Are you looking to start trading or investing in equities or ETFs? Choosing the right brokerage account can make all the difference in your success. With so many options out there, it can be overwhelming and confusing to know where to start. This is also the last of our “Investing for Dummies” series for the month of April. That’s why we’ve put together this ultimate comparison guide of the Best SG brokerage accounts specifically for Singaporeans. So whether you’re a beginner or an experienced trader, read on to find out which platform is perfect for your needs!
Previously, we have shared a guide on some of the key considerations. In this article, we will be comparing some of the most popular brokerage accounts based on the guide. Additionally, some of these brokerage accounts discussed will provide special offers for Singaporeans opening new accounts. So read on to get started!
Best SG Brokerage Factor #1: Product Offerings
Please be aware that this guide will compare a few of the most well-known brokerages in Singapore right now. This information is by no means an exhaustive list of all brokerages accessible to Singaporeans.
Fractional shares are more appealing to investors or students who may have less funds to start with. Majority of the brokerages below also do offer riskier products like Options and Futures. Among the listed Brokerages below, Interactive Brokers and Tiger Brokers stand out with the most product offerings.
Best SG Brokerage Factor #2: Market Access
Apart from product offerings, not all brokerages offer access to all financial markets. Not all brokerage firms offer access to all international financial markets. Finding the right brokerage that provides access to the market of your interest is crucial as a result.
Singapore investors frequently invest in the US, Hong Kong, London, Australia, Japan, and SG Markets, among other financial markets. The table below will compare these brokerages and its access to the popular financial markets. Do note that these markets are indicated as their abbreviations.
All brokerages provide access to the most well-liked US and HK markets. However, if you want to invest in Singapore REITs as well, you should think about using brokerages other than Thinkorswim or Webull. For access to the London and Japan markets, then Interactive Brokers or Saxo Markets will be the top choice.
Best SG Brokerage Factor #3: Trading Commission and Fees
Typically for every trade made, you will be charged a fee called a commission. These fees do actually add up if you do plan to trade frequently on these platforms. However, with the influx of online brokerages, these fees have been reduced to a minimum for many. There are many other fees like clearing and miscellaneous fees too. For ease of comparison, we will be mainly focusing on the Commission and Platform fees for Equities below.
Thinkorswim may be the best brokerage with no commission fees if you are keen to trade exclusively US stocks. Tiger Brokers and Moomoo are quite competitive and offer the best commission prices for SG markets. Furthermore, Webull does offer the lowest minimum fee for trading HK markets. Lastly, Moomoo does stand out with a fixed US$0.99/order if you do plan to trade US stocks frequently.
Best SG Brokerage Factor #4: Currency conversion rates
Generally, most people deposit Singapore dollars into brokerage accounts before converting to other foreign currencies. When investors are considering making investments in foreign markets, currency conversions are very crucial. This is especially true when one plans to invest a significant amount of money in the foreign stock markets.
For the sake of the comparison, we will only be looking at the two most popular conversion rates from SGD to USD and SGD to HKD. This conversion is based on 29th April 2023. For Thinkorswim, this is based on DBS preferred currency converter rate. *This figure may vary based on the bank one uses to deposit in.
In short, Interactive Brokers does offer the best currency conversion rates to both HKD and USD. However, they do charge US$2 for each currency exchange from SGD to USD. Hence, we will recommend converting larger amounts to offset the currency exchange fee.
Brokerage Factor #5: Signups and Promotion Gifts
Lastly, with the recent influx of brokerages, there are many promotions for new users signing up. If you are new to investing then this is definitely a point worth considering.
|Brokerages||Steps to do||Signup Bonus||Apply Here|
|Interactive Brokers||1. Open and deposit in quantums of $100 (cash or other assets)||1. Earn $1 in IBKR shares for every $100 deposited. (Max. $1000 worth of IBKR shares)||📈 Apply|
|Thinkorswim||1. Deposit US$3500 to your account||1. Receive rebate for transfer fees up to USD$100|
|Tiger Brokers||1. Initial Deposit >S$300|
2. Initial deposit >S$1000 and complete 5 new buy trades
|1. Earn US$ 10 Apple shares|
2. Earn US$ 30 Apple shares and 1 sure-win draw (S$16 - S$285)
|Moomoo||1. Deposit at least S$100|
2. Deposit S$2000 and complete 2 buy trades
3. Deposit a total of S$10,000 and complete 7 total buy trades
|1. Receive $2 cashback daily for 10 days (total S$20)|
2. Receive 1 free Coca-cola stock
3. Receive S$108 cash coupon
|Webull||1. Open and fund ANY AMOUNT and maintain it for 30 days||1. Receive 5 free shares (worth US$ 50 - 500) and stand a chance to win Tesla 3||🌙Apply|
|Saxo Markets||1. Fund S$3000 and do the following: Perform 3 trades and either open a RSP or invest into a SaxoWealth portfolio||1. Receive S$100|
In terms of Signups promotions, Webull does offer one of the most attractive signup promotions. Hence, if you are new to investing, this is definitely worth a consideration for you. If you are keen to sign up with Webull, click here to sign up.
With all the factors shared, we do have winners in different categories. Interactive Brokers did stand out in terms of its exhaustive product offerings, market access and best currency conversion rates. While Tiger Brokers and Moomoo offered one of the best commission rates for HK and SG markets. Lastly, Webull is currently running one of the most attractive signup promotions for new users as compared to other brokerages.
We hope that our comparison guide has made it easier for you to choose the right brokerage for your needs. There are a number of different factors to consider. We hope that our comparison guide has made it easier for you to choose the right brokerage for your needs. Each of these accounts has its own advantages and disadvantages. Do make sure to do some research and trial as user experience also varies between people. Good luck with your investment journey!
Disclosure: We do use some of these brokerage platform that was shared above.
If you are keen, check out our articles on other analysis: Trust Bank Referral, Diversification Strategies for a well-rounded portfolio and How much should your net worth be at 30,40 and 50.
Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalized investment advice. Readers should always do their own due diligence and consider their financial goals before investing in any stock.