Update: Promotion extended to 31 December 2017!
Currently, the best online brokerage for buying stocks in Singapore charges only 0.06% commission with a minimum of $5, from now till 31 December 2017 (this may be extended). I could give you a huge comparison table of all the cheapest brokerages in Singapore, but I’m just gonna tell you the answer immediately:
The lowest cost brokerage for buying stocks in Singapore currently is DBS Vickers Cash Upfront.
Why? Becuase of their current promotion from now until end of 2017. However, to get the 0.06% commission rate, you must read the terms and conditions of the promotion carefully:
- The promotional commission rate of 0.12%, minimum S$10 is applicable to all cash upfront trades executed via DBS/POSB iBanking.
- This is only applicable for Singapore stocks
- Eligible clients are entitled to a SGD5 rebate per trade executed online. The Promotion is applicable to Singapore and foreign market trades executed online via www.dbsvickers.com, mobile trading and/or DBS/POSB iBanking.
- This Promotion is applicable to cash and cash upfront accounts. Trades executed with CPF and/or SRS funds are eligible for this Promotion.
So, if you’ve read the above terms properly, you get the lowest 0.06% commission rate when you buy more than $8333.33 of stocks, generating a $10 commission and a $5 rebate for a net $5 in commission ($5/$8333.33 = 0.06%)!
However, take note of the following:
- You must use your DBS Vickers CASH UPFRONT account, not the normal cash account. This means you have to deposit money to the Cash Upfront account through DBS/POSB, and however much money you deposit will be how much stocks you can buy.
- The current DBS Vickers Cash Upfront user interface is NOT user-friendly. That account cannot be accessed using their mobile apps, and can only be accessed through DBS/POSB i-Banking.
- One great thing I love about the Cash Upfront account is that unlike other “custodian”-type brokerages that charge fees for holding your stock, the Cash Upfront account deposits your stocks into your CDP (Central Depository) account, so that means you are still eligible to go for AGMs (Annual General Meetings)!
- DBS Vickers Cash Upfront account can only be used to BUY stocks, not sell stocks (the only exception is contra, where you sell stocks within the 3-day settlement period since the stocks have not been deposited into your CDP account yet). This means that you will need to use the normal DBS Vickers Cash account (or any other broker that is linked to your CDP acocunt) to sell your stocks eventually. Currently the rate is 0.28% with a minimum of $25 for selling Singapore stocks.
- Trades will automatically be amalgamated when the trades are of the same stock, currency, settlement mode and trade date as well as the same mode of trade. This means that if you execute two buy orders of the same stock at $8333.33, the commission will be combined into $20 but you may only get one $5 rebate. So if you need to buy lots of stocks, do it on different days.