Invest With A Bank Or Broker In Singapore? Pros, Costs & Key Differences Explained

Banks: Convenience and advisory support

Banks suit passive or first-time investors who prefer a hands-off approach and value personalised support.

• Advisory services: Banks provide human financial advisers for tailored investment recommendations, and private banking teams can offer complex products for affluent clients

• Integrated experience: Manage investments, savings, and payments all together through one provider. Some banks have “all-in-one” digital platforms

• Product range: Most banks focus on conservative, lower-risk products for retail customers—think fixed deposits, insurance-linked plans, and basic unit trusts. Broader options are reserved for high-net-worth clients

• Trade-offs: Expect advisory or managed portfolio fees to be higher compared to brokerages, and execution of trades may be slower on traditional bank platforms than modern online brokers

Brokerages: Low cost and flexibility

Brokerages are best for active or experienced investors who want direct control over their portfolios.

• Lower fees: Online brokers generally offer much lower trading commissions, and some even provide zero-commission trading for certain markets or ETFs

• Extensive access: Brokers give you a wide range of choices—stocks, bonds, ETFs, options, and global market access—all in one platform

• Greater flexibility: You steer the portfolio, deciding what, when, and how much to trade

• Custody explanation: Many brokers hold assets in nominee (custodian) accounts—shares are in the broker’s name, not yours (except CDP-linked accounts for SGX shares). This may affect shareholder rights and can incur different fees

• Self-directed: While costs are lower, you’ll need self-discipline and confidence since you’re making the decisions without advisory support

Robo-advisors: Automated and affordable

Robo-advisors offer low-cost, automated investing and are great for passive investors who want a diversified portfolio with minimal effort.

• Low management fees: Annual costs typically range from 0.5%–1.0% of assets, lower than traditional advisory models

• Easy start: User-friendly apps, low minimum investments, and no need for deep market knowledge

• Automated investing: Portfolios are algorithmically created, rebalanced, and diversified for you—hands-off and convenient

• Limitations: Most robo-advisors don’t provide personalised, face-to-face advice. This may not suit investors who want an ongoing relationship with a dedicated adviser

Key considerations

Ultimately, the best choice is the one matched to your investing experience, fee sensitivity, and goals:

• New or passive investors may prefer a bank’s advisory service or a robo-advisor for simplicity and peace of mind

• If minimising cost is a top priority, digital brokerages or robo-advisors tend to offer the best value

• For those wanting total control, direct market access, and the widest product shelf, a brokerage is likely the best fit