So you’re looking for a stock trading app to execute your trades, but with the number of stock trading apps in Singapore available right now, which should you choose? And which is the “best” for your stock trading needs?
First things first. There are many reasons for the growing popularity of stock trading apps, but a major pull factors is the rate of mobile penetration — wouldn’t it be quicker and easier to execute a trade on your mobile phone (which is always with you and fits easily into your pocket) while on the go than needing to sit in front of your desktop or open up your laptop?
And with mobile phones becoming so powerful these days, the full suite of stock trading tools, charts, historical data and resources can all be accessed via your mobile trading app. As online brokerages (as opposed to traditional brick-and-mortar trading houses) tend to offer mobile trading apps — the user is able to pay lower fees, make trades quickly (do it yourself via the app, rather than make an appointment with or call a broker), and more.
But you’re probably already convinced of the pros of using a stock trading app — you just need to decide which trading app to go with. Here are the key features of a stock trading app to look out for:
1. Reliability: How to secure your trading?
Always choose a reputable stock trading app that is both reliable and has security features. You don’t want to run the risk of being involved in a trading scam where your “investments” go into some shady blackhole.
For example, make sure the stock trading platform is a capital markets services licence holder that is regulated by the relevant authorities, in this case, the Monetary Authority of Singapore. Do a background check on the stock trading app, its parent company, who backs it, partners and so on.
Is the security of the stock trading app watertight? Or are there ways hackers can mess up your trades, upset the platform and steal your information/cash?
You should also ensure that what you see is what you get. Make sure the stock trading app shows you exactly what you’re trading on as trading certain derivatives such as Contracts for Difference can be risky, as compared to plain vanilla stocks.
Do also check where your stocks are kept. This can be a Central Depository Account (where you own the shares and have shareholder rights, but may pay higher fees) or a custodian account (the shares are held on your behalf and you usually don’t have shareholder rights, but you pay lower fees).
Security of the moomoo stock trading app
Case in point: The company behind the moomoo stock trading app, FUTU Holdings Limited, is listed on NASDAQ. FUTU Holdings Limited is also backed by world-class investors, which include venture capital affiliates of Tencent, Sequoia Capital and Matrix Partners.
In Singapore, capital markets products and services on moomoo are offered by Futu Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS).
FUTU Holdings Limited has also been listed on NASDAQ for 2 years, and the Hong Kong-based company has ventured into global markets United States and Singapore (currently over 13 million users worldwide).
By the way, the moomoo stock trading app is powered by FUTU Holdings Limited and has a 24/7 security system supported by Tencent Cloud. Stocks bought are held In a custody account operated by a licensed or approved custodian.
2. Are you getting real-time / delayed quotes?
Gapping/slippage is a very real issue for traders, especially in a volatile market. Sometimes the split second it takes for a trade to be executed (system lag) can result in a very different buy/sell price. What the user sees may also depend on their level of access in terms of the quote level of the stock trading platform or app.
Usually, quotes or bid/ask prices are lagging by 10 to 20 minutes. For paying users of the stock trading platform, they can access real-time quotes (almost, depending on the latency of one’s internet). It’s definitely better to have the latter, let’s say if you’re into doing day trading, trying to catch the right timing during a volatile market situation — in short, accuracy, so that you can stay on top of the market.
With the moomoo stock trading app, users who open an account with FUTU SG before the end of the promotion period (30 June 2021) will enjoy unlimited free Level 2 Market Data for US stock markets. With this, they will be able to access real-time bids and asks to execute trades more accurately. Users are also able to place their trading orders within 0.0037 seconds (you’ll need an optimal internet connection to begin with).
These factors will help to prevent gapping and slippage so you can maximise your gains and make accurate trades.
3. Resources available: Are you able to trade with in-depth analytics tools?
One of the main reasons people turn to online stock trading apps is the promise of convenience — everything’s available on the app, which can be quickly accessed on your mobile phone wherever you are.
In addition to cost, range of investment options, reliability, security and access to real-time quotes, a good stock trading app should have a robust resources and tools to help the user (instead of the user needing to open a web browser to do basic research, check historical data, read the news, gain access to expert insights and so on, or get a third party algorithm to help them decide what and when to trade). Kinda defeats the purpose of a stock trading app, right?
Most stock trading apps in Singapore provide the basics, such as latest news, some expert insights, historical charts and simple tools.
Suite of tools available on the moomoo stock trading app
To give both beginner and advanced investors an edge, the moomoo stock trading app offers a suite of rich and in-depth customisable analytical tools that include charts (candlestick, line, mountain line, bar) and other kinds of technical indicators such as Moving Average, Bollinger Bands, Moving Average Convergence Divergence, KDJ (random index) and so on. Users of the moomoo platform are also able to view the trends in capital flowing in and out of companies.
Other tools available on the moomoo stock trading app:
- Option P&L diagram — shows single and option combinations. Combined with stock, it helps users analyse the profit and loss strategies.
- Powerful drawing tools — help users discover trends and potential opportunities for their own investment strategy.
- P/L analysis — provides Profit/Loss ranking and Profit/Loss for each stock.
- Smart reminders/conditional alerts — set up automatic notifications when conditions such as price movements, change in indicators etc are met
- Customised stock screener — helps users discover stocks and screen stocks from thousands of others based on their criteria.
24/7 access to financial news and a robust community
Investors also get access to 24/7 financial news. This is so they can stay abreast of the latest global updates and stock price fluctuation analyses.
In addition, what’s special about the moomoo stock trading app is that its users can partake in discussions and share their trading insights with the global investment community of FUTU’s 13 million like-minded investors.
