List of the cheapest stock brokers in Singapore

[yeokiwi]

Will there be more risk if the stock broking firm is the custodian?

additional counter-party risk of the broker firm

If MAS has good regulations in place, counterparts risk should be minimal. In the event these brokers fold up, the shares should be transferred back to owners.

http://sbr.com.sg/financial-services/new...money-back


Creditors of MF Global Singapore Pte. Limited (Liquidators Appointed) may get as much as 91% of their money back and most customers up to 97% depending on products traded. Liquidators at KPMG Services Pte. Ltd. said at a creditors meeting yesteday.

These estimates are based on an optimistic scenario where money owing from MF Global affiliates overseas and money restricted overseas can be recovered; the actual payout to individual creditors and customers may vary.

In a pessimistic scenario where it is assumed the funds overseas cannot be returned, creditors may only get 61 cents to the dollar, and most customers up to 93 cents to the dollar.


Even though there are no frauds reported in MF Global Singapore, the returned sum is still not 100%.
If fraud happens, the customer literally can write off the investments.

Other than that, the customer will be sleepless for months.

[lonewolf]

These fee differences are irrelevant for small and large investors alike.

For small investors it is the minimum (typically $25) that matters, you won't get the 0.x% until your transaction is $10k or more, and even then you'll save maybe $5-10. Drink one less Starbucks coffee and there's your $5.

The appeal of Standchart is that it does not have min commission. So the saving can be substantial for small retail investor. But its an custodian account.

[specuvestor]

I know what is a custodian but a custodian account in this context means Stand Chart has the right to lend out your shares? (besides the counterparty risk issue) usually custodian account are used for margin trading.

Talking about counterparty risk, in the past when trading was script based, not only was counterparty a major risk, but also position risk because the brokers know the positioning of the big clients and can position themselves accordingly