The performance of the Standard & Poor’s 500 Index (S&P500) has been remarkable for almost a century. According to Bloomberg data, from 1927 to 2023, in price terms alone, the S&P500 has returned just shy of 27,000 or around 6% a year. Including dividends reinvested, the returns are 83,000 or 7.25% a year.
Despite current economic and geopolitical concerns, the US stock market continues to present attractive potential opportunities for investors in Singapore. For Greg Baker, managing director of Charles Schwab Singapore, this sentiment rings especially true. “Although past performance is not a guarantee of future results, historically, staying invested has been, in our view, an effective strategy and one to consider when it comes to election years,” Baker asserts.
As a multinational financial services company, Charles Schwab offers a wide range of investment services. Well-known for revolutionising the brokerage industry in the 1970s and 1980s by providing low-cost trading, it has morphed into a full-service financial services powerhouse with a global following.
In late 2020, Charles Schwab closed its acquisition of Ameritrade. In the years following, the firm successfully integrated the award-winning thinkorswim trading platforms with Schwab’s trading capabilities under the Schwab Trading Powered by Ameritrade brand. This integration enhances Schwab’s offerings, providing investors with access to cutting-edge trading technology, service and education that helps them manage their portfolios and capitalise on investment opportunities in a timely manner.
Accessing the world’s largest, deepest market
Part of Schwab’s appeal lies in its seamless ability for traders and investors to buy and sell stocks, bonds and ETFs and trade options and futures directly through Charles Schwab. For accredited investors in Singapore, this access to the US stock market — the largest and most liquid financial market globally — represents a significant opportunity.
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The NYSE and Nasdaq together comprise the world’s deepest financial market, boasting a market capitalisation of over US$50 trillion ($67.3 trillion). “The US is the largest and most liquid market, which reduces the risk of market manipulation and increases the likelihood of finding favourable spreads and active buyers or sellers for any stock at any time,” Baker points out.
Beyond stocks, investors can potentially use options and futures for hedging strategies, ETFs to access sector movements and bonds for portfolio diversification. With inflation trending lower and the Federal Reserve expected to reduce interest rates further, sectors that have underperformed during the early stages of the bull market are now catching up.
“We think the rally can continue to broaden as the economy continues to grow, albeit at a slower pace. While index-level gains may appear more muted, as long as the majority of industries and members remain in uptrends, we think that will be a constructive backdrop—even if pockets of volatility emerge,” Baker adds.
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One of the most compelling reasons investors turn to the US market is the innovation emerging from the country’s corporations. The US has consistently been home to some of the world’s most innovative companies, many of which have experienced strong growth and accelerated earnings, positioning them for long-term success and offering investors significant capital appreciation opportunities.
Choosing the right platform
For Singapore-accredited investors seeking access to the US market, choosing the right trading platform is crucial. Charles Schwab stands out by providing a comprehensive solution that combines competitive pricing with powerful trading tools and premium educational resources. With its US$0 commission1 structure for online listed equities, Schwab enables investors to focus on portfolio optimisation without worrying about high or hidden fees.
The importance of extended trading hours cannot be understated, especially for Singaporean investors, given time zone differences. Schwab’s extended trading hours allow investors to react quickly to after-hours market developments, facilitating trading outside regular US market hours. With 24/5 trading on select securities exclusively through the thinkorswim platforms, Schwab provides unparalleled access to the US market, ensuring that investors can capitalise on opportunities as they arise.
Moreover, accredited investors have the advantage of accessing Schwab’s local team of financial experts, who bring deep market expertise, complemented by round-the-clock support from US-based investment professionals during the market week. This dual support system empowers investors to navigate the complexities of the market, whether they seek guidance on platform navigation or trading strategies.
Baker emphasises the value of this support, noting, “Our US-based, registered investment professionals are experienced, multilingual and ready to take our clients’ calls or emails 24 hours a day starting Monday 1am through Saturday 1am (US EST).”
Charles Schwab Singapore is dedicated to empowering accredited investors in their US investing journey. “Our local Singapore team is equipped with dedicated Relationship Managers who cater specifically to our high-net-worth clients, ensuring that they fully leverage the advantages Schwab offers,” Baker says.
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“Seeing the world through clients’ eyes has shaped who we are and what we offer. We continue to lead with our ‘no trade-offs’ approach by combining the best of people and technology with low costs to help enable our clients to pursue their financial goals. In return, our clients share their positive experiences at Schwab with their friends, which has become one of the biggest and most sustainable drivers of our growth in the high-net-worth segment,” Baker adds.
Baker: Staying invested has been, in our view, an effective stratergy and one to consider when it comes to election years. Photo: Charles Schwab.
Try it out first
Opening an account with Charles Schwab is a straightforward process that can be completed at www.Schwab.com.sg. The application process takes approximately 15 minutes, assuming all necessary documents are prepared. Once submitted, clients can expect account approval within a few business days, after which they can start funding their account and begin trading.
