Recommended Brokerage/App for SG Dividend Stocks - Dividend Machines by The Fifth Person

Q&A › Category: Dividend Stocks › Recommended Brokerage/App for SG Dividend Stocks

Ray Tan asked 3 weeks ago

Hi all, Currently, I have a cdp account and an existing trading account with DBS vickers (currently not holding any stockers with vickers). I'm looking for a recommendation for a brokerage company with (a) low commission fee and (b) an easy-to-use and good user interface app, for the purpose of buying SG dividend stocks only. Questions:

1) Any recommendation for such broker, and will the dividends earned be deposited back to the broker account? 2) Is there any need for me to terminate the account with DBS vickers in order to have a new trading account with the new broker? Thank you in advance for answering my n00b questions!

1 Answers

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YT Lim answered 3 weeks ago

Hi Ray, 1) Your dividend will be paid to your brokerage account. For DBS Vicker, you can tell them to deposit the dividend into your DBS/POSB savings account. 2) you can have multiple brokerage accounts without any issues. This is what I'm doing. I buy my SG dividends stocks via IBKR because of 2 reasons:

IBKR charges much lower fee than Vicker. Because I don't invest big amount every time, this method suits my needs. I can continue to accumulate the shares this way.
When I have accumulated enough shares in IBKR, I will move them to my CDP account. According to IBKR agents, currently, IBKR doesn't charge any fee for transfer out to CDP, but CDP will charge $10 per stock ticker.. So make sure the amount of shares you transfer is worth the fee.

Another broker your can look into is FSMone. The buy fee is higher, but they transfer your stock to CDP for free. My information is a few months old. it's best you double check with them too.

Rick Chang replied 2 weeks ago

Hi YT,

What is the advantage/disadvantage of transferring to CDP?

Regards

Alvin Teo replied 2 weeks ago

I am also confused on this, my shares brought from Phillip will be reflected in CDP (but somehow, those issue by company are not reflected). Those under my tiger account will not …..

Kevin Soh replied 2 weeks ago

I have the same issue with Phillip. I’d like to know as well what we should consider when we have stocks in IBKR, Tiger, etc. that is not reflected in CDP? And after transferred to CDP, where will the dividend be paid?

YT Lim replied 2 weeks ago

Hi Rick, Alvin & Kevin, I will try to answer your question as best as I can.
Whether or not your shares are kept in CDP or with your brokers depends on the type of brokers you use.
I know DBS Vickers, your shares will be kept in your personal CDP. No need to do anything extra. I don’t use Poems so I don’t know. Other brokers like IBKR, TIger, Moomoo..etc, are what you call brokers with custodian. It means the shares you bought from them will be kept with another institution, usually one of the big banks like UOB, or DBS. The disadvantage is if the custodian broker goes down, your shares are not lost, but you will have to claim it back from the custodian banks and transfer to another broker or your CDP, this may incur a substantial cost.
The advantage of having your shares in CDP is: that if the broker goes down, the shares are untouched. I prefer to do it this way for SG dividend stocks.
For stocks in CDP, they can send the dividend to you designated bank account.

Alvin Teo replied 2 weeks ago

OIC … I think the prob shares in CDP (not a big prob) is that when shares given and so on by the company, it does not reflect in your broker account. Also somehow the broker fee is more ex than those broker with custodian.

Anyway, thanks for the enlightenment