SCB Singapore has a new i-banking cum brokerage system where you can enjoy NO MINIMUM brokerage fees. The catch is:
-No Contra. You have to have the cash in your Securities account before they allow you to key in your order. However, settlement for SGX is still done in T+3. Not a problem for those who are investing with money they have. Only a problem for those who contra beyond their means.
-Your shares will be kept in SCB Nominees. This subjects you to the counterparty risk of SCB failing; which I think is pretty remote. There are no custodian fees.
EDIT: I've been informed that even if SCB does fail; the legal and equitable titles are still ours; the shares will still belong to us should SCB Nominees fail.
-0.20% for SGX shares and 0.25% for NYSE, NASDAQ, Paris Bourse, Deutsche Boerse, London Stock Exchange, Swiss Stock Exchange, Tokyo Stock Exchange, Australian Stock Exchange, Amsterdam Stock Exchange etc. Notably absent is the Bursa Malaysia.
I am very excited with the prospect of being able to invest outside of Singapore at very cheap rates.
I am also very excited with the prospect of being able to do Dollar Cost Averaging on stocks which I think are at good prices, one lot by one lot, since I do not have a high capital. (e.g. Sabana REIT and PohTC)
Lastly I am excited with the prospect of being able to practice my TA with small lots. e.g. I can buy 1 lot of, say, Noble Group if I believe it's TA signals are good. This, I believe, is better than paper trading (which I think is useless, by the way) and better than risking a large portion of my capital, since I still am at the learning stage.
An example of brokerage fees:
1 lot of PohTC- 40c ($400)- commission: 80c
1 lot of Noble Group Ltd- $2.00 ($2000)- commission: $4
Obviously for the people who trade with minimum $10,000 each time, this is not a big breakthrough but for small fry like me, this is a very exciting prospect.
I will be going down to the Battery Road Branch tomorrow during lunchtime to apply.
The Old Boy's
