Would like to share the only bank, Standard chartered, which offers NO MINIMUM COMMISSION on all Online Eequities trading transactions.
http://www.standardchartered.com.sg/pro ... index.html
Novices please start from here
Moderators: alvin, learner, Dennis Ng
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candy_chia
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Re: Novices please start from here
Woah!! So what do they earn?
Re: Novices please start from here
They said "no minimum commission"; they did not say "no commission". So they can still charge you commission, just that there is no longer any minimum commission.Albert wrote:Woah!! So what do they earn?
Re: Novices please start from here
Briefly read the website that the bank act as custodian for the shares you purchase.
It means it will NOT be deposited in your CDP account and you won't be able to attend any AGM.
Any voting instruction is to be sent via Standard Chartered who is acting as a nominee acct.
It means it will NOT be deposited in your CDP account and you won't be able to attend any AGM.
Any voting instruction is to be sent via Standard Chartered who is acting as a nominee acct.
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candy_chia
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Re: Novices please start from here
For small quantity of shares purchased, this is a sweetener with no minimum commission of $18 to $25 that are generally charged for each trade transacted.
This implied that there is a flexibility to purchase shares in stagger lots and thus spread the risk, especially for those who want a huge selection of shares in their portfolio.
$1,000 worth of shares only incurs commission of $2.00 (0.20%) if trade is executed via standard chartered, compared to $25 minimum brokerage fee usually imposed.
Since shares are held by Stanchart through custodian account, so there is a risk that we will lose all $$$ if stanchart experiences financial difficulty.
This implied that there is a flexibility to purchase shares in stagger lots and thus spread the risk, especially for those who want a huge selection of shares in their portfolio.
$1,000 worth of shares only incurs commission of $2.00 (0.20%) if trade is executed via standard chartered, compared to $25 minimum brokerage fee usually imposed.
Since shares are held by Stanchart through custodian account, so there is a risk that we will lose all $$$ if stanchart experiences financial difficulty.
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candy_chia
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Re: Novices please start from here
Below article discussed the pros and cons of Standard Chartered Online Trading.
ADVANTAGES
1) SCB would be very useful for traders who buy and sell regularly to minimize transaction costs.
2) It is also very useful for the Dollar Cost Averaging and Averaging Down strategy, where you buy small amounts of the stock over time to achieve a lower average cost. Since nobody can predict stock movement, you can buy in small amounts and buy more when the stock price goes down. This is especially useful for stocks which have low prices like many of the REITS which are priced below $1.
3) Finally, it benefits small investors who can now invest whenever they want, without having to accumulate at least $9000 to invest just so that they don’t have to pay huge commission charges.
If SCB is so good, why not all switch to SCB online trading? However, SCB platform is not all roses;
There are certain DISADVANTAGES you should be aware of.
1. Poor Trading Platform and Tools
The SCB online trading tools are quite ill equipped for the average trader. The Live Prices page can only show one stock price at any one time. The stock tracker page can only show up to 12 stocks per page, none of which are live prices (The prices can be delayed by 10-15 minutes). There are pretty much no Technical Analysis tools available.
2. Stocks Are Held Through Custodian Account by SCB
Basically, you don’t own the stocks directly through your CDP as opposed to POEMS, Citibank etc. SCB will own the stocks for you.
This might be the reason why the Commission charges so much cheaper, it’s hard to tell if SCB actually buys the stocks you tell them to buy or they simply open a Position with you.
Also, since Companies identify their investors only through Central Depository (CDP), the Companies will never know you actually hold their stocks. This means that you will not receive the Annual Reports, receive any Shareholder Voting Forms or subscribe to Dividend Reinvestment Schemes (DRIPS).
One last thing is if SCB for some reason falls, all your stocks are gone since they belong to SCB and not you. This possibility is quite remote, but never say never.
3. Cash Only Trades, No Contra
A commonly used strategy by speculators is the Contra strategy. Since Trades are cleared in 3 days time, most brokers only need you to bank in the money before the 3 days are up to secure the trade. This means that if you sell the stock within this period, you do not need to come up with any money at all! Obviously, this is a speculative strategy; it is never a good idea to gamble with money that you do not have.
