With so many brokerage firms in Singapore to choose from, finding the best online broker for your needs can be a very daunting process. What should you prioritise? What are the commission costs for transactions? What markets can I invest in?
What kind of services do they offer? To help you narrow down your search, we have prepared the below guide on the best online brokers in Singapore. For most retail investors, commission cost of trading should be the most important factor in choosing an online broker.
For bigger trades, brokers typically charge about 0. For people who trade frequently, such cost can build up quickly. Therefore, an investor should attempt to minimise cost of transactions as much as possible. In our opinion, SAXO Capital Markets is the best online brokerage in Singapore because it combines low cost, great market access and easy user interface into one offering. First, SAXO only charges 0. SAXO lowers this industry leading commission even further to 0. SAXO's advantage is apparent in its foreign market access as well.
It provides online trading in 36 global markets, and also offers market leading commission rates for the major international markets like the US, HK and Japan. Below is a summary chart of SAXO's offerings, which you can compare to others in our summary table at the bottom. As you can see, SAXO has a variety of offerings at rock bottom prices, making it ideal for both casual investors and advanced traders or small and big investors alike. It also has one of the lowest spreads for FX trades in the market.
Lastly, our analysts have also tried all available online trials of each online brokerage offering, have found SAXO's user interface to be the most intuitive and the easiest to use.
Combining price competitive, market access and ease of use, SAXO Capital, in our opinion, provides one of the best offerings for investors and traders alike. CFDs are basically instruments for margin trading, meaning you are borrowing to invest more money than you have on hand. As such, it can dramatically increase both your gains and losses. Because of this nature, CFDs should generally recommended for seasoned experts who know how to trade in savvy manners.
This is because City Index's commission and financing interest are both either match or are lower than even Saxo's. City Index also offers a robust and competitive trading platform for forex trading. However, the Singapore market can be quite limiting in terms of options, as Straits Times Index only includes 30 stocks. If you are looking to diversify into other markets like the US, Hong Kong and Thailand, you might want to consider options.
In terms of trading securities in non-Singapore markets only Interactive Brokers's commission levels are hard to beat. As you can see in the table below , IB has the lowest cost for any region.
The problem, however, is that it can only be used by Singaporeans to buy stocks outside the country because it's not licensed to fully operate in Singapore. This also comes with other risks like the fact that the Singapore government will not guarantee your money in case of IB's default since it's not licensed; however, IB is an international firm with a very solid reputation so this risk might be low.
Though this cost can be offset with trading commissions, it can still be a meaningful cost if you are trading only a few thousand dollars in total.
This is especially valuable for investors who are mostly interested in investing in equities and ETFs. However, if you are looking to invest in a variety of securities like futures, options, bonds and FX, we think SAXO might be a better option for you especially if you trade a lot. Below is a summary table of all the online brokers in Singapore. Please read our review of the best online brokers above for more detailed analysis and see which one best suits your needs.
There are many other factors to consider. Furthermore, for sophisticated traders who care about live-data API connection and margin financing, it might be crucial to understand the different product offerings in the market to make sure that they get the best deal on everything they care about.
Not every broker will provide this information upfront; but usually, companies that have the best rates tend to make the most disclosure. Lastly, some brokers may have teams of analysts that provide research reports for companies and markets, which could be valuable to some investors depending on their investment style and aptitude.
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