Kathy
in Memos & Musings · 3 min read
Financial markets have experienced significant upheavals over the past few years, including the COVID-19 pandemic, an inflationary economic environment, unprecedented US interest rate hikes, and the anticipated start of rate cuts. Throughout these challenges, online brokerage Tiger Brokers has successfully adapted.
Tiger Brokers has made substantial strides, from enhancing investor education to expanding its range of products. This growth has been evident, and it is now estimated that one in three adults in Singapore has a Tiger brokerage account.
Just a couple of weeks back, we attended Tiger Brokers 10th anniversary event and it is no surprise to see them introducing new initiatives such as the Cash Boost Account that will continue to benefit their users during the event.
In today’s article, we will dive in to do a quick review of the newly launched Cash Boost Account which is yet another cool feature that one can open as a Tiger Brokers user.
What it is:
The Cash Boost Account is an innovative addition to the Prime account, tailored specifically for traders. It offers the convenience of trading with a credit limit, so you don’t need to deposit funds upfront. This allows you to start trading as soon as your account is approved.
This account facilitates Contra Trading, where you don’t take possession of the stocks you buy or deliver the stocks you sell. Instead, you purchase stocks without any initial cash outlay and sell them after a certain period. You then settle any outstanding differences, which could result in either profits or losses.
– Buy up to SGD 20,000 or more as soon as your account is approved and capture market opportunities effortlessly.
– Attractive pricing structure to save on commissions
– Enjoy an interest-free period until the 8th trading day*. With contra trading, you don’t have to fund the full settlement amount. Just sell before the force-selling date and pay the difference between your buy and sell trades.
– Trade stocks and ETFs in Singapore, the US, and Hong Kong amongst others.
– From August 1, 2024, the Cash Boost Account will offer CDP linkage, allowing users to link their CDP account to Tiger Brokers, which we believe is an added benefit for some users.
You can open a Tiger Brokers account if you are new or you may open a Cash Boost Account if you are an existing user with Tiger Brokers.
Refer to this video for the instructional steps.
Opening the Cash Boost Account was a breeze for us. The whole process took less than 10 minutes. If you have done it correctly, you should see the following screenshots in your Tiger Trade App/Email/SMS. The App should display “Cash Boost” instead of Prime.
To make use of the new CDP linkage feature, you may follow the below steps:
After successfully linking your CDP securities account to your Cash Boost account, you can also sell SGX stocks that are under your CDP account. Follow the below steps through the Tiger Trade App:
Exclusively to readers of The Joyful Investors, you can receive rewards, Nvidia fractional shares and more when you sign up with our dedicated invite link.
*Terms and conditions apply.
From August 1, 2024, the Cash Boost Account will offer CDP linkage, allowing users to link their CDP account to Tiger Brokers, allowing users to sell their CDP securities at a much lower commission (S$9.99) compared to other brokers (S$25-28). This will be an huge benefit for some users.
Tiger Broker’s Cash Boost Account has one of the lowest fees for contra trading securities with a commission of 0.10% (Minimum S$4.99)* and a platform fee of 0.12% (Minimum $5).
*Tiger Brokers is running 0 commission for SGX market in celebration of Singapore’s 59th Birthday. Check it out here.
The Cash Boost Account can help traders seize time-sensitive opportunities and potentially profit from situations where funding limitations might have caused missed chances. If you’ve identified trading opportunities but your funds are tied up elsewhere, this account can help buy you some time.
Just be mindful that the Cash Boost Account essentially allows you to make purchases using a credit limit, enabling you to buy beyond your current available funds. This could potentially lead to losses exceeding your account balance.
And in the event that you wish to keep the stocks for any reason after the trade, it is possible. Simply ensure that you can pay up for the shares before the force selling date.
Separately, if you are not new to Tiger Brokers, you may also have chanced upon our Chief Trainer, Hazelle, sharing educational content on Tiger Trade App as well.
We firmly believe that investor education plays a crucial role in an investor’s journey. If you have found Coach Hazelle’s content useful, we encourage you to follow her at this link or scan the QR code below to access more valuable resources.
By continuing to learn and grow together, we can all become better, more informed investors. Let’s stay connected and support each other in our investment journeys. We look forward to seeing everyone again soon in future events.
Ps: Terms and conditions apply for the above promotions and may be subjected to changes. Kindly refer to Tiger Brokers’ official website for more detailed information.
About Kathy
Co-Founder of The Joyful Investors and Manager of The Moneyball Portfolio. I graduated with a degree in Economics in National University of Singapore (NUS). My previous experience with traders at the Merrill Lynch enable me to realize many counter-intuitive truths about how the financial markets work and to uncover the challenges faced by many new investors. We believe that investing can be astoundingly simple and want to make financial education understandable for everyone.
Important Information
This document is for information only and does not constitute an offer or solicitation nor be construed as a recommendation to buy or sell any of the investments mentioned. Neither The Joyful Investors Pte. Ltd. (“The Joyful Investors”) nor any of its officers or employees accepts any liability whatsoever for any loss arising from any use of this publication or its contents. The views expressed are solely the opinions of the author as of the date of this document and are subject to change based on market and other conditions.
The information provided regarding any individual securities is not intended to be used to form any basis upon which an investment decision is to be made. The information contained in this document, including any data, projections and underlying assumptions are based upon certain assumptions and analysis of information available as at the date of this document and reflects prevailing conditions, all of which are accordingly subject to change at any time without notice and The Joyful Investors is under no obligation to notify you of any of these changes.
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