It’s been 9 months into my job. I’ve been reading finance blogs for the past 1.5months almost like a new favourite hobby. I’ve been convinced that we should start investing early to take advantage of the power of compounding. Am not exactly the youngest but hey, 24 ain’t a bad time to start.
My plans for now is to seek more financial knowledge through reading of books, blogs and attending courses. Don’t wanna start this game not knowing how to play, the rules or the forfeits. Been on a lookout for courses and have added quite a few to my wish list. I’ve set myself a total budget of $500 for them. Am so excited but at the same time don’t wanna put a time pressure on myself for when I should start investing. So I’ll start when I think I’m ready. And I hope it’s soon.
Meanwhile, I’m looking into opening a brokerage and CDP account. See this article for insights on how to choose a brokerage firm. I’ve decided to go for OCBC Securities, just for convenience sake as I currently have a OCBC 360 account and a basic passbook savings account. Also, the fees across brokerage firms don’t actually differ much (esp if you are looking at wanting to keep your shares in your own CDP account rather than a custodian account).
Young Investor Programme Account
I’ve been eyeing this account mainly because it provides free seminars that I think will contribute to my acquiring of financial knowledge. The seminars are free and cover the basics of investing, fundamental analysis, technical analysis, etc. This I find really attractive.
The brokerage fees are the same as the basic cash trading account and after 2 years of opening the account, you’ll “graduate” and your account will be converted to the basic cash trading account (or an account of your choice).
Another thing that is appealing to me are the promotions that are currently ongoing till 31 December 2016. Both promotions cannot be used together but at least you get to choose!
Promotion #1: Invest and get up to S$50 trade commission rebate for your first trade!
Promotion #2: If you GIRO-link your trading account to your FRANK account, the basic commission fee will be reduced from $25 to $15 for the first two years of account opening in the form of rebates!
So yes, I’m considering opening a Frank account with OCBC and possibly cancelling my basic passbook savings account because of the meagre interest (0.05% as compared to 0.2%-0.4%). The reduction in minimum commission is a great deal for me as well because I wouldn’t have much capital to invest. So, reducing commission fees will really save me quite a bit!
Do you agree that I should open this brokerage account?