12 September 2013

Brokerage Fees: DBS Vickers VS Standard Chartered Bank

So which one is cheaper? Most people say SCB is cheaper, this makes me curious, now let's see...

DBS Vickers

The cheapest method of buying or selling is by using their Cash Upfront account, but note that if you wish to sell using this account, you need to sell within T+3, or else you will need to pay the normal rates.

Commission: 0.18%, minimum $18
CDP Clearing Fee: 0.04%
SGX Trading Fee: 0.0075%
GST: 7%

Standard Chartered Bank

We are looking at their Personal Banking Brokerage Fees, but if you can get their Priority Banking account, it will be slightly cheaper, but I think the requirements is a bit steep, so let's just look at the one which is available to almost everyone.

Commission: 0.20%, no minimum
CDP Clearing Fee: 0.04%
SGX Trading Fee: they don't have this charge
GST: 7%

Scenario 1 - S$5000

So let's say you are buying 5 lots of Stock A, and each share costs S$1.00, so the cost value before charges is S$5000.

If you buy using DBS Vickers Cash Upfront

Commission: 0.18%, minimum $18
5000 * 0.18 / 100 = 9, minimum is 18

CDP Clearing Fee: 0.04%
5000 * 0.04 / 100 =  2

SGX Trading Fee: 0.0075%
5000 * 0.0075 / 100 = 0.375

GST: 7%
(18 + 2 + 0.375) * 1.07 = 21.80125

Total cost = 5000 + 21.80125 = S$5021.80125

If you buy using SCB

Commission: 0.20%, no minimum
5000 * 0.20 / 100 =10

CDP Clearing Fee: 0.04%
5000 * 0.04 / 100 =  2

SGX Trading Fee: they don't have this charge
N.A.

GST: 7%
(10 + 2) * 1.07 = 12.84

Total cost = 5000 + 12.84 = S$5012.84

As you can see, for value of 5000, SCB is cheaper.

Scenario 2 - S$10000

Now let's increase the cost value to S$10000.

If you buy using DBS Vickers Cash Upfront

Commission: 0.18%, minimum $18
10000 * 0.18 / 100 = 18

CDP Clearing Fee: 0.04%
10000 * 0.04 / 100 = 4

SGX Trading Fee: 0.0075%
10000 * 0.0075 / 100 = 0.75

GST: 7%
(18 + 4 + 0.75) * 1.07 =  24.3425

Total cost = 10000 + 24.3425 = S$10024.3425

If you buy using SCB

Commission: 0.20%, no minimum
10000 * 0.20 / 100 = 20

CDP Clearing Fee: 0.04%
10000 * 0.04 / 100 = 4

SGX Trading Fee: they don't have this charge
N.A.

GST: 7%
(20 + 4) * 1.07 = 25.68

Total cost = 10000 + 25.68 = S$10025.68

For 10000, DBS Vickers is cheaper.

But don't forget that when selling via DBS Vickers, if you have to sell only after T+3, then overall it will still be more expensive than SCB, so I think ultimately, SCB will be cheaper, I guess everybody is right.

2 comments:

Anonymous said...

What is T+3?

marrythaigirlsingapore said...

Hi,

T means trading day, so for example you buy or sell on 19 May, T+3 will be 22 May.