Information is from the moomoo website: www.moomoo.com/en-sg
4. Investment options available
What’s the point of using a trading app if it doesn’t allow you to trade a certain asset class or limits your exposure to selected markets? In addition, online stock trading platforms tend to have a focus area, be it forex, real estate investment trusts, exchange traded funds, derivatives and so on.
Even if an online stock trading app is able to offer a diverse range of asset classes, there may be a limit to the number of the overall products it is able to offer. In Singapore, using ETFs as an example, some brokerages offer just 17 global ETFs while other platforms can offer over 3,000.
Going back to the moomoo stock trading app, users can access a wide array of global investments, including stocks (Hong Kong, US, Singapore), Exchange Traded Funds (ETFs), American Depositary Receipts (ADRs), Real Estate Investment Trusts (REITs), with more financial products such as Exchange Traded Futures, US Over-the-Counters (OTCs), options (US), Daily Leverage Certificates (SG), warrants (HK), and derivatives such as callable bull/bear contracts (CBBC) launching in the future.
The moomoo platform also provides flexibility for users to manage their assets, portfolio and investments across multi-markets.
5. Fees and charges
Talking about fees and charges, you may not necessarily want to go for the lowest fees and charges if the stock trading app doesn’t meet your needs. But the fees and charges should still be competitive, so that it won’t eat too much into your gains.
Fees and charges may also vary depending on the type of product or market you’re venturing into. For example, the minimum commission fee for Singapore stocks can range from S$0 to S$25. This can be a large percentage of your trading amount if you’re making a small trade (eating into your potential gains); for larger trades, this might be expressed as a percentage of the total volume traded.
In addition, if you’re using an online brokerage with a custodian account, check if there are any fees imposed.
With FUTU SG, you can get one of the lowest fees and trading minimums in the market. There’s also no custodian fee. There are also helpful tools such as the FUTU SG commission calculator to calculate before trading.
Here’s a quick look at the fees/charges (accurate as of 1 May 2021):
|Hong Kong||US (Stock and ETF)||Singapore|
|Commission Fee||0.03%*trade value (min. HK$3)
(waived during promo period)
|$0.0049/share (min. US$0.99)
(waived during promo period)
|0.03%*trade value (min. SG$0.99)
(waived during promo period)
|Platform Fee||HK$15/order||$0.005/share (min. US$1/order)||0.03%*trade value (min. SG$1.5/order)|
|Regulatory Fee(s)||Exchange Trading Tariff HK$0.50/order
Exchange Settlement Fee 0.002%*trade value (min. HK$2, max. HK$100)
Government Stamp Duty 0.1%*trade value (min. HK$1)
Exchange Trading Fee 0.005%*trade value (min. HK$0.01)
SFC Transaction Levy 0.0027%*trade value (min. HK$0.01)
|SEC Fee (sells only) $0.0000051*trade value (min. US$0.01/order)
Trading Activity Fee (TAF, sells only) US$0.000119/share (min. US$0.01, max. US$5.95)
ADR Custodian Fee US$0.01-0.05/share
Settlement Fee $0.003*trade value (waived during promo period)
|Trading Fee 0.0075%*trade value
Clearing Fee 0.0325%*trade value
|Remarks||The Singapore government may levy a Goods and Services Tax (GST) at a rate of 7% on the “Platform Fee” and “Commission Fee” where applicable.||The Singapore government may levy a Goods and Services Tax (GST) at a rate of 7% on the commission where applicable.||The Singapore government may levy a Goods and Services Tax (GST) at a rate of 7% on the above “Commission”, “Trading Fee”, “Clearing Fee” and “Platform Fees” where applicable.|
Information is from the FUTU SG website: www.futusg.com
6. User interface/ease of signing up
This may not be important to everyone, but using a stock trading app that makes executing trades smooth and seamless with intuitive controls can really make the whole trading experience a breeze.
Imagine using a stock trading app with clunky controls that are confusing, and hopping through dozens of menus until you find what you need. Add to that a difficult sign-up process and the inability to set up a customised watchlist, alerts (isn’t the whole point of using a trading app to get push notifications because your mobile phone is always with you?), and even search filters.
And how about the sign-up process? Just a few years ago, I remember needing to submit hardcopies of documents through snail mail, filling up tedious forms, waiting over 2 weeks for confirmation and so on…
Thankfully, most stock trading apps in Singapore are pretty okay to use, and the sign-up process has been greatly hastened and simplified. The moomoo stock trading app is integrated with MyInfo so signing up for an account is quick and straightforward (same day or 1-3 business days), with clear instructions on screen to follow.
Futu Singapore launches with moomoo stock trading app
One-stop investment platform, moomoo, is still relatively new in Singapore, after its launch here on 8 March 2021 by FUTU Singapore Pte. Ltd. (“FUTU SG”).
We like that FUTU SG prides itself as a “next-generation broker-dealer” that combines technology and an on-the-go trading platform to enhance users’ overall trading experience. By doing so, it also helps to cut costs that traditional brokers typically incur and can lower the transaction costs borne by customers.
The moomoo stock trading app — special welcome bundle worth $1,800*
From now till 31 May 2021 (1500hrs SGT), open a trading account with FUTU SG by first downloading the moomoo stock trading app to enjoy these official launch perks and rewards:
- 180-day unlimited commission-free* trades for US, HK and SG stock markets
- Free Level 2 market data for US stocks
- Free access to Level 1 Market Data in the SG stock market
- Free Apple stock (AAPL) (1 share) — an uncommon opportunity!
*Other fees and GST may apply.
*$1,800 is an estimated value, based on the current Apple share price and your referral bonus
Bonus: Refer your friends to receive up to 20 Free Twitter (TWTR) shares and additional 600 days commission-free trading for US, HK and SG stock markets.
Disclaimer: This article is meant for information only and should not be relied upon as financial advice. This advertisement has not been reviewed by the Monetary Authority of Singapore.