Tiger Brokers offers contra trading in Singapore
Online brokerage firm Tiger Brokers has launched its Cash Boost Account, a trading feature that operates on the contra trading strategy and provides instant access to a trading limit of up to S$20,000 (US$ 14,818) upon account opening, without requiring any initial capital.
The trading feature allows the firm’s traders to access trading limits without the need for a full deposit, enabling them to maximize the use of capital while conveniently seizing market entry opportunities across the SGX, NYSE, NASDAQ, OTC and HKEX.
The contra trading model allows seasoned traders flexibility to buy stocks and sell them at any time before or on force selling date, without the need to deposit funds. Contra trading allows investors without any immediately available funds to purchase stocks via a trading limit.
In the event that share prices rise, stocks can be sold and the difference pocketed is known as contra gain. Conversely, should share prices drop, investors can settle the difference up to seven days later with available funds. The company is the first fintech broker in Singapore to provide this offering.
While traditional brokers typically charge over 0.28% of the trading value or 0.22% with a minimum of S$25, Tiger offers a significantly lower rate of 0.12% of the trading value with a minimum of S$5. Moreover, it offers an interest-free period of up to seven trading days.
The company’s platform offers real-time market data, advanced order types and an extensive suite of tools that provides seasoned traders the resources they need to make informed decisions.
Ian Leong, CEO of Tiger Brokers (Singapore), says: “The Cash Boost Account adds onto our existing suite of trading accounts to make trading more affordable and accessible to Singaporeans.”
