Saving and investing are important concepts for building a sound financial foundation because they all generate money. Even so, they are not the same thing.
While you might make a little extra money from the interest generated from your savings account, the little you make cannot equal investment returns. For this reason, it is safe to say that investing is smarter and better than saving.
If you’re a Singaporean looking to make more money, one of the best ways to grow your income is by getting a brokerage service that aligns with your investing goals. Thankfully, MoneySmart helps you compare top investment brokerage firms in Singapore so that you can choose a suitable brokerage and start investing.
But among many brokerages, how do you pick the best? Read on to find more about choosing the best brokerage firm for your needs.
How to choose the best brokerage firm
Purchasing assets that appreciate or generate income is one of the best ways to grow your money. Thankfully, online brokerage firms in Singapore provide investors with the convenience of investing online and other useful brokerage services.
But what should you consider when getting online brokerage? Well, profitable investing requires you to choose a brokerage that aligns with your investment goals, educational needs, and learning styles. To ensure you make the right choice, be considerate with the following:
Brokerage fees: Brokerage firms usually charge fees for the services they offer. If you are planning to be an active trader, buying and selling assets frequently, you will want to go with a brokerage account that charges a lower commission. On the other hand, if you will trade infrequently, you should take note of the minimum commission brokerages charge per trade before making a decision. The ultimate decision will depend on your investment goals.
Platform or app usability: Brokerages usually offer trading platforms with varying features to allow consumers to trade with ease. Before choosing a certain brokerage, you want to check out their platform and feel their interface so that you make an informed decision. If you want to be able to trade from anywhere, you will be better with a brokerage that offers a mobile app. Comparing the available platforms and apps will help choose a brokerage with the best trading app in Singapore.
Ease of opening a brokerage account: The procedures of opening an account matter a lot. Thankfully, most brokerages make it easy for Singaporeans and permanent residents to open accounts. For the most part, MoneySmart’s list of best brokerages in Singapore includes firms that allow you to use SingPass MyInfo to create a brokerage account.
Products you can trade: While finding a brokerage with the best trading app in Singapore is very important, you want to make sure that the broker allows you to access all the assets you plan to invest in. For instance, if you’re going to invest in both Singapore stocks and foreign markets, you should choose a broker offering access to markets you intend to invest in.
Minimum funding: Saving and investing are close cousins, and before investing, you may need to save to achieve the amount you want to invest. Once you have saved enough to invest, you will also need to budget. This will help you select a trading account that suits your budget. While some brokers in Singapore do not require a minimum deposit, many require you to invest S$3,000 for classic accounts, S$300,000 for platinum accounts, and S$1,500,000 for VIP accounts. MoneySmart helps you compare Singapore brokerages and their funding requirements so you can choose a brokerage that fits your investment needs.
Research material and insights: The right brokerage for you should cater to your educational needs and learning style. Most brokers provide research materials prepared by experts and analysts to help investors understand the market where investors can share their ideas and webinars where investors can share their ideas and webinars where investors can share their ideas and discuss various things regarding investing.
Brokerages in Singapore offer a variety of trading products, and before investing, you need to understand the products you want by learning the specifics of each. That way, you will equip yourself with the knowledge and skills you need to make the most out of your investment.
If you have made the decision to trade, make sure to compare different brokerages and the packages they have so that you can make an informed decision. The website of the brokerage you choose should also have a user-friendly interface as well as an easy-to-use trading app to allow you to trade with ease. Choosing a brokerage with the best trading app in Singapore will allow you to trade anytime at your convenience.