Investing is all the rage these days, with many brokerages, banks and robo-advisors popping up in the Singapore fintech space lately. One of the easiest ways to get started in investing is definitely through the use of online brokerages, such as the likes of Tiger Brokers, SAXO, moomoo, uSMART, iOCBC and many more.
Online brokerages are a simple and accessible way to access financial markets in Singapore, US and many others, allowing you to keep track and gain control of your investments, without having to pay hefty platform fees unlike in the past.
There is no better time to get started on investing with the proliferation of all these online brokerages being widely available to Singaporean investors.
That being said, let’s take a look at some of the key features of online brokerages which you should know about in order to be more informed about them and make a better decision when you are choosing an online brokerage to invest with.
- Platform’s Trading Fees
One of the most important factors that we have to consider whenever we are trying to look at an online brokerage platform would surely be its trading and platform fees. We always try to find an online brokerage which offers the minimum fees, so that the profits we earn from investing can be maximised for ourselves.
Many online brokerage platforms offer rather low trading and commission fees as compared to traditional brokers, which make them an attractive option, especially for young investors.
Something to take note of, however, is that trading, commission and platform fees could differ when you are trading in different markets on the same platform. For example, the trading fee for a particular online brokerage platform could be 0.05% for stocks in the Singapore market, but cost 0.1% for stocks in the US market.
- Number Of Markets Accessed
If you are looking to diversify your investment portfolio, having many different markets to access and invest in would be a crucial factor. Some online brokerages offer access only to Singapore and US markets, while others offer a wide plethora of markets, including Hong Kong, China, Japan, Australia, Europe and other geographic areas. The more markets you can access, that means your investments have more possibilities.
- Number Of Investment Products Offered
Diversifying your investment portfolio isn’t only limited to the number of markets which you can access. Another point of significance is also the number of investment products which you have in your portfolio. Stocks and equity might be one of the most common trading and investment products when it comes to online brokerages, but we should not forget about other options such as the fixed income product, to lower the overall volatility in your portfolio too.
Some online brokerages offer a wide array and range of investment products which could be ideal and beneficial for many investors looking for greater diversification in their personal portfolios.
They could include bonds, options, futures, foreign currencies, mutual funds, unit trusts and exchange-traded funds. All these different investment products have various pros and cons and help provide a variety of perks and diversity into your portfolio so that you can enjoy more balance.
Whether you are new to investing, or are already a seasoned investor in Singapore, you would stand to benefit from reading our guides and reviews on investing in Singapore, with information on investing strategies, financial tips, as well as compilations of the best online brokerage platforms, robo advisors and more.