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.
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?
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 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!