Compare the Best Online Investment Brokerages in Singapore 2023

When choosing a broker, most investors will first consider the various fees charged by brokerage firms – do take note you should not just be looking out for the lowest commission fees. Instead, first consider how often you are planning to buy and sell shares. If you intend to buy and sell frequently as active traders do, then it will make sense for you to choose a brokerage account with lower commission fees. Next, you should consider how much you plan to invest. In the case of small-time investors, you should also take note of the minimum commission fee that will be charged per trade.

While choosing your brokerage firm, do consider the available trading platforms and mobile apps for it will affect your investing experience. Different brokerages offer different trading platforms such as desktop, iOS, and android applications. With a demo account, check out the different platforms and the interfaces before you make a decision. Finally, pick a platform suitable for you based on your usage and stylistic preferences.

Another thing you would want to look out for is the account application process. Generally, brokerage firms in Singapore will allow Singapore citizens and PRs (Permanent Residents) to use SingPass MyInfo to sign up for an account – eliminating the need for forms, and supporting documents.

While browsing for a brokerage account, first consider which trading products you plan to invest in. If you have plans to invest in not only Singapore stocks but also US stocks, you may prefer to find a broker that has access to both SGX stocks and those in the US market. If you want to invest in other asset classes such as CFDs, gold, and REITs, you should then consider finding a broker that allows you to access these products too.

Before you invest, you should also have your budget ready so you can select a trading account that suits your wallet. Many brokerage firms have minimum funding requirements for their different account types, such as S$3,000 minimum deposit for Saxo's Classic account, S$300,000 for a Saxo Platinum account, and S$1,500,000 for a VIP account. Likewise, you will also find brokerage accounts that do not require minimum funding, such as TD Ameritrade. Scroll up to view and compare different online brokerages' account types and minimum funding requirements.

Most brokerage firms provide news and research materials prepared by their in-house professional analysts and experts to help investors interpret market behaviour and understand stock performance of companies. Some brokers also hold webinars and events where professional investors and traders share their views on the market's direction and answer questions posed by fellow traders and investors.

Forex trading involves the price movements of major, minor and exotic currency pairs across the globe – such as the EUR/ USD, and USD/ SGD. Just remember this: participating in forex trading is conceptually the same as going to the money changer. When you buy USD/ SGD, you’ll receive (your buy) USD in exchange (your sell) for your SGD.

Commodity trading involves gaining exposure in natural or grown commodities such as gold, silver, energy (oil, natural gas, etc) and agriculture (corn, soybeans, etc). Commodities are an interesting asset class to trade in as you have to be fully aware of the economic, political and weather developments.

Shares, otherwise known as stocks, are securities that signify part-ownership of a company. This means, if you have Singtel or CapitaLand shares, you’re a part-owner of that company. Hence, It is important to use fundamental analysis to understand what business the company is involved in. Stocks often offer dividends which could be a significant portion of your total returns.

Bonds are considered fixed income instruments because when you own a bond, you are entitled to fixed and periodic payments. So, you can think of yourself as a lender of money to a borrower. And the payments are the interest you earned on the principal amount or the amount you lent.

In financial markets, an index is a financial measure of a certain portfolio of securities (be it stocks or bonds). In Singapore, the Straits Times Index (STI) tracks the performance of the top 30 companies listed on the Singapore Exchange. The 30 STI stocks were selected to best indicate Singapore’s economic health. You typically gain exposure in Indices via financial instruments called CFDs or by buying ETFs.

An ETF (Exchange-Traded Fund) is a collection of securities (normally stocks) which tracks or replicates the performance of an underlying index. One such example is the STI ETF, which tracks the Straits Times Index. ETFs can consist of various asset classes such as stocks, commodities, bonds, or a mixture of the above. Since an ETF is marketed as a security, it has a buy and sell price and can be traded on an exchange.

A CFD (Contract For Difference) is a contract between you and the brokerage firm to exchange the difference in the value of an asset between the time you first open a position and when you close it. Most brokerages offering CFDs will offer CFDs across main asset classes such as FX, equities and commodities.

Futures are financial contracts that obligate traders to transact an asset at a predetermined date and price in the future. Futures are traded on an exchange and you can buy futures on a variety of asset classes such as forex, commodities, equities, and indices.

Mutual funds or unit trusts are pools of money collected from investors and subsequently invested in a diversified basket of securities such as stocks, and commodities. Since these funds will be used to buy a variety of securities, and other asset classes at times, it is generally considered a safer investment instrument.

If you want to start trading investment products in Singapore, you must be above 18 years old and not an undischarged bankrupt at the time of application. Also, decide the minimum fund with which you are comfortable to start your investment journey.

The Central Depository (CDP) account, managed by the Singapore Exchange, allows you to safely keep the shares you have bought. You can create your CDP account online.

A trading account allows you to buy and sell shares in the Singapore securities market. There are many different brokerage firms for investors to choose from. Do note that an investor may also have multiple trading accounts with different brokerages simultaneously.

Some factors to consider when choosing what shares to buy is the industry, business model, management, growth indicators (share price or dividend yields), stability (debt/ EBITDA ratio). Finally, does the stock you investing in suit your investment style, strategy, and risk appetite?

Place an order with your broker to buy or sell your shares. Before placing an order, decide what kind of order you want to place, i.e. market order or limit order. Also, how long will the order be valid for – does it expire at the end of the trading day or will it be valid till a specific date?

Are you a short-term or long-term investor? How often will you review your investments? Regardless of what kind of investor you are, it is advisable that you review your investments from time to time so that you are able to make investment decisions or change investment strategies based on market movements. If you are unsure, always seek advice from a professional such as your broker or advisor.