SCB requires you to have the money in your account before you can buy the stocks, which doesn’t really affect me.
4. Dividend Payments Require More Work, Are Delayed to Next month
This is really my beef with the SCB trading platform. I was expecting my Dividend payment from SingPost this month and it never came in. So I called them up to enquire and this is the reply I get. “I will receive a letter from SCB at the end of the month stating that I have received Dividends and I can opt to either receive them in cash or in shares.” So I asked them if they can automatically just send me cash and deposit directly into my account. They said no. Now that’s just more work for me, I HAVE TO mail back a letter every month (since I get Dividends every month) to opt for my Dividends in cash and I will only receive them the next month.
http://www.investinpassiveincome.com/st ... -and-cons/
ADVANTAGES
1) SCB would be very useful for traders who buy and sell regularly to minimize transaction costs.
2) It is also very useful for the Dollar Cost Averaging and Averaging Down strategy, where you buy small amounts of the stock over time to achieve a lower average cost. Since nobody can predict stock movement, you can buy in small amounts and buy more when the stock price goes down. This is especially useful for stocks which have low prices like many of the REITS which are priced below $1.
3) Finally, it benefits small investors who can now invest whenever they want, without having to accumulate at least $9000 to invest just so that they don’t have to pay huge commission charges.
If SCB is so good, why not all switch to SCB online trading? However, SCB platform is not all roses;
There are certain DISADVANTAGES you should be aware of.
1. Poor Trading Platform and Tools
The SCB online trading tools are quite ill equipped for the average trader. The Live Prices page can only show one stock price at any one time. The stock tracker page can only show up to 12 stocks per page, none of which are live prices (The prices can be delayed by 10-15 minutes). There are pretty much no Technical Analysis tools available.
2. Stocks Are Held Through Custodian Account by SCB
Basically, you don’t own the stocks directly through your CDP as opposed to POEMS, Citibank etc. SCB will own the stocks for you.
This might be the reason why the Commission charges so much cheaper, it’s hard to tell if SCB actually buys the stocks you tell them to buy or they simply open a Position with you.
Also, since Companies identify their investors only through Central Depository (CDP), the Companies will never know you actually hold their stocks. This means that you will not receive the Annual Reports, receive any Shareholder Voting Forms or subscribe to Dividend Reinvestment Schemes (DRIPS).
One last thing is if SCB for some reason falls, all your stocks are gone since they belong to SCB and not you. This possibility is quite remote, but never say never.
3. Cash Only Trades, No Contra
A commonly used strategy by speculators is the Contra strategy. Since Trades are cleared in 3 days time, most brokers only need you to bank in the money before the 3 days are up to secure the trade. This means that if you sell the stock within this period, you do not need to come up with any money at all! Obviously, this is a speculative strategy; it is never a good idea to gamble with money that you do not have.
SCB requires you to have the money in your account before you can buy the stocks, which doesn’t really affect me.
4. Dividend Payments Require More Work, Are Delayed to Next month
This is really my beef with the SCB trading platform. I was expecting my Dividend payment from SingPost this month and it never came in. So I called them up to enquire and this is the reply I get. “I will receive a letter from SCB at the end of the month stating that I have received Dividends and I can opt to either receive them in cash or in shares.” So I asked them if they can automatically just send me cash and deposit directly into my account. They said no. Now that’s just more work for me, I HAVE TO mail back a letter every month (since I get Dividends every month) to opt for my Dividends in cash and I will only receive them the next month.
http://www.investinpassiveincome.com/st ... -and-cons/
candy_chia wrote:Would like to share the only bank, Standard chartered, which offers NO MINIMUM COMMISSION on all Online Eequities trading transactions.
http://www.standardchartered.com.sg/pro ... index.html
Re: Novices please start from here
Thanks for the informative message. This are the 'devils are in the details"!
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candy_chia
- Investing Mentor
- Posts: 1731
- Joined: Sun Jul 17, 2011 11:36 am
Re: Novices please start from here
I am glad that I took the initiative to meet Dennis in 2005 when he was a financial planner and he recommended my family to take up Aviva "as charged" (1st to offer as charged shield plans at that time) so I have a peace of mind now.
