I got a question,
Why NTUC don't want to start this biz?
members can collect link points too!
For value investors,
It's just paying a fee for using their trading platform software to buy & sell electronically.
No need to have other leverage tools, cfds..etc....
Keep it simple, buy / sell only, lowest charges!
NTUC has a tie up with limtan. You can collect NTUC linkpoints for every trade done on limtan.
Unfortunately, in the investment community, they are more gamblers than value investors. The closest tool for value investors is in fact the Stan Chart brokerage, a no frills plaform. The other brokerages tend to make money by enticing you to participate in share financing and CFDs. Most providers give you free trades/rebates for opening CFD. This is simply because it is a more lucrative business, because people tend to make investing mistakes when they are geared and the interest financing by CFDs here were very high (they charge you interest on the whole contract amount instead of just the amount you use as leverage). CFD business to an extent plays on the human psychology, giving you the illusion to buy/sell often and make you panicky because customers are required to take 60% to 90% leverage.
Previously, there was a good CFD provider, CMC markets, which offered customisable leverage for customers. It was a very good platform as people could take leverage to levels they were comfortable with. However, I suspect it was a losing business for CMC. I made quite a decent sum when i bought UMS holdings at 0.33 taking 33% leverage and 67% cash payment. AS CMC was at the opposite end, I am pretty sure they were not happy in losing four figures. Of course I was "forced" to close out when they switch to fixed leverage ratios.
As to Cityfarmer's comment on min brokerage, I notice Singapore has one of the highest min brokerage globally. In HK, the min brokerage amt is only about HKD88-100, SGD about $17. Even DBS vickers charges this amount for HK (HK100). It really depends on the stockbroking industry in the country. While I am not implying rigging, it is indeed fishy why our rates are $25 when even our neighbours Malaysia has rates of min RM12-RM 28 and offer contra too. Even among our cash upfront accts, Malaysia's Min comission is RM8, brokerage rate 0.1% while ours is SGD 18, brokerage rate 0.18%.
Idea is good but implementation is half-hearted. Not likely to be successful.
Phillip Securities Pte Ltd
Contract Value/Minimum Commission*
≤ S$3,500/S$10
> S$3,500/S$25
* Terms & Conditions:
1. The above promotion is only valid for online trades done through POEMS trading platforms
2. Only online orders of less than 1,000 shares will enjoy the above promotion
3. Contract value refers to the amalgamated amount
4. Broker-assisted orders remain the same and are not eligible for this promotion
5. The above promotion applies to orders done from 19 January 2015 (Mon) till 27 February 2015 (Fri)
6. Phillip Securities Pte Ltd (PSPL) reserves the right to substitute or change the promotion, amend any terms and conditions without prior notification. Where a dispute involving the interpretation of terms and conditions arises, PSPL reserves the right to have the final say
1st day the day closed with a value 897.2M. is this out of the norm
Punny headline in the BT today:
Singapore market bored lots despite 100-share trading
First day of small-lot trading sees anaemic volumes; brokers say more time needed
By Kenneth Lim kenlim@sph.com.sg @KennethLimBT
20 Jan 5:50 AM
Singapore
THE stock market was bored lots on Monday as the Singapore Exchange's (SGX) reduced minimum board lot size failed to excite investors.
A US holiday and some softness in regional markets did not help, although volumes of larger stocks did hold up slightly better, and activity was actually better than year-ago figures....
http://businesstimes.com.sg/stocks/singa...re-trading
Most people money stuck in property where got money play stocks?
Addit : Apparently some brokers now have promotion of $15 rebate on the smaller lot size trades
Hope this promotion becomes permanent
via Galaxy Tab S with Tapatalk
With 100 shares a lot, I am now more willing to accept scripts dividend instead of cash, starting with Boustead.