Tiger Brokers Singapore caps settlement fee of US stocks and ETF trades
Yong Jun Yuan
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.
Each share that he sold had incurred a US$0.003 settlement fee that was introduced on Jan 13 this year.
Unlike its counterparts in Australia and New Zealand, Tiger Brokers Singapore did not have a cap on settlement fee charges at the time.
Checks with other brokerages by BT found that the settlement fee was not charged across the board.
While rival moomoo charges the same settlement fee without a cap, Syfe and TD Ameritrade Singapore do not charge the fee.