Thankful that I signed up Dennis' courses, which subsequently enable Dennis to recommend to me independent financial planner that dispenses truthful and professional advices, and concurrently, allows us tremendous saving of $139k (for the next 20 years) for our life insurance policies.
My friend is not as fortunate as he has so much stringent exceptions (below throat and stretching to small intestine) clauses imposed on his policies that he doesn't have the choice to upgrade from basic CPF shield plan to private "as charged" plan.
Would encourage everyone to review your financial health while you are still healthy (before stringent exceptions are imposed in your policies), you may find you have another source of fund (which can generate higher investment return) hidden in some of the policies.
Thankful that I signed up Dennis' courses, which subsequently enable Dennis to recommend to me independent financial planner that dispenses truthful and professional advices, and concurrently, allows us tremendous saving of $139k (for the next 20 years) for our life insurance policies.
My friend is not as fortunate as he has so much stringent exceptions (below throat and stretching to small intestine) clauses imposed on his policies that he doesn't have the choice to upgrade from basic CPF shield plan to private "as charged" plan.
Would encourage everyone to review your financial health while you are still healthy (before stringent exceptions are imposed in your policies), you may find you have another source of fund (which can generate higher investment return) hidden in some of the policies.
seowyh wrote:
Before engaging in investing to grow your golden eggs, it is important to protect your most valuable asset which is yourself.
Dennis advocated some important insurances as follows:
1) Death - sufficient to cover the living expenses of your dependents till they can earn income on their own. Mortgage loan for own stay should be covered too.
2) H&S - Make sure the plan is as charged without proration
3) Disability income - Most people don't have this (check out personal insurance thread on it)
4) Critical illness - sufficient to cover at least one year of expenses in case such illness strikes.
Make sure the downside risks have been limited before you charge forward to invest.
bongiovi wrote:I have bought NTUC medical insurance (as charged) about 3-4 years back from my friend whom is now not working in insurance industry anymore.
Actually I bought my medical insurance was advised by my 2 close friends whom were diagnosed with major illnesses.
As both of them have no private medical insurances, they shared with me how financial burden had on them due to their sickness. Sadly 1 of them passed away.
Till now, I appreciated their messages to me. A wake-up call to me. How I wish I had this knowledge on this issue when I was 4 or 5 yrs back and share it with my 2 close friends. Haiz... Seeing is believing after I witnessed it myself but at a high price.
That why when I read Dennis, bemoneysavvy, candy and other posts, I really understand the important is it. If anyone has not buy a medical insurance (as charged), I really hope he/she will wake up and take actions. Remember Health is our greatest asset.
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candy_chia
- Investing Mentor
- Posts: 1731
- Joined: Sun Jul 17, 2011 11:36 am
Re: Novices please start from here
Sharing an inspiring video by Jim Rohn that remind us to preserve even when we encounter setbacks.
Before you say enough. No.
The magic word is UNTIL.
Promise yourself you will:
- Read book UNTIL your skill change.
- Listen to it UNTIL it makes sense.
- Go forward UNTIL you Understand.
- Practise UNTIL you Develop the skill.
NEVER Give Up UNTIL However Long that is.
Step by step, Piece by piece, book by book, word by word.
Jim Rohn - How to have Your Best Year Ever (3 of 3)
http://www.youtube.com/watch?v=CWOJt1kCYP0
Before you say enough. No.
The magic word is UNTIL.
Promise yourself you will:
- Read book UNTIL your skill change.
- Listen to it UNTIL it makes sense.
- Go forward UNTIL you Understand.
- Practise UNTIL you Develop the skill.
NEVER Give Up UNTIL However Long that is.
Step by step, Piece by piece, book by book, word by word.
Jim Rohn - How to have Your Best Year Ever (3 of 3)
http://www.youtube.com/watch?v=CWOJt1kCYP0
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candy_chia
- Investing Mentor
- Posts: 1731
- Joined: Sun Jul 17, 2011 11:36 am
Re: Novices please start from here
What is Leading Indicators?
A measurable economic factor that changes Before the Economy Starts to follow a particular pattern or trend. Leading indicators are used to PREDICT Changes in the Economy, but are not always accurate.
