TIGER Brokers has moved to cap the settlement fee for trades of US stocks and exchange-traded funds at 7 per cent of the trade value with effect from Thursday (May 19).

In an email to its customers on Wednesday (May 18) evening, the brokerage also said that it will be contacting clients who had been affected by the settlement fee change in the past to arrange for refunds.

The Business Times had earlier reported that a Tiger Brokers customer was charged fees of about US$16,000, after recently selling US$5,000 worth of US-listed shares.