If there is a time to be looking into the U.S. stock market, it’s probably now. However, a lot of investors, especially in Singapore and Malaysia, are still confused about choosing among the best online brokerage for U.S stocks in Singapore and Malaysia.
In the last few months, we have been seeing the stock market react to various events resulting from the ongoing trade war.
And while some may argue that it is a dangerous time to be investing in the world’s most volatile stock market at the moment,
it is certainly not a good reason to deter true blue investors who understand the real value of their potential investments.
The only question is “HOW DO YOU DO THAT”?
After some digging, scouring and asking around based on previous experiences,
here is a short guide on five of the best online brokerages for U.S stocks, especially if you’re trading from Singapore or Malaysia,
and which of these five platforms takes the cake for being the best option.
*Please note that the rates quoted may vary in different countries
1. Saxo Capital Markets
Commission: USD 3.99 | Min. Deposit: SGD 3,000
UK-based subsidiary of Danish investment bank, Saxo Bank Group,
Saxo Capital Markets is highly recommended for investors who are looking for a great trading platform and solid research.
They offer an amazing commission rate of USD 3.99 which is considered to be quite a find in the market.
On top of that, they are widely regulated, and offers a wide range of products should you decide to invest in other instruments.
Their online trading platform, SaxoTraderGO, have also been receiving good reviews for its user-friendly interface and simply design.
However, reviews have also shown that they seem to be somewhat lacking in Customer Support.
2. Interactive Brokers
Commission: SGD 1.00 | Min. Deposit: USD 10,000
Known to be one of the biggest U.S-based discount brokers, Interactive Brokers is considered to be an “industry veteran” as it was founded 40 years ago and has a long track record behind them.
Low fees, wide array of research tools and the ability to trade on 120 markets in 31 countries, using 23 currencies;
these are only some of the major perks of trading with IB.
On the other hand, should you remain inactive, trades in small amounts or has total account value of less than US$100,000 with IB, you may subjected to maintenance fees or minimum brokerage.
Their online trading platform has also been reviewed to be “difficult to use for new investors” and “difficult to navigate”.
Therefore, this platform is usually recommended for active and professional traders.
3. FSM One
Commission: USD 8.80 (min) | Min Deposit: 0.00
FSM One is a Singapore-based online trading platform by iFast Corporation Ltd, which allow users to trade on the Singapore, Malaysia, Hong Kong and U.S. Market.
Even though the platform was launched only 2 years ago in 2017, FSM One is already creating buzz within the industry and is said to be a worthy peer for to watch out for.
Apart from not charging clients with any custodian fees for U.S. stocks, FSM one is also making a name for itself for its relatively low commission fees.
There are however, investors who are concerned about the reliability of the platform due to its comparatively smaller size
And like IB, FSM One can only be more cost-effective with an increased number of transactions.
4. TD Ameritrade
Commission: USD 6.95 | Min Deposit: 0.00
One of the top and most seasoned players in the industry, TD Ameritrade boasts some of the best ratings around the internet for their user-friendly platform, great customer support and zero minimum deposit.
Not only do they have a long track record behind them and an impressive range of tools,
users are also able to get for free, things other providers would charge for (research reports, real-time data etc).
However, at USD 6.95 per trade, some users have commented that the fees are considered to be on the high end for an online brokerage.
Commission: USD 0.02/ share | Min Deposit: 0.00 (for bank transfers)
Established in the UK and widely regulated globally, IG is a member of the FTSE 250 and ranked as the world’s top CFD provider.
Apart from a user-friendly platform and great customer service, the platform also boasts multiple options for funding and withdrawal.
Unfortunately though, they charge high amounts for their trading fees and offers only CFD and options trading in most countries instead of stock trading.
THE CLEAR CHOICE (In Our Opinion)
After weighing all five options in terms of commission rates, user-interface, customer service, min. deposit requirements, and the value users get based on the price paid,
the team decided the best platform to go for is TD Ameritrade.
Despite higher commissions, users get more value out of the price paid.
Coupled with a user-friendly interface and great customer service, this seems like a platform almost any beginner or seasoned investor could use.