The Purchasing Managers’ Index (PMI) is one of the leading indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
Weaker economic growth usually translates into lower stock prices and falling bond yields and vice-versa.
(1) A reading BELOW 50 represents Contraction in the manufacturing sector
(2) A number in the ABOVE 50 indicates that the manufacturing economy is generally expanding.
(3) HIGH 50 suggests a robust expansion in the economy.
(4) A significant downturn in manufacturing activity usually rolls up into the broader economy since an index reading in the LOW 40's spells a looming Recession.
Obviously, the health of the economy can have a huge impact on both stocks and bonds.
http://www.masteryourfinance.com/forum/ ... 247#p25247
http://www.investopedia.com/terms/p/pmi ... z25g0iYyaG
A measurable economic factor that changes Before the Economy Starts to follow a particular pattern or trend. Leading indicators are used to PREDICT Changes in the Economy, but are not always accurate.
The Purchasing Managers’ Index (PMI) is one of the leading indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
Weaker economic growth usually translates into lower stock prices and falling bond yields and vice-versa.
(1) A reading BELOW 50 represents Contraction in the manufacturing sector
(2) A number in the ABOVE 50 indicates that the manufacturing economy is generally expanding.
(3) HIGH 50 suggests a robust expansion in the economy.
(4) A significant downturn in manufacturing activity usually rolls up into the broader economy since an index reading in the LOW 40's spells a looming Recession.
Obviously, the health of the economy can have a huge impact on both stocks and bonds.
http://www.masteryourfinance.com/forum/ ... 247#p25247
http://www.investopedia.com/terms/p/pmi ... z25g0iYyaG
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candy_chia
- Investing Mentor
- Posts: 1731
- Joined: Sun Jul 17, 2011 11:36 am
Re: Novices please start from here
Hi All,
You may be keen to attend below Free FA course (73 vacancies, they provide light snacks & packed drinks):
Intermediate Fundamental Analysis: Understanding Corporate Actions seminar conducted by UOBKayHian on 19 Sep 2012 from 6.30pm to 7.30pm.
If you are keen to attend, pls register at:
http://www.utrade.com.sg/index.jsp
Click Investor Centres, after which choose Seminars, followed by Technical & Fundamental Analysis:
There are short courses like market overview available, such as:
- Singapore Strategy: Sector Overview
- Market Quick-Bites
You may be keen to attend below Free FA course (73 vacancies, they provide light snacks & packed drinks):
Intermediate Fundamental Analysis: Understanding Corporate Actions seminar conducted by UOBKayHian on 19 Sep 2012 from 6.30pm to 7.30pm.
If you are keen to attend, pls register at:
http://www.utrade.com.sg/index.jsp
Click Investor Centres, after which choose Seminars, followed by Technical & Fundamental Analysis:
There are short courses like market overview available, such as:
- Singapore Strategy: Sector Overview
- Market Quick-Bites
-
candy_chia
- Investing Mentor
- Posts: 1731
- Joined: Sun Jul 17, 2011 11:36 am
Re: Novices please start from here
FREE Financial Education Seminars for Mature Woman,sponsored by Tsao Foundation/Citibank.
Date: 18 Oct 2012 (every Thursday). Total: 20 sessions.
Time: 10am to 1pm.
Requirements:
1) Age 40 to 60,
2) Monthly household income of $1,500 to $3,500.
Register at Ulu Pandan CC personally.
P/S: Above seminars are conducted in English. Chinese sessions also available.
Date: 18 Oct 2012 (every Thursday). Total: 20 sessions.
Time: 10am to 1pm.
Requirements:
1) Age 40 to 60,
2) Monthly household income of $1,500 to $3,500.
Register at Ulu Pandan CC personally.
P/S: Above seminars are conducted in English. Chinese sessions also available.
-
candy_chia
- Investing Mentor
- Posts: 1731
- Joined: Sun Jul 17, 2011 11:36 am
Re: Novices please start from here
Citibank financial education book series Managing Your Wealth, a step-by-step guide that aims at providing a thorough understanding of wealth management for all stages of life.
