Cheapest broker for SRS

[brfish]

I contribute to SRS annually and recently started to use that to buy A35. I used DBS Vickers and it was not an issue at the start as I did a build buy. However, when A35 distributed the dividend earlier this month and when I tried to reinvest it to A35, I found that DBS Vickers has a minimum fee of $25, which is a huge amount of fees compared to the small amount of dividend.

Of course, I can wait till I contribute another 15300 to SRS next year. But still, $25 fee for 15300 is not cheap either. I checked FSMOne and POEMS and they seem to have minimum fees as well.

Is there any broker out there for SRS that does not impose minimum fee?

 

[highsulphur]

Try FSM...
Cheapest already i think

 

[celtosaxon]

The $25 fee is minimum commission to buy/sell. There should only be a $2 dividend handling fee for SRS accounts. For SRS accounts, the SRS operator is the custodian and handles all the dividends, not the broker.

AFAIK, all local brokers have a minimum $25 commission for SGX trades in cases *IF* the transaction is not pre-funded. In the case of SRS, there is no way to pre-fund because the money is held by your SRS operator, not your broker.

https://dollarsandsense.sg/singapore-stock-brokerage-house-comparison/
Let’s say your broker has a 0.18% or $25 minimum commission (typical). To minimize the commission as a % of your investment you can calculate the optimum transaction size by taking 25/.0018 = $13,889. Transactions at least this big won’t get hit with more than 0.18% commission.

But let’s be honest, is it worth saving a few tenths of a percent in commission when you might lose out on several percent gain in the market while waiting to accumulate the most cost effective transaction size? In my opinion, no. If the $15,300 is flowing into your SRS over time, I’d suggest making a transaction every 4 months (3 times a year). But if you are contributing the entire $15,300 for the year at once in January, I would just transact the entire amount as soon as it’s available.

 

[wira]

you consider OCBC blue chip investment plan.
can use SRS and DCA into ETS and blue chips.

fees quite low. even lower 0.88% if you are below 30 yo

 

[hwckhs]

Try FSM...
Cheapest already i think

Similar to TS, I have been using POEMS for SRS purchases, and pay the min $25 per trade.

It looks like FSMOne supports SRS and its commission is flat $8.80 + exchange/clearing fees. I'm going to try it next time.

 

[tkdboi]

you consider OCBC blue chip investment plan.
can use SRS and DCA into ETS and blue chips.
fees quite low. even lower 0.88% if you are below 30 yo

ups for this.. I am using this for my SRS


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[Kojo0403]

FSMOne is the cheapest. And it’s flat at $8.80. So even if you do lump sum allocation like $30k into an etf, you also pay $8.80.

Been using it for awhile.

 

[brfish]

Thanks for all the suggestions. I lump sum 15300 into SRS at the start of the year, and use that to buy A35 which has dividend in Jan and July. So what I plan to do is 1) Switch to FSM and 2) don't do anything for the July dividend, and 3) instead, wait till Jan and buy 15300+ dividend from both Jan and July

Is that a good plan?

 

[hwckhs]

Thanks for all the suggestions. I lump sum 15300 into SRS at the start of the year, and use that to buy A35 which has dividend in Jan and July. So what I plan to do is 1) Switch to FSM and 2) don't do anything for the July dividend, and 3) instead, wait till Jan and buy 15300+ dividend from both Jan and July

Is that a good plan?

My plan is similar to yours. If the remaining balance is low (which makes commission high as a %), then keep it until next year.

I also mainly use SRS to buy bonds, as it has low appreciation, and thus will lower any potential tax during the withdrawal stage.

 

[karakorum1999]

Thanks for all the suggestions. I lump sum 15300 into SRS at the start of the year, and use that to buy A35 which has dividend in Jan and July. So what I plan to do is 1) Switch to FSM and 2) don't do anything for the July dividend, and 3) instead, wait till Jan and buy 15300+ dividend from both Jan and July

Is that a good plan?

Definitely makes sense to use FSM.
Your plan is good.
You could also consider splitting your SRS contributions into two tranches (Jan and Jul) to match the A35 dividend payouts, but not much of a difference as A35 is generally fairly stable.

 

[skpuppy]

Guys. Wanted to understand about SRS investment a little bit more. My current SRS account is from ocbc. If I were to use FSM one to buy shares, will FSM one be the custodian? Or still ocbc?

 

[Kojo0403]

Guys. Wanted to understand about SRS investment a little bit more. My current SRS account is from ocbc. If I were to use FSM one to buy shares, will FSM one be the custodian? Or still ocbc?

ocbc.
never mind which broker you use. all settlement of etfs or stocks trades goes to your agent bank.

 

[celtosaxon]

Correct, SRS operator handles the custodian job if you buy shares with SRS money.

In my case, UOB Nominees is the custodian, UOB is my SRS operator. I have confirmed it with them.

 

[iMac]

FSM is cheapest...

 

[XiaoFu99]

if FSM cheapest for SRS, also cheapest for CPF right ?


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[Kojo0403]

if FSM cheapest for SRS, also cheapest for CPF right ?


Read HWZ Forum Rules!

yes.
$8.80 flat for cash, srs and cpf.

Can’t find any shop offering srs and cpf lower than fsmone

 

[XiaoFu99]

yes.
$8.80 flat for cash, srs and cpf.

Can’t find any shop offering srs and cpf lower than fsmone

For cash, options like Tiger, Interactive Broker will be cheaper (from min charge perspective) right?

 

[donnygg]

I've been using FSMOne for SRS trades but just realised Poems cash plus charges only 0.08% with no minimum commission. Does that make it the cheaper broker for SRS? Is there a catch I missed (other than 1 trade per quarter for account fee waiver)?

https://www.poems.com.sg/market-jou...op&utm_campaign=guide-to-open-account_pricing