Is private banking really worthwhile?

[wondrdoggie]

i have tried SCB and CIMB..both have no custodian fees for otc bonds

SCB qutoed me 0.18% and CIMB none..but i believe latter built it through higher spread..both are priority and preferred..not pc

tried to find out more on dbs pc..only advantage is the multi-currency account which allow you to hold foreign currency at no charges...above $50K also allow you to get quoted rate vs. mkt rate....commission for stocks also not very competitive..similar to scb 0.18%..RM also v mediocre

i think uob high yield still best

Try the Swiss and American banks, I find their RMs are higher quality. But I guess if you only plan to hold bonds, it's quite straightforward, just find one with the best rates. And frankly, for equities, you can get trades much cheaper with just a regular brokerage firm. It's very exp to pay 0.18% for a large US stock trade when you can pay just $10 flat fee.

I use private banks mainly for their discretionary portfolios and access to IPOs, private equity and hedge funds. So I also care about the partners they work with. Finally, as I get older, I also use them to plan succession, they help minimize estate tax, set up trusts etc.

 

[arctician]

Try the Swiss and American banks, I find their RMs are higher quality. But I guess if you only plan to hold bonds, it's quite straightforward, just find one with the best rates. And frankly, for equities, you can get trades much cheaper with just a regular brokerage firm. It's very exp to pay 0.18% for a large US stock trade when you can pay just $10 flat fee.

u have any recommendation of brokerage that charge below 0.18%? so far scb and dbs pc give 0.18%, thats the lowest i can find

for stocks in US i use Morgan stan..think they charge USD$25 for trade of any size...trying to find a broker with lower comm for local trades

 

[highsulphur]

u have any recommendation of brokerage that charge below 0.18%? so far scb and dbs pc give 0.18%, thats the lowest i can find

for stocks in US i use Morgan stan..think they charge USD$25 for trade of any size...trying to find a broker with lower comm for local trades

Cimb gives 0.12% promo rate for up front cash. They have been renewing that promo for a while

 

[arctician]

Cimb gives 0.12% promo rate for up front cash. They have been renewing that promo for a while

i see then it may revert to market rate in future right? is cimb or cdp e custodian?

 

[superhero]

CIMB only need 2mil right?

Last i checked, UBS requires at least 4mil with them.

BOS was quite low as well iirc.

 

[highsulphur]

i see then it may revert to market rate in future right? is cimb or cdp e custodian?

They provide both options but for cdp the normal commission applies for sale

 

[wahkao3]

you are supposed to have access to more investment products as well

are these additional investment products lower risk and higher return?
If not, no point

 

[crossfitter]

CIMB only need 2mil right?

Last i checked, UBS requires at least 4mil with them.

BOS was quite low as well iirc.

BOS is USD2m

 

[V_for_Vanilla]

i have tried SCB and CIMB..both have no custodian fees for otc bonds

SCB qutoed me 0.18% and CIMB none..but i believe latter built it through higher spread..both are priority and preferred..not pc

Not true. Both SCB and CIMB have custodian fees for OTC bonds. SCB debits every quarterly, while CIMB debits from the semi-annual coupon payments.

 

[crossfitter]

u have any recommendation of brokerage that charge below 0.18%? so far scb and dbs pc give 0.18%, thats the lowest i can find

for stocks in US i use Morgan stan..think they charge USD$25 for trade of any size...trying to find a broker with lower comm for local trades

How do you find CIMB? They are quite a small player and dont have much presence in Asia ex Malaysia.

 

[alocacoc]

which bank are you using? A local pb that I know of charges 0.15% custodian fees off your portfolio excluding cash.

will reply your pm once i can start pm

 

[stiwipl]

I know it's old thread but are SCB fees jumping up that much on PB level? Also what is the requirement for SC SG Private Bank, does someone know?

SC PB schedule of fees is showing trading fees much higher e.g. 0.4% up to 1% on foreign exchanges (min. US$150), annual custody fees of 0.2% (waived for non PB customers), US$5,000 annual account maintenance fees (for fail below US$2M).

To me it seems it's much better to stick to Priority or Priory Private.

Edit: so it looks like SC PB is US$2M required:
https://av.sc.com/corp-en/content/docs/pvb-singapore-schedule-of-fees-and-charges.pdf

 

[mooncake01]

Let me know if I am missing something - What is the point of PB today when there is Interactive Broker?

 

[reddevil0728]

Let me know if I am missing something - What is the point of PB today when there is Interactive Broker?

cause not everybody just trade equity straight up.

and some rich people don't even want to DIY themselves via IBKR

and cost is not a concern to them.

 

[mooncake01]

cause not everybody just trade equity straight up.

Are there stuff on PB but not on IBKR?

and some rich people don't even want to DIY themselves via IBKR

The basic steps on IBKR are:
1. Select the fund
2. Decide the sizing
3. Choose to buy or sell

If this is difficult, I don't know what to say.

and cost is not a concern to them.

It's a matter of being ripped off by PB when IBKR offers better services at much lower costs. The rich doesn't mind paying but no one likes to be ripped off.

 

[reddevil0728]

Are there stuff on PB but not on IBKR?

Equity linked notes

The basic steps on IBKR are:
1. Select the fund
2. Decide the sizing
3. Choose to buy or sell

If this is difficult, I don't know what to say.

i never say it is difficult. they are rich for a reason and their every second doing the 3 steps might be worth more than 24 hours of yours.

It's a matter of bring ripped off by PB when IBKR offers better services at much lower costs. The rich doesn't mind paying but no one likes to be ripped off.

well, if they are being ripped off and they can still get richer than many other people here.. do you think it's a concern to them?

 

[mooncake01]

well, if they are being ripped off and they can still get richer than many other people here.. do you think it's a concern to them?

I actually think it is. When money is no longer a concern, face matters a lot. When they realise they are getting the same thing but paying 100% more, worse when it was pointed out to them by someone, they scared they lose face. They scared people think they are Robert, unintelligent creatures.

 

[reddevil0728]

I actually think it is. When money is no longer a concern, face matters a lot. When they realise they are getting the same thing but paying 100% more, worse when it was pointed out to them by someone, they scared they lose face. They scared people think they are Robert, unintelligent creatures.

I don't think rich people think the way you do.

 

[little pupsky]

I actually think it is. When money is no longer a concern, face matters a lot. When they realise they are getting the same thing but paying 100% more, worse when it was pointed out to them by someone, they scared they lose face. They scared people think they are Robert, unintelligent creatures.

I don't think rich people think the way you do.

It's precisely for the sake of "face" that some rich people have PB. "I have it because I can", "I have it because the social circle I hang with have it and talk about it" are some of the mentality for some rich people.

And of course, like what reddevil said, if PB frees up time for them at a minimal/negligible cost to them, then it's simple decision of time anytime of the day.

 

[reddevil0728]

It's precisely for the sake of "face" that some rich people have PB. "I have it because I can", "I have it because the social circle I hang with have it and talk about it" are some of the mentality for some rich people.

it doesn't matter as long as they make more money and continue to be richer than those people who think PB is useless since they can do DIY.

As much as people here wants to think such PB stuff is pointless.. but hey... why are PBs still around and those ppl who use PBs are likely richer than anyone here?