I received a letter from Standard Chartered bank stating that they will be revising their fees for their Online Equities Trading platform from 1 August 2016. The fee structure is as below.
I should have seen this coming but I was probably more concern whether Standard Chartered Bank will close down its equities business. I guess the answer is no for now but I wonder how long more will they last with their latest fee structure.
I use Standard Chartered Online trading quite often and how will this impact me?
I started accumulating STI ETF at various price points since last year.
If I continue to do the same when the new fees kick in, I will have to pay 15 times more in commission! For good measure, I added in POEMS $10 promotion and the commission does not differ by much.
I bought 200 shares of OCBC using POEMS this year and intend to continue buying 100 shares every few months using SCB Online Trading platform.
The difference in commission this time is now 5 times, and again POEMS $10 promotion is comparable to SCB new fees. Some of you might be worried that the $10 POEMS promotion will end in June but I was approached by a broker sometime back who was willing to offer me the same $10 commission rate. I suspect that competition is tough and other brokers will also be willing to offer the same rate. No harm giving them a call.
The most important factor why I may stop using SCB is the custodian. Unlike SCB, stocks purchased under POEMS are deposited into my CDP account. I am now no longer restricted to one brokerage and I do not have to go to the trouble of identifying which stock is in CDP or SCB. I sometimes have for the same stock in both CDP and SCB. Having all the stocks in one account also makes tracking easier.
In my last poll, almost 40% of you will continue to use SCB and 25% of you are still undecided. With the upcoming new fee structure, will the numbers change drastically?
Please vote and feel free to share your thoughts.