Interactive Brokers charges the lowest trading fees and offers competitive access to international markets, making it a great option for investors in Singapore. The only catch to this platform, is that it is not registered by the Monetary Authority of Singapore (MAS), which means that Singaporeans cannot use it to purchase securities in Singapore. However, it is still a great option for investors seeking a platform to trade international securities.
|Summary of Interactive Brokers' Online Brokerage|
|Lowest commission fees for international trading|
|Premium pricing for high-volume traders|
|Not registered by MAS|
Table of Contents
- What Makes Saxo Stand Out to Investors
- Investment Opportunities at Saxo
- Investor Eligibility Requirements
What Makes Interactive Brokers Stand Out to Investors
Interactive Brokers charges market-leading trading fees, which makes them a great option for individuals seeking to buy and sell international securities. However, it is crucial to note that the platform is not registered with MAS, which means that Singaporean users will not be able to purchase stocks and bonds in Singapore. Therefore, Interactive Brokers is best used by Singaporean investors that want to trade international securities exclusively.
Fee Comparison: Interactive Brokers & Saxo Markets Fee Comparison
|Interactive Brokers||Saxo Markets|
|U.S. Stocks Commission Fee (Min. Fee)||$0.0035 ($0.35)||0.04% - 0.06% ($4)|
|Hong Kong Stocks Commission Fee (Min. Fee)||0.08% (HKD 12)||0.15% (HKD 90)|
|Japan Stocks Commission Fee (Min. Fee)||0.050% (JPY 80)||0.15% (JPY 1500)|
To get a sense of how competitive Interactive Brokers' commission charges are, it is helpful to compare their fees to Saxo Markets, which typically leads the market in low fees. Still investors should be aware that Interactive Brokers charges a minimum monthly fee of S$10 for accounts with balance between S$2,000 and S$100,000, which can materially increase the cost of using this brokerage for some individuals.
|Min. Spread||Industry Average|
|* figures based on min. advertised spreads advertised August 25, 2019|
Interactive Brokers is also a great option for individuals seeking to conduct foreign exchange trades. This is because the online trading platform's forex spreads are typically the cheapest available in Singapore. While Interactive Brokers does charge a commission fee for FX trades, the fee usually works out to a few dollars, making it somewhat negligible.
Investment Opportunities at Interactive Brokers
The brokerage offers a number of asset classes including Stocks, ETFs, Warrants, Forex, Metals, Fixed Income and Mutual funds. Interactive Brokers also offers options and futures trading, which can be attractive to savvy investors that can best leverage these tools. The platform also offers trading in 24 international markets, giving individuals increased investment opportunities.
Investor Eligibility Requirements
Interactive Brokers gives individual investors a great platform to invest in international securities. While the platform does not allow Singaporeans to invest in Singaporean stocks, it charges some of the lowest commission fees for international securities. On top of the brokerage's competitive introductory pricing, it offers even better rates to investors that trade in high volume or total value. To get a breakdown of Interactive Brokers' tiered pricing by country, click on the dropdown menus below.
|Trade Volume (US Shares)||Commission Fee per Share|
|300,000 or less||$0.0035|
|300,000 - 3 million||$0.002|
|3 million - 20 million||$0.0015|
|20 million - 100 million||$0.001|
|Min. fee $0.35 per order, Max. fee 1% of trade value|
|Monthly Trade Value (HKD)||HK Commission Fee||Min. Fee (CNH Denominated)|
|HKD 15,000,000 or less||0.08%||CNH 15|
|HKD 15 million - 300 million||0.05%||CNH 10|
|HKD 300 million - 900 million||0.03%||CNH 7|
|HKD 900 million - HKD 2 billion||0.02%||CNH 5|
|HKD 2 billion+||0.015%||CNH 3|
|Monthly Trade Value (JPY)||Commission Fee||Min. Fee|
|JPY 150 million or less||0.05%||JPY 80|
|JPY 150 million - 3 billion||0.04%||JPY 70|
|JPY 3 billion - 9 billion||0.03%||JPY 60|
|JPY 9 billion - 20 billion||0.02%||JPY 40|
|JPY 20 billion - 100 billion||0.015%||JPY 30|
|JPY 100 billion+||0.01%||JPY 20|