You’ve done your research about investing and growing your money. Now, you’re ready to take the next step and start building your portfolio. But where do you start?
You might want to start by choosing an investment broker and trading platform where you can buy your first share. But choosing the best broker in Singapore can be overwhelming. A good brokerage account offers access to a wide range of investments, paired with robust platforms and competitive pricing.
One of the largest brokerages in Singapore is DBS Vickers which is a subsidiary of DBS Bank – one of the major and reputable banks in Southeast Asia. However, the best broker in Singapore for you will depend on several factors, such as your trading needs, investing knowledge, risk tolerance, and budget. We have curated some of the top brokerage accounts in Singapore to help you.
How To Choose a Broker in Singapore?
1. Investment Brokerage Fees and Commissions
Investment brokers and trading platforms charge a commission fee for every transaction. Note that there are two parts to this fee: the fee or percentage of your transaction and the minimum dollar amount. Some of the cheapest investment brokerages for Singapore stocks are Moomoo and Tiger Brokers which charge 0.03% commission with a S$0.99 minimum commission fee.
However, the fee structure may vary per broker and may include commission charges, account maintenance fees, and withdrawal fees. Some brokers may offer commission-free trades for certain investment products.
2. Investment Options and Products
A good brokerage account has a wide range of investment products to cater to different investment goals and risk tolerance levels. These might include stocks, bonds, ETFs, futures, options, and more.
Some brokers might also offer access to international financial markets. Consider your own investment needs and make sure the broker can accommodate them.
3. Trading Platform and Tools
You’d also want to check out the broker’s online trading platform. Remember, not all trading apps are created equal. Some are more user-friendly, and intuitive, and have more advanced tools than others.
Consider if the trading platform has tools for market analysis, including charting tools, real-time quotes, news feeds, and more. Plus, take into account the speed and responsiveness of the app when showing prices and executing trades.
4. Security and Reliability
Financial security is crucial when it comes to choosing a broker. Ensure the brokerage is regulated by the Monetary Authority of Singapore (MAS). Additionally,, look into the broker’s track record and whether they have sufficient measures in place to protect your funds and personal information.
5. Customer Service and Support
Choose a broker that offers reliable and accessible support anytime you need it. For instance, the brokerage account must have email support, a customer service hotline, or a live chat. Some brokers also offer educational resources to help improve your financial literacy.
Comparison of Top Brokerage Accounts in Singapore
From bank brokerages, such as DBS Vickers, to independent brokerages like Saxo Markets, it can be overwhelming to choose the best brokerage account – especially for investment beginners. We have filtered some of the best brokerages in Singapore that will help maximize your returns.
|Minimum Fee and Trading Fee
|Stocks, ETFs, Options, Warrants, Funds, Futures, Unit Trusts, Margin, ADR, REITs
|Min. Commission Fee: 0.03%
Trading Fees: 0.0075%
|Accessing Global Markets
|Stocks, ETFs, Options, Warrants, CBBCs, Futures, Unit trusts, REITs
|Min. Commission Fee: 0.03%
Trading Fees: 0.0075%
|Wide Range of Investment Products
|Stocks, Currencies, Bonds, Mutual Funds, Futures, ETFs, Cryptocurrencies, Gold, Silver, And More
|Min. Commission Fee: S$2.50
Trading Fees: 0.08%
|ADR/GDR, Warrants, REITs, Bonds, Preference shares, Common shares, ETFs, CBBCs, Daily leverage certificates
|Min. Commission Fee: S$25
Trading Fees: depends on the trading value
|Premium Trading with Minimal Fees
|Stocks, Futures, Bonds, Forex, ETFs, Mutual Funds, Options, Cryptocurrency ETPs, Unit Trusts, And Commodities
|Min. Commission Fee: No minimum
Trading Fees: 0.08%
Insight: Is Moomoo or Tiger Brokers Better?
