UOB Silver Savings Account (SSA)

It has really been some time since I last wrote any post. A lot of things has happened since then, but in short, things haven’t been good the entire time. To have a brief update, I lost my previous job, was jobless for a few months, managed to find another job at another bank, and am now currently trying to make sense and adapt to the current work. The good thing about my new work is that it is finally a permanent role, but there is quite a fair bit of negativity and significantly heavier workload. Even though I have been here for a couple of months, but I am still adjusting to the work here. Every night I return home exhausted, finding myself very tired out and almost unable to do anything else. However, this is not the main aim of this post, I shall be talking about something else I decided to invest in, and as the title of the post suggests, it is the UOB Silver Savings Account (SSA).

After looking at the Gold ETF last year, I have been looking at other ways of investing in precious metals and alternative investments. I found it in the UOB Gold Savings Account (GSA) and UOB Silver Savings Account (SSA). As I have already invested in gold ETF, I am primarily more interested in the UOB Silver Savings Account. For more information you can refer to the link here http://www.uob.com.sg/personal/invest/goldsilver/overview.page. Note that I am not paid for advertising this. This was something which I personally invest in and hence, thought to share about it. Some of the basic characteristics of the account are as follows:

  • Ability to buy and sell silver in SGD without physical delivery
  • Minimum initial purchase of 10 ounces of silver
  • Minimum purchase each transaction of 10 ounces of silver
  • Perform transactions within the time of Monday to Friday, from 8am to 11pm
  • Annual administrative fee of as low as 0.2 ounces per month or 0.375% on the highest balance per month, whichever is higher
  • $30 plus GST levied for a/c closure within 6 months

Since the end of last year, I have been looking at alternative investments to invest in as the the equity markets were at an all time high. Fast forward a year later, and yet again, equity markets are at all time highs and bitcoin has crazy valuation. My gold etf purchase is still in the green and I am still holding onto them. I will only sell once I see a financial crisis unfolding. Not sure when, but it will happen eventually. Yet again, I am looking for alternatives. I have not been buying equities much this year as I got distracted by trading (and burnt in the process). My though process is still to bulk buy during financial crisis. As such, my equity investments will be quite limited. At the moment, I am looking for alternatives, and since gold etf the last year, I have set my sights on silver.

Silver is the Brother of gold. During crisis, as gold price spikes, silver prices follow as well, but doesn’t have the sharp movements as gold price. It actually has more industrial use rather than as a safe haven. However, I still think it’s a good idea to diversify my precious metals holdings. As Singapore does not have silver ETFs, and I do not plan to hold physical silver, I have been looking into alternative solutions for investing in silver. I have looked at silver ETFs listed in the US markets but they are mostly synthetically made and based on futures rather than spot silver prices. Furthermore, those which I have looked at are mainly leveraged funds which are not ideal. Hence, my foray into the silver savings account by UOB. I have been buying in rounds of 10 ounces over the past 2 months and I hope to build a sizeable amount by the end of the year. Typically, following the cyclicality of precious metals, year ends tend to be the price lows hence, I’m buying more now.

The silver savings account is not perfect though, and I see some issues with it, but it will do for now. The issues are :

– To me, it is like an unlevered CFD for silver. You pay for it in cash and you are not able to take physical delivery of it.

– There is a big spread.

– Price movements are not very fluid. They are fixed at multiple times within the trading time by traders.

Despite its issues, this will work for me as a silver investment for now. What are your thoughts on this? Let me know in the comments section regarding this.


Basic information on Indices

I decided to do a post on the general information on some of the world’s global indices as I have recently completed a futures trading course, and it has piqued my  interest in futures trading, and I might decide to go down this path in the near future. Thus, I think it necessary to start compiling some information on indices as this is a potential type of futures to trade. I will try to include some general information about them, the way they are computed, the composite of them and hopefully any further useful information. I might be wrong, so please don’t take my word for it, and the post is mainly for my own benefit and ease of use.

