Standard Chartered - Only Online Trading in town with no minimum commission

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arcan3

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I dunno, I think contra's a terrible idea, and the sooner it dies the better. It's pretty much an abuse of the T+3 settlement system.

It's bad for the brokers, because they're handing out interest-free loans instead of being able to charge interest on margin loans. It's bad for the exchange, because it cripples the development of derivatives markets and stock lending (because you don't need to borrow stock to be able to short it via contra). And it's bad for investors, because it gives them infinite leverage and thus infinite capacity to blow themselves up.

Just to clear any misconception regarding shorting of stock, borrowing of share is required if the short position is held overnight regardless whether it is contra position or not.
 

Shiny Things

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Just to clear any misconception regarding shorting of stock, borrowing of share is required if the short position is held overnight regardless whether it is contra position or not.

Really? OK, I genuinely didn't know this. (I'm a bit surprised by it actually - since the cash leg of the trade nets out, I thought the stock leg would get netted out as well.)

Still, doesn't that mean short-sellers using contra aren't getting charged the real borrowing cost?
 

arcan3

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You will need to borrow share if shorting because if you short sell share at T day and then buy back at T+1, you will not be able to deliver the share that you sold on T+3 as the share you bought will only be delivered to you on T+4.

Thus, you need to borrow share so that you can deliver on the T+3 day. Furthermore, it is very risky to short any share overnight without confirming that you can borrow the share, as the share you shorted may not be available in the lending pool. Thus, the usual pratice is to borrow the share before shorting which will incur at least 3 days of borrowing charge. This means that short-sellers using contra will still be charged the borrowing cost.
 

Sinkie

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You will need to borrow share if shorting because if you short sell share at T day and then buy back at T+1, you will not be able to deliver the share that you sold on T+3 as the share you bought will only be delivered to you on T+4.

Thus, you need to borrow share so that you can deliver on the T+3 day. Furthermore, it is very risky to short any share overnight without confirming that you can borrow the share, as the share you shorted may not be available in the lending pool. Thus, the usual pratice is to borrow the share before shorting which will incur at least 3 days of borrowing charge. This means that short-sellers using contra will still be charged the borrowing cost.

Take note, Standchart does not allow short sell nor nude short nor offer anyone securities borrowing account to short overnight

You need either a cfd or a SBL account to short (sell first buy later) overnight..

Only a trading/brokerage firms will offer you facilities like SBL, CFD accounts and ability to nude short (cover by T) and contra trading

Scb is strictly to buy then sell with no contra

Just to clarify these small bits of details
 
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Sinkie

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Just to clear any misconception regarding shorting of stock, borrowing of share is required if the short position is held overnight regardless whether it is contra position or not.

If not on T+3, sgx will buy back for shortist if he decides not to borrow at 50% margin
 

wudimax

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They dont allow me to open, need to fufil requirement to open account.degree in fiance or trade before or ....mhow?
 

imwarren

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They dont allow me to open, need to fufil requirement to open account.degree in fiance or trade before or ....mhow?

Legit way: trade with other broker and get the necessary experience before applying again. However, waste $25 x 6 commission fee in the process.

Non-legit way: look at http://www.fundsupermart.com/main/faq/faq.svdo?id=121#7 get the hint?

**********************************
Update:
For the trading account if you don't meet the pre-requisite but would still like to open the account, you may still do so but you'll need to fill up an additional declaration form that states that frees SCB of any liability
 
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imwarren

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Here comes my update :)

Working Day 0: Submitted both forms to SCB branch

Working Day 4: CDP called me to verify my transfer instruction over the phone (NRIC, Mailing Address, Share name, and number of Shares). I also took the chance to ask about the charges involved. The officer replied that an undisclosed amount will be billed to SCB (who may or may not pass on the cost to me).

Working Day 5: My CDP account was debited of the shares i am transferring

Working Day 9: SCB credited me with the transferred shares on their online trading platform

(If SCB passes on the CDP charges to me, i will update again)

The $10.70 is if there is a change in beneficiary (i.e. off-market sale or gift). I remember reading somewhere that if you are just transferring CDP-Custodian or Custodian-Custodian with no change in beneficiary, it is waived (but i can't find the black-and-white now).

Anyway for small shareholdings, the $10.70 + SCB's commission charge of 0.2%, will still be cheaper than the $25 minimum charge by others.

Will update how long it takes, and much they charge once my transfer succeed.
 

SGXnewbie

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i understand that txf from scb online to CDP of your own name is wavied. Not sure whether this is still valid.

Any updates?
 

imwarren

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I am tranaferring, from CDP to SCB, not SCB to CDP.

Standard Chartered has not billed me for the transfer so far. No news, good news. :) Saved $20+ off my brokerage charge to sell my IPO shares.

i understand that txf from scb online to CDP of your own name is wavied. Not sure whether this is still valid.

Any updates?
 

DoUevenLift?

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Can enlighten me on what's the catch to scb's no min commission?
I understand scb will be the custodian of the shares and not transferred to your cdp acc.
What are the cons of using scb?
 

imwarren

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Since the shares are held in SCB custody, instead of CDP, you:

1) cannot attend and vote at AGMs (unless you request SCB to nominate you as proxy for your shares)

2) will not receive hardcopy annual reports (but that's not a problem, can always read them online)

3) cannot sell your shares at other brokers (but that's hardly a concern, since your SCB is one of the cheapest broker)

4) You are still entitled to dividends, rights issue, etc. Just that you go through SCB, instead of CDP directly

5) Transfer of shares between CDP and SCB is allowed, but involves lengthy paperwork and processing time, and possibly charges.

Can enlighten me on what's the catch to scb's no min commission?
I understand scb will be the custodian of the shares and not transferred to your cdp acc.
What are the cons of using scb?
 
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lzydata

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1) cannot attend and vote at AGMs (unless you request SCB to nominate you as proxy for your shares)

Just to add, if this works the same way as shares held in CPFIS and SRS accounts, then you at most can attend AGMs as an observer, and you will still not be able to vote your shares.

SCB's commissions are the lowest for now, but it's quite possible that in future this will not be true. Then it will be expensive and hard to get your shares back from them.
 

doody_

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Just to add, if this works the same way as shares held in CPFIS and SRS accounts, then you at most can attend AGMs as an observer, and you will still not be able to vote your shares.

SCB's commissions are the lowest for now, but it's quite possible that in future this will not be true. Then it will be expensive and hard to get your shares back from them.

Transfer out fee is currently only $10.70 per lot, capped at $107 aka 10 lots. SCB commission is around 0.25% - to hit the min charge of $25 that is levied by other people, you would have to make a single trade of at least 10k. I think people using SCB don't typically make such large trades :o
 

Vitaall

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Just went to their website and saw that they have stop loss order, anybody used this yet?
 

Vitaall

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The catch is you can only buy and sell through scb since cdp is not the custodian for your shares. Theres no contra or shorting alllow. You want to buy stock, you must have the sufficient money in account first. Yes, you need to have a savings account with them. But if you have none, they will apply for a no frills Esaver account for you. That account allows you to transfer your money externally from other banks, and subsequently fund your securities tradind/settlement account for you to buy shares.

Dividends will automatically go to securities account in scb, but it will only be 1 working day later than that stock declared payout date. Say stock zxc indicates that payment for dividends will be on 25 June, you will receive it on 26 June instead.

You will need to fund your securities account first before you can buy any stocks.

Is this cash only account, or can we trade with CPF through SC?
 

eS.KuKu

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can any kind soul here tell me what i can invest in with 500SGD ? thanks! ;)
 
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