Investing in fractional shares in Singapore has become increasingly popular among Singaporean investors, allowing them to participate in high-value stocks without the need for substantial capital. If you’re considering fractional shares, using Tiger Brokers is a great way to simplify the process. Let’s explore how you can cost and trade fractional shares in Singapore with this platform.
What Are Fractional Shares?
Fractional shares allow investors to buy a portion of a stock instead of a whole share. This flexibility is particularly beneficial for those who want to diversify their portfolios without needing significant upfront investment. With Tiger Brokers, purchasing fractional shares is straightforward and cost-effective.
Cost Structure for Fractional Shares in Singapore
When investing in fractional shares through Tiger Brokers, here’s how the cost structure works:
- Trade Value: Less Than 1 Share
With Tiger Brokers, you can invest in fractional shares for any trade value that is less than the price of a whole share. This means you can start investing with a small amount of money, allowing you to buy into high-priced stocks. For instance, if a stock is priced at $500, you can invest as little as $50 to own a fraction of that share.
- Commission: Free
One of the standout features of Tiger Brokers is that they offer commission-free trading for fractional shares. This means that you won’t incur additional costs when buying or selling fractional shares, making it an attractive option for cost-conscious investors.
- Platform Fee: 1% × Trade Value (Max. USD 1 / Order)
While there’s no commission on trades, Tiger Brokers charges a platform fee of 1% of the trade value, capped at a maximum of USD 1 per order. This means if you make a small investment, the fee will be minimal, and if you invest larger amounts, the fee will still not exceed USD 1. For example:
– If you invest $10, the platform fee would be $0.10.
– If you invest a single share over $500, the fee would be $1.
- Third-party Fees: Free
Tiger Brokers also ensures that there are no additional third-party fees for trading fractional shares. This transparency in fee structure means you can invest with confidence, knowing exactly what you’re paying.
How to Start Buying Fractional Shares with Tiger Brokers
- Download the Tiger Trade App: Start by downloading the Tiger Trade app from your app store and open an account.
- Fund Your Account: Once your account is set up, fund it quickly and easily. There’s no minimum deposit requirement, allowing you to start with any amount.
- Search for Stocks: Use the app’s search function to find the stocks you’re interested in. Tiger Brokers provides access to a wide range of US and HK stocks.
- Choose Fractional Shares: When selecting a stock, enter the amount or the number of shares (like 0.1 share) you wish to invest. The app will automatically calculate the fractional share you’ll be purchasing.
- Review and Confirm: Before finalizing your trade, review the details, including the platform fee. Once everything looks good, confirm your order.
Conclusion
Investing in fractional shares in Singapore is made easy and cost-effective with Tiger Brokers. By eliminating commissions and offering a transparent fee structure, Tiger Brokers empowers investors to participate in the market without the need for significant capital. If you’re looking to diversify your portfolio and invest in high-value stocks, start your journey with Tiger Brokers today and explore the potential of fractional investing!