In six volumes, each one featuring a different topic, the Managing Your Wealth series talks about defining financial goals, effective distribution of wealth, making use of credit and investment facilities, children's education planning, retirement planning and even legacy transfer, and provides tips on wealth management for people from all walks of life.
Managing Your Wealth series comes in six volumes:
Vol. 1 - Taking Charge of Your Money
Vol. 2 - Investing for Better Returns
Vol. 3 - Making the Most of Credit
Vol. 4 - Breezing Through Your Middle Years
Vol. 5 - Securing Your Future
Vol. 6 - Determining Your Legacy
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
In six volumes, each one featuring a different topic, the Managing Your Wealth series talks about defining financial goals, effective distribution of wealth, making use of credit and investment facilities, children's education planning, retirement planning and even legacy transfer, and provides tips on wealth management for people from all walks of life.
Managing Your Wealth series comes in six volumes:
Vol. 1 - Taking Charge of Your Money
Vol. 2 - Investing for Better Returns
Vol. 3 - Making the Most of Credit
Vol. 4 - Breezing Through Your Middle Years
Vol. 5 - Securing Your Future
Vol. 6 - Determining Your Legacy
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
Re: Novices please start from here
Thank you for sharing.candy_chia wrote:Citibank financial education book series Managing Your Wealth, a step-by-step guide that aims at providing a thorough understanding of wealth management for all stages of life.
In six volumes, each one featuring a different topic, the Managing Your Wealth series talks about defining financial goals, effective distribution of wealth, making use of credit and investment facilities, children's education planning, retirement planning and even legacy transfer, and provides tips on wealth management for people from all walks of life.
Managing Your Wealth series comes in six volumes:
Vol. 1 - Taking Charge of Your Money
Vol. 2 - Investing for Better Returns
Vol. 3 - Making the Most of Credit
Vol. 4 - Breezing Through Your Middle Years
Vol. 5 - Securing Your Future
Vol. 6 - Determining Your Legacy
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
http://www.citibank.com.sg/global_docs/ ... kfull.html
-
candy_chia
- Investing Mentor
- Posts: 1731
- Joined: Sun Jul 17, 2011 11:36 am
Re: Novices please start from here
Extract of the article that explains the differences between REIT & Business Trust:
1) Singapore REIT Yield
Characteristics of REITs listed in Singapore include:
~~ Dividends or distributions from Singapore REITs are NOT Taxable.
~~~ Payout 90% of taxable income as dividends to unit holders
~~~~ At least 70 % of assets are invested in Real Estate
~~~~~ Debt does not exceed 35 per cent of the value of the deposited property
Some REITs may be a good alternative to income producing dividend stocks
2) Business Trust Yield
Singapore is the first Asian country to introduce the Business Trust regime in January 2004.
Business trusts are business enterprises structured as trusts, as opposed to a corporate structure.
Unlike a company, which can only pay dividends out of accounting profits, a business trust
~~~ may declare and pay distributions to its unit holders out of its Operating Cash Flows.
Business trusts may be an attractive structure for businesses with stable growth and cash flows.
Since the listing of the world’s first shipping trust in 2006, business trusts with various business interest are also listed on the Singapore stock exchange in recent years.
http://www.singapore-stock-analysis.com ... -reit.html
1) Singapore REIT Yield
Characteristics of REITs listed in Singapore include:
~~ Dividends or distributions from Singapore REITs are NOT Taxable.
~~~ Payout 90% of taxable income as dividends to unit holders
~~~~ At least 70 % of assets are invested in Real Estate
~~~~~ Debt does not exceed 35 per cent of the value of the deposited property
Some REITs may be a good alternative to income producing dividend stocks
2) Business Trust Yield
Singapore is the first Asian country to introduce the Business Trust regime in January 2004.
Business trusts are business enterprises structured as trusts, as opposed to a corporate structure.
Unlike a company, which can only pay dividends out of accounting profits, a business trust
~~~ may declare and pay distributions to its unit holders out of its Operating Cash Flows.
Business trusts may be an attractive structure for businesses with stable growth and cash flows.
Since the listing of the world’s first shipping trust in 2006, business trusts with various business interest are also listed on the Singapore stock exchange in recent years.
http://www.singapore-stock-analysis.com ... -reit.html