- Mar 12, 2007
- Reaction score
Took 15-20 days to get my trading acct live, so be prepared to wait hor
You need to have at least a esaver acct, the rest will will fall into place once the acct is open and you can apply the online trading. fund transfer from other bank have to be set up if you need to.Before opening the online trading account?
Do I have to opening a saving account with SCB for the purpose of funding? What are the different accounts?
Transfer of existing shares from CDP to SCB
I had confirmed with CDP and SCB on this matter.
1. The transfer is $10.70 per counter regardless of the number of shares per counter. This will be charged by CDP. There is NO charge by SCB.
2. The billing however, comes from SCB. That is, CDP will charge it to SCB, which in turn will deduct from your SCB account.
3. Print out both forms (CDP and SCB) below and go to any SCB branch. The bank officer there will assist with the paperwork of both forms.
Why should we transfer existing shares to SCB?
- SCB is attractive to both small and big timers. For small timers, you can benefit from the no minimum commission part. Cost-averaging will be cheap. For big timers, see illustration point #2 below.
- The commission savings using SCB will offset the stock transfer cost from CDP to SCB, this is provided if your selling contract value is <$7150 or >$13375. I will not show how I get the numbers here*.
For illustration purpose,
1. If your selling contract value is $5000, the commissions incurred by other brokerages and SCB will be $25 and $10 respectively. After offsetting the transfer fees, you get to save a few dollars.
2. If your selling contract value is $50000, the commissions incurred by other brokerages and SCB will be $140 and $100 respectively. After offsetting the transfer fees, you get to save quite a fair bit.
*Assumption: Other brokerages charge at 0.28% with a minimum charge of $25. To simplify problem, the calculation does not include clearing fees.
apart from esaver account? what else are there?
The charges for other brokerage is not same throughout.
If base on $50000, the comm charge will be base on 0.22% already, so doesn't mean the higher the contract value, the more you save.
Any contract value above $100k, the comm is 0.18%
I have a qns, if the SCB website is buggy and I urgently have to make some transactions. Can I call up SCB and is there a broker to do it?
Does this form allowed us not to be taxed at 30% for capital gains arising from trading in the US market?
The tax implications for a foreign investor will depend on whether that person is classified as a resident alien or a non-resident alien. To be considered a non-resident alien, a person must meet several guidelines. First of all, the person cannot have had a green card at any time during the relevant tax reporting period (e.g 2005) and cannot have resided in the U.S. for more than 183 days in the past three years, including the current reporting period. However, non-U.S. citizens who hold green cards and have been in the U.S. for more than 183 days are classified as resident aliens for tax purposes and are subject to different guidelines than non-resident aliens.
If you fall under the non-resident alien category and the only business you have in the U.S. is in investments (stocks, mutual funds, commodities) within a U.S. dollar-denominated brokerage firm or other agent, you are subject to the following tax guidelines. In terms of capital gains, non-resident aliens are subject to no U.S. capital gains tax, and no money will be withheld by the brokerage firm. This does not mean, however, that you can trade tax free - you will likely need to pay capital gains tax in your country of origin. In terms of dividends, non-resident aliens face a dividend tax rate of 30% on dividends paid out by U.S. companies. However, they are excluded from this tax if the dividends are paid by foreign companies or are interest-related dividends or short-term capital gain dividends. This 30% rate can also be lower depending on the treaty between your home country and the U.S., so it is important that you contact your brokerage firm to verify the rate. If you are a resident alien and hold a green card or satisfy the resident rules (183 days), you are subject to the same tax rules as any U.S. citizen.
Read more: http://www.investopedia.com/ask/answers/06/nonusresidenttax.asp#ixzz1WWnlNpon
Sharing a few cons of SCB platform:
1. SCB at times submit orders late to SGX.
Did a sell order the previous day at counter X today's buy price, trade only take place 20++ secs later. i gt the 1st trade for this counter FYI.
2. Orders entered after 12am midnight may / may not be successful?
Order status did not reflect new inputs after 12am midnight. now im nt even sure whether my inputs will be entered until tml morning.
Thumbs down for SCB in this case but as mentioned, its no commission is a plus for 1 to have.