Frequently Asked Questions
How can I open a Derivatives Trading Account with DBS Vickers Securities? What are the account opening requirements? What is the initial deposit required?
Our Derivatives Trading Account is open to Individuals above 21 years and Corporations. There is an initial deposit of USD 10,000 for Singaporeans, PRs, and Employment Pass holders. For all others including Foreigners, the amount is USD 50,000.
Necessary documents:
| For Singaporeans |
NRIC (Pink) |
| For Malaysians |
Malaysian Identity Card |
| For Singapore PRs |
Passport & Valid Re-entry Permit or NRIC (Blue) |
| For Foreigners |
Passport |
Account application only in person with our Derivatives officers at
8 Cross Street
#02-01 PWC Building
Singapore 048424
For overseas clients, you may call our Derivatives officers at +65 6398 6078 to arrange for an alternative avenue.
What is Derivatives trading & how is it different from share margin financing?Derivatives trading is the ability to trade various futures contracts listed on future exchanges & over-the-counter foreign exchange on a margin basis. That is, by nature of leveraging, you may trade contracts of a larger nominal value.
The margin required in Derivatives trading is set to cover the price risk of the portfolio for a specified period. On the other hand, share investors usually leverage their investment by using equity portfolio as collateral for margin financing for the purchase of additional shares.
Why should you consider trading Derivatives with DBS Vickers Securities?
Our Derivatives Trading Account offers you attractions like capital leverage effect, freedom in positioning and low transactional costs. With a Derivatives Trading Account, you can trade multiple products while enjoying interest on positive balances. With a round-the-clock dealing desk as well as extensive linkages to major exchanges, you can be ensured of reliable 24 hours dealing services.
What are the products that we offer?DBS Vickers Securities (S) Pte Ltd offers a wide range of financial products that are traded actively in the global market. We offer an array of financial products.
| Stock Index Futures |
MSCI Singapore Index, Straits Times Index, Hang Seng Index, Nikkei 225 Index, S&P, DJ, Nasdaq |
| Single Stock Futures |
DBS, OCBC, SPH, UOB, SIA, CSM, SingTel |
| Currency Futures |
Japanese Yen, Euro, Aussie Dollar, Swiss Franc |
| OTC Spot Forex |
USD/YEN, USD/CHF, EUR/USD, EUR/YEN, AUD/SGD |
| Interest Rate Futures |
Eurodollar, Japanese Government Bond, T-Bonds, Singapore Dollar Interest Rate, Euribor |
| Energy Futures |
Brent Crude, Light-Sweet Crude Oil, Heating Oil, Gas Oil, Natural Gas |
| Agriculture Futures |
Corn, Cocoa, Coffee, Sugar, Cotton, Wheat, Soybean, Rubber, Crude Palm Oil |
| Metal Futures |
Gold, Silver, Platinum, Palladium, Aluminium, Copper |
| OTC Clearing Contracts |
Wet Tanker FFAs, Dry Bulk FFAs, Oil Derivatives |
*This list is not exhaustive.
How do I get started?To get started, you need to open a Derivatives Trading Account by completing the required relevant documents and place a minimum deposit. You may either transfer your funds into our account or give us a cheque. As soon as the initial approval is given and the funds received, you may commence trading.
| Residents |
USD10,000 or equivalent |
| Non-residents |
USD50,000 or equivalent |
How much commission must I pay per trade?
The commission you pay differs from products and exchanges. We offer very competitive rates across all products, which can be as low as SGD10 for single stock futures contracts and 1 pip for foreign exchange. You may ask for a Schedule of Standard Commissions & Margins, although the margins required do change frequently due to market volatility.
When will I have a margin call & how much do I need to top up?
Your open positions are marked-to-market to the closing prices each trading day. Most of the time, the Initial Margin (IM) is sufficient to buffer some losses. However, when your losses deplete your equity below the Maintenance Margin (MM) required, you will then receive a margin call, which requires the account holder to top up their equity to the IM level.
You can top up your Derivatives Trading Account by giving us a cheque. Alternatively, if you have a DBS account, you can deposit your cash or cheque at any one of the DBS branches; or remit funds via ATM transfer, internal or telegraphic transfer, internet banking, internet kiosk, Nets kiosk and phone banking.
How long should I hold on a position?
Depending on your personal preference and perspective, you may wish to adopt a short term trading approach (taking a position for 1 day, 1 hour, or even just a few minutes); or longer term trading approach (several days to several weeks).
Can I appoint another person to trade on my behalf?
Yes. You and the person you appointed have to sign the Account Mandate Form. The appointed person or mandate can only trade on your behalf. The mandate has no authority to give instructions with matters relating to your monies in your trading account. In the event you want to revoke your mandate, you can send us your Letter of Mandate Revocation.
How do I monitor trading activities?
Trading activities can be monitored daily in the money pages of the local press. Alternatively, price information is also available from sources such as InTV page, SGX-DT member brokering companies, information vendors such as Reuters, Dow Jones, Bloomberg, etc and web sites such as www.sgx.com. Alternatively, you can also call us to get the latest updates of the market prices.
What are the risks involved in Derivatives trading?
Transactions in leveraged foreign and futures carry a certain degree of risk. Due to it being highly leveraged, a relatively small market movement will have a proportionally larger impact on the funds you have deposited or will have to deposit. This may work well for you as well as against you.
In addition, certain risk-reducing orders or strategies such as the placing of stop loss orders or stop limit orders may not be effective because market conditions may make it impossible to execute such orders.
