Stock broker license singapore
And the reason for the changes can be stock broker license singapore up in one word-liberalization. As far as the governement is concerned, there was no other choice, globalization and technological advances have allowed international capital to flow wherever there are greater efficiencies and better returns. Singapore's financial sector had to be opened up to fiercer competition, in order to allow market forces create those efficiencies. Singapore's stock market was not spared from these reforms.
The reforms to the stock market had 3 key objectives: The creation of the SGX basically enlarged the size and scope of trading activities in Singapore, and at the same time, allowed for cost savings due to economies of scale. More importantly, membership to the SGX was opened much wider. Foreign institutions such as Merrill Lynch stock broker license singapore Morgan Stanley are now allowed to set up their own brokerage departments in Singapore, in direct competition with local stock brokerages.
Brokerage commissions are now freely negotiable as of Octoberand as stock broker license singapore, competition has driven the commission rate to between 0. The stock brokerages were hit very hard. They now have to work twice as hard just to maintain the same revenue prior to October There has been much consolidation in the industry, as many of the local brokerages merged in order to cut costs and achieve greater economies of scale.
But consolidation and cost-cutting form only one part of the overall solution. Stock brokerages have also diversified their operations in the effort to grow new business, and now offer a much wider range of products and services. Significantly, many of these were services that were not available prior to industry liberalization, such as financial advisory services and insurance products. Companies are also now allowed to hold multiple licenses to deal in both cash and derivative products. Stock brokers, have in effect, become part of stock broker license singapore growing sector of wealth management services in Singapore.
Many of them have been around, in one form or another, for more than 30 years, and are definitely not about to disappear — companies such as UOB Kay Hian, Kim Eng Securities, and Phillip Securities for example.
UOB Stock broker license singapore Hian, for example, can boast of having around remisiers in its employ. But there are other important indicators of size — Kim Eng Securities, for example, has done very well in the past few years, despite market downturns. Other products and services such as hedge funds, wealth management and corporate finance, although closely related to securities, are kept separate from the stock broking company.
They are offered by its sister companies within the group instead. But subtle differences do exist. For example, PhillipCapital offers insurance broking on top of shares trading, and actually maintains two kinds of sales force — desk bound remisiers who focus on share trading, and mobile financial advisors who sell unit trusts and insurance products. The company even offers home loans as well as real estate consultancy to complement its suite of retail investment services.
Kim Eng Holdings, on the other hand, stock broker license singapore stayed away from insurance products. It markets itself as the largest non bank-backed securities and investment brokerage house in Singapore, with the most established sales network in the region. Through its major shareholder, the Yuanta-Core Pacific Securities Group, the company possesses an in-depth knowledge of the Taiwanese securities market as well.
The remisier's lot Most people who enter the stock broking industry join as either remisiers or dealers. Although the terms are often used interchangeably, there is actually a difference between a remisier and a dealer. A dealer is a full-time employee of the company. He is paid a basic salary, but takes a smaller split of the commissions earned. Remisiers, on the other hand, are not full-time staff of the company.
They are not paid any basic salary, but take a larger share of the commissions split. The industry norm for commissions split is around Remisiers are very much their own bosses — how well they do and how much they earn is entirely dependent on how entrepreneurial they are. Remisiers are, in effect, the sales staff of a stock broker license singapore broking company. They are at the front-line of the relationship between the company and its clients.
Part of that relationship involves the complex task of risk management, both on the behalf of the client as well as the company. For example, suppose that a client is risk-averse and he decides to invest in a speculative stock. The remisier needs to exercise professional judgement and advise if it is the best investment for the client.
On the other hand, if the remisier is dealing with a high stock broker license singapore client, whom he is certain has sufficient resources to invest and has a good risk appetite, then it is up to him to pitch the best possible range of investment options to these individuals. Much has been made of the threat of online trading to the viability of remisiers.
Truth be told, the threat is over-stated. There are niche companies that base a lot of their business strategy around online trading, but even they project only a gradual growth in this stock broker license singapore segment.
More importantly, even the most IT-savvy investor would feel nervous whenever he is about to place a large order of several million shares. He is very likely to check with a remisier, by phone, just to be sure. Another concern may be whether remisiers are now expected to expand their skill-sets stock broker license singapore order to stay relevant to the broadened scope of business in most stock broking companies. Indeed, there were probably some initial hopes that remisiers would try to remould themselves into well-rounded financial and investment consultants in the aftermath of industry liberalization.
However, securities and insurance products are two entirely different products. A professional needs to be thoroughly knowledgeable about both kinds of products in order to give credible advice to his clients.
In practise, this is very hard. As a result, it is still rare for remisiers to move beyond stock stock broker license singapore, which remains stock broker license singapore main realm of expertise. This is not to say that remisiers are having it easy. The number of remisiers has been steadily falling since commissions liberalization in October But new entrants continue to join the industry.
Remisiers are savvy professionals who continue to perform a crucial intermediary role between clients and the stock market. So long as investors require experts to provide good advice on the ups and downs of the market, there will always be a need for remisiers.
For those with the guts and the determination, it can still be very lucrative to ride the winds of change. The stock broking industry in Singapore. Let us help you, simply enter your keywords and search!