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Old 19-06-2011, 12:13 PM   #85
Master Member
Join Date: Feb 2004
Posts: 4,358
The attractiveness of this SCB scheme is the NO MINIMUM COMMISSION.

- How they make money is where your money is to get you to dump your money into their bank so that funds which you did not use to purchase shares can be invested by them.

- The low entry barrier scoops up the mass market and also those who do a lot of intra day trading. Imagine the money these people can save on.

- SCB holds the shares, not CDP. You will need to buy and sell only through SCB.

Of course, there will be concerns by many because it looks too good to be true compared to the market standard.
However let's not forget, in foreign countries, this is already very common. And today we are not talking about ABC bank or XYZ bank. If its citibank rolling this out, I may have some concerns, but not Standard Chartered.

Their marketing campaign is weak but that's the irony. They got a lot of people interested with questions so that people actually go down to their bank branches to find out more. That is where this bank suddenly improves its network arm.

So eventually I must say, NO MIN COMMISSION might be an industry standard in time to come. Don't write it out.
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