Both Moomoo and Tiger Brokers are popular online brokerage platforms in Singapore. They both offer competitive fees, access to multiple markets, and user-friendly interfaces. In fact, these two are the cheapest online brokers offering a minimum commission fee of 0.03%. However, if you want to dip your toes in the Australian market, Tiger Brokers can give you access.
In terms of their online trading platforms, both online brokerages feature an easy-to-navigate interface as well as a plethora of trading tools and resources. Ultimately, the better choice between Moomoo and Tiger Brokers will depend on your specific needs and preferences as an investor.
While Moomoo SG is a newcomer in the Singapore market (March 2021), it is slowly growing in reputation with its intuitive and feature-reach platform. It is a trading platform that is a wholly-owned subsidiary of NASDAQ-listed Futu Holdings Ltd. With Moomoo, you will have one-stop access to professional-grade tools, real-time quotes, and level 2 market data.
Moomoo boasts a wide range of investment products, including stocks, ETFs, options, warrants, funds, futures, and more. It also provides access to global markets, such as the US, Hong Kong, and China.
What we like about Moomoo:
- Low commission fee of 0.03% per transaction amount for SG stocks
- Minimum commission fee of S$0.99 (except for commission-fee months)
- Offers lifetime zero commission for US stocks and S$0 platform fees for 1 year for the US market
What people are saying:
“I opened my account last month, and so far so good. Opening was very easy, from submitting details, to transferring of funds and activating the account. I think everything was done in about 5-hrs, then got my free Apple share the next day. ” – Jasper Hernandez
Another newcomer in the market, Tiger Brokers is one of the cheapest online brokers in Singapore. It offers a low fee of 0.03% for every trade made. If you’re trading US stocks, this brokerage account charges USD 0.01 per share with a minimum fee of USD 1.99. Plus, it has no hidden fees and easy access to global markets.
As for its online trading platform, Tiger Brokers offers real-time stock quotes, multilingual 24/7 customer service, and seasoned investors.
What we like about Tiger Brokers:
- Supports U.S. equities, HK equities, ETFs, options, and futures
- Outstanding fund security since funds and investments are kept in a separate bank account and custodian account. This means your funds will not be commingled with other accounts.
- No inactivity fee or custodian fee
What people are saying:
“I am an active user of Tiger Broker and it has been nothing but amazing!” – Caressa Lee
Founded in 1978, Interactive Brokers has become one of the best online brokerage firms in Singapore. It provides excellent research, education, free trading tools, and more. Best of all, it provides a wide range of investment products, including trading stocks, currencies, bonds, mutual funds, futures, EFTs, cryptocurrencies, gold, silver, and more.
What we like about Interactive Brokers:
- Low fees – no ticket charges, no minimums, and no technology, software, platform, or report fees.
- Two pricing plans: IBKR Lite and IBKR Pro; both offer zero commission fees
- Clients in over 200 countries and territories
With over 35 years of experience, DBS Vickers offers low commission fees and a low minimum commission fee of S$10 when you buy Singapore stocks. Aside from Singapore stocks, DBS Vickers also deals with bonds, ETFs, REITs, structured warrants, and more. This brokerage firm offers different accounts: cash account (online), young investor, CPF funds, SRS funds, and cash upfront.
What we like about DBS Vickers:
- A subsidiary of DBS bank, making it one of the safest brokerages in Asia
- S$0 Vickers account opening; no initial deposit or fee required.
- Trade with Central Provident Fund (CPF)
SAXO Markets is a good option for new investors but it is also popular among experienced investors. Backed by a Danish investment bank known as Saxo Bank, this online brokerage firm is known for having relatively low fees and no custody fees for Singapore stocks. Saxo Markets also offer a wide range of market access and an intuitive user experience.
