Discussion of Brokerage fee importance

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maggiemee
Posts: 16
Joined: Tue Mar 08, 2016 10:16 am

Discussion of Brokerage fee importance

Post by maggiemee » Tue Oct 08, 2019 10:00 pm

Hi All

I am a Singaporean who has been investing in the Stock Market for a while using the boglehead portfolio. I am currently using the Standard Chartered bank as my broker as it had the lowest commision fees, and another bank for day to day stuff (Salary, credit cards etc). I also have some local stock bought using DBS.

Background information: (Can ignore)
Recently, Standard Chartered has imposed a minimum commisioning fee, so it's not as great to use as a broker as before. DBS has similar fees for local transactions, although overseas transactions are still cheaper at Standard Chartered. I am considering changing all my stock from Standard Chartered to DBS, to make it easier to see how much I have and make it easier to rebalance. DBS also has better forex The main worry is about the slightly higher commision fee.
How important is the lower comissioning fee?
Standard Chartered Online Trading
  • Fee: 0.25% (min. 10 GBP)
  • Custodian Fee: None.
DBS Vickers
  • Fee: Minimum GBP 25; or 0.35% of trading principal (whichever is higher)
  • Custodian fee: SGD 2 per counter per month, capped at SGD 150.00 per quarter.
thanks in advance

TL:DR: I am considering changing my broker to make it easier to manage my portfolio. How important is it to get the lowest possible brokerage commision fee?

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whodidntante
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Re: Discussion of Brokerage fee importance

Post by whodidntante » Tue Oct 08, 2019 10:12 pm

Interactive brokers would be cheaper unless your account is very small.

You can certainly build massive wealth while paying 0.25% commissions. But why accept that drag if you can avoid it?

Topic Author
maggiemee
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Joined: Tue Mar 08, 2016 10:16 am

Re: Discussion of Brokerage fee importance

Post by maggiemee » Tue Oct 08, 2019 11:16 pm

Using DBS is easier to keep track of everything and has better Forex, so the I feel the advantage of using SCB is minimal. (My salary is in Singapore dollars, so I will need to convert it before I invest). I think I am stressing out to much about the .1% extra commission and wanted other people input

blindsided
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Re: Discussion of Brokerage fee importance

Post by blindsided » Tue Oct 08, 2019 11:30 pm

Singaporean here. If you plan to make monthly trades then interactive brokers definitely comes out ahead. One trade on the DBS platform already costs more than the monthly minimum activity fee on IB.

Furthermore, IB gives much better currency exchange rates. The last time I did a currency conversion with DBS I remember losing about 1% to the currency spread, whereas for IB the figure was around 0.02%. My exact figures may be off but the cost savings were definitely significant.

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oldcomputerguy
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Re: Discussion of Brokerage fee importance

Post by oldcomputerguy » Wed Oct 09, 2019 4:44 am

This topic is now in the Non-US Investing forum.
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

imperia
Posts: 192
Joined: Tue Feb 21, 2017 6:31 am

Re: Discussion of Brokerage fee importance

Post by imperia » Wed Oct 09, 2019 5:17 am

maggiemee wrote:
Tue Oct 08, 2019 11:16 pm
Using DBS is easier to keep track of everything and has better Forex, so the I feel the advantage of using SCB is minimal. (My salary is in Singapore dollars, so I will need to convert it before I invest). I think I am stressing out to much about the .1% extra commission and wanted other people input
IB is best broker for you!

Topic Author
maggiemee
Posts: 16
Joined: Tue Mar 08, 2016 10:16 am

Re: Discussion of Brokerage fee importance

Post by maggiemee » Wed Oct 09, 2019 10:11 am

imperia wrote:
Wed Oct 09, 2019 5:17 am
maggiemee wrote:
Tue Oct 08, 2019 11:16 pm
Using DBS is easier to keep track of everything and has better Forex, so the I feel the advantage of using SCB is minimal. (My salary is in Singapore dollars, so I will need to convert it before I invest). I think I am stressing out to much about the .1% extra commission and wanted other people input
IB is best broker for you!
IB can't be used to trade in my local stock market(Singapore). I am also leary of the minimum $10 monthly fee since I can't hit the $100,000 cap

AlohaJoe
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Joined: Mon Nov 26, 2007 2:00 pm
Location: Saigon, Vietnam

Re: Discussion of Brokerage fee importance

Post by AlohaJoe » Wed Oct 09, 2019 10:17 am

maggiemee wrote:
Wed Oct 09, 2019 10:11 am
imperia wrote:
Wed Oct 09, 2019 5:17 am
maggiemee wrote:
Tue Oct 08, 2019 11:16 pm
Using DBS is easier to keep track of everything and has better Forex, so the I feel the advantage of using SCB is minimal. (My salary is in Singapore dollars, so I will need to convert it before I invest). I think I am stressing out to much about the .1% extra commission and wanted other people input
IB is best broker for you!
IB can't be used to trade in my local stock market(Singapore). I am also leary of the minimum $10 monthly fee since I can't hit the $100,000 cap
I'm curious, why can't you use IB? They list the SGX in Singapore as one of the exchanges they support. Or is that not accurate?

Topic Author
maggiemee
Posts: 16
Joined: Tue Mar 08, 2016 10:16 am

Re: Discussion of Brokerage fee importance

Post by maggiemee » Wed Oct 09, 2019 10:20 am

AlohaJoe wrote:
Wed Oct 09, 2019 10:17 am


I'm curious, why can't you use IB? They list the SGX in Singapore as one of the exchanges they support. Or is that not accurate?
From what I have read, Interactive Brokers can only be used by Singaporeans to buy stocks outside the country because the trading platform is not licensed to fully operate in Singapore. I can still use it, but only for investing in the international market.

I could run 2 different brokerage accounts, but I feel like it will get complicated quickly for marginal benefits, which is why I wanted to ask for other people's opinions

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