Standard Chartered Online Trading account

hi,

i want to share some of the findings i have discovered regarding SCB trading platform.

1. SCB is the custodian of any shares purchased thru their platform. CDP will not be. Any shares held under CDP will not be able to be sold thru SCB. You can transfer the CDP shares to SCB account.

2. AR will be mailed to you by SCB. If you need to attend AGMs, you will need to call SCB to make arrangements. All dividends will be deposited into your SCB account.

3. You will need to have sufficient funds in your trading account before you can buy anything. But it will be deducted on T+3.

Would be glad to hear from forumers on point no 1. The only downside risk is that SCB collapses. What will happen to all the shares held by them?

Then I think it is still better stick to traditional borkering houses.

(31-08-2011, 10:02 AM)changwk Wrote: 1. SCB is the custodian of any shares purchased thru their platform. CDP will not be. Any shares held under CDP will not be able to be sold thru SCB. You can transfer the CDP shares to SCB account.

Would be glad to hear from forumers on point no 1. The only downside risk is that SCB collapses. What will happen to all the shares held by them?

I'm pretty sure that if Shares are held in trust by the Bank on behalf of its clients, the custodial arrangements of the shares revert to the client in the event the bank goes under. What the exact mechanics are, I'm not sure. e.g. The shares will have to be arranged to be transferred to your CDP account or a trust under another broker etc.

This is because you own the shares in the first place. Just that in this case, they are being held in a trust account which probably has all the legal clauses and what-nots to prevent the bank from touching them.

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Did some goggling and I found a post by fellow forummer- HYOM. (link here)

Extracted from the post:

2. Are clients' assets protected if SCB becomes bankrupt? Are they segregated into a safe, untouchable account in which the custodian cannot use it for their own purposes?

The hotline officer told me that SCB cannot touch our shares in the custodian account.

(31-08-2011, 10:02 AM)changwk Wrote: hi,

i want to share some of the findings i have discovered regarding SCB trading platform.

1. SCB is the custodian of any shares purchased thru their platform. CDP will not be. Any shares held under CDP will not be able to be sold thru SCB. You can transfer the CDP shares to SCB account.

2. AR will be mailed to you by SCB. If you need to attend AGMs, you will need to call SCB to make arrangements. All dividends will be deposited into your SCB account.

3. You will need to have sufficient funds in your trading account before you can buy anything. But it will be deducted on T+3.

Would be glad to hear from forumers on point no 1. The only downside risk is that SCB collapses. What will happen to all the shares held by them?

I wonder whether the trade will go through SGX for clearing. Is there clearing fee charged?

As for the case of collapse of SCB, probably would be unsecured claim on the bank, so would be ranked the same as SCB's other unsecured liability.

Hello changwk,

Do you have savings deposited in banks? What will happen to them if the bank collapses?

I believe the risk of us making a loss on our next trade will be higher than SCB becoming the next Lehman or Barings bank...

Having said that, we are today living in a inter-connected world. So even if we don't speculate in shares or property, if the economy tanks, we all are affected in some way or another (retrenchment, austerity, downsizing, etc).

Nothing is really "risk-free" anymore... Even countries can go bankrupt and default.

(31-08-2011, 03:20 PM)Jared Seah Wrote: Hello changwk,

Do you have savings deposited in banks? What will happen to them if the bank collapses?

I believe the risk of us making a loss on our next trade will be higher than SCB becoming the next Lehman or Barings bank...

Having said that, we are today living in a inter-connected world. So even if we don't speculate in shares or property, if the economy tanks, we all are affected in some way or another (retrenchment, austerity, downsizing, etc).

Nothing is really "risk-free" anymore... Even countries can go bankrupt and default.

changwk has a valid concern. This is not about losing some $ in a trade, it is about losing your principal in a trade!

We can lose our $ deposited in the banks...But imagine losing your cash principal (in the bank) and your equity portion as well...

There is indeed no free lunch by SCB...?

(31-08-2011, 10:02 AM)changwk Wrote: hi,

i want to share some of the findings i have discovered regarding SCB trading platform.

1. SCB is the custodian of any shares purchased thru their platform. CDP will not be. Any shares held under CDP will not be able to be sold thru SCB. You can transfer the CDP shares to SCB account.

2. AR will be mailed to you by SCB. If you need to attend AGMs, you will need to call SCB to make arrangements. All dividends will be deposited into your SCB account.

3. You will need to have sufficient funds in your trading account before you can buy anything. But it will be deducted on T+3.

Would be glad to hear from forumers on point no 1. The only downside risk is that SCB collapses. What will happen to all the shares held by them?

i didnt know that hardcopy AR will be mailed to us..that quite nice

hi,

the commission rates at SCB makes it really compelling to use the platform. I did a comparison with POEMS.

Stock Price $4, 1 lot
POEMS = $4028.78 (0.28% commission)
SCB = $4009.60 (0.2% commission)

Stock Price $4, 10 lot
POEMS = $40140.17 (0.28% commission)
SCB = $40,096.00 (0.2% commission)

(31-08-2011, 10:02 AM)changwk Wrote: 1. SCB is the custodian of any shares purchased thru their platform. CDP will not be. Any shares held under CDP will not be able to be sold thru SCB. You can transfer the CDP shares to SCB account.

I think the above also means that there will be difficulty selling shares bought via SCB using another provider. That reduces flexibility.

Actually, can SCB use the shares in the nominee account to do shorting?