TRADING platform TD Ameritrade Singapore will stop its services for retail investors from December this year, to focus on accredited investors instead.
The move will allow it to “better serve the unique needs of local investors”, said the company on Tuesday (Sep 26).
In response to queries from The Business Times, a TD Ameritrade Singapore spokesperson said the pivot away from serving retail investors was a “strategic decision” that will allow it to concentrate on a market that has been “under-served historically in Singapore”.
It also called on its retail investors to consider becoming an accredited investor, but declined to disclose the number of retail customers it serves.
TD Ameritrade, which allows investors to trade in US markets, said its retail clients will need to close their accounts before the end of the year.
It urged retail investors to withdraw their assets from their accounts “as soon as possible”.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
TD Ameritrade will also introduce several changes to the account capabilities of retail investors from next month.
From Oct 1, it will not receive any requests to transfer assets from another provider.
Retail investors will also be charged a monthly maintenance fee of US$50 from Oct 27.
From Dec 1, the company will stop accepting new trade orders or deposits on any remaining accounts. However, retail investors may continue to place liquidating orders to close positions.
Any remaining accounts of retail investors with a debit balance may have positions liquidated to bring their account to a zero or positive cash balance from Dec 4, when the US market opens.
TD Ameritrade added that it will waive or refund any of the platform’s transfer or wire fees incurred by retail investors up until the end of the year for entire account transfers or wire withdrawals.
However, retail investors will have to continue paying the monthly account maintenance fee until their account cash balance is empty.
Keyword added to your list