StanChart Online Trading Account

[pianist]

Has anyone signed up for this account already? I wonder if it is worthwhile to get this account, and appreciate any thoughts. Thanks.

[nutty]

I think it's a bit similar to DBS Vickers cash upfront account.

U need to put in money in your account before you can trade.

[Musicwhiz]

I don't see many benefits. Lower commissions yes but your shares are held in nominee accounts with SCB instead of with CDP.

Since I hardly make any purchases or sales, I don't think I will be signing up.

[D123]

I don't see many benefits. Lower commissions yes but your shares are held in nominee accounts with SCB instead of with CDP.

Since I hardly make any purchases or sales, I don't think I will be signing up.

Note that if your shares are held with nominee accounts, you will not receive direct correspondence from the company. I.e. no AGM invite, no direct letters to ask for subscription for scrip dividends etc. For those interested in a direct relationship with their invested companies, this might be a hindrance.

As far as I know, for trades at most levels, Saxo Capital provides the lowest rates locally (that's before SCB came in, I've not looked at their rates). However, with Saxo, you also hold your securities through nominee accounts.

[Musicwhiz]

Note that if your shares are held with nominee accounts, you will not receive direct correspondence from the company. I.e. no AGM invite, no direct letters to ask for subscription for scrip dividends etc. For those interested in a direct relationship with their invested companies, this might be a hindrance.

Oh thanks for this info, I didn't know that! Yes it would definitely be a huge inconvenience for me.....

[piggo]

The distinction between StanChart scheme and others is that they have no minimum commission, which makes buying illiquid yet attractive counters possible. Also you can queue without fear that your order will be half filled. It also allows diversification (other than buying other instruments like ETFs) to reduce unsystematic risks. Essentially it allows a lot more flexibility in managing your assets.

The generally lower commission (still 0.05% above saxo and 0.02% above dbs cash upfront) is just a bonus.

A nominee account would mean that you have no voting rights. No direct correspondence from the company's investor relations and everything will be relayed to you by StanChart.

Think it's perfect for me since I usually get my information online and think paperback annual reports are a complete waste of resources. I'd give up the chance to attend AGMs for the benefits above, the changes in SGX AGM rules would make the happenings within the meeting more transparent anyway.

[yyt]

I called up SCB and got the following points:

• Entitled to Corporate Actions (Rights, Splits, Dividends)
  
• No charge for Corporate Actions
  
• No maintenance fee.
  
• No Annual Reports
  
• Not Eligible for IPO
  
• There's a stop loss order for SGX market
  

From my personal experience with UOB KH nominees acct, the perks SCB offers are attractive.
UOB charge a quarterly maintenance fee of ~$20 if you hold stocks in your nominees acct. Div payouts are also charged a nominal processing fee.

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no direct letters to ask for subscription for scrip dividends etc.

Can one still be eligible for scrip div by emailing the company directly?

[pianist]

thanks for all the sharing from everyone. Now that I know there is no direct correspondence from the listed company's investor relation, how is dividend being paid to the beneficiaries in these nominee accounts.

For other corporate actions like rights issues / warrants subscription, is it true that a retail investor using stanchart trading account can just download the applicable forms from sgx or to initiate a request or contact with the company's investor relation to enable this corporate action?

[D123]

Sorry I wasn't clear earlier. Let me clarify from my experience with Saxo.

You will still be able to execute on corporate actions. For example, when there is a GO, or scrip dividends, Saxo will still ask you for your reply and decision, and they will relay it to the company. This is done through their brokering platform. You still get choose whether or not to accept scrip or cash, accept GO or not etc.

What you are not entitled to is attendance at AGM's, and any other direct correspondence with the company. Saxo is the middle man through which their clients will communicate with the invested companies.

I'm not familiar with SCB's new platform, but I'd assume similar rights are accorded/excused.

Again, this is only from perspective of having used Saxo's services.

[yyt]

t how is dividend being paid to the beneficiaries in these nominee accounts.

I believe they'll give you a sub-account number.

It's pretty much like a "forwarding" service provided by the bank.
They buy one your behalf and distribute on CDP's behalf.

That's why i'm pretty perplexed why SCB isn't charging a maintenance or admin fee whatsoever.