Top 5 Best Online Trading Platforms and Cheapest Brokerages In Singapore [2023 Comparison]
As the world of investing continues to evolve, investors who wish to make the most of their money must stay abreast of changes in the market. Trading platforms and brokerages in Singapore are numerous hence, they must be compared to determine which is best for individual investors.
Several factors or criteria can be used to evaluate online trading platforms and brokerages to determine the best. These factors include the fees, security, the platform's technology, user interface, financial markets available to users, tools provided to aid analysis, customer support, and more.
Now, let's compare the top 5 online trading platforms and brokerages in Singapore along with the kind of investors they are best suited for.
IBKR
Interactive Brokers IBKR, is a well-known online trading and brokerage platform in Singapore. It has a simple interface and many helpful features making it a good option for both beginner and experienced investors.
This trading and brokerage platform offers a range of investment products such as stocks, options, forex, futures, and more. It also offers a variety of trading tools, customizable layouts, and access to real-time market data.
IBKR is recognized globally and regulated by several authorities including the Monetary Authority of Singapore. This platform has security features such as encryption and two-factor authentication to protect user interests. Investors can conveniently invest in different international markets such as equities, Indices, or futures.
The platform's fee model is based on a tier or user level system which reduces cost for traders that trade frequently. The commissions charged are also based on the volume of trades making it suitable for beginner traders.
IBKR routinely hosts interactive webinars and there are plenty of educational resources that can be accessed on the platform. Its customer support service is excellent and they can be reached via email, phone, or live chat.
MOOMOO
MOOMOO is also a popular brokerage platform with a user-friendly interface that meets the needs of investors with varying experience levels. It provides real-time market data, access to local and foreign markets, immediate order placements, watch lists that can be personalized or customized, and precise charting tools.
It is regulated by the Monetary Authority of Singapore and the platform has many security features including encryption technology and two-factor authentication for the security of user funds and data.
On MOOMOO, users can easily trade stocks, exchange-traded funds, options and other financial products. Its fee structure is quite competitive and dependent upon trade value and contracts. For instance, the stock trading fee is set at 0.03% of the trade value while options are charged SGD 1.5 per contract.
As for educational resources, there are several guides and tutorials that users can learn from. The webinars they host are known to be insightful. Above all, MOOMOO has a very responsive support department that can be reached through convenient channels.
TIGER BROKERS
Tiger Brokers is another reputable online trading and brokerage platform that grants users access to an array of markets such as stocks, options, exchange-traded funds and more.
It is regulated by the Monetary Authority of Singapore hence its activities are in line with the laid down regulatory standards. The platform is built with cutting-edge technology and security protocols to safeguard users' data and their activities.
Investors can harness their access to a range of markets such as the Hong Kong exchange and US markets to make informed trading and investment decisions.
The fee structure is commission-based with fixed rates. The rate of $0.01 per share is charged for US stocks with a minimum of $1.99. Options trading comes at a fee of $0.50 per contract. Accounts that are inactive for a period of 180 days and over will be charged an inactivity fee of $5 per month of no use.
Investors can easily manage their portfolios from the website or the mobile app which has an easy-to-understand interface. Just like other platforms, Tiger Brokers has a rich library of educational resources and tools to help investors make smart decisions. Its customer support department is easily accessible.
uSMART
uSMART is also a leading online brokerage platform regulated by the Monetary Authority of Singapore. It also holds a capital market service licence and has won a couple of awards for its outstanding services.
It offers several investment products such as US, Hong Kong and Singapore stocks, options, futures, exchange-traded funds, and lots more.
There are no minimum deposit requirements on stock trading or in-app currency exchange fees. Commission rates are also low. For instance, there's a fixed rate of 0.003 USD per share on US stock trades, 0.02% by transaction amount for Singapore stock trades, and 0.024 by transaction amount for Hong Kong stock trades.
uSmart's platform interface is customer centered and it offers users the ability to connect and learn. The learning resources are open to everyone as well as real-time finance news about the market and the industry at large. The tools available make it easy to carry out thorough analysis before making prompt choices.
The customer support service department is available round the clock five days a week.
CMC INVEST
CMS Invest.sg is regulated by FCA, the Monetary Authority of Singapore, and protected by FSCS. This platform allows you to easily invest in shares, ETFs and more with zero commission in over 15 markets. There are over 3000 US and UK shares that you can invest in with CMS Invest.
Although there are no commissions, there is a 0.50% fee on foreign exchanges.
The platform offers users two plans, the core plan and the plus plan with the core plan being free and the plus plan costing £10 a month. The Plus plan allows you to have both USD and EUR wallets as well as flexible access to stocks and shares.
The platform's technology is secure and self-hosted. It boasts of an in-house end-to-end technology ensuring the safety of its users and their data.
CMC Invest also offers trading charts and tools for analysis, real-time market data, and 24/5 customer support.
Table Summarizing Comparative Analysis
|
Criteria |
IBKR |
MOOMOO |
TIGER BROKERS |
uSMART |
CMC INVEST |
|
Regulation |
MAS |
MAS |
MAS |
MAS |
MAS |
|
Investment Products |
Diverse |
Diverse |
Wide range |
Wide range |
Shares, ETFs, and more |
|
User Interface |
Easy |
User-friendly |
Modern |
Customer- centric |
User-friendly |
|
Security Features |
Encryption, 2FA |
Encryption, 2FA |
In-built security protocols |
Encryption, 2FA |
Self-owned technology, end-to-end encryption |
|
Market Access |
Global |
Global |
US, Singapore, Hong Kong, and more |
US, Hong Kong, Singapore, and more |
15+ markets |
|
Fee Structure |
Tiered, volume-based |
Trade value and contract-based |
Fixed rates |
Low commission |
Zero commission, 0.5% foreign exchange fee |
|
Educational Resources |
Tools, webinars, tutorials, guides |
Tools, webinars, tutorials, guides |
Tools, webinars, tutorials, guides |
Tools, webinars, tutorials, guides |
Tools, charts, webinars, tutorials, guides |
|
Customer Support |
24/5 |
24/7 |
Calls 8:30 am to 5:30 PM. Chat: 8:30 am to 5:00 am the next day only on weekdays |
24/5 support |
24/5 support |
|
Suited for |
All experience levels |
All experience levels |
All experience levels |
All experience levels |
All experience levels |
Conclusion
When you're considering platforms to choose from, it's always a great idea to carefully understand each platform's offerings and possibly try a demo where possible. Which is the cheapest online brokerage in Singapore? Cheap in this situation is relative and would depend on your financial strength.
MooMoo's fees are based on trade value and contracts. uSMART has low commission rates and no minimum deposit requirements. CMC Invest offers commission-free investing but charges 0.5% foreign exchange fees. IBKR's fees are volume-based and Tiger Brokers has fixed commission rates for trades.
If you are looking for support or guidance on your investment journey and choosing which platforms to go with, you can work with Singaporean-based Financial Advisors such as TallRock Capital. You will get personalized guidance to help you maximize your profit.