By MoneyBees
Compare holding SGX shares in your own CDP account with a broker's custody account: custody, dividend and trade fees a year and over the years, against CDP's nil holding fee.
No. SGX's depository fee schedule lists the maintenance of securities accounts held with CDP directly as nil. You pay your broker's commission and SGX's trading fees when you buy or sell.
A fee some brokers charge to hold your shares in their custody account instead of your own CDP account, usually a % of your holdings a year or a flat monthly amount. Each broker publishes its own fee schedule.
With a CDP-linked account your shares are held in your own CDP securities account and SGD dividends go straight to your bank through CDP's Direct Crediting Service. With a custodian account they sit in a sub-account held through your broker, and the broker's fee schedule sets what you pay.
CDP charges S$0.382, GST included, for each settlement instruction when an SGX trade is settled between a clearing member and a depository agent, such as a broker's custodian. Your broker decides whether to pass it on to you.
Some do, as a share of each dividend or a flat fee per payout. Check your broker's fee schedule. CDP lists no fee for crediting SGD dividends to a CDP account holder's bank account.
S$50 a year on S$50,000, charged on the value of your holdings. Because it is a %, it grows as your portfolio grows, and the fees also lose the growth they would have earned.
Ask your broker. CDP's FAQs say transfers between a CDP account and a custody account are applied for through the broker, which may charge a transfer fee.
Not always. Custody accounts often come with lower commissions, which can outweigh a small custody fee if you trade often. This calculator compares both on your own fees.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).