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call it "prepaid a/cs" or "cash upfront a/cs"... or whatever other names.. every house have their version (kayH call it Utrade Edge - .18%~.20% & minicomm at s$18)
opening such a/cs usually involved placing certain minimum cash sum upfront into the a/c , some also allow share deposits
thereafter: all your buy/sells thru this A/C: the CASHs or Shares get credited/debited from this nominee a/cs ==> not your bank or CDP a/c
for such A/C, House give you lower comm rate, and even lower minimum commission amount
in return House gets,
o lower credit risks (coz your cashs + shares are collaterals with them)
o lock in biz.. coz you can only buy/sell thru them now (at least for these shares+cashs parked inside this nominee a/c)
NB: its useful to also findout what their charges are, eg. for various corporate actions - are there excessive charges eg. for handling right issues, divs/script divs
those A/Cs that allow you to trade more than 1.0x of your cash (or share values deposited) => these are effectively "Margin A/c"
need to understand how margin calls get triggered, Cost of borrowings if margins are utilised
impt to understand how your own raw emotions react under both mkt extremes
for Margin A/C: suggest unless pretty "seasoned" and know what you're doing => better dun get involved... no offence intended, cheers
opening such a/cs usually involved placing certain minimum cash sum upfront into the a/c , some also allow share deposits
thereafter: all your buy/sells thru this A/C: the CASHs or Shares get credited/debited from this nominee a/cs ==> not your bank or CDP a/c
for such A/C, House give you lower comm rate, and even lower minimum commission amount
in return House gets,
o lower credit risks (coz your cashs + shares are collaterals with them)
o lock in biz.. coz you can only buy/sell thru them now (at least for these shares+cashs parked inside this nominee a/c)
NB: its useful to also findout what their charges are, eg. for various corporate actions - are there excessive charges eg. for handling right issues, divs/script divs
those A/Cs that allow you to trade more than 1.0x of your cash (or share values deposited) => these are effectively "Margin A/c"
need to understand how margin calls get triggered, Cost of borrowings if margins are utilised
impt to understand how your own raw emotions react under both mkt extremes
for Margin A/C: suggest unless pretty "seasoned" and know what you're doing => better dun get involved... no offence intended, cheers