Best Investment Brokerage Platform for Exchange-Traded Funds (ETFs) 2022

Choose from MoneySmart's curated list of best brokerages to invest in ETFs from 3000+ markets and Learn how to maximise returns. Read More
We found 16 Online Brokerages for you!
Saxo logo

Min. Funding

$0

Min. Funding
Online Promo
Flexible pricing plans
Global ETFs Available
3000+
Stock Holding Type
Custodian
Min. Funding
$0
Online Promo: Valid until 07 Sep 2022 - See more details below
Apply Now
moomoo (by FUTU) logo

Min. Funding

$0

Min. Funding
Online Promo
Low commission fees
Min. Commission Fee US Stocks
US$0.99
Min. Commission Fee SG Stocks
S$0.99
Min. Funding
$0
Online Promo:
Stand to win Tesla share worth up to S$1236 when you open an account & deposit ≥S$2,700!
Valid until 30 Jun 2022 - See more details below
Apply Now
Interactive Brokers logo

Min. Funding

$1

Min. Funding
Min. Commission Fee US Stocks
US$1
Min. Commission Fee SG Stocks
$2.50
Min. Funding
$1
Apply Now
PhillipCapital logo

Min. Funding

S$0

Min. Funding
Online Promo
Global ETFs Available
44
Stock Holding Type
CFD
Min. Funding
S$0
Online Promo:
Receive S$100* when you open a Phillip MetaTrader5 or Phillip Nova account!
Valid until 30 Jun 2022 - See more details below
Apply Now
uSMART Securities logo

Min. Funding

S$0

Min. Funding
Online Promo
No minimum commission
Global ETFs available
3000+
Stock Holding Type
Custodian
Min. Funding
S$0
Online Promo:
Enjoy up to SGD720 worth of welcome gift!
Choose from Free 0.1 Apple Share, 0.1  TESLA share or investment courses worth up to SGD 720 plus S$15 cash voucher upon account opening
Valid until 31 Jul 2022 - See more details below
Apply Now
CSG-CIMB Securities logo

Min. Funding

S$0

Min. Funding
Online Promo
Global ETFs Available
Over 8 countries
Stock Holding Type
Custodian
Min. Funding
S$0
Online Promo:
Enjoy SGD100 cash credited into your account when you sign up exclusively via MoneySmart!
Terms and conditions apply
Valid until 30 Jun 2022 - See more details below
Apply Now
IG logo

Min. Funding

S$0

Min. Funding
Online Promo
Global ETFs Available
2,000+
Stock Holding Type
Market Maker
Min. Funding
S$0
Online Promo:
Enjoy S$188 bonus deposit with a one-time deposit of ≥$5,000 & transact 1 trade! 
Valid until 30 Jun 2022 - See more details below
Apply Now
PhillipCapital logo

Min. Funding

S$0

Min. Funding
Online Promo
Min. Commission Fee for SG Stocks
0.08% (no min.)
Stock Holding Type
Custodian
Min. Funding
S$0
Online Promo:
Receive S$100* when you open a new account with Phillip Nova !
Plus receive promotional commission rates for selected SG Stocks, ETFs & US Stocks !
Valid until 30 Jun 2022 - See more details below
Apply Now
PhillipCapital logo

Min. Funding

S$0

Min. Funding
Global ETFs Available
3,000+
Stock Holding Type
Custodian
Min. Funding
S$0
Apply Now
TD Ameritrade logo

Min. Funding

S$0

Min. Funding
Global ETFs Available
3,000+
Stock Holding Type
Custodian
Min. Funding
S$0
Apply Now
CSG-CIMB Securities logo

Min. Funding

S$0

Min. Funding
Global ETFs Available
2,000+
Stock Holding Type
CDP
Min. Funding
S$0
Apply Now
City Index logo

Min. Funding

S$0

Min. Funding
Online Promo
Global ETFs Available
17
Stock Holding Type
Market Maker
Min. Funding
S$0
Online Promo:
Save up to S$12,000 trading costs with City Index for the first 12 months!
Valid until 31 Jul 2022 - See more details below
Apply Now
CMC logo

Min. Funding

S$0

Min. Funding
Global ETFs Available
90+
Stock Holding Type
Market Maker
Min. Funding
S$0
Apply Now
Plus500 logo

Min. Funding

S$200

Min. Funding
Global ETFs Available
95
Stock Holding Type
Market Maker
Min. Funding
S$200
Read More
Tiger Brokers logo

Min. Funding

$0

Min. Funding
Min. Commission Fee US Stocks
US$1.99
Min. Commission Fee SG Stocks
0.06% of Trade Value
Min. Funding
$0
Read More
DBS logo

Min. Funding

S$0

Min. Funding
Global ETFs Available
70+
Stock Holding Type
CDP
Min. Funding
S$0
Read More

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Exchange Traded Funds (ETFs)

What are ETFs?

