Sunday, October 12, 2008

Best Stock Trading Account? It depends..

Given so many people have asked which is the best trading account to have. SGDividends will just say, why not have them all. Seriously, dudes or dudettes.. Opening Stock Trading Accounts is free in Singapore, there is no restriction on how many accounts you can have and no monthly account maintenance fees. And they have their individual strengths and weaknesses.

For SGDividends, we have 3 trading accounts. Citibank Brokerage, DBSV (Online) and POEMS.

Why these 3? See below for the reasons.

Citibank (Dreams never sleeps....Ambition never sleeps) charges the lowest commissions at min of $22 per online trade for local SG shares. The others are min $25. Yes Yes, we know $3 bucks is not much but hey why not, since all local SG shares go to the same custodian CDP account eventually and both takes the same effort to place the trade and if you invest, dollar cost averaging a lot like ..erhem us during this crisis period, it gets quite substantial. SGDividends use this account to buy SG shares for the long term.

DBSVickers Online has no custodian fees for US shares custodised with them. So if you are buying US shares for the long term, this is a good choice, compared to Citibank's minimum $5 semi-annual custody charge and POEM's minimum $2.14 monthly charge per US counter. SGDividends use this account to buy US shares for the long term.

What we like about POEMS is it SBL (Share, Borrowing and Lending )account. SGDividends use this account as a tool for us to predict which shares will be cover shorted, so as to stand ready to scoop them up when they are going down ridiculously.

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