Phillip Capital Poems GTD, Cash, and fees

It is easy to open an account to invest in securities in Singapore. Register for an account in any stock broker, e.g., Phillip Capital. You will receive a CDP account (from SGX) and an online trading platform POEMS account.

Next, open a bank account for Electronic Payment System (EPS) and link it to POEMS. Install the apps on your phone and you can trade any time any where.

If you want to use your CPF to invest in securities, you can apply for CPF Investment Scheme (CPFIS), where you can invest securities using your ordinary account (OA) and special account (SA). Please note the cost-and-benefit of using CPF to invest, e.g., CPF provides yearly interest of at least 2.5% p.a.

POEMS allow you to add securities to watch list, add price alerts, and trade by limit order, and good to day (GTD). The commission fee is $25 per transaction per day (excludes other fees).

For successful purchase of securities with Cash, you have to pay within T+2. Payment is by bank transfer to Phillips Securities via EPS. It takes T+1 to effect the bank transfer.

It is convenient to buy via GTD, but the risk is that if you have multiple ‘partial completions’ to complete an order, especially in ‘sluggish’ counters, you will have to pay for multiple commission fees at $25 for each transaction per day. E.g., I had to pay $25 + $25 for two partial orders of 1000 units and 2000 units of securities (for a GTD limit order of 3000 units). What happens if I have 3 partial transactions? I will have to pay commission fee of $75.

I am still learning how to trade and currently only looking at SGX securities. There are other exchanges that I haven’t ventured.