Standard Chartered (SC) announced in early June 2016 that it will start to charge a minimum commission with effect from 1st August 2016. When this news was announced, I can imagine that moan of those who are using this platform for dollar-cost-averaging (DCA) investing. If you would like to find out more about the changes, you can find more details here (SC’s website), here (Yahoo News) and here (Investment Moats).
Only change is commission, SC is still not charging for custody fee
While there is a minimum commission, there is no change to the zero custody fees. This is the saving grace and I still think it is a strong selling point for Singapore investors who invest in overseas market.
My reaction: sign up for SC Priority Banking
I had been thinking of signing up for SC Priority Banking status for the slightly cheaper trading commissions. However, it does not make sense for me to park my cash in SC accounts because of the much higher interest from accounts such as the OCBC 360 and UOB One accounts.
With SC’s announcement, there was an impetus for me to sign up for SC’s Priority Banking status. In order to qualify for SC’s Priority Banking status, one has to have SGD 200,000 AUM with SC and this includes the equities under the custody for SC’s online equities trading platform. So, I transferred my cash into my SC bank account and went down to one of the branches to sign up.
So, what it means to be a SC Priority Banking customer?
Well, there will not be a minimum commission for all my trades on SC online equities platform. Another plus is that I get to see “Priority Banking” logo when I log into SC internet banking.
… a letter informing you of the Priority Banking status
… a SC Priority Banking Visa Infinite credit card
…. a Priority Pass that comes with the SC Priority Banking Visa Infinite credit card
it comes with unlimited Priority Pass lounge access for principal card holder.
Priority Pass looks better than the Priority Pass from my DBS Altitude Visa and Citi Premiermiles Visa
….. and additional perks from SC 360 Rewards programme
need to spend at least SGD500 on the SC Priority Banking Visa Infinite card to use earn additional 360 Rewards points
So, how many of you also signed up for SC Priority Banking status to avoid the minimum commission?
If not, what are the alternatives that you choose? Please share with me in the comments section!