ASX 200

It is recognized as the benchmark index in Australia, and it covers approximately 80% of Australian equity market capitalization. It is reviewed quarterly. It is weighted by float-adjusted market cap, which means its components are weighted by the market value of the outstanding shares held by public. Index calculation is the quotient of total available market capitalization of the constituents and its divisor. The weight of the top 10 constituents is approximately 48.7%. The ASX 200 is made up of mainly financials ~ 38.8% and materials ~ 15.7%.

Nikkei 225

It tracks the performance of the top rated 225 companies listed in the First Section of the Tokyo Stock Exchange. It is reviewed once yearly by the liquidity in the market and sector balance. It is a price weighted index, which means that price movements of highly priced stock will have significant influence on the index value.

Adjusted stock price = stock price x 50(yen) / presumed par value (yen)

Nikkei Stock Average = sum of Adjusted stock price / Divisor

The index is mainly made up of companies from technology ~ 43.51% and consumer goods ~ 22.56%.

Base on personal experience, the companies in the index are export oriented and the value of the Nikkei 225 is inversely related to the strength of the yen.


It tracks 50 of the largest and most liquid companies of the Hong Kong stock market. It is weighted by float-adjusted market cap, which means its components are weighted by the market value of the outstanding shares held by public, and also has a 10% on individual securities. It is reviewed quarterly. The index is mainly made up of financials ~ 47.57% and Information technology ~ 11.48%.


It is a blue chip stock market index tracking 30 of German’s top companies based on book volume and market capitalization. It is free float capitalization weighted, calculated as both price and total return index and has a cap of 10% on individual securities. It is reviewed on a quarterly basis. It is diversified of some sorts, with chemical companies at ~ 20.2%, automobile ~ 14.7% and others ~ 21.9%.

FTSE 100

It is a share index of 100 companies listed on the London stock exchange with the largest capitalization. It is capitalization weighted and reviewed quarterly. It appears to be well diversified with Oil & Gas ~ 11.92%, Personal & Household Goods ~ 11.77%, banks ~ 10.80% and Healthcare ~ 9.52%. It consists mainly of internationally focused companies as seen from its reaction to sterling rates, and is not a good indicator of UK economy.

S&P 500

It measures 500 large companies listed on the NYSE or NASDAQ. It is free float capitalization weighted. It is made up of approximately IT ~ 20.29%, Financials ~ 14.47%, 13.32%, Consumer Discretionary ~ 11.76% and Industrials ~10%.


It measures 30 companies listed in USA, and is price- weighted. Its top sectors are industrials ~ 19.69%, financials ~ 18.09%, IT ~ 16.92% and Consumer Discretionary ~ 14.23%.

NASDAQ Composite

It measures all NASDAQ domestic and international based common type stocks listed on the Nasdaq stock exchange. It is market capitalization weighted. It consists of over 3000 companies and is heavily skewed towards Technology firms at 41.52%.

Further links for more information



Things to look out for when considering a broker

Just thought to share my 2 cents worth on certain things to look out for when choosing a broker. As part of investing, you need to have a broker in order to book trades. I’ve had to look for a suitable broker and here are just some of the things to look out for when considering a broker. But first, what is a broker and why do we need them? From Wikipedia, a brokerage firm is an institution, who buys and sells stocks and other securities for both retail and institutional clients, through a stock exchange or over the counter, in return for a fee or commission. We need them to help process our transactions in buying or selling securities and they earn a fee on each transaction we make. Now we can begin considering the things to look out for.

Investment Style

Everyone has their own individual bias and investing style. Similarly, no brokers are entirely alike and they may be catered to different investing styles. Some are more suited for high trading frequency, which caters to the traders, and others are more suited to buy and hold, where they do not charge you for holding periods. You have to decide which path you want to take and find out more information on the brokers on how are they charging you. Do they charge you only per transaction or do they charge you for the duration that you hold the security?

Type of Securities

Next, decide the type of securities you want to invest/trade in. There is a plethora of products out there, from shares, bonds,CFDs, options, futures, commodities, etc., and not all brokers will allow you to transact in all of them. Most of the local Singapore brokers will provide the usual shares, bonds and ETFs, but may not have access to the more complicated derivatives while the foreign brokers will typically provide a buffet of securities for you to choose from.


