Growing up in the 90s, I was intrigued by the stock markets—a time when many Singaporean adults around me seemed to be constantly discussing stocks on the Singapore Exchange (SGX). Making a trade then was far from today’s instant, digital process; investors had to call a remisier to place their orders. Commissions were also high, around $60 per trade.
Back then, remisiers were indispensable—not just as middlemen but as trusted advisors with unique insights into market movements. Today, however, digital trading platforms have transformed investing, and the role of remisiers has evolved. This raises the question: could a revitalised remisier force reinvigorate the SGX and restore a more dynamic market environment?
The Unique Role Of A Remisier
For younger investors unfamiliar with the term, a remisier is a commissioned agent who collaborates with a stockbroking firm to execute trades for retail clients.
Unlike salaried dealers, remisiers earn a commission on each trade, which allows them to build close relationships with their clients and act as a crucial link between retail investors and the stock market. This intermediary role goes beyond mere order execution; it includes advisory and support functions that were especially vital before the rise of online trading.
How Remisiers Added Value In The 90s
During the pre-internet era, remisiers offered significant value not only to their clients but also to the local exchange, SGX, which benefited from their contributions to its growth. With access to real-time trading terminals, remisiers received up-to-the-minute market data, price quotes, and order book details—information not readily available to retail investors. This enabled them to provide timely advice and identify market opportunities that individual investors might have missed.
Beyond executing orders, remisiers supported clients with guidance and strategy, helping them navigate the complexities of investing in the local exchange. By bridging the information gap between SGX and retail investors, remisiers were vital in fostering a more engaged and informed investor community.
Remisiers also used advanced technical charting tools to analyse stock price movements and market trends, which helped them pinpoint buying and selling opportunities for their clients. Their industry connections provided further insights into market trends and potential stock movements, allowing them to offer valuable advice based on a broader understanding of the financial landscape. Many successful investors started as remisiers; for example, Singaporean billionaire Peter Lim began as a remisier and used his expertise to make profitable investments, including an early stake in Wilmar International.
The Transformation Of Singapore’s Stock Brokerage Industry
A good way to understand the role of a remisier today is by comparing it to that of a real estate agent. Real estate agents are typically self-employed professionals who partner with firms to broker property transactions, handle paperwork, and provide advice tailored to clients’ needs.
Similarly, remisiers operate as independent agents who work with stockbroking firms to facilitate stock transactions for clients. They not only broker deals—such as buying and selling stocks—but also offer insights on market trends and guidance based on clients’ investment goals, much like how real estate agents use their expertise to guide clients in navigating the property market.
Over the past decade, Singapore’s real estate industry has flourished, prompting the government to introduce at least 15 cooling measures since 2009. Many young people today are drawn to real estate, hoping to become successful agents, much like previous generations aspired to be remisiers. Meanwhile, SGX has struggled—not in terms of its financial performance, which remains strong, but due to a lack of new listings and an increase in delistings as companies choose to exit the market.
Perhaps unsurprisingly, the decline in SGX’s appeal for public listings parallels the diminishing influence of remisiers. During the Remisier Development Programme (RDP) launch on 30 September 2024, attended by DollarsAndSense, Mr. S. Nallakaruppan, President of the Society of Remisiers (Singapore) (SRS), noted that while “remisiers have been the backbone of the brokerage industry all these years, due to the commoditisation of brokerage rates, they are facing the toughest of times at this juncture.”
Mr. Luke Lim, Executive Director of Phillip Securities and Chairman of the Securities Association of Singapore (SAS), also shared at the RDP launch that while “social media gives rise to an abundance of commentary and personalities, often creating noise rather than clarity, remisiers stand out as the bridge between the movement of financial markets and a clear investment decision.”
Would A More Relevant Remisier Force Revitalise SGX?
Digitalisation has transformed nearly every industry, and stockbroking is no exception. Today, it’s a case of disrupt or be disrupted. Low-cost brokerage firms like Tiger Brokers and Moomoo have shaken up the industry by offering not only low commission fees, but also value-added services previously unavailable to retail investors, often at little to no cost.
This development isn’t necessarily negative. More options for retail investors, especially at lower costs, make financial markets more accessible, which ultimately supports industry growth. However, this shift challenges remisiers, who once formed the backbone of Singapore’s stock market. They now find themselves crowded out and struggling to stay competitive in a low-cost environment. To remain relevant, remisiers must differentiate themselves. Without a unique value proposition, their influence within the local exchange may continue to decline, potentially leading to a less dynamic market.
Remisier Development Programme (RDP)
To help remisiers stay relevant, the Remisier Development Programme (RDP) aims to equip them with essential skills to excel in today’s financial markets. The program covers advanced digital skills, broader trading strategies, and portfolio customisation techniques. Remisiers will also learn soft skills, such as personal branding and client relationship management, to help them stand out from low-cost brokerages that might lack the human touch.
The RDP also hope to drive the adoption of new technologies among remisiers and to help them leverage artificial intelligence tools for in-depth financial research as well as utilise social media and digital marketing platforms such as LinkedIn to enhance client engagement.
To make the program accessible, the Financial Sector Development Fund covers up to 70% of the course fee for eligible participants, with additional funding from brokers, the Society of Remisiers (SRS) and SGX.
Given their experience and market knowledge, Singaporean remisiers have the potential to remain vital to retail investors’ journeys. However, the question remains: can remisiers adapt to today’s evolving investment landscape, where information is readily available, and investors have numerous choices regarding markets, brokerage firms, and whose advice to follow?
Read Also: Generational Investing: Does It Make Sense To Invest For Your Children & Grandchildren?
Photo Credit: Society of Remisiers (SRS), Securities Association of Singapore (SAS)
The post The Past & Also The Future? Can Singapore Remisiers Continue Be The Bridge Between Investors & The Financial Market? appeared first on DollarsAndSense.sg.
