Recently, a friend asked me which broker would be best for trading in Singapore. I decided to investigate and compare the most popular brokers based on fees, safety, and market access.
1. Fees Comparison Across Key Markets
The following table outlines the trading fees across major brokers for the Singapore, US, and Hong Kong markets. This can help you identify the most cost-effective platforms based on your trading habits and preferred markets.
| Broker | Market | Commission Rate | Minimum Fee | Example Fee on $2,000 Trade | Notes |
|---|---|---|---|---|---|
| Interactive Brokers (IBKR) | Singapore | 0.08% | SGD 2.50 | SGD 2.50 | Low minimum fee; suitable for high-frequency trades. |
| US | USD 0.005/share | USD 1 | USD 1 | Tiered pricing beneficial for larger trades. | |
| Hong Kong | 0.08% | HKD 18 | HKD 18 | Cost-effective for international traders. | |
| Tiger Brokers | Singapore | 0.03% + platform fee | SGD 0.99 + 1 | SGD 2 | Budget-friendly for retail investors. |
| US | USD 0.005/share | USD 0.99 | USD 0.99 | Low-cost, especially attractive for smaller trades. | |
| Hong Kong | 0.03% + platform fee | HKD 15 | HKD 15 | Ideal for small-scale Hong Kong trades. | |
| Saxo Markets | Singapore | 0.08% | SGD 3 | SGD 3 | Higher minimum, advanced tools for experienced traders. |
| US | USD 0.02/share | USD 4 | USD 4 | Better suited for high-volume traders. | |
| Hong Kong | 0.08% | HKD 50 | HKD 50 | Premium service with higher fees. | |
| POEMS (Cash Plus) | Singapore | 0.28% | SGD 25 | SGD 25 | Custodian account with direct CDP access; higher fees for smaller trades. |
| US | 0.3% | USD 20 | USD 20 | Higher fee minimum, more suited for conservative investors. | |
| Hong Kong | 0.25% | HKD 100 | HKD 100 | Trusted option, but with higher minimums for trading. | |
| DBS Vickers | Singapore | 0.18% | SGD 25 | SGD 25 | Secure, backed by DBS Bank, ideal for risk-averse investors. |
| US | 0.25% | USD 25 | USD 25 | Security-oriented but costly for frequent trades. | |
| Hong Kong | 0.18% | HKD 25 | HKD 25 | Best suited for cautious investors with a focus on local security. |
Interactive Brokers
Tiger Brokers
Saxo Markets
POEMS
DBS Vickers
Note: For the most up-to-date information, visit each broker’s official site. The information presented is only true and accurate at the point of writing.
Winner by Market (Fees):
- Singapore Market: Interactive Brokers (IBKR) and Tiger Brokers have the lowest minimum fees, ideal for frequent trades.
- US Market: Interactive Brokers (IBKR) remains cost-effective with a $1 minimum, advantageous for larger trades.
- Hong Kong Market: Tiger Brokers stands out with competitive minimum fees, making it a preferred choice for casual investors.
Overall Winner for Fees: Interactive Brokers (IBKR) offers consistently low fees across all three markets, making it the best option for active traders who need global market access.
2. Size and Safety of the Brokers
- Interactive Brokers (IBKR): Regulated by MAS, FCA, and SEC, known for stability and client fund segregation.
- Tiger Brokers: Backed by Xiaomi and regulated by MAS, low costs make it appealing for retail investors.
- Saxo Markets: MAS-regulated, secure, with premium tools ideal for experienced traders.
- POEMS (Phillip Securities): Trusted locally with direct CDP access, regulated by MAS, and suited for long-term investors.
- DBS Vickers: Supported by DBS Bank, secure for conservative investors prioritizing stability.
3. Key Markets and Instruments Availability
- IBKR: 150+ global markets, including stocks, ETFs, options, futures, and more.
- Tiger Brokers: Broad access to US, SGX, and Hong Kong markets with various instruments.
- Saxo Markets: Global market access with CFDs, forex, commodities, and more.
- POEMS and DBS Vickers: Focus on Singapore, US, and Hong Kong markets; POEMS offers direct CDP accounts.
Concluding Remarks
When picking a broker, it’s important to consider not just market access and fees, but also factors like customer service and support. Brokers such as POEMS and DBS Vickers provide extra services, including personal account managers and financial advice, which can be very helpful for a more tailored experience.
I have used POEMS for many years, even though Interactive Brokers (IBKR) is now an option. Your choice should depend on what you value most. Whether you prefer a complete platform like IBKR or the comfort of a local broker like POEMS, make sure the brokerage you choose fits your specific trading goals.