How to Reduce your Brokerage Fee and Maximise your Earnings (Part 1)
Did you know that you can earn back some of your brokerage fee in the form of a cash rebate?
DBS bank (Development Bank of Singapore) is now (as of 19-Dec-2009) having this excellent promotion for DBS Cashline whereby you get back S$25 cash rebate, if you make online bill payment via Cashline to any of the following 8 local brokerage firms:
- DMG & Partners Securities
- Fraser Securities
- CIMB-GK Securities
- Kim Eng Securities
- Lim & Tan Securities
- Philips Futures
- Philips Securities
- UOB Kay Hian
And if you are using DBS's very own brokerage, DBS Vickers, its even better because you get an extra S$5 cash rebate.
That's S$30 cash rebate!
Of course, before you can start to earn the brokerage rebate, there are some requirements that need to be fulfilled first. (But its quite easy, actually)
1) Trading Account with your favorite local brokerage firm
Please note that this brokerage rebate is only applicable to the Singapore stock market with stocks listed on SGX (Singapore Stock Exchange). If you are trading the US stock market or any other market, then there is no brokerage rebate under this promotion.
2) DBS Cashline account.
DBS Cashline is basically a line of credit that you can draw upon to pay for your general purchases, much like a credit card or a checking account. This 2X credit is an additional one, over and on top of your credit card's credit limit. You will get a new ATM card and a free chequebook upon successful application. What's more, currently there is an additional freebie from the bank which gives you a free S$10 NTUC voucher if you charge any amount to Cashline! (So, I just charged $1 to my Cashline and got the S$10 NTUC voucher which I used to partially offset my grocery purchases)
As of today 19-Dec-2009, the requirements to be eligible to sign up for DBS Cashline has been reduced from S$30,000 annual income, to just $20,000. Which means that, now it is even easier to apply for DBS Cashline as compared to a Credit Card! More people can enjoy this brokerage rebate too!
As with any credit facility, the interest rate is rather hefty if you use $ from the credit line, but don't write this off yet! There is a way to avoid this.
More on this later in Part 2 of this article :)
3) DBS Internet Banking Account and a Savings Account.
This is to facilitate your online bill payment to the brokerage firm.
The Savings Account is optional, but having it makes it easier to fund your accounts.Note that a minimum of S$500 is required to open a new Savings account and remember to keep it at minimum of S$500 or else you will get charged a fall-below fee of $2 each month.
Once you have all the above 3 facilities in place, you are ready!
Please look forward to my next posting of Part 2 of this how-to article for the step-by-step procedure to earn the maximum brokerage rebate of S$30 and avoid incurring high interest in the process, like what I am doing every month now :)