If you’re looking for an online trading platform with access to most Asian markets, then I believe that Boom Securities is the best option for you. If you don’t mind trading over the phone and are looking for a Singapore-based broker with great market access, then I believe that either KGI Securities or Maybank will do the trick.
Inquired about Phillips in Singapore some years ago, as thought we could also buy stocks in other countries in the region. Commissions looked reasonable & I was quite interested and called up from outside Singapore. Pretty sure they said that stocks would be held in my name, but as I remember they told me at that time there was no insurance for cash held with them. I told them I would prefer my funds to sit in a local bank account in my name but they were totally uninterested in assisting with this, so we lost interest. After this I compared their commissions again to trading through a Thai broker and figured the commissions are quite low in Thailand so stick with that.
Hi Commentator22, sorry for the slow reply. Yes deposit insurance is lacking across the region so I would suggest you hold government bills or bonds instead, wherever possible.
About Thai brokers - that makes sense. From my understanding, companies like Boom Securities, Phillip Securities etc will typically outsource execution and custody to third parties when trading in countries like Thailand or the Philippines. So you end up with higher fees than you would otherwise. If you want to save money, probably best to open up brokerage accounts locally.
Re the Thai market, foreigners can open accounts with local brokers if you have a local bank account. If you do this the commissions with be a lot less than stated in the above table, however you will have to be in-country to set it up. We use Tisco and have had good service over the years. Brokerage is about 0.207% each way with an internet A/C. https://tiscosec.com/securities/
This is a great overview. It inspired me to do a broker compare tab in my own balance sheet.
Boom was sold off by Monex but seem to have opened up to new markets as well as some commission updates. No changes in Asia markets for them though. A new app seems to be in pipeline as well.
Meanwhile IB has opened up trading in Malaysia. Good to see some competition there. I still haven't been able to get market data access for Malaysia for some reason.
Have you see any other changes in the broker Asia landscape?
I like the ease of use offered by Boom trading platform. Is the round trip by design because they settle the proceeds in USD when you sell? Asking because I would not mind holding SGD as the cash currency in Boom (if possible).
Oh it's very straightforward to open an account with Boom and they don't mind taking in foreigners as customers.
I believe that you can only keep HKD, USD, RMB, SGD, AUD, JPY, GBP and EUR in your account. You'll need to settle in any of those currencies, which implies FX transactions for any stocks listed in say Malaysia or the Philippines.
Thanks Andrew. For Philippine shares, I'm using KGI Securities, a small Singapore outfit that's a subsidiary of a Taiwanese bank. Partly because I got a special discount on commission rates. But I hear Phillip Securities is decent, too, probably with a better user interface when it comes to buying / selling shares.
I don't know much about Converge ICT, unfortunately.
I saw KGI settles in USD for Philippine stocks. How's the bid-ask spread for PHP/USD like?
I thought you might be interested in Converge ICT too. They're taking making share from PLDT and Globe by offering the cheapest fiber broadband plans, but still earning high ROIC.
From your experience with Boom, are their estimates of fx costs accurate? Cus I don’t mind placing my orders via phone, but I want cheap executions, and Phillips and Kim Eng seems cheaper to me taking into account commissions and fx spreads.
Ok so I've observed transaction costs for Boom of around 1%, but that's per transaction so assume twice that for a round-trip transaction. Some markets such as Korea and the Philippines will lead to even higher transaction costs.
When I spoke to them on Wednesday they wouldn't give me an exact estimate of FX conversion rates. So I can't give you an exact estimate.
But my impression so far is that you'll get better execution and lower transaction costs with Kim Eng and KGI, and probably also with Phillip.
Great overview, much appreciated! I briefly looked into Asian brokers a while ago and my impression (which could be wrong) was that for most of them, to open an account (as a European) I'd have to fly over there in person. Do you maybe know what the signup process is like for these brokers, for an international investor?
I've had an account with Boom Securities (Monex) for about 8 years or so and back then there was no problem opening an account at a distance. Same with KGI Securities, with who I'm currently in discussions.
The only problem is opening an SGX custody account ("CDP") here in Singapore if that's something you care about. KGI told me I'd have to physically pay them a visit. But just opening an account should be fine for most of the major brokers in Singapore or Hong Kong.
If you want to open accounts with brokers in smaller markets such as Vietnam or Bangladesh, then I believe you will have to travel there in person, unfortunately.
HI! Any particular reason to not include Tiger Brokers?
Inquired about Phillips in Singapore some years ago, as thought we could also buy stocks in other countries in the region. Commissions looked reasonable & I was quite interested and called up from outside Singapore. Pretty sure they said that stocks would be held in my name, but as I remember they told me at that time there was no insurance for cash held with them. I told them I would prefer my funds to sit in a local bank account in my name but they were totally uninterested in assisting with this, so we lost interest. After this I compared their commissions again to trading through a Thai broker and figured the commissions are quite low in Thailand so stick with that.
Hi Commentator22, sorry for the slow reply. Yes deposit insurance is lacking across the region so I would suggest you hold government bills or bonds instead, wherever possible.
