Futu Singapore caps settlement fee of US stocks and ETF trades

FUTU Singapore, which operates the brokerage app moomoo, has also moved to cap its settlement fee of US stocks and exchange-traded fund (ETF) trades after a similar move by rival Tiger Brokers on May 19.

In an e-mail to customers on Wednesday (May 25), the company said that it had capped the settlement fee at 1 per cent of the transaction amount per order with effect from May 23. The fee is charged at US$0.003 per share.

This is lower than Tiger Brokers’ cap of 7 per cent of the trade value that was announced previously. Syfe and TD Ameritrade Singapore, which both offer some form of zero-commission trades, do not charge this settlement fee.

Futu Singapore said that some trades may be affected by the settlement fee charges as its system is upgraded between May 23 and Jun 2. Customers who are overcharged will be refunded in 2 to 3 business days.