SCB Singapore has a new i-banking cum brokerage system where you can enjoy NO MINIMUM brokerage fees. The catch is:
-No Contra. You have to have the cash in your Securities account before they allow you to key in your order. However, settlement for SGX is still done in T+3. Not a problem for those who are investing with money they have. Only a problem for those who contra beyond their means.
-Your shares will be kept in SCB Nominees. This subjects you to the counterparty risk of SCB failing; which I think is pretty remote. There are no custodian fees.
EDIT: I've been informed that even if SCB does fail; the legal and equitable titles are still ours; the shares will still belong to us should SCB Nominees fail.
-0.20% for SGX shares and 0.25% for NYSE, NASDAQ, Paris Bourse, Deutsche Boerse, London Stock Exchange, Swiss Stock ......
Any idea whether they offers options trading?
I been emailing them but no reply yet :(
Hi Gary,
I suggest giving them a call to their Online Trading hotline at 1800 242 5333.
Source: https://www.sc.com/sg/personal-banking/investment/online-trading/en/faq.html
Seems like short selling is not allowed which is expected because you need money in your account to fund your trade. In short selling losses can snowball. Given my limited knowledge in options, I think put options is similar but losses are cap.
Keep us posted on this ya. My experience with SCB over the phone on banking matters is pretty good. Waiting time on the phone is pretty short. Maybe cause I always call near midnight. :)
Hi
Like that is very similar to DBS vicker right? They also offer this kind of service except i am not sure if their commission is as low as that.
Hi Dou,
When I first started looking for a online broker several years ago, Vickers was the most expensive but I think they have reprice it to be more competitive.
Hopefully with SCB entry, the rest of the online brokers will take heed and reduce their price too.
Cheers!
They called me back and no options trading allowed :(
I am a value investor and currently I am using e trade which is good but there is a cost to transfer money back to Singapore.
US stocks trading without options trading is not that great as you cant sell covered calls to generate income. You cant sell covered put to lower your cost of owning shares.
Currently I think there are only 3 companies that offer options trading in Singapore.
Etrade
Optionsexpress
Thinkorsink
Hi Gary,
Thanks for the info. I guess as much because SCB requires you to have enough money before u can trade. With options, it is difficult for them to track. I have not work out the sums but I think SCB is more suited for small investors. It could be their direction too since the Big Boys dun really care about commission.
I am still looking out for a good platform for US securities. I have read about optionsexpress but I can’t find time to go down their office to open a account. I will read up about your other two recommendations.
Cheers!