tIt would be best to choose a stockbroker when you are ready to invest in the market. However, you will find no “best” brokerage firm in Singapore when choosing one. Every broker provides different services and charges differently depending on the various types of accounts.
The stockbroking industry is immensely competitive, with many players and new entrants wanting a slice of the pie. Choosing the right stockbroker can be tricky as they essentially perform the same function: offering advice and executing trades on clients’ behalf.
To make an informed decision between different brokerage firms available, here are some pointers to help you make your choice:
Ask yourself what type of investments you want to make
Different brokers specialize in making different kinds of investments; they tend to be more focused on equities, indices or funds than others due to the nature of their expertise (this may not mean that these brokers do not handle other products). You can use this information as a basis for choosing the appropriate broker.
Determine what type of account is most suitable
Some brokers offer different types of accounts tailored to suit your needs(check out the official site), such as an Education Account that charges lower fees and offers rebates on trades for students and young adults below 25 years old with a monthly salary of S$4,000 and under. It may appeal to people just starting their careers and who do not have much savings or income yet.
Other account types that some brokers offer include:
- Business Account – good for business owners who want to open several trading accounts under the same company name.
- NetTeller Account – is accessible online, so you can place orders at any time without needing to visit the brokerage firm’s office.
- Agency Account – the price of trades are based on commission fees rather than brokerage firm’s buying and selling rates, which are usually cheaper.
Compare trading costs
Brokers charge different commission fees for every trade you make, depending on how much money you have in your account or opening a business account. Always compare all services offered by brokers to ensure that they meet your needs before making a decision. Ensure that you do not end up paying too much in hidden charges such as phone-in brokerage fees or commissions charged upon withdrawals from the market.
Please find out about their research reports, product features and service quality.
Some brokers offer educational seminars on simple investing strategies, while others provide online apps such as Bloomberg Professional to help you make informed investment decisions. Ensure that the broker’s services are suited to your learning level and needs before deciding on one. Also, find out about their in-house products to determine if they suit your risk appetite.
Remember that it is all about getting value for money.
The moment you walk into a brokerage firm for the first time may be quite intimidating because of the lack of knowledge on how things are done there. However, this does not have to be an obstacle – asking questions well will give you peace of mind, so you do not regret any choice made later. Besides, brokers are people too! They can offer advice based on their own experiences, so remember to research diligently before finalizing one.
In conclusion
When choosing a stockbroker, there is no “best” brokerage firm available because they all offer different services and charge differently depending on the account types offered by them.
It is essential to determine which type of investment you want to make first before narrowing down your choice of broker based on the various services they offer. The buying and selling costs should also be considered, as some brokers may charge more than others for trades.
Do not forget to check if they meet your learning level or needs. Remember that it is about getting value for money when all else fails!
