16 Products Found
"Yes, I also think that non-resident foreigners, should by default have a..." 1d ago
"[Commission Rates] Very competitive commissions and considered quite low. No custodian charges for..." 5h ago
"Easy to see quotes and order. Ordering is straight forward too. Executing..." 4w ago
"I’ve been using CMC for a year. The platform provides one of..." 1mth ago
"The online brokerage is useful and suits all my needs in the..." 1mth ago
"I use SCB to buy IWDA from LSE. I think the biggest..." 2w ago
"Great brokerage for beginners,have been using it for stock that i am..." 1w ago
"Decent platform and speed. Decent commission charges too. charting is not the..." 4w ago
"You get NTUC FairPrice vouchers (upon fulfilling 3 trades within 1 month..." 1mth ago
"The trading app for mobile and tablet are considered as the best..." 1mth ago
New to investing - or simply looking to find out more about online brokerages?
This guide takes you through everything to know, from opening a Central Depository (CDP) account to the differences between leveraged trading and investing.
Once you've soaked it all in, peruse real user reviews from the Seedly community to find out the pros and cons of each online broker.
An online brokerage is a platform that helps an investor (i.e. you) trade various asset classes and financial instruments. These include indices, commodities, stocks and forex, to name several.
The act of buying - and, likewise, selling - stocks incurs small fees per transaction made. Of course, these fees are determined by brokerage firms.
To facilitate your trades, you'll first need a CDP account and/or custodian account.*
While a CDP account allows you to you hold all purchased stocks under your name, a custodian account means your purchased stocks are held by the respective investment firms. These accounts also work on a prepaid basis - so you won't be able to use more than the amount you've placed in your account.
We've fleshed out the pros and cons of both account types in greater detail here.
*If you're looking to trade just stock CFDs, though, neither a CDP account nor custodian account is required.
Trading with an online brokerage also offers you two trading options: leveraged trading, and investing.
But before getting to that, here's a round-up of some popular online brokerages in Singapore:
If you're new to the world of online brokerages, it's imperative to understand the differences between leveraged trading and investing.
With investing, you're granted part-ownership of a company and will receive dividends on shares and exchange-traded funds (ETFs).
Conversely, leveraged trading - also known as Contracts for Difference (CFD) trading - allows you to trade outside of stock exchange opening hours. You'll also be able to trade a wider variety of products spanning shares, indices, commodities and forex. Your risk of gaining or losing profits is therefore amplified - meaning your capital could go either way.
As mentioned, investing allows you part-ownership of a company.
Stock CFDs mean you don't own a stock or asset. Instead, you're putting in a sum of money to speculate a product's price movements. Because you're only required to put in fraction of money of the overall trade value, what then happens is your profits could far exceed your deposit - or work in the reverse.
CFD products include forex, shares, indices, commodities and cryptocurrencies - all of which are explained further in the next section.
There are two product classes under which products fall: asset classes, and financial instruments. Asset classes refer to things that can be traded or invested in, while financial instruments are the ways in which stocks or bonds are traded across various asset classes.
So, you're all ready to begin investing - but before that, you'll need to:
Unfortunately, you won't be eligible if you're an undischarged bankrupt (duh).
*As mentioned, you won't require a CDP account if you intend to trade just CFDs. You'll instead be required to set up an individual account for each online brokerage that you choose to trade CFDs with.
A CDP account is run by the Singapore Exchange (SGX), and functions as a centralised point from which all your stocks can be controlled and viewed. It's open to both Singaporeans and foreigners, although only locals can apply through the online form.
Essentially, your CDP ensures that any shares - whether stocks or bonds - purchased in the open market are kept safe.
There are three ways to open your CDP account:
We'd highly recommend applying online, though; it's a fuss-free, 15-minute process.
For this, you'll need to:
It takes around ten business days for an application to be processed. From there, you'll be able to use your CDP account to purchase and sell stocks, as well as vote or attend Annual General Meetings (AGMs).
While opening a CDP account is free of charge, you may incur administrative fees and trading fees. These include:
These are some factors to consider prior to choosing an online brokerage.
If you've still got more to ask after reading these real user reviews on the best online brokerage firms in Singapore, head on over to the Seedly Q&A platform! You'll be able to pose your questions anonymously, too.
Otherwise, these guides might serve you well: