Purchasing a stock in the Singapore market costs at least around $27 (depending on the lots bought and price bought at) as commission. Many brokers charge this fee. However, brokers like DBS Vickers, have another service on top of their normal trading service. It’s called the “Cash Upfront” service. When you buy through the normal trading service, DBS charges the around $27 at the least which is the norm. But, when you trade through the cash upfront service, you only have to pay around $19 at the least.
Why the lower commission? By using the cash upfront service, there is lesser risk for DBS as clients pay immediately (deducted from the cash upfront balance) once they purchase their stock (when prices are filled). So, the T+3 days settlement period is not needed, thus lessening the risk for DBS. You can choose to transfer a lump sum into this cash upfront account or transfer the money only when needed to pay for a particular purchase. Cash upfront account opening and cash transfer can be done through DBS Internet Banking service, provided you are a DBS Vickers client.
P.S. I’m not an employee in DBS and this is not a promotion for their services. I just felt that this would be beneficial to readers who want to enjoy lower commissions from their stock purchases as not many know about this service.
SudhanP.com 