Tuesday, 24 September 2019

(Post 127/ Year 2 week 47)Learning investing/trading together part 20:How to purchase a stock?(Standard chartered)

Learning investing/trading together part 20:How to purchase a stock?(Standard chartered)

I mentioned before that i am currently using DBS vickers and Standard chartered as my brokerage.Recently, I have also sign up for FundSuperMart due to the low fees of 0.08% or a minimum of $10(but that's a story for another day)

This post will be on how to purchase stock with standard chartered.

So,why choose standard chartered as a brokerage?
  • Brokerage charges for standard chartered online and mobile trades:0.20%, min $10
  • 0.20%/100=0.002
  • $10/0.002=$5000
  • The minimum amount that one should invest in each trade should be more than $5,000
  • The purchasing power will be updated immediately after you sell your stock!
How to set up a standard chartered account?
  1. Head down to the nearest standard chartered bank branch 
  2. Open up an saving account(For more information about the various saving account you can open with standard chartered,please refer to this link,Personally,i opened a E saver account where it require a min deposit amount of $1000)
  3. Do open an securities settlement account with different currency(US,JPY) to have to option to invest in other countries market at no extra charge,specifically tell them you are opening an account to invest
 Onto the step by step guide on how to purchase a stock via standard chartered!

Step 1)Transfer money into your standard chartered account

How much to transfer? 
  • Well, it depends on how much your budget to purchase those stock and whether you have enough in your bank
  • Currently, the Brokerage charges for standard chartered online and mobile trades:0.20%, min $10
  •  Hence, the minimum amount one should invest to maximize brokerage fee is $5,000
    • 0.20%/100=0.002
    • $10/0.002=$5000
  • if your trade is smaller than $5,000,the 0.20% is smaller than $10,technically you are paying more for the clearing fee
  • ***Note: You can invest in any amount you like it need not be $5,000, in my personal case I use either $3000 or $5000 or $7000
So you have decided the amount? What's next?
  • Transfer the money, of course!

1. Log in to standard charted bank account,you reach the below page

2.Transfer Fund from your E$aver A/C to your SECURITIES SETTLEMENT ACCOUNT by clicking Transfer Fund(Red box)

3.Click Between Own Account

4.You will be asked to authenticate your account,after authenticating you will be brought to the transfer between own account page

Transfer to: Local Own Account
Account to be Transferred to: E$Aver A/C
Account to be Transferred from:SECURITIES SETTLEMENT ACCOUNT
Currency and Amount:SGD ,any amount that your wish to transfer(e.g 5000.00)
Description: None

5.Check the detail and click confirm(black box)

Step 2)Time to buy some stock!

6)Click MENU then click Online Trading

7.You will then be brought to the below page,the place order is at the right side of the page

8.Key in the counter code(e.g ES3) and Scroll down to check the detail of the bid and ask price

So, in my case I enter in the code: ES3(STI ETF)*Take note, this is different from the other STI ETF that you purchase with POSB invest saver(For more information about the difference between the two ETF, read here)

The terms are taken from this post, a while back,some important terms are...

  • Last action-how much was this share bought or sold for
  • Bid-how much someone is willing to pay for the share(Someone want to buy the share at a price of 3.267)
Offer or Ask
  •  Ask is the price a seller is willing to sell the share(someone want to sell his his share at a price of 3.275)
Bid qty
  • Bid qty,someone make a bid to buy 100 shares at 3.267 for each share
Offer or Ask qty
  • Offer vol is someone selling his 3200 shares at 3.275 for each share
*As taken from here: When a market is experiencing more buying volume than selling volume, it means that there are more traders buying at the ask price, which has a tendency to push the price up.
When a market is experiencing more selling volume than buying volume, it means that there are more traders selling at the bid price, which has a tendency to push the price down.
Chg or change
  • For a stock or bond quote, change is the difference between the current price and the last trade of the previous day
Day High
  • Today highest price for the stock so far
Day Low
  • Today lowest price for the stock so far
Will continue at the next Learning investing/trading together post!

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