Tiger Brokers Singapore Review (2021): Commission Fees, Pros & Cons

Tiger Brokers Singapore Review (2021): Commission Fees, Pros & Cons

None of us will be getting on a Tiger Airways flight anytime soon, which gives us more time to sit at home and try to get rich by trading stocks on the similarly-named Tiger Brokers.

Although one of the less established investment brokerage platforms available in Singapore, Tiger Brokers is very popular thanks to its low commission fees.

Interestingly, it’s backed by Chinese giant Xiaomi, which has revolutionised the electronics world with high quality at unbeatable prices. Does Tiger Brokers offer the same value? Let’s find out.

Tiger Brokers logo
Online Promo
Min. Commission Fee US Stocks
US$1.99
Min. Commission Fee SG Stocks
0.08% of Trade Value
Min. Funding
$1
Online Promo:
Get 1 free Apple share and 5 free Xiaomi shares, 60 commission-free trades and 500 Tiger coins when you trade with Tiger!
Valid until 30 Jul 2021

What is Tiger Brokers?

Tiger Brokers is a Chinese company that is listed on NASDAQ. It’s backed by several big names including Xiaomi and US-based brokerage Interactive Brokers. Other than Singapore, they operate in many companies including the US, China and Australia.

Tiger Brokers officially entered the Singapore market with their Tiger Trade app in February 2020, at the start of the Covid-19 pandemic. With everyone staying home and investing, this was excellent timing.

Their investing platform lets you trade Singapore, US, Hong Kong, China and Australia stocks, Singapore ETFs and REITs, and US ETFs. Other securities you can trade include indices, metals, treasury securities and energy futures, with more to come.

All this is pretty standard. But the area in which Tiger Brokers shines is their attractive commission fees, which we’ll cover below.

Tiger Brokers commission fees & charges

Trading products

Stocks, ETFs, REITs, indices, metals, treasury, energy futures

Minimum commission fee (SG stocks)

0.04% + 0.04% platform fee = 0.08%

Minimum commission fee (US stocks)

0.005 USD per share (minimum order of 0.99 USD) + 0.005 USD platform fee (minimum order of 1 USD) = 0.01 USD per share

Minimum funding amount

None

Stock Holding Type

Custodian

Trading platforms

Tiger Brokers Desktop App and Mobile App

Payment method

Direct Debit Authentication (DBS/POSB), bank transfer (DBS/POSB), FAST Transfer, Telegraphic Transfer

Inactivity fee

None

Tiger Brokers review — the pros

For investors trading on SGX, the 0.08% fee is attractive and comparable to what competitors like Saxo Markets and Interactive Brokers are charging. But Tiger Brokers beats the competition by imposing no minimum order.

Another factor that sets Tiger Brokers apart is the fact that they don’t have any minimum funding amount, inactivity fees or maintenance fees. Most platforms impose at least one.

Besides the fees you pay for a trade, you don’t have to worry about too many hidden costs, although you should of course still watch out for things like bank transfer fees when topping up your account.

In addition, Tiger Brokers is quite generous with its various offers and perks, with stock voucher welcome gifts and a rewards programme, which is a nice touch in the otherwise cheerless trading landscape.

Read more: How to Buy Stocks in Singapore: Start Investing in 5 Easy Steps

Tiger Brokers review — the cons

If you are planning to trade mainly on SGX, Tiger Brokers is one of the most value-for-money options available at the moment due to the lack of a minimum order and the competitive 0.08% fee.

For US stocks, however, Tiger Brokers isn’t necessarily the cheapest, considering there are some platforms like TD Ameritrade that offer commission-free trading for US stocks.

Read more: How to Buy US Stocks in Singapore: 3 Best Investment Brokerages

It’s a minor quibble, but Tiger Brokers has a split fee structure where there’s a commission fee and a platform fee. That makes it more troublesome to compare fees against other brokerages.

Is Tiger Brokers safe?

You might be concerned about depositing your money in a relatively new online brokerage platform.

However, Tiger Brokers is regulated by the Monetary Authority of Singapore, so it is quite unlikely to be a scam or a fly-by-night company.

Note that your stocks are not held directly in your personal Central Depository or CPD Account. Instead, they’re held through a custodian account at DBS Bank. This is a common practice that many brokers use and is perfectly safe.

This means that even if Tiger Brokers goes bust, the stocks in your custodian account will still be yours and cannot be clawed back to pay their debtors.

What are the alternatives to Tiger Brokers?

Tiger Brokers’ closest competitors are online brokerages like Saxo, Moomoo and Interactive Brokers, to name a few. All offer low-cost trades and a fully-digital experience.

For Singapore stocks, Moomoo is slightly cheaper with its 0.06% commission + platform fee. But Tiger Brokers does not have a minimum order size, so it can work out to be cheaper for those making small trades.

moomoo (by FUTU) logo
Online Promo
Low commission fees!
Min. Commission Fee US Stocks
US$0.99
Min. Commission Fee SG Stocks
S$0.99
Min. Funding
$0
Online Promo:
Get 1 free Apple share, 1 free NIO share, 180 days of commission-free trading and up to 20 free Twitter Shares when you trade and refer friends!
Valid until 30 Jul 2021

If your focus is US stocks, you might want to consider a US-centric brokerage like TD Ameritrade, which don’t charge commissions when you trade on US exchanges.

TD Ameritrade logo
Commission Fee US Stocks
US$0
Options Commission Fee Per Trade
US$ 0.70
Min. Funding
US$3,500

If you’re concerned about track record, you could go with Saxo — the Danish investment bank has been around since 1992 and is well-known in the western world, yet charges affordable fees.

Sponsored
Saxo logo
Online Promo
Min. Commission Fee US Stocks
US$4
Min. Commission Fee SG Stocks
S$5
Min. Funding
S$3,000
Online Promo:
$0 commission and $0 platform fee on US stocks & ETFs for new customers!

Valid until 03 Sep 2021

Still can’t decide? Try out a few online brokerages for size and see which app/platform you like best.

How to open a Tiger Brokers account

All you digital natives should have no problem figuring out how to open an account, but let’s go through the process anyway.

First, click on the apply button below:

Tiger Brokers logo
Online Promo
Min. Commission Fee US Stocks
US$1.99
Min. Commission Fee SG Stocks
0.08% of Trade Value
Min. Funding
$1
Online Promo:
Get 1 free Apple share and 5 free Xiaomi shares, 60 commission-free trades and 500 Tiger coins when you trade with Tiger!
Valid until 30 Jul 2021

This will take you to the Tiger Brokers’ website. You’ll then be prompted to enter either a working phone number or email address at which to receive a verification code.

After that, the easiest way to proceed is to select “Open account with MyInfo” and then log in with your SingPass. Your personal and income details will automatically be filled in.

Complete the form, click submit and then wait for your account to be approved. This usually takes about one day.

How to invest with Tiger Brokers

Unlike some brokerages which have multiple trading platforms to choose from, Tiger Brokers keeps it simple with just the one desktop app and mobile app.

Before you can trade on Tiger Brokers, you need to transfer money to your account. You do this by clicking the “My Account” tab, where you will find information on the details you need to deposit cash through Internet Banking.

Once you have transferred the funds, you will need to check on the platform that the money has been received before you can start trading.

Tip: Tiger Brokers gives you stock vouchers when you deposit funds or transfer shares. Be sure to check the denominations for stock vouchers so you can maximise your voucher amounts.

Now you are ready to open the app and start trading. Search and bookmark stocks, set your parameters and click “Buy” to execute your first trade.

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