Tiger Brokers just launched its brand new Cash Boost Account with attractive sign-up rewards that all users, new and existing, can qualify for. The Cash Boost Account is a contra-trading account that allows investors to trade without putting up any upfront capital, allowing for leverage trading and making profits on effectively 0 capital. Let’s dive deeper into the Cash Boost Account to see if it’s suitable for you.
Disclaimer: The information written in this article is based on my own research and opinions.
Note: This is a sponsored post
Tiger Brokers
Founded in 2014, Tiger Brokers is an online stock brokerage start-up backed by Interactive Brokers Group Inc., Xiaomi Inc., ZhenFund, and Wall Street investment guru Jim Rogers. Celebrating its 10-year anniversary in 2024, the brokerage has grown significantly in terms of its product offering, with many key features on its app ranging from fractional shares to margin trading. It has also grown its user base to over 2.2 million with an Annual Trading Volume of over USD 294 billion.
Cash Boost Account (CBA)
Tiger Brokers has released yet another cool new feature for users, the new Cash Boost Account (CBA) which allows investors to trade now and settle later, essentially a contra-trading feature. The CBA is a trading limit account created for users in Singapore. Once the account is opened via Singpass, investors who pass the review will receive a default trading limit. More limits can be given via in-app request. With this, investors buy and sell stocks, ETFs, and other securities through contra trading without the need for an initial capital deposit.
With the CBA, stocks purchased on T+0 day can be sold anytime before or on Force Selling Date itself. If the difference is positive, you can keep it as profit. If you make a loss, simply make a payment into your Cash Boost Account. If you wish to keep the stocks, you will need to ensure the full amount for the purchase before the Force Selling Date to settle the payment.
Settlement Timeline
The CBA has 2 different settlement timelines depending on the market that is being traded. As you can see from the timeline above, the SG/HK market has a T+2 settlement due date and a T+4 forced selling date. As for the contra losses incurred, investors enjoy an interest-free period up to T+6, providing more flexibility to investors before they need to settle. For example, if a user incurs a contra loss on T+4 (force selling date), they have the latest T+6 (with no interest charged) to settle the losses.
As for the US market, the settlement dates are brought forward by 1 day, which makes the settlement due date T+1 and the forced selling date T+3. The interest-free period is also brought forward to T+5.
Fee Structure
Tiger Brokers CBA | Brokerage A | Brokerage B | |
Trading Fees | 0.12%* x Trading Value | 0.275% x Trading Value | 0.28% x Trading Value |
Buying stock worth SGD 5,000 in 1 order | SGD 6* (SGD 5 minimum) | SGD 25 (minimum) | SGD 25 (minimum) |
Buying stock worth SGD 10,000 in 1 order | SGD 12* | SGD 27.50 | SGD 28 |
The fee structure is also very attractive as compared to other contra-trading accounts offered by other brokerages. The Platform Fee is only 0.12%* of the trading value with a minimum of USD/SGD 5* or HKD 40* (depending on the market traded). The Commission Fee is only 0.1% of the trading value with a minimum of USD/SGD 4.99 or HKD 35 but if you open a new Cash Boost Account and complete your first transaction, you will be entitled to a 30-day commission-free trading card. With the use of this, you can effectively save half the fees and charges, which means you get to keep more profits.
Disclaimer (*): Pass through fees & T&Cs apply.
Benefits of Using A Cash Boost Account
So let’s talk about the key benefits of using a Cash Boost Account and why it might be suitable for you. Firstly, if you are a regular trader, using the CBA can help you make short-term trades without having to fork out a lot of upfront capital. With the long settlement and interest-free period, this allows you to trade comfortably without having the stress of closing trades early or having to deposit extra funds into your trading account. Secondly, the CBA’s long interest-free period allows you to do “Trade Now, Settle Later” with a further out settlement date, allowing you to hold onto your positions longer if the market isn’t moving in your favor.
How To Make A Trade
CDP Linkage
In addition to the Contra Trading feature, the Cash Boost Account now offers CDP linkage! Link your CDP account to Tiger’s platform and enjoy low fees in the Singapore Market.
Sign Up Rewards
As Tiger Brokers celebrates its 10-year anniversary, together with the launch of the Cash Boost Account, there are attractive sign-up rewards for all users, even if you have an existing Tiger Brokers account!
Firstly, you can now enjoy 0 COMMISSION for SGX market* in celebration of Singapore’s 59th birthday! (https://www.tigerbrokers.com.sg/activity/market/2024/sgx-sharing)
Secondly, for brand new Tiger Broker sign-ups, you can create a Prime account which also has huge welcome rewards worth up to USD 3,600. For both existing and new sign-ups, you can create a Cash Boost Account as well, which will grant you 3 lucky draw chances as well as 1 30-day CBA commission-free trading card. The lucky draw rewards are as follows as well as the winning probability:
To acquire lucky draw chances, here are the campaign tasks you can do to receive more lucky draw chances! Upon completion of all the tasks, as well as inviting 2 friends successfully, you will be entitled to a total of 14 lucky draw chances, which means you can win up to 14 AAPL shares worth USD ~2,380.
Additionally, the first 100 signups with my affiliate link, will be entitled to an additional SGD 10 in the form of a cash voucher! Do note that this exclusive promotion will only last for 30 days starting from the publish date of this article so don’t wait!
Final Thoughts
With the attractive sign-up rewards, coupled with the exclusive affiliate promotion, you are looking at a total sign-up reward potentially up to SGD ~8,900, assuming you are a new Prime account user and take advantage of all the rewards and lucky draw chances, as well as including the commissions you saved using the commission-free trading card. This makes the CBA really attractive for all investors to sign up and try. With no need for any upfront capital deposit, you can start trading once your account is activated.