Brokerage Firms in Singapore


A brokerage firm, sometimes referred to as brokerage or brokers, is a financial institution that facilitates buying and selling of securities. Brokerage firms serve investors who trade public stocks and other securities, usually through the firm’s agent stockbrokers.

Understanding Brokerage Firms

Brokers provide investment advice to clients through face-to-face meetings or over the phone. They also provide various research reports, earnings estimates, market analyses, and stock recommendations to help their clients make informed investment decisions.

Brokerage firms can work with both individuals and large institutions and offer a variety of services depending on the type of the firm.

Types of Brokerage Firms

There are three types of brokerage firms: full-service, self-directed, and discount brokers. Each one offers different levels of service and customer support at extra costs.

1. Full-Service Brokers

Full-service brokers are licensed professionals who provide personalized investment advice. They work directly with investors to develop investment strategies based on their individual needs and goals.

2. Self-Directed Brokers

Self-directed brokers provide access to various financial products but do not offer specific investment advice. Instead, investors are responsible for deciding when to buy or sell securities. These brokers generally have low commissions but often charge other fees for services, including account maintenance, inactivity, wire transfers, overnight delivery, paper statements, and more.

3. Discount Brokers

Discount brokers offer all the functionality of self-directed brokers at a lower cost. They typically do not charge annual management fees or require minimum account balances. Discount brokers tend to have most of their operations online, which mainly allows them to charge lower prices.

Choosing A Brokerage Firm

Choosing a brokerage can be a daunting task. There are many brokers in Singapore, each offering various levels of account support, investment options, research tools and other features. To be safe, you need to pick a firm that has stood the test of time, such as They’re a leading brokerage firm in Singapore, offering excellence in securities exchange for more than 30 years.

The other factors to consider to determine which firm is best for you include considering what you need most from a brokerage firm and whether the broker you’re considering will provide it.

1. Cost

One of the things to do when choosing a brokerage firm is to consider the cost. Ask yourself how much it costs to place an order through the broker. Most services charge low commissions on stock trades; however, some have annual fees or require high account minimums to qualify for lower rates.

2. Your Investment Type

The investment you want to make is another vital consideration. Some services offer a broad selection — stocks, bonds, mutual funds and more — while others specialize in one or two areas. For example, to trade options or futures contracts, not every broker will allow you to do so.

3. Customer Service

Customer service is about the quality of the services as much as its access. You may not think this matters much now, but if and when it becomes an issue, you’ll wish you had chosen a firm with 24/7 phone support or a friendly online chat feature, rather than one that requires email contact or has limited hours and poorly trained representatives.

4. Types of accounts offered

A couple of the most common types of brokerage accounts are:

  • Cash account – Most brokerage firms offer cash accounts that allow you to buy securities with the money in your account. Once you have purchased securities, you can hold them indefinitely or sell them. In addition, you may be able to receive dividends and interest payments from stocks and bonds you own within the account. Still, the cash stays in your account until you withdraw it or use it to purchase additional securities.
  • Margin account – A margin account is an account that allows you to borrow money from your broker to purchase more securities than you could otherwise afford with just the money in your account. Failure to repay the loan within a certain period in this arrangement can lead to significant interest charges.

Final Thoughts

Brokerage firms act as a bridge between buyers and sellers. The firms exist in various types such as full-service, self-serve, and discount, and you can choose any depending on factors including your investment type, the type of the brokerage firm and the kind of account they have.


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