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The article provides a detailed comparison of online stock brokerage account fees in Singapore for 2025, focusing on the costs associated with investing in SGX-listed stocks and other global markets. Here are the key points:
Types of Fees for SGX-Listed Stocks
1. CDP Clearing Fee: 0.0325% of contract value (charged by CDP).
2. SGX Trading Fee: 0.0075% of contract value (charged by SGX).
3. SGX Settlement Fee: $0.35 per contract (charged by SGX).
4. Brokerage Commission Fee: Varies by brokerage (largest cost component).
5. GST: 9% on relevant charges.
Brokerage Commission Fees Comparison
- Range: Most brokerages charge between 0.05% to 0.28% of contract value.
- Online vs. Offline: Online trades are cheaper; offline trades (via phone) are more expensive.
- Pre-funded Accounts: Offer lower commission fees but typically hold stocks in custodian accounts (not CDP).
Key Brokerages and Fees
- CGS-CIMB Securities: 0.18%–0.275% (min. 18–25).
- Citibank Brokerage: 0.18%–0.25% (min. $28).
- CMC Invest: 0.05% (min. $3) with free trades for certain tiers.
- DBS Vickers: 0.12%–0.18% (min. 10–25).
- FSMOne: Flat $8.80 for stocks, $3.80 for ETFs.
- Interactive Brokers (IBKR): 0.08% (min. $2.50).
- moomoo: 0.03% + platform fee (min. $1.98).
- Phillip Securities (POEMS): 0.08%–0.28% (min. 0–25).
- Tiger Brokers: 0.03% + platform fee (min. $1.99).
- uSMART: 0.02% + platform fee (min. $2.88).
- Webull: 0.025% + platform fee (min. $1.60).
Custodian vs. CDP Accounts
- CDP Accounts: Stocks are held in your CDP account; higher commission fees.
- Custodian Accounts: Stocks are held by the brokerage; lower fees but may incur custodian fees.
- Custodian Fees: Vary by brokerage (e.g., CGS-CIMB charges $20/quarter, DBS Vickers charges $2/counter/month).
Additional Considerations
- Pre-funded Accounts: Require upfront payment for lower fees but lock stocks with the brokerage.
- Overseas Markets: Fees may differ for US, Hong Kong, and other global markets.
- Brokerage Features: Consider user-friendly platforms, charting tools, research reports, and investor education.
Choosing a Brokerage
- Factors: Beyond fees, consider access to markets, platform usability, research tools, and customer support.
- Multiple Accounts: Investors can open accounts with multiple brokerages to compare services.
Conclusion
The article emphasizes that while commission fees are important, investors should also evaluate other factors like platform features, custodian fees, and access to global markets when choosing a brokerage. Pre-funded accounts offer lower fees but come with trade-offs like custodian fees and reduced flexibility. Testing multiple brokerages is recommended to find the best fit.