In my post about how to enjoy DBS Vickers’ Cash Upfront preferential commission rate, I mentioned that that’s the best way to buy CDP-owned shares.
With a commission fee of only $10, it is the cheapest way to own shares in your CDP account under your own name.
However, this only applies to buying shares. What about when you want to sell them?
The commission fee for selling shares on DBS Vickers is $25. While it’s a fairly standard price, it’s higher than what I’d like to pay.
Thankfully, there’s a cheaper way to sell your CDP-owned shares.
FSMOne is an online broker that you may have heard of before.
Before low-cost brokers like Tiger Brokers and Moomoo came into the picture, FSMOne was one of the best online brokers to use because its fees were significantly lower than bank brokers.
However, its popularity as a broker has since dwindled because its fees aren’t nearly as low as the likes of Tiger and Moomoo.
There are still some use cases for FSMOne, and one of them is to enjoy a low commission fee for selling CDP-owned shares.
As with most online brokers, FSMOne uses custodian accounts to hold stocks and ETFs.
But what makes FSMOne stand out is that it allows you to link your CDP account to your FSMOne account, enabling you to sell your CDP-owned shares from your FSMOne account.
This means that the fees you’ll incur for selling your CDP shares in this way are the same fees you’ll incur for any sell order on FSMOne.
There are 3 brokers in Singapore that allow you to link to your CDP – DBS Vickers, FSMOne, and POEMS cash management account.
Below is a comparison of their relevant fees for sell orders.
As you can see, FSMOne has the lowest commission fee by far, which can go a long way in helping you save costs to maximise returns from your investments.
Note that aside from the commission fee charged by the broker, there are other costs that are applicable regardless of broker, including:
- 0.0325% SGX clearing fee
- 0.0075% SGX settlement fee
- $0.35 SGX settlement instruction fee
- 7% GST on total fees
Example: Selling Netlink Trust
For the sake of comparison, the fees for selling 1000 units of Netlink Trust (CJLU) @ $0.955/unit is $10.21 on FSMOne.
Meanwhile, the fee for the same order is $27.16 on DBS Vickers.
How To Link CDP To FSMOne
Before you link your CDP account to FSMOne, you need to open an FSMOne account. You can do this via their website.
If you don’t already have a code to use, you can enter “P0454962” when you create your account. It doesn’t cost you anything, but it goes a long way in supporting me. Thank you!
After your account has been opened, log in and navigate to “Account Settings” > “Sell From CDP”.
On the next page, enter your CDP account number and click submit to link your CDP account to your FSMOne account.
It will take 1-3 business days for this to be completed and you will receive an email confirmation after successful linkage.
After receiving the email confirmation, you should verify that your CDP account has indeed been linked to your FSMOne account.
You can do so by navigating to “Account Settings” and noticing that that “Sell From CDP” is now activated, denoted by the tick.
How To Sell From CDP On FSMOne
After successfully linking your CDP account, you’re ready to sell your CDP shares with your FSMOne account.
Navigate to “Live Trading” and search for the stock you wish to sell.
Click “Sell” on the stock you want to sell to open the Order Pad. Enter the trade details and select “Sell from CDP”.
Important: Before you place an order to sell from your CDP account, check and confirm that you have sufficient shares in your CDP account. If you don’t, it may result in accidentally shorting the stock, which can cause you to suffer losses.
If you have shares in your CDP account that you wish to sell, doing so via FSMOne will incur the least amount of fees, allowing you to keep as much of your returns as possible.
The process is simple, but be sure to check that you’re selling the correct stock and only in amounts that you own in your CDP account to avoid making the potentially fatal mistake of shorting the stock.
Do you own shares in your CDP account? Will you sell them via FSMOne? Let me know in the comments below!