$10 Brokerage For Smaller Board Lot Sizes

Not sure where the market is heading, yet still want to take part in the recent action? Making use of new smaller board lot sizes may be the solution for you. Moreover, Lim & Tan has an ongoing promotion of S$10 min. brokerage for online trades done on SGX, with less than 1000 shares and contract value less than or equal to S$3500.

Smaller board lot sizes can serve a number of advantages for you:

In Jan this year, the Singapore Exchange (SGX) changed its minimum trading size from 1,000 shares to 100 shares. For the retail investor, especially if you have just started out, this means easier access to bluechip stocks which have a high share price. For eg. for DBS at $18.00, the minimum number of shares for purchase used to be 1,000, requiring the investor to fork out $18,000+. Now, the minimum shares for purchase is 100, allowing you to be invested in DBS for $1,800+.

Also, with a certain amount of money, say S$10,000, you can now diversify into more bluechips stocks (rather than buying penny stocks).

One useful strategy is dollar cost averaging, which means buying the same amount of stock at regular intervals. For eg. buying 100 shares of DBS every quarter, or interchanging between OCBC and DBS every month.

Checking for lot size on your mobile app

Buying smaller board lot is affordable:

As long as your trade is less than 1,000 shares, and contract value less than or equal to S$3,500, brokerage is $10. Here's other applicable examples for you.

- Buy/Sell SembCorp Industries 900 shares @ $3.51.

- Buy/Sell STI ETF 700 shares @ $3.00

- Buy/Sell unit shares of UOB 85 shares @ $19.75

Note: All buy trades of the same stock fulfilled on the same day are amalgamated into 1 contract. The same applies for sell trades. Other charges including SGX Trading Fees, CDP Clearing Fees and GST still applies. SGX has waiverd Clearing Fees for all ETFs till 31 Dec 2015.

Please feel free to contact me if you have any questions regarding the new smaller board lots.