Goodbye Standard Chartered Online Equities Trading?

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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.

SCB Online Trading New Fees

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?

Scenario A:

I started accumulating STI ETF at various price points since last year.

SCB Online Trading - Scenario A

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.

Scenario B:

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.

SCB Online Trading - Scenario B

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.


Comments

    • says

      Hi Leon,

      Yep. Thanks for highlighting that it is only applicable for less than 1,000 shares. The more reason to give our brokers a call – they might be willing to offer $10 commission without any cap.

    • says

      Hi FC,

      I think it is kind of obvious that they want to attract or retain people with deep pockets. One of my friend is already thinking of putting in $200K to become a priority banking client.

      I do not have that kind of money and will be looking elsewhere.

      How about you? Do you use SCB platform and do you intend to continue using it?

  1. says

    I use the SCB online equities trading platform for my dollar cost averaging strategy and this would certainly increase the costs of executing it. I might continue with SCB for now but will start looking around for other platforms.

    • says

      Hi The Finance Smith,

      Same sentiments unless the amount we DCA is huge. Do share if you come across another platform that suits your needs ya.

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