It was 2007 and I was devouring books on investing, trying to figure out how to start my investing journey. Multiple Streams of Income by Robert Allen was the first book to open up my world to index funds. The book also emphasised the importance of taking the first step and investing in small amounts consistently over time.
I was convinced.
But there was a problem. The services mentioned in the book were offered in the US while I was sitting in Singapore. I hit the Internet and stumbled on POEMS’ Share Builders Plan – I could invest as little as S$200 each month in the STI ETF (the fee has since been lowered to S$100/month). I went straight to the nearest Phillip Investor Centre and opened an account.
Mind you, that was 2007, way before the age of robo-advisors or monthly investment plans. POEMS already had regular investment plans and I was glad I did it, my investment journey had officially began early.
If I were to start my investing journey today, I would still prefer a monthly investment plan to other types of trading strategies, including robo-investing. This is because I am largely a self-directed, self-educated investor who love to make my own investment decisions.
Apart from myself, I believe POEMS is also the first brokerage account for many Singaporeans. Why? Because Phillip Securities is one of the largest brokerage firms in Singapore. It is also one of the oldest at 45 years old, with a strong operating and financial track record.
It hasn’t been resting on its laurels either. It’s been highly innovative, evolving with the industry. It was the first brokerage firm in Singapore to introduce online trading services. That was how POEMS got its name: Phillip Online Electronic Mart System. The year was 1996.
Another fun fact – why the name Phillip? Nope, it isn’t the founder’s name. The company was named after Phillip Street where its first office could be found in 1975.
POEMS slashed brokerage fees
In recent years, competition has been ratcheting up in the brokerage industry. Many discount brokers have entered the market.
POEMS has responded by embracing the new competition head-on. It sees competition as an opportunity to improve its services to clients.
This is evident from the way the new POEMS Cash Plus Account has been structured. The main proposition of this Account is its lowered fees. Cash Plus charges fees that are among the lowest in town.
Cash Plus comes in three different tiers, based on the amount of capital you sink in:
- Starter (S$0 to S$29,999)
- Premier (S$30,000 to S$249,999)
- Privileged (Above S$250,000)
Commission rates and fees differ for the accounts, with the bigger accounts enjoying more privileges and better rates.
Here are some examples of cost savings:
Based on current market rates, commissions for trading US stocks in Singapore can typically cost 0.3% or a minimum of US$20. The POEMS Cash Plus Account charges a flat rate of as low as US$1.88, during its promotional period from 1 April 2021 to 31 December 2021. Flat fees are especially beneficial for those trading big amounts or more than 100 lots each time. You pay as low as US$1.88, no matter how many shares you buy or sell.
As for Singapore stocks, the usual brokerage fee is 0.28% or a minimum of S$25. POEMS Cash Plus currently charges rates of 0.08% for local stocks with no minimum commission! This applies to all three tiers. This cost structure is particularly good for:
- Beginners, as they may wish to start investing with smaller amounts
- Investors adopting dollar-cost averaging, as it may not be worthwhile paying minimum commissions
If you are an investor in Hong Kong stocks, you typically pay a 0.25% commission or a minimum of HK$100. With Cash Plus Account, you pay as low as 0.05%, minimum HK$15. This is by far the most competitive brokerage rate for trading Hong Kong shares in Singapore.
Below are some examples of how much you would have saved under this Cash Plus Account promotion:
| Scenario | Usual fees (estimated without exchange fees and other taxes) | POEMS Cash Plus fees (estimated without exchange fees and other taxes) | Savings |
|---|---|---|---|
| Buy Singapore stocks worth S$500 (Starter Tier) | S$25 | S$0.40 | Save S$24.60 |
| Buy Hong Kong stocks worth HK$30,000 (Premier Tier) | HK$100 | HK$20 | Save HK$80 |
| Buy US stocks worth US$100,000 (Privilege Tier) | US$300 | US$1.88 | Save US$298.12 |
Another piece of good news. POEMS has also waived off custody fees for US and Hong Kong markets for all account tiers. The usual custody fees for foreign stocks is S$2 per counter per month if no commissions are generated during the period. If you have 20 stocks in these two markets, your custody fees would add up to S$480 a year. But with the waiver, you save S$480.
Some brokers may charge platform fees, regardless of trading activity. You can be rest assured that there are no such hidden fees on POEMS Cash Plus Account.
POEMS has really slashed their commissions to very low levels for the following popular markets and you can now enjoy significant savings, via its Cash Plus Account.
Here are the promotional rates at a glance:
| Asset Value | Starter | Premier | Privileged |
| Market | S$0 – 29,999 | S$30,000 – 249,999 | S$250,000 and above |
| Singapore | 0.08% Min S$8 | 0.08% Min S$8 | 0.08% Min S$8 |
| US | US$3.88 flat | US$2.88 flat | US$1.88 flat |
| Hong Kong | 0.08% Min HK$30 | 0.06% Min HK$20 | 0.05% Min HK$15 |
| China | 0.15% Min CNH 80 | 0.12% Min CNH 60 | 0.08% Min CNH 50 |
| Malaysia | 0.18% Min RM 50 | 0.15% Min RM 40 | 0.12% Min RM 30 |
| Indonesia | 0.18% Min IDR 250,000 | 0.15% Min IDR 200,000 | 0.12% Min IDR 150,000 |
| Thailand | 0.18% Min THB 500 | 0.15% Min THB 400 | 0.12% Min THB 300 |
| Japan | 0.18% Min JPY 1500 | 0.15% Min JPY 1200 | 0.12% Min JPY 1000 |
| Australia | 0.18% Min AUD 25 | 0.15% Min AUD 20 | 0.12% Min AUD 15 |
| UK | 0.18% Min GBP 20 | 0.15% Min GBP 15 | 0.12% Min GBP 10 |
| Germany | 0.18% Min EUR 20 | 0.15% Min EUR 12 | 0.12% Min EUR 8 |
| Turkey | 0.18% Min TRY 80 | 0.15% Min TRY 60 | 0.12% Min TRY 50 |
My main investment account is still with POEMS
After more than a decade of investing in the stock market, I am still with POEMS. Although I have signed up many brokerage accounts in the market, POEMS remains my main and preferred investment account.
The reason? I’m pretty happy with its services all these years. POEMS may not have the most modern user interface but its design is highly practical. I am able to navigate the platform without complications and get my trades done without hiccups.
POEMS’ reliability is also very high. Through the years, I don’t recall facing major platform downtime or issues with my trade orders. Most importantly, I believe that POEMS will not disappear overnight as it is a well-capitalized company and has more than 45 years of experience in managing brokerage firm.
I also like how POEMS automatically puts my spare cash to work in Money Market Funds. This earns me higher interest than a typical bank account. As of April 2021, Market Money Funds’ interest rates are 0.26% p.a. for S$ and 0.25% p.a. for US$, with no lock-in period.
Importantly, POEMS allows you to trade a wide variety of markets. I am quite big on China and invest in A shares in Shanghai and Shenzhen. My overseas trades through POEMS have been fuss-free. I have heard investors having trouble with other brokers – complaints have been about not being able to place orders or that they may not offer the A share markets. It can be frustrating.
I also link my POEMS account to my CPF Investment Account, to tap my CPF funds for investment. POEMS can be linked to SRS accounts too. Not all brokerage accounts provide this feature.
To sum up, I’ve stuck with POEMS since 2007 because of its sheer variety of products and high IT and broking reliability.
Today, opening an account is even better and easier. You get to enjoy lower fees while benefitting from the same high quality of service.
Try it yourself. Open a Cash Plus Account here today.
This post is sponsored by POEMS. The views belong to the author.
