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Finasta

Temporary note: As of November 2011, Finasta’s parent company Snoras has been nationalised by the Lithuanian authorities amid allegations of fraud and seems likely to be wound up. Finasta says it is operationally and legally separate from Snoras, will continue to operate as usual and is expecting to be sold as a going concern to a new investor. This entry will be updated with more information when the outcome becomes clearer.

Finasta is the investment and brokerage arm of Lithuanian banking group Snoras. Among other services, it offers online stock trading for a large number of markets in Eastern Europe and beyond at relatively low rates in many cases.

We don’t have any experience of using this firm or comments from other feedback yet. It’s included in the directory because it may be of interest to investors looking to invest in this region, alongside firms such as Brokerjet, Orion Securities and Swissquote. If you have any feedback, you can send us an email using the contact form.

In terms of likely investor security, while Lithuania is not a top-tier financial centre, it is a regulated market and Finasta is overseen by Securities Commission. Lithuania is a member of the European Union and has implemented the EU directive on minimum investor compensation standards, which means that the Deposit and Investment Insurance Fund provides protection of up to €20,000.

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Orion Securities

Orion Securities is a reasonably well-known investment bank and stock brokerage in Lithuania. The firm offers online stock trading for the Baltics, plus broker-assisted trading for a large number of other markets – most significantly, it covers much of Eastern Europe and rates on many are reasonably low.

We don’t have any experience of using this firm or comments from other feedback yet. It’s included in the directory because it may be of interest to investors looking to invest in this region, alongside firms such as Brokerjet, Finasta and Swissquote. If you have any feedback, you can send us an email using the contact form.

In terms of likely investor security, while Lithuania is not a top-tier financial centre, it is a regulated market and Orion is overseen by Securities Commission. Lithuania is a member of the European Union and has implemented the EU directive on minimum investor compensation standards, which means that the Deposit and Investment Insurance Fund provides protection of up to €20,000.

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Swissquote

Switzerland’s leading discount brokerage offers a reasonable range of North American and European markets for online trading and a far larger number for broker-assisted trades. As far as I know, it’s the only retail-orientated brokerage in Europe that offers markets such as Brazil or Japan’s Osaka Stock Exchange (as opposed to the more widely traded Tokyo exchange) – although Daniel Stewart, a UK institutional firm that accepts private clients, can also access these and more, while the Hong Kong-based Boom Securities and Phillip Securities are other cheaper alternatives for Japan.

The main drawback is the fees. Minimum commissions on the broker-assisted markets are so high that they are unrealistic for most retail investors. This may be understandable, since they will be traded via intermediaries. However, even the online markets are not cheap – you will do better through many other discount brokers.

However, there is no minimum account size and admin fees don’t look unbearable. So if you’re aiming to make a handful of long-term investments of at least US$5,000-10,000 each in some of the more inaccessible markets it offers, Swissquote could be worth a look. Feedback on everything except fees has generally been good.

The Hong Kong and Singapore stock brokers may be alternatives for Asia, while Brokerjet, Finasta and Orion Securities may be worth considering for Eastern Europe.

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UOB Kay Hian

Singapore’s largest stock broker offers a wide range of Asian markets for online and broker-assisted trading. However, I haven’t received much feedback about this firm and my impression when looking for a Singapore stock broking account was that it probably the weakest of all the major Singapore brokers from an international perspective.

The firm doesn’t provide the same amount of information on its services and charges upfront, which is frustrating when trying to compare accounts. Customer service staff tried to be helpful, but seemed less well informed than staff at most of its rivals. Unless you have a particularly compelling reason to favour this firm, international investors looking for a Singapore brokerage account should probably consider OCBC Securities and Phillip Securities first.

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Phillip Capital Singapore

The last big remaining Singapore independent broker after Kim Eng was purchased by Maybank, Phillip Capital offers a wide range of regional markets. Notably, the line-up now includes Sri Lanka, making it the first multimarket stock broker to offer this to retail investors.

