SGX fees (clearing)

[highsulphur]

Is there any way to minimise SGX clearing fees which is a percentage of the transacted value? Suppose I have a fixed commission broker like FSMOne and need to transact a large amount (eg 1m notional), is there any way to reduce the clearing fee?

Also if such shares were to be passed via inheritance, will there be any clearing fee for share transfer?

 

[Shiny Things]

Nah unfortunately - that one comes directly from the exchange. You could always try negotiating with the broker to reduce the brokerage rate, though.

 

[highsulphur]

Nah unfortunately - that one comes directly from the exchange. You could always try negotiating with the broker to reduce the brokerage rate, though.

FSMOne brokerage fee is capped at 8.80 so I'm OK with that. Sgx fees is 0.04% ($400 per million). Guess no way to get out of that.

What if I go to the etf issuer direct? Can I redeem 1m worth of MBH from the issuer directly?

 

[wutawa]

https://www.sgx.com/securities/clearing-information

Clearing Fee	0.0325% of contract value^

^ except for structured warrants and daily leverage certificates which are at 0.004% of contract value. Clearing Fees for money market exchange traded funds are 0.0001% of traded value.

2 ways of reducing the sgx clearing fee:
1. invest in money market etf = 0.0001% of traded value, or structured warrants = 0.004% of contract value
2. trade in lower value

 

[reddevil0728]

https://www.sgx.com/securities/clearing-information

Clearing Fee	0.0325% of contract value^

^ except for structured warrants and daily leverage certificates which are at 0.004% of contract value. Clearing Fees for money market exchange traded funds are 0.0001% of traded value.

2 ways of reducing the sgx clearing fee:
1. invest in money market etf = 0.0001% of traded value, or structured warrants = 0.004%
2. trade in lower value

How does trade in lower value reduce clearing fee when it is a %

 

[lzydata]

FSMOne brokerage fee is capped at 8.80 so I'm OK with that. Sgx fees is 0.04% ($400 per million). Guess no way to get out of that.

What if I go to the etf issuer direct? Can I redeem 1m worth of MBH from the issuer directly?

This is a fun idea to consider, but for sure there will be fees payable to the dealers.

Cash subscription of new units - minimum 50,000. FSMOne is also a participating dealer for NikkoAM's MBH so you might ask them, and let us know

https://www.nikkoam.com.sg/funds/nikko-am-sgd-investment-grade-corporate-bond-etf

For subscription and/or redemption of Units in cash by or through Participating Dealers
(a) Subscription fee or preliminary charge - Nil.
(b) Redemption or realisation charge - Nil.
(c) Switching fee - Not applicable.
(d) Duties and Charges - Up to 0.50% of the subscription or redemption amount (as the case may be) will be payable to the Fund.
...
(e) Any other fee - You will also have to bear normal brokerage and other fees charged by your stockbrokers.

From the prospectus of MBH: https://www.nikkoam.com.sg/media/pd...s_sgd_investment_grade_corporate_bond_etf.pdf

 

[Shiny Things]

FSMOne brokerage fee is capped at 8.80 so I'm OK with that. Sgx fees is 0.04% ($400 per million). Guess no way to get out of that.

What if I go to the etf issuer direct? Can I redeem 1m worth of MBH from the issuer directly?

Not from the issuer, but through the institutions that are Authorized Participants you can! DBS, UOB, FSMOne, iFast, Phillip, and CIMB should all be able to do it. If they say they can't, tell them to ask their boss; this is not the sort of stuff that line employees ever run into, so they might not know about it.

They'll charge for the privilege - I checked this once and DBS wanted to charge 0.3%, but that's entirely negotiable - but the tradeoff is that you'll get it all done at NAV, with no spread or slippage.

 

[highsulphur]

Not from the issuer, but through the institutions that are Authorized Participants you can! DBS, UOB, FSMOne, iFast, Phillip, and CIMB should all be able to do it. If they say they can't, tell them to ask their boss; this is not the sort of stuff that line employees ever run into, so they might not know about it.

They'll charge for the privilege - I checked this once and DBS wanted to charge 0.3%, but that's entirely negotiable - but the tradeoff is that you'll get it all done at NAV, with no spread or slippage.

Bid ask spread for MBH is tight enough. If its still a %, doubt it will be less than the 0.04% clearing fee.

Probably going to drop this idea