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Goodbye Standard Chartered Online Equities Trading?
By Derek  •  May 31, 2016
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.
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By Derek
Derek is an investor who follows Peter Lynch style of investing. He prefers to use simple and straight forward information for stock analysis. He started TheFinance.sg with the intention to bring together all bloggers and professionals who are interested or already in the area of Finance and Investing, and to create a community where everyone is free to write and to share their articles, experience and opinions.
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9 Comments

9 responses to “Goodbye Standard Chartered Online Equities Trading?”

  1. leon foo says:

    is this $10 the current promo, the POEMS online for orders less than 1,000 shares?

    • Derek Lim 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.

  2. the other alternative , would be to be SCB PB customer?
    since it seems that the PB clients are not affected (yet)?

    • Derek Lim 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?

  3. 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.

    • Derek Lim 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.

  4. Hui Jie says:

    There is some problem in the system. We can also get good trading signals from other sources.

  5. T says:

    Questions:

    1) What are US Stock that customer could buy ? It is real stocks, or CFD, or something different ?

  6. jOSHUA TAY says:

    Seems that SCB has just released a new platform today, logged in and tried – looks and feels much more user friendly and intuitive. Heard that they might be having a promotion on brokerage fees, will be watching out.

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