About Thai brokers - that makes sense. From my understanding, companies like Boom Securities, Phillip Securities etc will typically outsource execution and custody to third parties when trading in countries like Thailand or the Philippines. So you end up with higher fees than you would otherwise. If you want to save money, probably best to open up brokerage accounts locally.
Here's my guide to pan-Asian retail brokers: https://www.asiancenturystocks.com/p/the-best-asian-retail-broker
Re the Thai market, foreigners can open accounts with local brokers if you have a local bank account. If you do this the commissions with be a lot less than stated in the above table, however you will have to be in-country to set it up. We use Tisco and have had good service over the years. Brokerage is about 0.207% each way with an internet A/C. https://tiscosec.com/securities/
Oh nice - thanks! Tisco sounds like a great option then.
Hi Mike,
This is a great overview. It inspired me to do a broker compare tab in my own balance sheet.
Boom was sold off by Monex but seem to have opened up to new markets as well as some commission updates. No changes in Asia markets for them though. A new app seems to be in pipeline as well.
Meanwhile IB has opened up trading in Malaysia. Good to see some competition there. I still haven't been able to get market data access for Malaysia for some reason.
Have you see any other changes in the broker Asia landscape?
Boom was sold to a private equity firm. Ignition Holdings Limited
FMG, have you've been able to get mkt data and trade Malaysian stocks at IB yet?
Thanks. Yes I've traded Malaysian stocks on both Interactive Brokers and my other broker KGI Securities without a problem
No, those are the major changes. Except that Interactive Brokers now offers access to the main board on the Taiwan Stock Exchange.
Do you know who the new owner of Boom Securities is? I wasn't able to figure it out.
https://www.digfingroup.com/boom/
Mikaal Abdulla (ex head of Asia at E*Trade) and partners are behind the buyout evidently.
Thanks! That sounds positive to be honest
What is the security/investment insurance for shares and what for cash in case of Boom Securities?
I like the ease of use offered by Boom trading platform. Is the round trip by design because they settle the proceeds in USD when you sell? Asking because I would not mind holding SGD as the cash currency in Boom (if possible).
What about tax documents? Do they make it easy?
Oh it's very straightforward to open an account with Boom and they don't mind taking in foreigners as customers.
I believe that you can only keep HKD, USD, RMB, SGD, AUD, JPY, GBP and EUR in your account. You'll need to settle in any of those currencies, which implies FX transactions for any stocks listed in say Malaysia or the Philippines.
Very helpful! Thanks Michael.
Very useful article.
Which broker did you eventually use to buy Philippine shares?
On a side note, what do you think about Converge ICT (CNVRG)? Planning to buy some shares in CNVRG but SG brokers are charging huge FX spreads.
Thanks Andrew. For Philippine shares, I'm using KGI Securities, a small Singapore outfit that's a subsidiary of a Taiwanese bank. Partly because I got a special discount on commission rates. But I hear Phillip Securities is decent, too, probably with a better user interface when it comes to buying / selling shares.
I don't know much about Converge ICT, unfortunately.
I saw KGI settles in USD for Philippine stocks. How's the bid-ask spread for PHP/USD like?
I thought you might be interested in Converge ICT too. They're taking making share from PLDT and Globe by offering the cheapest fiber broadband plans, but still earning high ROIC.
It sucks so don't trade too frequently. This is the one downside with KGI
From your experience with Boom, are their estimates of fx costs accurate? Cus I don’t mind placing my orders via phone, but I want cheap executions, and Phillips and Kim Eng seems cheaper to me taking into account commissions and fx spreads.
Hi Yang!
Ok so I've observed transaction costs for Boom of around 1%, but that's per transaction so assume twice that for a round-trip transaction. Some markets such as Korea and the Philippines will lead to even higher transaction costs.
When I spoke to them on Wednesday they wouldn't give me an exact estimate of FX conversion rates. So I can't give you an exact estimate.
But my impression so far is that you'll get better execution and lower transaction costs with Kim Eng and KGI, and probably also with Phillip.
Great overview, much appreciated! I briefly looked into Asian brokers a while ago and my impression (which could be wrong) was that for most of them, to open an account (as a European) I'd have to fly over there in person. Do you maybe know what the signup process is like for these brokers, for an international investor?
Hi Jaap!
I've had an account with Boom Securities (Monex) for about 8 years or so and back then there was no problem opening an account at a distance. Same with KGI Securities, with who I'm currently in discussions.
The only problem is opening an SGX custody account ("CDP") here in Singapore if that's something you care about. KGI told me I'd have to physically pay them a visit. But just opening an account should be fine for most of the major brokers in Singapore or Hong Kong.
If you want to open accounts with brokers in smaller markets such as Vietnam or Bangladesh, then I believe you will have to travel there in person, unfortunately.
Ha okay, that's great to hear! Thanks a lot!
How much does it cost to maintain SGX custody account?
Interactive brokers removed their inactivity fee for accounts below $100k last week
I stand corrected. Thanks!