OCBC Securities: The definitive guide to OCBC's investment platform (iOCBC)

OCBC Securities is a trusted brokerage serving up a diverse selection of investment instruments, but its high fees could be a deal breaker for some. 

OCBC Bank is a household brand among Singaporeans, on account of its long-standing history and good record. 

It is not surprising that its investing brokerage arm, OCBC Securities (also known as iOCBC), would also garner a high level of interest among local investors and retail banking customers making their first foray into investing. 

But how does OCBC Securities hold up in an age of digital brokerages and online trading? Is OCBC’s traditional banking background an asset or a liability?  

Overview of OCBC Securities

Product summary:
What you can invest in: Stocks, bonds, ETFs, leveraged metal, forex and futures
Minimum balance required: $1,000 deposit required to commence trading for users aged 18 to 20
Deposit fees: None
Withdrawal fees: None
Withdrawal limits: None
Commission: SG trades: minimum commission of at least $25 per trade, US trades: minimum commission of at least US$20 (S$26.50) per trade 
Inactivity fee: None
Licence: Authorised by Monetary Authority of Singapore (MAS)

Why should you trade with OCBC Securities (iOCBC)?

1: Solid track record of trustworthiness

The most compelling reason to choose iOCBC as your trading brokerage is the solid track record of the OCBC brand. 

As one of Singapore’s longest-standing banks, OCBC has nary a blemish to its name (although that’s something we’ve come to take for granted in Singapore).

Hence, traders and investors who value trustworthiness, or newbies looking for a safe harbour from which to launch their trading endeavours, should find iOCBC an attractive option.

2: Structured accounts catering to different trading needs

iOCBC offers a selection of account types that cater to different trading needs. These range from no-frills basic cash trading accounts to those that provide leverage capabilities. 

This feature will likely be appreciated by inexperienced investors, as they can stick to learning the ropes with their basic trading accounts. When they’re ready to try advanced but risky tactics, such as short-selling, they can do so by opening another account that allows it. 

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3: Focused selection of instruments

You likely won’t find anything too out there in iOCBC’s inventory, but that doesn’t mean the pickings are slim either. 

The brokerage offers a focused but diverse selection of instruments and markets, ranging from classics like equities, bonds and ETFs, to leveraged trades on metals, forex and futures. 

There’s plenty here to keep the interest of both newcomers and veterans.

4: Steady supply of market news and learning tools

iOCBC maintains an established library of educational resources, neatly organised along twin goals of helping investors stay up to date with market news, and learn and enhance  trading skills.

While by no means extensive (at least compared to some other brokerages that incorporate news reports from wire agencies), there’s a good selection of stock highlights, market updates and economic reports.

Additionally, there are also webinars and events focused on expanding your skills and knowledge.  

For whom is iOCBC best suited? 

If you value trustworthiness, or want to try your hand at investing under the OCBC banner, you’ll likely find iOCBC to be a good fit for you. 

The selection of instruments and markets on offer is varied enough to hold your interest, especially if you’re a beginner. 

Meanwhile, the carefully designed trading accounts will be useful in helping budding traders build their investing skills, instead of throwing open Pandora’s box all at once, which can be disorientating (and maybe just as disastrous!) for those new to trading.  

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What charges or fees should you look out for? 

A top concern for any investor is how high the fees are, as they can impact your returns, sometimes severely so. iOCBC has high minimum trading commissions – likely a holdover from its traditional banking roots.

Each trade will cost you at least $25 in fees. That’s exorbitant, considering how some leading online brokerages offer $0 trades!

To ameliorate the impact of these high fees, try consolidating your trades such that you make fewer trades at higher volumes. Lowered trade frequency will help rein in your costs, while spending more per trade will reduce the proportion spent on fees, making it more worthwhile.

And, if you’re between 18 to 20 years old, you’ll need to deposit at least S$1,000 to start trading. 

What are the promotions available for iOCBC? 

There are a couple of ongoing promotions that traders can take advantage of, ranging from fee waivers to stock alerts and reports. 

However, these are not universal. They only apply to specific trading account types. 

Click here to view the current list of promotions. 

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How do you open and fund your iOCBC account? 

Opening your iOCBC account

Follow these steps to open your account:

1. Go to OCBC Securities Accounts page
2. Look through the available choices
3. Click ‘Learn More’ on the account you want
4. Read through the information presented, then click on the ‘Apply Now’ button
5. Apply in-person at an OCBC branch 
6. Remember to bring along the following documents

• Singaporeans – NRIC and Passport
• Foreigners – Valid Passport and Singapore Residence Pass (such as S-Pass)

Funding your iOCBC account

You may fund your account using any of the following methods. 

Funding method	Crediting lead time	Fees
Electronic Payment for Shares (EPS)	1 working day	None
Internet Bill Payment	1 working day	None
GIRO	1 to 2 working days	None
Telegraphic Transfer	1 to 2 working days	Clearing fees may apply
Cheque	2 to 3 working days	Clearing fees may apply

At-a-glance comparison: iOCBC vs other popular brokers

Commission fee	Minimum deposit	Maintenance fee
OCBC Securities (iOCBC)	SGX: Min. $25 (online) or $40 (broker-assisted). US exchanges: Min. US$20 (online) or US$30 (broker-assisted).	$1,000 (for 18 to 20 years old)None for all others
TD Ameritrade	$0 for US-listed stocks and ETF US$7.44 for online trades of over-the-counter stocks US$0.70 per options contrac tUS$2.41 per futures contract	No min. for account opening Min. US$500 required to receive real time data Min. US$2,000 for margin capability Min. US$5,000 to sell options naked Min. US$25,000 to actively day-trade	N/A
Saxo Markets	Mutual funds and SGX stocks: $0  US ETFs, CFDs and Stocks: min. $3 US bonds: min. 0.05 per cent  Bonds, commodities, futures and options: min. $1.25	$2,000 for regular savings plan $3,000 for SaxoTraderGo platform	N/A
UOB Kay Hian	SG stocks & stocks CFDs: min. $10 to $25  US stocks & stock CFDs: min. USS$20, SG corporate bonds: min. $2.14	S$3,000 for CFDsS$5,000 for FX	N/A
Maybank Kim Eng	SG stocks: min. $10 to $25  US stocks: min. US$20	N/A	N/A
Oanda	Daily rates and charges according to market conditions	N/A	Inactivity fee of $10 per month applies after 12 months without trading activity
IG	$10 minimum for equity CFDs per open/close	N/A	N/A
City Index	0.08 per cent or $10 minimum for Singapore CFDs	$150	N/A
Tiger Brokers	SGX stocks: 0.08 per cent, min. $2.88 per order (currently waived)  US stocks: US$0.01, min. US$1.99 per trade	N/A	N/A
Interactive Brokers (IBKR)	SGX stocks: 0.08 per cent of trade value, min. $2.50 per order US stocks: US$0.005 per share, min. US$1 per order	N/A	Up to USD$10 per month (less commission paid that month)

This article was first published in SingSaver.com.sg.