Read from the The Straits Times, UOB Kay Hian is going to increase trading charges. It's a sad day for small time investor like me, which will increase our cost in investment. Below are current online trading charges charge by various firms.
| Company | Min Charge | Commission | New Min Charge | Effective Date |
|---|---|---|---|---|
| UOB | $20.00 | 0.275% | $25.00 | 13 July 05 |
POEMS | $22.00 | 0.280% | $25.00 | 14 July 05 |
OCBC | $20.00 | 0.275% | TBC | TBC |
DBS | $23.00 | 0.280% | TBC | TBC |
| Kim Eng | Not Sure* | 0.2750% | $25.00 | 13 July 05 |
| GK Goh | $20.00 | 0.2750% | $25.00 | 13 July 05 |
*I tried to update Kim Eng's commission charge, but I could not found it on the website as they had already updated the new Min Charge that is going to take effect on 13 July 05.
It will not affect the big time traders at the present moment as I think they would not like to rock the boat and cause the big time traders to switch to other firm, which offer lower commission. Looks like the small time investers are going to be affected by this new changes. Let's see how the other firm will react to UOB Kay Hian rise.
5 comments:
Just like the banking industry, 1st u see mkt merger n consolidation till there r a few big players, then they start to raise charges or impose new charges.
I think the rest will fllw n this may be the signal for higher charges, even for bigger trades. Time to buy UOB-KayHian, Kim Eng or GK Goh shares :D
Actually, I just applied for a trading account with
UOB-Kayhian ... Arrrrrggggghhhhhhhhh !
Also wondering if it would be good or bad for SGX stock ??
POEMS also increasing their charges,
With effect from 14 July 2005, there will be an increase in the minimum commission rates for both online and offline trades of securities listed on the SGX. The online and offline commission rates will be revised to S$25 and S$40 respectively.
What I said earlier is coming true...
Haa..... Typical Singapore market situation. You just need one big player to start the ball rolling and everyone will follow. This is what we call "Competition". Look like an Chicken and Egg problem, if they don't increase, they may see their traders switch house. What is the morale of the story. Be a BIG TIME Trader... haaa.......
TC, Look like u need to source for a new account. Maybe you should wait for a few more weeks to see whether there is any firm that don't intend to increase and open the account with them.
TC, up to today the only two companies that did not indicate any increase in trading fee are DBS and OCBC. OCBC rate is currently the lowest at $20.00, whereas DBS is more expensive at $23.00 before the New Minimum charge kick in. Get yourself prepare to open an account with OCBC. Or else every trade that you make must have a minimum value of $9091.00. Otherwise, your commission value that you pay will be higher then 0.275%.
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