Tuesday, May 20, 2014

Two Key Much Needed Changes To Spur On More Retail Investors In Singapore

Singapore Retail Investors
Personally, I am a newbie retail investor (and a very small one), hence, after testing the "water" for a couple of months, I find that the Singapore Stock Market is quite vibrant but more a playground for the big guys (or the corporate investors).
The more I learned about the trade, the more I think it (shares investment) is one of the viable avenue to prevent corrosion of our hard-earned money from the inflation (as long as we do our homework). In any case, we all knew that the meagre interest rate from banks is no fight with the demon [read inflation].
Having said that, to spur more retail investors to join in the fun of "defining" our own rate of returns (no guarantee but it is a possibility), I find that we need to make the following two key changes ASAP :
1. Allowing trading of odd-lot (instead of the current 1,000 shares per lot). I know this is already in talk but it seems that the speed of launch is kind of slow. Once this is implemented, more retail investors will be able to afford the blue chips shares.
2. Reduce the current commission fee, especially the minimum fee which is ranging from $18 to $25 per transaction (depending on the broking firm that we are choosing). I know this is kind of the life blood of the broking firms but I think they have a part to play in encouraging more investors. If it is not possible to do away with this minimum fee (which is the best possible outcome for retail investors), maybe they are look into scale down minimum fee e.g. :
First 5 transaction : $25
6th transaction onwards : $10
(I know, this is only my "thinking out loud" wish list but I think this will definitely spur on more serious retail investors) 
I am pretty new to the shares market in Singapore, maybe I've missed out something that I should know. Do share your view and/or advice.



  1. Small retail investors or traders should go to SCB for your brokerage account. Right?

    1. For whatever reason, they have rejected my application, hence, I am currently using Poems. I know citibank has a lower commission fee ($18) but for new applicant they need me to go through some online test I am not keen to do ;-)

  2. Stock Investment reputation has been tarnished again and again from Clob, S-Chip, the 2008 GFC and finally the penny stock crash. It will take time to heal. There's no need to rush. :)

    1. Agreed with you and I am not in the rush, actually.. Just getting myself ready ;-)

  3. I'm not sure why SC has rejected you, but if you would like to buy blue-chips like UOB/DBS, you can buy via Unit-share in Poems. The cost per trade is $10 or 0.28%, whichever is higher. I used unit-share to load my blue chip stocks every month.

    Hope it helps you.

    1. Hi rlecg,

      Maybe I am too "green" for their (SC)'s liking?! ;-)

      Thanks for the tips, I didn't know what this Unit-share feature, will check it out.

      Thanks, once again!

  4. Hello Richard,

    Unit-Share is an odd lot market where we can buy from 1 - 999 shares of any sgx stocks (subject to availability). I use it to load up my portfolio and attend (and eat grand buffet) those big Cap AGM annually.

    1. OIC. Thanks for the clarification. I thought such odd lot purchase has not been implemented yet?

      In any case, if currently we can do that, how do we know whether a stock can be purchased with Unit-Share?



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