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What is the cheapest platform for long term investment in Foreign stocks (HKSE, NYSE etc) for Singaporeans?
I am currently using Standard Chartered Online Trading, and I have a feeling that they are charging about 1% more on exchange rates (based on rates I found on Google).
Thank you, would appreciate everyone's feedback.
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26-01-2014, 11:29 AM
(This post was last modified: 26-01-2014, 11:30 AM by CY09.)
Hi Wilddreamz,
The benefit of Stan Chart is that they do not charge you custodian fees for overseas holdings.
On the contrary as mentioned, the exchange rate differential is wide. This applies to other brokerages connected to banks as well. One possible good avenue for overseas holding is using non-bank brokerages such as Poems, Lim & Tan. My personal believe is that their differential rate is less than 1% (however, do note they charge custodian fee).
Why don't I suggest if you want to save the 1% differential; is to go to the Arcade change to the foreign currency of choice and deposit it into your stanchart account at one of their SG branches. The arcade rates deviate less than 0.3% normally from official fx rates. You can call in to ask stan chart if they accept foreign currency deposit into your FCY settlement account.
Not sure if this can be done. But its worth a try!
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I've checked on that before, and it cannot be done. You'll need a foreign currency account with standard chartered and those have minimum balances (unlike settlement accounts) plus charges for withdrawal.
I'm using standard chartered for my foreign holdings as well (euronext). It's not a great platform, but guess it's good enough. More than once their system fails, and you cannot access (buy/sell) via the online platform for awhile and sometimes u'll have trouble converting back to SGD. But that's about all the problems I have.
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I'm using standard chartered now as well. From what I compute based on goog exchange rate. Seems like Stan chart, if u wanna do a round trip forex conversion back to sgd. will cost u about1.5 percent. Meaning 0.75 percent per conversion. Best is just leave the forex in the foreign currency to continue investing lol.
Adding onto commission cost for buy sell. One round trade using Stan chart cost more than 2 percent. Better buy those buy n hold stocks LOL.
Anyone else got other platform to recommend?
Anw side track abit, I'm recently thinking abt how much worth of stocks shud I leave in Stan chart as I grow my portfolio. I'm not rly feeling secure abt Stan chart platform n stocks are not covered by deposit insurance scheme. Does anyone know the fact that stan chart doesn't charge custodian fees n it's unique brokerage model affect our money recovery in case of a bank failure or fraud? (Stan chart is safe but not as safe as the local sg banks lol)
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I don't use SCB's online trading but I have an SCB USD account called USD high account. As far as I know, there is no minimum balance requirement, no withdrawal charges and it came with a USd debit card that allows you to shop online using your US dollars.
They offered me this account after I made complains about the charges involved in my previous USD account. They relented and offered this to me and told me they have stopped offering this USD product long time ago.
I think if you pester them long enough, they might just offer it to you.
If you can use this account to settle your USD trade, it might just reduce your cost of trading.
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How abt dbs vickers? It seems that they do not charge custodian fee too
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