Sunday, August 2, 2009

Brokerage Fees

I am finally going to start trading soon. Here is a list of brokerage firms that I have research and found to have one of the lowest commission charges around.

I have shortlisted these 3 firms. DBS Vickers, Citibank and POEMS.

DBS Vickers

Normal Account: Link here


If trade using cash upfront : Link here



Citibank Brokerage

For link to the Citibank website: Click here


POEMS

For link to the POEMS website : Click here



Thus looking at the commission charges, I will definitely use DBS Vickers with the cash upfront. It has the LOWEST brokerage / commission charges for the Singapore market at 0.18% or minimum $18. However cash upfront means that before you make the purchase of the shares, you have to transfer the money from your DBS/POSB account into your DBS Vickers account. ( This can be done real time) However, withdrawing of the money in this account back to your DBS/POSB account requires 1 working day. Personally I do not see a problem with this, unless you are doing contra trading.

If you are going to do contra trading, Citibank's internet commission is the lowest, at 0.28% and minimum charge of $22. Though DBS Vickers' normal net account has a 0.28% minimum too, it has a higher minimum charge of $25.

I placed POEMS in the comparison too, because I do use phone trading in the past, especially for emergencies. However, it has a rather high (though considered the market rate) for commissions.

Those are interested to trade together, just drop me an email at NTUChartist@hotmail.com

14 comments:

Anonymous said...

Try DMG ONLINE it charges 0.275% only for first 50000

Anonymous said...

I just saw a promotion by Citibank Brokerage. Sign up between 17 August and 30 November 2009 and your first trade commission will be free. Interesting... think they're trying to get the market share and awareness since they're not a major player in brokerage. Worth a shot.

- Advisor

ntuchartist said...

Actually I have an account with Citibank. However it works the same way as DBS Vickers cash upfront. I.e. you need to have your cash in the account before trading, and no credit is given.

In this case, I would think, might as well use DBS vickers? Cos they have a lower commission rate.

Anonymous said...

please enlighten me, why will you say DBS got the lowest commission fee than citibank?From the table DBS is charging at min trade $25, how come is $18? while citibank is at $22. can explain to me? I am starting my 1st trade soon.

ntuchartist said...

For DBS, only the cash upfront trade has the min commission charge of $18.

For this lower commission charge, you have to access your DBS/POSB iBanking, and from there transfer money into your DBS vickers before buying the shares through DBS Vickers. ( This means that you have to actually place the money with DBS before you can trade at this special commission)

However, if you choose to use DBS Vickers to buy the stock first, and pay later on through means like EPS, cheque..etc. you will charged based on the higher rate.

Does this help?

Anonymous said...

I normally use DBS to invest but selling will use other trading account.
Of course contra will other trading account as limit is higher :)

ntuchartist said...

yup..that is what i do too.

Anonymous said...

Great information here. Thank you to all,... what about UOB-Kayhian ? I think their rates are higher, but could it be because they have better features in their trading website ?

ntuchartist said...

That i am not sure, i have not used their interface before..so can't comment on them.

Frankly, I would recommend getting a few brokerages to try but eventually use the one with the lowest commision to trade.

Anonymous said...

Thank you, NTU,...

Pfeiffer said...

Hi there, Vickers Cash Upfront is $18 per transaction for pure buying(for keeps) and buying and selling on contra. If you are selling after your shares have been credited into your CDP account, it is $25. :)

Anonymous said...

HI, newbie here. a quick question. I alreadry have a CDP account. by opening a DBS vickers account...do they link them together or will i have a new account?

ntuchartist said...

During the application of the Vickers account, they will ask you for your CDP account in order to link it.

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