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

Whether to invest with a bank or a broker in Singapore depends on your investment style, experience and budget. 

Banks offer convenience and access to human advisers—ideal for those who want guidance or the simplicity of managing money and investments all in one place.

On the other hand, brokerages usually give you lower fees, access to a much wider range of investment options (including international markets), and more flexibility to manage your own portfolio. Choose what fits your needs, comfort, and financial experience best.

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

Related links

• Guide to comparing brokerage accounts in Singapore (2025)

• Compare the best investment and online brokerages in Singapore

• Compare the best robo advisors in Singapore

• How to start investing with a $1,000 in Singapore

• Understanding 5 key types of investment strategies