What we like about Saxo Markets:
- Access to over 22,000 stocks and more than 6,400 ETFs across 37 exchanges worldwide
- No deposit fees, withdrawal fees, and withdrawal limits
- Intuitive trading platform supported by a good selection of trading tools
What people are saying:
“Saxo Markets trading is a very user friendly platform for investment in Stock Market. The UI is very easy. All reports are available as needed. I have never faced any challenges so far with Saxo. Even their support is super responsive and professional.” – Abhishek Jain
Steps To Open a Brokerage Account
Before you can open a brokerage account in Singapore, you need to open a Central Depository (CDP) account. But what’s the difference between the two?
- CDP Account: This is managed by the Singapore Exchange (SGX) and is where your securities are safely held. It provides integrated clearing, settlement, and depository services for a wide array of investment products in the Singapore Securities Market. You can open a CDP account online and use MyInfo for a faster application.
- Brokerage Account: This is the account you’ll open with your chosen brokerage firm. You’ll need to have an account to buy and sell investment products on the trading platform.
Opening a brokerage account typically follows a straightforward process. Note that the process might vary between different brokers.
Step 1 – Choose a Broker
Research and compare different brokerage firms in Singapore based on factors such as fees, trading platform, customer service, and the range of available investment products. Once you’ve made a decision, visit the broker’s website.
Step 2 – Apply Online
Today, most brokers in Singapore have an online or mobile app where you can apply. This is where you will fill out an online application form. Some online brokerage firms will ask you to answer a questionnaire where they will evaluate your risk appetite and other preferences.
Depending on the brokerage firm, they may ask for supporting documents, including personal and financial information.
If you prefer to open an account in person, you can visit the broker’s place of business. Don’t forget to bring along any important documents that are required.
Step 3 – Open a CDP Account Online
- You must be at least 18 years old
- You must not be an undischarged bankrupt.
- Singaporeans/PRs may apply using MyInfo (note that processing time will be 5 business days)
You can click here to submit your individual CDP Securities Account application online.
If you are opening a brokerage account with an online broker, such as Moomoo, the process will be quick and easy.
- Download the online trading app on your mobile phone
- Sign up for a brokerage account by filling in the details or using MyInfo
- Answer standard disclosure questions
- Wait for trading account opening confirmation
- Top up your account and start trading
Types of Investments Available Through Brokerage Accounts
- Stocks: Stocks represent shares of a company, and owning them gives you a claim on part of the company’s assets and earnings.
- Bonds: Bonds are debt securities issued by the Singapore government or corporations to raise capital. It is essentially a loan you give to the government or a corporation. In return, you will receive interest along with the principal amount over a specified period.
- Mutual Funds: Mutual funds invest in a diversified portfolio, including stocks, bonds, and other assets using money gathered from multiple investors. With this option, you can access a wide range of investments at a lower risk compared to investing in individual securities.
- Futures: These derivative contracts give investors the right or obligation to buy or sell an asset at a predetermined price and a future date.
- ETFs (Exchange-Traded Funds): ETFs are investment funds traded on stock exchanges, much like individual stocks. An ETF holds assets such as stocks, bonds, or commodities and aims to track the performance of a specific index. Their typically low expense ratios and fewer broker commissions make them appealing to investors.
- CFDs (Contract for Difference): A CFD is a contract between a trader and a broker where the trader agrees to exchange the difference in the value of a security or financial instrument from the time the contract is opened to when it’s closed. They can be used to trade a wide range of markets including shares, indices, forex, commodities, and more.
Whether you’re a beginner looking for an easy-to-navigate platform with ample educational resources, or an experienced trader in search of advanced tools and diverse market access, there’s a brokerage account that can meet your needs. However, the best broker for you will depend on your individual needs, investment goals, and risk tolerance.
- Investment brokers and trading platforms charge a two-part commission fee: the fee or percentage of your transaction and the minimum dollar amount.
- A good brokerage account has a wide range of investment products, including stocks, bonds, ETFs, futures, options, and more.
- Choosing a brokerage account with an intuitive trading platform with market analysis tools as well as real-time quotes. Consider also the speed and responsiveness of the app.
- Some of the cheapest investment brokerages for Singapore stocks are Moomoo and Tiger Brokers.
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