Board lot size - 100 shares

[pianist]

coming this monday
anyone cares to share which trading platform is optimal for trading under this revised board lot size?

thanks

[orangetea]

I asked my broker and till now no news of fee and charges

[pianist]

Which broker is that

[Musicwhiz]

This reduction in board lot size was a long time coming! In other mature economies and stock exchanges such as the USA, you can essentially buy single shares rather than "lots". I really hope they further reduce the lot size to 10, and eventually 1.

However, one gripe I have is that brokerages have not taken the initiative to make it cheaper for the investor to purchase and sell shares. SGX themselves distance themselves from this, saying that they have "no authority" to set prices for transactions. The result - no lowering of the minimum brokerage fees for a board lot of 100 shares, which defeats the purpose of the exchange reducing the board lot size to encourage greater retail participation.

I myself have called Philips Securities (POEMS) and was informed by my remisier that there are "no changes" to the brokerage and commissions system. So it's still $25 minimum even for lot sizes of 100 shares, meaning it's prohibitively expensive to purchase 1 lot of shares at say $1.00, as this will mean the transaction is worth $100 while the brokerage is a whopping 25% ($25). Ridiculous if you ask me and completely mind-boggling, but not entirely surprising. The brokerages are in this to make money......

[orangetea]

Precisely the $25 plus the % weighted fee makes it too expensive and therefore only buying $7-8k worth of shares would make this fee affordable like the bigger bluechips.

Therefore i am moving away from sg counters into US and using SCB for local and foreign counters.

Exposure and access to shares should be made affordable like the US where students and homemakers can participate readily. Then it would build the culture of investing for the generations to come. It would also move the investors away from penny stocks. Even i think penmy stocks more affordable hence risking getting burnt in the first foray in stocks participation.

Pianist, my broker is CIMB btw.

[cyclone]

If I queue a :
10 cents counter and thrown 1 lot, with $25 brokerage fee :
Cost : 0.1 * 100 = 10
Fee : 25.
The brokerage fee is 2.5 times the cost.

20 cents counter and thrown 1 lot, with $25 brokerage fee :
Cost : 0.2 * 100 = 20
Fee : 25.
The brokerage fee is 1.25 times the cost.

[CY09]

Hi all,

Lim&Tan has offered a special promotion in line withh this new change. They are now offering min $10 brokerage (only for contract values below $3500 and share amount must be less than 1000 shares). In my view, it is quite a good offer and having been a frequent user of limtan, the platform is as good as vickers/Kim Eng/philips. No vested interest in promoting limtan as I am not in the financial line. Also they have an acct opening promo where you get about 1760 limtan points ($88 worth of trade rebate) if 3 trades are done within 3 months of acct opening.

[pianist]

If I queue a :
10 cents counter and thrown 1 lot, with $25 brokerage fee :
Cost : 0.1 * 100 = 10
Fee : 25.
The brokerage fee is 2.5 times the cost.

20 cents counter and thrown 1 lot, with $25 brokerage fee :
Cost : 0.2 * 100 = 20
Fee : 25.
The brokerage fee is 1.25 times the cost.

this is the biggest risk i worry come monday..
for this, i decide to ease fire on monday instead because i dunnow how the market may turn out for penny counters

[CityFarmer]

The reduction in board lot size, is to make blue-chips more affordable, instead of encouraging small buy/sell orders. Minimum charge is to ensure more efficient utilization of resources.

Is the charges unique only to SG brokerage house? For Sheng Siong online, delivery fee is $7 for order below $70. It means you orders 5x Fuji Apple of $3.69 ONLY, the delivery charge is approx 2x your the cost of order. I reckon no one will do that for sensible reason.

What is the use of board lot of 100 shares? Well, It means retail investor can buy 100 shares of OUB with ~$2,400, or multiple of it, rather than at minimum ~$24,000.

Is the minimum charge of $25 too expansive?
Yes, It is. It can be cheaper, even for the purpose of "minimum charge".

[Musicwhiz]

There's a latest update - heard from a friend from Philips that they have adjusted the commission to be in line with the change in board lot size. I didn't get the exact numbers though.

Stay tuned and I will update again when I get the details.