Saturday, August 24, 2013

Opening a Trading Account in Singapore

Philip Securities was just having an exhibition booth last week in NTU. The timing was just nice, I just wanted to find out more about the Singapore trading matters. In case you don’t know, Philip Securities has a very well-known online trading platform called POEMS, which is the pioneer of all trading platforms in Singapore.

Thanks to my friend Boon Kin who told me about the booth. We both approached the booth to enquire more about opening an investment account in Singapore. We have more questions to ask because we are not local, more procedures to do. But, good enough, we are Malaysians, what we need is just to provide our MyKad, and a supporting document for our mailing address like bank statement. The rest, we can fill up the application forms at the booth.

There are three forms to be filled up. One is to open a trading account in CDP (Central Depository System), one is to open a brokerage account in Philip Securities, another one is a linkage form for CDP and broker. Based on the Philip Securities’ official website https://www.phillip.com.sg/, foreigner who is willing to open an account with Philip should have an initial deposit of SGD5000. However, it was not required then. What was required were just the three forms, and a personal photo, which was taken by the booth operator.

Brokerage fee + Clearing fee + SGX Access Fee

Compared with Malaysia’s one, brokerage fee isn’t cheap here. It is at minimum of 0.28% or SGD25 per transaction. Besides that, as per normal, we need to pay clearing fee for the trade done, which is 0.04% of the contract value, and capped at SGD600. One more, SGX access fee, which is 0.0075% of the contract value. I’m not sure what does SGX access fee mean, or what is it paid for. Perhaps, as its name, to gain access to view the stock list in SGX, we need to pay this.

Not as cheap as trading in Malaysia, but I would do further research on Singapore stocks and their returns. Hopefully I can get some very good findings that worth me to pay more and invest in Singapore.

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