Different people also have different preference for stock markets, and you have to decide which market you want to invest in. Some people may find SGX stock market boring and prefer to want something more interesting like in the US markets or somewhere else. Just note that not all brokers will allow you to trade in all the global markets.

CDP Account and Custodian Account

When you buy securities, you need a virtual storage place to put them in. In the past, shares change hands via a physical stock certificate. Now, everything is virtual. What is CDP? It is actually the Central Depository, the virtual storage place for SGX securities. Take note that it is separate from the broker account but typically you are able to open a CDP account along with your broker account. Your broker will help you to process your CDP account opening. This will take approximately 3-4 weeks. Mine took about 2-3 weeks where both my CDP and brokerage accounts are opened. So if you have a CDP account and you buy some shares, they will be stored in the CDP account and you will own those shares. However, there are some brokers which have something called the custodian account, which in simple terms, more like an account placed at the broker, but you do not own the shares, the broker does. The shares will be deposited in the broker’s account and you will be able to see the shares in your account with the broker. This gives the broker more flexibility with the securities and on the other hand, you pay less commission fees compared to a broker account with a linked CDP account. Take note that though you pay lesser commission fees, in the event that the broker goes bankrupt, there is no certainty that you will be able to retrieve your shares while if they are stored in your CDP account and your broker goes bankrupt, you still own your shares and you just get another broker to perform transactions for you. Take note that this is only applicable for local Singapore shares. If you are planning to invest in overseas stock market, your broker will definitely place your shares in  their own custodian account.

Brokerage commission fees

Different brokers have varying competitive advantages and this can translate into slight variance in commission fees. I say slight variance because most of them charge almost similar rates. For the local brokers, the minimum charge is typically around 25SGD or 0.2+% for online trades along with the mandatory transaction charges such as clearing fee and SGX trading fee. Of course, if you are not using online broker but human broker, the charges are more expensive. Someone has to pay the broker for his manual labour to perform the transaction after all. Also, if you are planning to invest in overseas market, do remember to compare the rates for custodian, dividend collection, corporate action, etc. Different brokers charge differently due to their competitive advantages. There are also slight variants of cash-upfront accounts, whereby you put cash into your account with the broker and you will get better commission fees.

Order types

This is crucial in helping you get the best price out of the transaction be it buying, selling or short selling. The most common order type seen will be the “limit order”, which is to buy or sell a number of designated shares at a specific price or better. There are many other order types such as market-to-limit orders, market orders etc, and brokers may offer different order types and for different markets as well. It would be good to go through the kind of order types that each broker may offer and also match against your own individual investment philosophy to determine what kind of order types you need.

Currency exchange rate/currency account

This pertains to more of investing in stock markets other than SGX or those stocks listed on SGX but denominated in a different currency. Currency risk is subtle, but different brokers will probably have different exchange rates with varying spreads. Would be good to know if the difference in exchange rates will eat into your PnL and how much does it affect your stock portfolio.


Ok, so this factor doesn’t really pertain to the consideration of broker, but still good to bear in mind the tax factor. The good thing about trading in SGX stock market is that there are generally no capital gains tax no dividend tax except for dividends from REITs which have a taxable component as REITS are to distribute almost all their earnings to shareholders. There is a taxable component for their dividends distributed which is taxable at the personal income level and not the corporate level. However, the tax rules that applies to Singaporeans investing in SGX shares may not apply to foreigners/non-residents investing in SGX shares and it will be a different case in the various  stock markets. For example, for a Singaporean investing in the US market (assuming he/she meets the definition of a foreign investor in US terms), he/she does not have to pay capital gain tax, but there is a 30% withholding tax from Uncle Sam. This means that instead of a $1 dividend expected to receive from the US share, only $0.70 is paid out.


In conclusion, more in depth research and comparison is required to find the best suited broker for your needs. However, there is no need to only have a single broker. You can have various brokers to cater to your different needs. After all, they are more like your clothes or underwear, where you can have a variety and don’t have to wear the same stuff everywhere and less like your girlfriend/boyfriend, whereby one is enough.