4 Ways to Have the Most Efficient Broker in Singapore

Choosing an online broker is not an easy task. It is also one of the vital things in trading to get the most out of your investment. Consider a few things to make sure you'll get a higher return in the future.

See online brokerages in Singapore. 

1. Choose between international and local brokers.

A local broker will assist you physically in terms of supporting your trading needs. You’ll get hold of them quickly and efficiently. They have their offices to open new accounts. 

Apart from that, the comprehensive service they have are broker-assisted traders, stocks research, platform demos, and funding services. 

Being new to stock trading means needing immense support, and a local broker can give you just that. The downside is that you need to pay a higher fee. 

On the other hand, if you already have ample knowledge about stock trading, then opting for a foreign broker could apply to you. 

However, the disadvantages would be the lack of customer service, and account funding may be less straightforward. 

1. Know More About the Fees You’ll Need to Pay to a Broker 

Some brokers’ trading fees are higher. Apart from the trading fees, you also have to pay for other charges, like exchange fees, brokerage fees, good and services tax, and CDP clearing fees. 

Trading fees depend on the market access, trading size, and the type of products you trade. 

Typically, the minimum commission of Singapore brokers is $25 to $28 per transaction below S$50,000. 

If you are searching for cheaper charges, SAXO has a lower commission rate of 0.12%. The only disadvantage is that the custodian account takes care of your stocks instead of the CDP. 

1. Look for an Online Broker Allowing More Market Access

As a trader, you surely want to look for markets from emerging countries. Some brokers might give you access to a different market, but some don't allow that since Singapore's stock market is less volatile. 

Besides the market access, you might want to search for product classes, like Exchange-traded funds(ETFs) and contracts for difference. 

So, before opening an account for a broker, ensure that they give you access to the classes and larger markets. 

1. Consider Banks or Brokerages for Your Stocks Trading Account 

Singapore’s broking business sees the involvement of banks to take up a market share from stockbrokers. So, you can easily find banks allowing trading of funds from your bank account. 

Some of these banks are DBS Vickers, Maybank Kim Eng, and iOCBC. But using a bank is a small factor because most brokerages allow the transfer of funds to your trading account. 

Other Things for Consideration

If you are not too busy who don't need a broker for trading, then you are the one who might want to opt for a trading platform. Choose a user-friendly platform that will assist you in trading. 

More on robo advisors Singapore.