So, you are new in trading and looking for the right answers to choose the right stock broker for you. Before you conclude, it is far vital to know things about trading. You also need to know five crucial things about stock trading to create meaningful stock management.
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Here they are:
Factor #1
The Type and Proficiency of Brokers
With emerging stock trading, more brokers are appearing. That’s why it is vital to becoming extra-careful. The two types of brokers are local and international.
Each broker’s type has drawbacks and advantages at the same time. For example, if you prefer a broker with local offices, you probably need to go with local ones. Apart from that, they can provide a range of comprehensive services. Usually, local brokers come with stock research, broker-assisted trades, platform demos, and funding services.
Mostly, international brokers are doing everything online. The ultimate downside of having a broker to manage your fund trading is that funding your account may not be straightforward as what local brokers do.
Also, the time zone is different, so there might be challenges in customer service. The only advantage is the lower fees.
Factor #2
The Trading Fees and Additional Charges
Of course, there’s more to trading fees when choosing a broker or trading platform. But remember that the trading fee affects the deducted percentage when you buy, sell, and trade.
Other charges include the exchange fees, brokerage fees, CDP clearing fee, and taxes. Mostly, S$25 to S$28 per S$50,000 worth of transaction is the minimum commission charge of Singapore’s brokers.
If you want to save money, SAXO is an alternative option. However, take note that the custodian account will get hold of your stocks instead of CDP.
Factor #3
Stock Trading Account with Bank
DBS Vickers, Maybank Kim Eng, and iOCBC are familiar examples of banks offering brokering services. By having your bank account’s stock funds, you can quickly transfer the funds to your trading account.
Factor #4
Choose a User-Friendly Trading Platform Instead
Some people don’t get a broker since they can do it themselves. If you belong to them, you can subscribe to a trading platform instead. Get a free trial before you subscribe and see the services they offer.
Even traders working with brokers find the trading platform appealing since it comes with the essential functions.
Factor #5
Get a Broker Allowing a Larger Market Access
Limited number of brokers can give you access to other large markets despite allowing access to Singapore markets. Make sure to choose a broker that lets you access different stock markets and product classes simultaneously.
Learning about these five things before getting a stockbroker can help you to scrutinize every little thing about your prospective broker. Besides, your investment is at stake. So, sitting and planning before making an action is a wise decision.
See more about a type of passive investment on https://www.roshi.sg/robo-advisors/
