Learning to invest begins with finding an appropriate trading platform.
But the best trading platform for you depends on your purposes.
If you plan to make frequent trades, you’ll want a low-cost brokerage so the fees don’t eat into your returns.
Conversely, someone using a dollar-cost averaging or buy-and-hold strategy is better off with a reputable brokerage with no inactivity fees.
And you’ll have to consider where you want to trade as well: beginner-friendly platforms may not offer access to many global markets or have good foreign exchange rates.
That said, here are our recommendations for online brokers & trading platforms:
- Best for Beginners: Webull
- Best for Low Capital Investing: Webull and Interactive Brokers
- Best for Singapore Stock Trading: Interactive Brokers and FSMOne
Best for Beginners: Webull
Webull
Webull is a US-based, China-backed company known for their “true zero commissions” US and HK trading.
Webull is a US-based, China-backed company known for their “true zero commissions” US and HK trading. They only began offering their services in Singapore in 2022, so they’re one of the newest brokers on this list.
Compared to the other brokers on this list, the main upside to investing with them is that you can trade US and HK stocks and ETFs with no commissions or platform fees.
Webull also has no minimum or maximum deposit amount, so it’s excellent for those just looking to test the waters.
Current promotion (Click to apply):
- Fund any amount and get 3 free fractional shares
- + Maintain for 30 days to get an additional 5 free fractional shares
Best for Low Capital Investing: Webull and IBKR (Interactive Brokers)
Both Webull and IBKR are our top picks here because:
- Neither brokerage has a minimum initial funding requirement, so you can begin investing with whatever amount you can spare
- Both offer fractional share trading, meaning you can buy higher-priced stocks like Netflix even if you can’t afford one full share
- Both brokerages have no platform or custodian fees. Other low-cost brokerages like moomoo and Tiger Brokers still charge these fees
- Both have competitive fees when you account for not only the commissions but also other charges like inactivity fees and foreign exchange rates
Between the two, Webull is best if you’re content to trade only in the US and HK markets. Webull’s current offer of true zero commissions makes it by far the cheapest on this list. They’re quick to note that this is a “promotional rate” that is “valid till updated” though.
However, if you want to trade in markets outside of US and HK, IBKR is the better choice. IBKR has best-in-class margin rates and forex fees on top of its access to 135 markets across 33 countries.
Here’s a quick comparison of the commissions & platform fees for each brokerage:
| US Stocks & EFTs | HK Stocks & EFTs | |
|---|---|---|
| Webull | Commission: None! Platform Fee: None! | Commission: None! Platform Fee: None! |
| Interactive Brokers | Commission: USD0.0005 – 0.0035/share, min USD0.35 per order, max 1% of trade value Platform Fee: None! | Commission: 0.015 – 0.05% of trade value, min HKD4 – 18 per order Platform Fee: None! |
| Tiger Brokers | Commission: USD0.005/share, min USD0.99 per order, max 0.5% of trade value Platform Fee: USD0.005/share, min USD1 per order, max 0.5% of trade value | Commission: 0.03% of trade value, min HKD7 per order Platform Fee: 0.03% of trade value, min HKD8 per order |
| moomoo | Commission: None! Platform Fee: USD0.99 per order | Commission: 0.03% or HKD3, whichever is higher Platform Fee: HKD15 per order |
| uSMART | Commission: None! Platform Fee: USD0.005/share, min USD1 per order, max 0.5% of trade value | Commission: None! Platform Fee: HKD12 per order |
| Phillip MetaTrader 5 | Commission: 0.01% of trade value, min USD5 per order Platform Fee: None! | Commission: 0.08% of trade value, min HKD28 per order Platform Fee: None! |
Best for Singapore Stock Trading: IBKR and FSMOne
Given that Singapore isn’t great for growth stocks, our recommendations lean towards a platform you can buy and hold – whether it’s REITs, ETFs, or dividend-yielding stocks.
That’s why our top picks for this category are IBKR and FSMOne, for two reasons:
- Interactive Brokers offers the best combination of reputability, low commissions, margin rates, and trading tools. However, IBKR isn’t linked to CDP, so your purchased shares are held in custody rather than deposited directly into your CDP account. (What does this mean?)
- If you prefer a CDP-linked account, FSMOne has the lowest commissions while allowing you to sell shares in your CDP account even if you bought them from other brokerages. Their fees are higher than IBKR’s initially, but the $8.80 flat rate means you’ll break even when you place orders larger than $11,000.
Here’s a comparison of the commissions each brokerage charges:
| Trading Platform | Commission Fees | Minimum Commission |
|---|---|---|
| DBS Vickers Cash Upfront | 0.12% | S$10 |
| FSMOne Cash Account | $8.80 flat fee | N/A |
| Interactive Brokers | 0.02 – 0.08% | S$0.90 – 2.50 |
| OCBC Securities | 0.18 – 0.275% | S$25 |
| Saxo Markets | 0.03 – 0.08% | S$1 – 5 |
| Tiger Brokers | 0.03% | S$0.99 |
Interactive Brokers vs DBS Vickers & OCBC Securities
Even though they’re headquartered in the US, IBKR charges lower commissions than local bank-run brokerages like DBS Vickers and OCBC Securities.
For a $5,000 trade for example, you’ll pay only $4 in commissions to IBKR – but $10 to DBS Vickers. OCBC Securities is worse, at a $25 minimum commission. (Of course, DBS Vickers is CDP-linked, so it may be a worthwhile trade-off for some.)
Frequently Asked Questions
- What is a brokerage account and how do I open one in Singapore?
- What is CDP? Why is a CDP-linked brokerage useful?
- What’s a custodian vs CDP-linked brokerage account?
- What is a margin account? How does it compare with a cash account?
1. What is a brokerage account and how do I open one in Singapore?
A brokerage account allows you to buy and sell assets like stocks, bonds, Real Estate Investment Trusts (REITs), and Exchange Traded Funds (ETFs). If you’re a Singapore resident, you’ll first have to open a CDP account, then choose a broker and apply for a trading account there.
In Singapore, there are two main types of trading accounts you can open: custodian accounts and CDP-linked accounts. The former means that the broker holds the assets on your behalf, while the latter means your purchased shares go directly into your own CDP account.
2. What is CDP? Why is a CDP-linked brokerage useful?
Operated by the Singapore Stock Exchange, the Central Depository (CDP) is an integrated clearing, settlement, and depository facility for Singapore securities. If you’re buying Singapore stocks or bonds for example, these assets will be held in a CDP account.
CDP-linked brokerages are useful because they allow you to deposit into or sell directly from your CDP account, though they’ll usually charge higher fees for this. You’ll also be a named shareholder of the company and can attend their Annual General Meetings (AGMs) if you wish.
3. What’s a custodian vs CDP-linked brokerage account?
With a CDP-linked brokerage account, you are the legal owner of the SGX securities you buy. Custodian accounts mean that the brokerage is the legal owner of your shares, though the shares are segregated and tagged to your name.
| CDP-Linked Brokerage Account | Custodian Account | |
|---|---|---|
| Pros |
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| Cons |
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4. What is a margin account? How does it compare with a cash account?
A margin account allows you to borrow money from the broker to purchase stocks or other securities. This can come in handy if you’re making frequent trades or want to pursue more advanced trading strategies (e.g. futures and options).
For example, it usually takes a few days for a trade to settle and the cash to be reflected in your account. Having margin allows you to bypass the waiting period and purchase new securities before your previous trade has fully settled.
But since you’re borrowing money from the broker, be aware that a margin account could potentially expose you to higher losses. You’ll also need to pay interest on the amount you borrow.