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If you trade online or are looking to get into online trading, the search for the most competitive online brokerage is a never-ending one. Just like matches on Tinder, there is always the possibility that there is a more attractive option just around the corner.
Factors like available markets, tools and charts are useful, of course, but one of the key things you need to consider is fees. If a platform charges high fees, it’s not worth your time.
Why are fees so important?
You might not be accustomed to going for low cost options when it comes to certain types of products like clothes and shoes. But when it comes to trading platforms, the fees being charged are super important! After all, the main reason you’re trading is to make money.
Fees will eat into your profits or gains and make your losses bigger. So, the lower the fees, the more money you make on the platform.
The main fees that platform users typically pay include platform fees, which are charged by the broker for their services, and commission fees charged as a percentage of each trade. Some platforms also charge custody fees for holding your assets for you in a custodian account.
Depending on which exchanges you are trading on, you might also have to pay certain fees to the authorities in the country where the exchange is located.
For instance, if you’re selling a US security like Apple shares on the US market, you typically have to pay the following:
- SEC Membership Fee on sell orders: 0.0000051 of your trade value, min 0.01 USD per order
- Settlement fee: 0.003 USD per share
- Trading activity fee: 0.00013 USD per share (min of 0.01 USD and max of 6.49 USD per order).
You’ll want to keep that in mind, especially if you’re also jumping on the US market bandwagon (remember how excitable your trader-type friends were when Elon Musk bought Twitter in late April and the Tesla stock dipped?).
Why is everyone entering the US market?
Nowadays, investors and traders are turning to overseas markets like the US. According to Tiger Brokers, 87% of their users are now trading US securities, and over the past 2 years the annual growth rate in volume of users trading US securities has ballooned to 250%.
Due to the pandemic and geopolitical turmoil, markets are a hot mess right now, and in such turbulent markets, diversifying your portfolio by including securities from other markets is one key way to manage risk. If one market tanks, at least you’ve got others to hold up your portfolio’s value.
The US market is also massive, with the New York Stock Exchange being the biggest exchange in the world based on market cap. This gives you lots of opportunities to diversify your portfolio in terms of sector.
Finally, when you trade on the US market, you enjoy a high level of liquidity. Thus, it’s vastly preferable to trade US securities than to buy actual property, for example. If you need cash on short notice, you can immediately liquidate your investments, but it takes a much longer time to sell a big-ticket physical asset such as a house.
Now you can pay zero commissions when trading US securities on Tiger Brokers
We love free stuff, but for traders, no-commission trades really are the bee’s knees (more gains, yo!). It’s happy news to hear that Tiger Brokers is now offering zero commission trades on US securities!
We’re pleased as punch to hear about no-commission US securities trades. Here’s why:
- You can profit now from small movements in the market — commissions can make small trades unprofitable, but now you can make money from the tiniest market movement in your favour
- Save money with more efficient trading — you can optimise your trades based on true market prices
- You can get in and out of the market with confidence — no need to take into account commissions when entering or exiting a trade (ugh, so much math)
- Turn your savings into even more trades — more money = more trades!
Unlock Tiger Brokers’ unlimited commission-free US trades in 3 easy steps:
- Open an account on Tiger Brokers (Singapore): Simply download the Tiger Trade mobile app, click Open Account and then follow the instructions to open a Tiger account. All new users receive an attractive welcome bundle. You also get the chance to win one Tesla share when you fund your account with at least 2,000 SGD.
- Refer a friend to Tiger Brokers: With each friend you refer, you get additional rewards such as a free GoPro share, Tesla share or UOB APAC Green REIT ETF unit.
- Get your friend to deposit $100: When your friend deposits at least 100 SGD into his/her account, you get zero commission trading for life. Score!
Why choose Tiger Brokers?
Last but not least, here are some reasons why Tiger Brokers stands out:
- User experience — strong focus on delivering a prime user experience with cutting-edge tech in order to provide value to users in a sustainable manner
- Culturally and lifestyle relevant — driven to explore innovative ways to improve the Tiger Trade platform to make it more accessible and convenient for investors. This includes the recent partnership with the World Wide Fund for Nature Singapore (WWF-Singapore) to promote green sustainability efforts in Singapore; empowering users keen on ESG investing (environmental, social, governance) with access to over 60 sustainable funds that are on Tiger Brokers Singapore’s platform with more in the pipeline.
- Strong community — Tiger Brokers has always been keeping its pulse on what consumers want to ensure that it continues to evolve and enhance its products and services to meet the changing needs of its investors.
- Driving financial literacy — via investor education and financial literacy. Initiatives include sponsoring several financial literacy initiatives for students, running regular Tiger Live webinars to keep the community up to date on the latest market developments and trends, and more.
Best of all, once you’ve unlocked Tiger Brokers’ commission-free trades on US securities, you enjoy them foreverrrrr. Sign up for a Tiger Brokers account to enjoy a lifetime of more affordable trading!
To learn more about the zero commissions campaign or open an account, click here.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
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