option.
I hope, you were successful with your European stocks, though I'd rather recommend ETFs instead of single stocks.
as to the brokers:
-commission fees are generally already so low that they (exception: heavy traders) are in fact neglegible if your single investment sums exceed a certain threshold
-account maintenance fees are maybe more of an issue
-look also for other fees (stock transfers ...)
-you could download and read carefully online the complete fee schedules of the interesting ones
always mentioned are Saxo, Interactive Brokers, TD Ameritrade, Charles Schwab;
for Singapore these should be O.K.:
Standard Chartered, FSMone, POEMS.
I feel the prudent investor does not need much platform technology, the platform should be fast and reliable, you (almost) need only an easy way to enter limit order and "good till ..." selector, year end tax summary would also be nice
more on my thinking:
Interactive brokers for its low fees, and nope, they have no custodian fees.
11 Mar 2020
I would definitely recommend SAXO, if you do not trade often, SAXO is having a referral promotion which you can refer here: https://www.home.saxo/en-sg/accounts/referral. The referral fees are more than enough to cover commission costs and miscellaneous costs for quite a number of trades.
Cost and availability of options.
Go with Interactive Brokers. IB has no custodian charges.
1 more comments
11 Mar 2020
11 Mar 2020
I love interactive brokers
great forex rates (most brokers have a low commission but there is hidden "charges" in the forex rates)
great low fees on many products
a wide range of products
As far as I know, no custodian fees for IB.
I don't know about Saxo, but Plus500 features around 2 000 assets, 1500 from which are shares. According to TradingBeasts's review - https://tradingbeasts.com/plus500-review/. It is a solid broker with decent spreads and strong regulatory framework. So you might want to look at this company as well.
There are certain factors you should consider while choosing an online brokerage:
Commission Fees based on the Asset Classes
Minimum amount for account
The key factor would depend on the amount and the trading styles (the amount and the frequency of investing) that you are adopting. If your trading amount is high, the low costs (margins and currency exchange rate) that Interactive Brokers offer would be an advantage. On the other hand, Saxo's platform offers a great advantage in terms of its user interface.
You can find out more information on the detailed fees for Interactive Brokers here: https://www.stockbrokers.com/review/interactivebrokers/fees-features
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