Monday, March 16, 2009

Online trading services with DBS iBanking

DBS Vickers has taken a unique step to bring down commission charges for their online trading services. It is a good piece of news especially for those small time and long term investors. Among the local brokerages, at the moment most of the commission charges for small contract sizes are 0.28% or minimum of S$25.

Under the new change, you can get to enjoy a preferential commission rate of 0.18% or minimum of S$18 for all your online Singapore trades. However the lower commission rate is possible only for cash upfront settlement. In other words, DBS Vickers has done away with the T+3 settlement policy. I believe you can still do contra trading but of course you won’t be able to get to enjoy the preferential rate.

I find the change beneficial for those long term investors as they don’t do contra trading. You just need to pay cash upfront first and then make your online purchases when there is sufficient money in your account.

In order to take advantage of the preferential rate, of course you need to have DBS Vickers online trading account and also DBS iBanking ready. Upon logging in to your DBS iBanking, there is a new Trading Services menu on the left. You need to link DBS iBanking to DBS Vickers if you are doing it the first time. From then onwards, you can do your stock purchases through DBS iBanking. For more information, you can visit DBS website.

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