An Exchange Traded Fund (ETF) is a collective investment, like a unit fund. Investors also buy units in an ETF. But unlike unit funds, an ETF aims to track or replicate a particular index; for example, the Straits Times Index (STI) or the S&P 500. The returns of an ETF are meant to match the index that it tracks or replicates. That means the performance of the ETF will match the performance of the market in general, rather than the performance of a few specific companies in the market.

How does an ETF work?

Let’s say I want to track the STI. I would buy a bunch of shares from many different companies, and create a basket of stocks. This basket would be a microcosm, or miniature, of the STI (not technically correct, but a close enough example). When the STI as a whole makes money, my miniature version should as well. And vice versa when it goes down. Now, remember that the STI is composed of many different companies. For it to slide, the majority of those companies would have to make a loss. That’s not impossible, but it’s improbable that so many companies go tumbling downhill at once.

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Why invest in ETFs?

Passive Management

As an ETFs track an index, they are passively managed. There is no need for you or a fund manager to constantly check on or manage the funds. Since there’s no need to pay a fund manager, you get more of the returns.

Dividend yield

Stocks are one of the underlying assets of an ETF. Hence, an ETF also has dividend payouts as these dividends come from the stocks it invests in. This acts as a form of passive income which appeals to passive investors. ETFs pay good dividends, which appeals to passive investors.

Diversification

An Exchange Traded Fund (ETF) is a collective investment which means that it contains a basket of equities. For example, the SPDR Straits Times Index ETF which tracks the STI index contains 30 stocks. This helps to reduce the risk as compared to investing in a single stock.

Top 10 ETFs to invest in listed on SGX

ETFAsset ClassExpense ratio
SPDR STI ETFEquities0.30%
Nikko AM Singapore STI ETFEquities0.30%
ABF Singapore Bond Index FundBonds0.25%
Phillip Sing Income ETFEquities≤0.70%
Lion Phillip S-REIT ETFREITs0.60%
SPDR S&P 500 ETFEquities0.09%
SPDR Gold Shares ETF Commodity (Gold)0.40%
Ishares Barclays USD Asia HY Bond ETFBonds0.50%
NikkoAM-StraitsTrading Asia ex Japan REIT ETFREITs0.60%
Nikko AM SGD IG Corp Bond ETFBonds0.30%

How Much Does Buying an ETF Cost?

The costs of ETFs can be quite variable. However, most ETFs have TERs that are much lower than unit funds (around 0.5%). It is possible to start buying ETFs with fairly low capital (as little as $1,000, depending on the going rate at the time).

How to choose what ETFs to buy?

Index tracked

The returns of an ETF are meant to match the index that it tracks or replicates. Hence, returns of the ETF should be similar to the index it tracks. However, this does not mean that returns are the same due to the possibility of ‘tracking error’.

Weighting

Besides checking the index the ETF is tracking, you should also check exactly what the ETF is investing in. That means to check for exactly what stocks, bonds or REITs is it invested into as this will impact the performance of the ETF.

Your investment objective

Even if the ETF does show decent returns in the past, you need to ensure that the ETF aligns with your investment objectives. For example, if you have a good outlook on the technology industry, you would not buy an ETF that invests in retail mall REITs even if it has shown good performance.

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How to invest in ETFs?

Step 1

Open a brokerage account

A brokerage account enables you to purchase and sell publicly listed REITs. You have a wide range of brokerage options to select from. Some investors also have multiple brokerages but this is not necessary but based on your preference.

Step 2

Open a CDP account

If you want to purchase Singapore REITs, you are required to open another account besides a brokerage account. Before you can purchase equities listed on the SGX exchange, you would need a central depository (CDP) account. A CDP account allows you to safekeep the Singapore REITs you have purchased.

Step 3

Purchase your chosen ETF

Place your order with your broker for the ETF you want the purchase and the number of units you would like to buy. Alternatively, you can also invest in ETFs using a regular savings plan where you invest a fixed amount every month.