Early this year, I opened a brokerage/trading account (DBS Vickers) with DBS bank. Basically, a brokerage firm allows you to buy and sell shares on the stock market. They charge commission fees for each buy/sell transaction you make. I have chosen DBS because it is the largest local bank in Singapore and our local banks are generally very safe and stable.
Most brokerage firms allow you to hold your stocks with the Central Depository Pte Limited (CDP). After you buy and sell stocks via most firms, the stocks themselves are held by you in your CDP account. Currently, there are only two brokerage firms – Standard Chartered and SAXO Capital Markets that hold your stocks in custodian accounts, meaning the custodian account (e.g. Standard Chartered) owns the stocks on your behalf which means that they have certain rights over stocks that you have bought. If the firm goes bankrupt (Slim Chance), you will lose all your stocks because it is technically not in your name.
Below are the commission fees across different brokerages in Singapore.
In order to get a clearer picture of how much you are paying in total for commission and related fees, I have came up with the following breakdown below for buying a stock. The commission of minimum SGD $18 is only applicable if you are using DBS Cash Upfront Account for payment, otherwise it would be SGD $25.
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