For those new to investing or simply wishing to learn more, Schwab offers Schwab Coaching workshops, allowing investors to learn from trading professionals in a live, interactive setting. These sessions allow clients to observe trading professionals “over the shoulder” as they demonstrate trading concepts and strategies, gain experience applying trading principles to current market conditions, and practice executing strategies using Schwab’s thinkorswim platforms and other tools.
A core pillar of Charles Schwab’s mission is its commitment to investor education. Central to this is the Schwab Centre for Financial Research, which has been providing fact-based insights, in-depth research, and practical guidance from experienced professionals for over 25 years. These extensive educational resources empower investors to learn from experts and deepen their understanding of market trends and investment strategies. Ultimately, this knowledge enables investors to make more informed decisions and enhance their trading strategies.
Another standout feature of Schwab’s offering is the ability for accredited investors to test drive their strategies using paperMoney®, a virtual trading environment integrated within thinkorswim. This environment allows Schwab clients to test and refine their investment strategies in a live market simulation without risking real funds. This experience provides investors access to many of the same products, tools, and features available during live trading, helping them familiarise themselves with the platform and build confidence. Non-Schwab clients can access paperMoney and try out thinkorswim for themselves for 30 days with Guest Pass.
The thinkorswim platform suite – available on mobile, web, and desktop – delivers real-time insights and over 300 technical charts and indicators. This advanced functionality allows investors to manage their positions with precision, no matter where they are. Seamless integration across devices means that investors can switch between mobile and desktop platforms without having to reconfigure many of their preferences and settings, providing a convenient and efficient trading experience.
Robust security features to fortify client trust
“We’re dedicated to protecting clients’ accounts and working with them to make their accounts even more secure. Our technology, personnel, and protocols are continually updated to safeguard our clients’ personal and financial information,” Baker says.
Charles Schwab employs encryption and risk-based security technologies across its platforms. These controls, alongside automated alerts, an identity verification process and rigorous monitoring, help defend against unauthorised account access. Employees who handle sensitive information are also trained in privacy and security.
Baker adds, “Whether our clients reach out by phone or online, their identity will be verified before any sensitive information is discussed.”
“We have been in business for over 50 years and putting clients first has been our mission since day one. We continue to leverage technology to remove barriers and offer sophisticated investment strategies – from automated portfolio management to direct investing – to an ever-wider group of investors,” Baker concludes.
Disclosure
1Standard online US$0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard US$0.65 per-contract fee. Service charges apply for trades placed through a broker (US$25) or by automated phone (US$5). Exchange process, ADR, and Stock Borrow fees still apply. See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules.
For Accredited Investor Clients: Your account relationship is with Charles Schwab & Co., Inc. (Member FINRA/SIPC) and, when applicable, Charles Schwab Futures & Forex, LLC., for securities and futures respectively, and all are subsidiaries of The Charles Schwab Corporation. You may receive communications or material directly from these providers.
The S&P 500 is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by Charles Schwab & Co., Inc. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). [Entity name] [and] [Product or Service Name] is/are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500.
Past performance is no guarantee of future results. Dividends are not guaranteed.
Investing involves risks, including loss of principal. Hedging and protective strategies generally involve additional costs and do not assure a profit or guarantee against loss.
The paperMoney® software application is provided for educational purposes only, and allows users to engage in simulated trading with hypothetical funds using live market data. Market activity, trade executions, transaction costs, and other elements presented in paperMoney are simulations only. Simulated performance does not ensure success in a live environment.
The Guest Pass (paperMoney(R)) software application is for educational purposes only. Successful virtual trading during one time period does not guarantee successful investing of actual funds during a later time period, as market conditions change continuously.
Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons.
System response and access times may vary due to market conditions, system performance, and other factors. Online trading has inherent risk. Options and futures involve substantial risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options and Risk Disclosure Statement for Futures and Options online. An investor should understand these and additional risks before trading. Past history is no indication of future performance and returns are not guaranteed.
Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.
The Schwab Center for Financial Research (“SCFR”) is a division of Charles Schwab & Co., Inc. (“Schwab”) that evaluates money managers (MMs) in Schwab’s Managed Account Select (“Select”) program. The Select program is sponsored by Schwab. Schwab does not provide advice or recommendations regarding managed account strategies or MMs to investment advisors or their clients.
Charles Schwab SG Pte. Ltd. (holding a capital markets services license issued by the Monetary Authority of Singapore and an Exempt Financial Adviser as defined in the Financial Advisers Act) and Charles Schwab & Co., Inc. (Member SIPC) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Nothing here is an offer or solicitation of securities, products, and services by Charles Schwab & Co., Inc. in any jurisdiction where their offer or sale is not qualified or exempt from registration. Charles Schwab SG Pte. Ltd., 8 Marina View, #12-01 Asia Square Tower 1, Singapore 018960 (Singapore Company Registration No. 200902152D). Telephone: +65 6021 8070
This advertisement has not been reviewed by the Monetary Authority of Singapore.
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