In case you missed it, for a limited time period only (from 12 to 28 February 2018), all investors with an FSMOne account can trade in SGX-listed stocks and ETFs at a flat commission rate of S$10.
Typically only available to our FSMOne Diamond and Gold clients, we have extended this to all clients for a limited time period, so regardless of your investment amount, your processing fee is just S$10 per trade.
What is Trade Amalgamation?
Trade Amalgamation allows you to combine your orders to help you save on the trade commissions and is applicable for buy or sell trades.
How does it work?
Take for example, Steve, who wants to pick up some shares of Sheng Shiong (SGX:OV8).
He is not sure if he wants to commit his entire lump sum amount of $55,000 as a one-time investment. So he decides to put in 5 different orders for Sheng Shiong at different prices throughout the day in an attempt to buy the shares at a lower weighted average cost.
| Buy Price | Quantity (in shares) | Total Consideration (S$) | Total Fee Without Amalgamation (S$)* | Total Fee With FSMOne's Amalgamation (S$) | Savings to FSMOne Investors |
|---|---|---|---|---|---|
| S$0.925 | 10,000 | $9,250 | $11.10 | ||
| S$0.920 | 10,000 | $9,200 | $11.04 | ||
| S$0.915 | 10,000 | $9,150 | $10.98 | ||
| S$0.910 | 15,000 | $13,650 | $16.38 | ||
| S$0.900 | 15,000 | $13,500 | $16.20 | ||
| Total: | 60,000 | $54,750 | $65.70 | $10.00 | $55.70 |
Note: For simplicity sake, the assumptions above assume a flat S$10 commission rate, while excluding the usual CDP clearing fees and SGX trading fees, and prevailing GST charges. *Assuming a commission rate of 0.12%, subject to minimum of S$10.
Without trade amalgamation, he’d have to pay S$65.70 in Commission Fees. However, with trade amalgamation, he only pays a flat fee of S$10. He saved $55.70 which is about 84.4% of total fees payable if trade amalgamation was not applicable.
How can I enjoy the benefits of the Amalgamation Feature?
Trade amalgamation is automatically performed if the following conditions are fulfilled:
i) Trades are of the same stock or the same ETF, with the same settlement currency.
ii) Trades are on the same side (e.g. Buy trades can only be amalgamated with another Buy trade)
iii) Trades are done on the same trading day.
iv) Trades are from the same mode of trade / Investment Account, i.e. same Ref Number (e.g. Sell trades from your custodian account cannot be amalgamated with your Sell trades made from your CDP Linked account)
However, please note that trade amalgamation is only done at the end of the day so for each trade confirmation received during the day, the total consideration will not reflect the discounted commission. The excess commission that was earmarked during the trading day will be refunded into your cash account at the end of the day.
Conclusion
Start by depositing monies into your FSM Cash Account because our trading platform is a pre-funded account. You can also earn interest on your FSM Cash Account balances while waiting to make the right informed decision on your next investment.
Looking to take advantage of this offer but not sure where to start? Read up on what our Stocks & ETFs research analysts have to say with in this article where they uncover the Top 15 Dividend-Paying Stocks you can consider for your portfolio.
If you are new to FSMOne, click here to open an account online.
Already have an account? Start Trading today!
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