Should i choose a broker with CDP linked? - Dividend Machines by The Fifth Person

Q&A › Category: Miscellaneous › Should i choose a broker with CDP linked?

Xu Chao asked 1 year ago

Hi Trainers, Should i choose a broker with CDP linked? Also, for brokerage FSOne, under the CDP-linked column, it says only for sell trades, may i know what does it mean? thank you very much

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1 Answers

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Rusmin Ang Staff answered 1 year ago

Hi Xu Chao I think for local stocks, it is better to own it under CDP. You can sell it with any other brokers in the future. FSMOne only allows you to sell for any shares you owned in your CDP account. When you buy using FSMOne, the shares will be kept under custodian.

Xu Chao replied 1 year ago

i see thank you Rusmin! if im looking to buy hong kong and singapore stocks? should i still consider the CDP linked portion?

Rusmin Ang Staff replied 1 year ago

If you want everything in one place, then stick to one broker since you get to see everything there.

We can’t own overseas share in CDP, so foreign stocks usually held under custodian of the broker of your choice.

Andrew Sim replied 1 year ago

@Rusmin I have the same question too which you have answered. But can you further explain why it is better to use a broker with CDP linked for SG stocks. I am currently using MooMoo to invest for USA and HKG stocks, if I also use Moomoo to invest in SG stocks, does that mean that if I change a broker app, I have to transfer the stocks to the new one?

Rusmin Ang Staff replied 1 year ago

The good thing about CDP is that, you can sell with any broker once you linked the brokers to your CDP. But if you buy shares under custodian, then you have to sell with the same broker in the future. You can still do the transfer but I think the cost doesn’t make sense since most broker will charge you admin fees for that.

Jerry Lim replied 3 months ago

Hi Rusmin, currently I have SG shares with POEMS under CDP under cash management account which the fees are pretty high imo. I have a few questions (sorry if it seems repeated)

1. Does it mean if I link it to a broker that allow selling of CDP linked sg stock- I can sell it via another platform?
2. If I were to make new sg stock purchases via the another platform, if I were to link it to CDP, it will also go into my CDP?
3. If my trading ways are to buy and hold for long term, besides commission being lower, are there any other fees that I should take note of?
4. What are the different platforms that offers buying of SG stocks linked to CDP?

Many thanks in advance as I had been using POEMS for the past 10 over years and gets very confused over these but feel that the fees are very high, compared to other platforms, thanks

Rusmin Ang Staff replied 3 months ago

Hi Jerry, let me answer questions in order below:
1. Yes, you can sell with other brokers if the shares are held directly in your own CDP account.
2. You have to check with your new broker. Lower fee platforms tend to be held under custodian. So you have to sell via their platform only.
3. Hidden fees like custodian and dividend handling fees. Traditional brokers often charge these fees.
4. Please read more here https://fifthperson.com/how-to-open-a-brokerage-account-in-singapore/

Jerry Lim replied 3 months ago

Hi Rusmin, Noted with thanks!