The Ultimate Guide to Cash Plus and Cash Management Account September 27, 2024
At a glance:
- Choosing the right trading platform and brokerage account can be a headache these days, given the array of services and service providers
- POEMS has two accounts to match your specific investment needs: Cash Plus and Cash Management
- Trade US shares at USD 1.88 flat with no platform fee and custody fee with Cash Plus Account
- Link your CDP account to Cash Management Account and trade your CDP holdings
Cash Plus Vs. Cash Management: Which Account Suits You Best?
Whether you are a beginner or seasoned investor, choosing the right trading platform and brokerage account can be a pain, given the maze of services and service providers available these days.
Truth be told, you can never find the best trading platform or account. But understanding your investment needs is essential.
Phillip’s Online Electronic Mart System, or POEMS, ensures that your account-opening process is as fuss-free as possible. Here are some guidelines to help you take your first step in choosing the right account for your trading needs.
Among all the account types that POEMS has, the two most popular are: Cash Plus and Cash Management. Here are 13 things you need to know before you decide which one suits you best.
Swipe left to view the table
Comparison table
| Features | Cash Plus | Cash Management |
| Online brokerage rates/commission fees https://www.poems.com.sg/stocks/pricing/ |
Lower | Higher |
| Trading access to multi-assets and stock exchanges in more than 20 countries https://www.poems.com.sg/products/stocks/ |
Yes | Yes |
| Free webinars, research reports and market journal content on POEMS | Yes | Yes |
| Multi-currency facility, excess funds facility & online currency conversion facility | Yes | Yes |
| Standby margin financing (borrowing interest applies) | Yes | No |
| Account maintenance fees (S$15 per quarter) | Yes (waiver conditions apply) | No |
| Custody fees for foreign shares | Yes (waiver conditions apply) | Yes (waiver conditions apply) |
| Corporate action services | Yes | Yes, except SGX counters |
| Trading access using CPF & SRS funds | Yes (prefund required) | Yes |
| Trading with BUY limit (buy first, pay later) | No | Yes |
| Contra trading | No | Yes |
| Direct linkage to your CDP account | No | Yes |
| POEMS Rewards (redeem live price subscription, voucher, magazine & services) https://www.poems.com.sg/promotions/#rewards |
Yes | Yes |
The above comparison gives you a clearer picture of the differences of the two accounts.
To guide you further, we have painted a few scenarios for you.
Scenario A: You are an active investor who follows the market closely
A Cash Plus Account would be ideal if you are an active investor who follows market trends closely and trades frequently.
Reasons:
Cash Plus offers some of the lowest brokerage rates, starting as low as US$1.88 flat and 0.05% for minimum HK$15 trades. This allows you to buy and sell multiple times at a minimal cost. Additionally, your available cash limit will increase upon selling, enabling you to continue trading based on the available cash in your POEMS Cash Plus Account. Brokerage rates are determined based on the previous day’s end total asset value in your Account, which means that your brokerage rates could potentially decrease if the total asset value in your Account increases.
|
Asset Value Markets |
Starter SGD 0 – SGD29,999 |
Premier SGD30,000 – SGD249,999 |
Privilege SGD250,000 and above |
|
Singapore |
0.08%, No Min Comm |
0.07%, No Min Comm |
0.06%, No Min Comm |
|
United States |
US$ 3.88 flat |
US$ 2.88 flat |
US$ 1.88 flat |
|
Hong Kong |
0.08%, min HKD 30 |
0.06%, min HKD 20 |
0.05%, min HKD 15 |
With our multi-currency facility, you can transfer in USD, HKD, AUD, EUR, GBP and CNH at $0 transaction fee for trading. Additionally, you have the option to retain your sales proceeds in their respective settlement currencies.
Take advantage of live currency conversion available on our POEMS 2.0 platform, POEMS 2 app, and POEMS Mobile 3 app — along with our highly competitive currency spreads!
What’s even better? You can now trade US market with greater flexibility and convenience from 8am to 5am (US Asian Hour > US Pre-Market Trading > Regular Trading Hours > Post US Hours).Simply Login to subscribe for complimentary US live price and elevate your trading experience.
Scenario B: You are a non-active, risk-averse investor or new investor
A Cash Plus Account would be ideal if you are an investor looking to buy some shares at a certain time or opportunity.
Reasons:
Cash Plus offers the lowest brokerage rates of as low as US$1.88 flat and 0.05% for minimum HK$15 trades with no platform fees. The account allows you to buy and sell multiple times at low costs.
Cash Plus allows you to deposit money via PayNow. This only takes up to 15 minutes to process, before you can start trading. It means you can trade anytime, anywhere, without having to deposit spare funds in your POEMS account.
Cash Plus is suitable for new investors who wish to start investing as its brokerage rates are low. You may invest at your comfort risk level as the tiers start from Starter (S$0-29,999) to Premier (S$30,000-249,999) and Privilege (S$250,000 & above).
Just make at least 1 trade per quarter to waive off Account Maintenance Fee. Any market, any amount.
Scenario C: Investing with CPF and SRS
Both the POEMS accounts allow you to trade using CPF and SRS funds. However, both have their pros and cons.
Tips:
With Cash Plus Account, you can trade CPF and SRS funds at an attractive brokerage rate starting from 0.06%, with no minimum commission. However, it is essential to ensure that there are sufficient available cash in your Cash Plus Account to place orders.
Cash Management Account allows you to utilise your CPF or SRS funds without the need to deposit money. Instead, using your trading limit, you can place orders online and select CPF or SRS as settlement for your trades. The money will be deducted from your CPF or SRS account the next working day.
Looking to trade your CDP holdings? Get ready your CDP account number and open a Cash Management Account. Refer to our Cash Management Account page on benefits of CDP linked account and how to open a CDP account online.
Alternatively, you may open a Cash Plus Account and transfer in your CDP holdings for a fee. Contact your Trading Representative for shares transfer form and charges.
We hope this article assists you in taking your initial steps in investing. If you are ready to open an account with us, please visit here Should you require further assistance in determining which account best suits your needs, do not hesitate to contact your Customer Experience Unit at 65311555 or email us at talktophillip.com.sg.
Happy trading!
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