Commissions are very competitive and the fund supermarket could also interest anyone looking to invest in Singapore-based mutual funds. The main weakness is that most markets are not available for online trading – OCBC Securities is stronger in this respect, although Phillip is steadily moving more markets to its online system. Overall, Phillip and OCBC currently seem to be the two firms to consider first if you’re looking for a Singapore brokerage account.

If you’re comparing brokerage accounts regionally, be aware that the Singapore firm is run separately from Phillip Securities Hong Kong and the two divisions offer slightly different services. The Singapore arm is probably a better choice for international investors.

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OCBC Securities

OCBC’s online brokerage division is only a few years old, but the firm has developed a strong regional stock broking service very quickly. It offers more markets online than any other Singapore broker and only Phillip Securities rivals it for overall range.

Costs are reasonably low (although it is now charging dividend handling fees on dividends from foreign stocks) and customer service is good. Given the advantages of having a bank and brokerage account with the same group, OCBC is one of my top recommendations for international investors looking to open a bank account and brokerage account in Singapore (although Phillip Securities is also worth considering).

Some investors from outside Asia occasionally assume that OCBC’s full name – Oversea-Chinese Banking Corporation – implies the firm is from mainland China or confuse it with ICBC (Industrial and Commercial Bank of China). However, there’s no connection – OCBC is Singapore-based and operates mostly in Southeast Asia.

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Lim & Tan

This smaller Singapore broker offers a wide range of Asian markets for online trading. However, the service is provided by a foreign intermediary – probably Boom Securities in Hong Kong. Hence investors might as well save the extra fees and go directly to Boom.

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DBS Vickers

DBS Vickers is one of the larger Singapore stock brokers and also offers accounts in Hong Kong. The service is apparently mostly the same for both sets of clients, but some fees vary depending on where your account is based – where this is the case, both terms are indicated below.

Non Hong Kong residents are likely to be steered towards a Singapore account, but of the available Singapore brokerages DBS Vickers seems one of the less interesting choices for the international investor. Its main selling point was the absence of custody fees on foreign stocks, but even this has recently been abandoned.

When I’ve approached the firm for information, customer service has been good enough but representatives at OCBC Securities and Phillip Securities seem more alert. I’d suggest international investors looking for a Singapore account start there.

For local investors in Singapore, it’s worth being aware that SGX equity purchases made through DBS iBanking with upfront cash settlement are charged at a lower rate of 0.18% with a minimum of S$18 (sales cannot be done on the same terms, unless the sale is made quickly before the T+3 settlement cycle is complete). This is one of the lower rates among local brokerages, but Standard Chartered and the Singapore arm of Saxo Bank will probably work out slightly cheaper for most investors.

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Polaris Securities

I have received little feedback on this broker. If you would like to add any comments, please email me.

This is the Hong Kong arm of one of Taiwan’s largest stock brokers. While it provides services in English, it seems to be little used by English-speaking international investors.

Polaris offers a wide range of Asian markets, mostly for broker-assisted trading. It’s not especially cheap, but the inclusion of Vietnam is noteworthy – it seems to be the only international multimarket stock broker offering this country.

I understand that to trade in Vietnam you still need to have a local account and unique investor ID, which requires a visit to the country to register in person. From the details provided, it’s unclear whether you still need to have applied for your own account and ID before trading or whether Polaris has managed to get around these restrictions – investors considering using the firm to trade Vietnam will need to get a definitive answer to this before opening an account.

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Phillip Securities Hong Kong

International investors comparing brokerage accounts in Asia should be aware that Phillip Securities Hong Kong and Phillip Capital Singapore seem to be run independently of each other and offer different services.

The Hong Kong arm offers more markets online than the Singapore division, but less markets overall. International investors looking for an offshore account to trade Asian markets may do better through its sister firm or OCBC Securities in Singapore.

However, this is still one of the better multimarket brokers around and worth considering, especially if you need to invest in Japanese markets other than Tokyo which are rarely offered by international retail stock brokers (fellow Hong Kong broker Boom Securities is also worth considering for this purpose).