The Ultimate Guide to Cash Plus and Cash Management Accounts April 13, 2021
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
- Take advantage of our promotions, which include trading US shares at USD 1.88 flat with no platform fee and custody fee with Cash Plus Account
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
|Features||Cash Plus||Cash Management|
|Online brokerage rates/commission fees
|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 SGX shares||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 (prefunds required)||Yes|
|Trading with BUY limit (buy first, pay later)||No||Yes|
|Direct linkage to your CDP account||No||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.
Cash Plus offers the lowest brokerage rates – of as low as US$1.88 flat and 0.05% for minimum HK$15 trades – that allow you to buy and sell multiple times at low costs. Furthermore, your available funds limit will increase once you sell and you may continue to trade based on available funds in your POEMS account. Brokerage rates are determined based on the previous day’s end total asset value in your account. This means that your brokerage rates could potentially be lesser if the funds in your account increase.
Cash Plus also allows you to settle trades in 10 different currencies. This is its multi-currency facility. The currencies are: S$, US$, HK$, A$, RM, ¥, £, €, RMB and C$.
Furthermore, you may now convert currencies live on our POEMS 2.0 platform!
What’s even better? From now till 30 June 2021, we are providing complimentary live prices to the US, Thailand, Malaysia and Indonesia markets (subscription required). Yes, bid goodbye to delayed prices!
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.
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).
What’s more, there are no foreign custody fees when you trade US and Hong Kong counters from now till 31 December 2021. Plus, you get to enjoy zero commissions (only applicable for US market) for contract gross values of less than US$2,000! *Full terms & conditions apply
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.
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.
With Cash Plus Account, you can trade CPF and SRS funds at attractive brokerage rates. However, you are required to ensure there is sufficient money in your CPF or SRS accounts or you have the credit limit to meet your trade size before placing orders.
We hope this article can help you take your first investment steps. Please visit here if you are ready to open an account with us! If you are still unsure, you may check out the different rates and charges here. Happy trading!
Have a view on the above or keen to learn more about trading? Join our global investment community on Telegram and share your thoughts with us today!
About the author
Chan Kar Nang
Kar Nang joined Phillip Securities in 2019 as an Equity Dealer in the Global Markets Team. He graduated from University of Tunku Abdul Rahman (UTAR) in 2015 with a Bachelor’s Degree in Financial Economics.
He specializes in SG,US markets and other global markets including Hong Kong and China, assisting clients during day trading hours.