Fractional shares in Singapore have become a key entry point for many new investors in Singapore and around the globe, particularly those interested in owning high-value stocks without investing large sums of money. Tiger Brokers, through its innovative Tiger Trade app, provides an accessible pathway to this investment option. This blog details the process of purchasing fractional shares using the Tiger Trade app, developed by Tiger Brokers, and explains the flexibility this investment form offers.
What Are Fractional Shares?
Fractional shares allow investors to buy a portion of a stock rather than an entire share. This means if a stock’s price is prohibitively high, investors can still gain exposure by purchasing a smaller part of a share according to their own investment capacity. This method is especially beneficial for diversifying portfolios with limited capital.
Purchasing Fractional Shares on Tiger Trade
App Requirements
To begin trading fractional shares, investors need to ensure they have the latest version of the Tiger Trade app—version 8.0.5 or higher. This version includes the necessary features to support fractional share transactions, ensuring a smooth and efficient trading experience.
Checking Fractional Share Availability
On the Tiger Trade app, the availability of fractional shares for a specific stock or ETF can be checked on the contract detail page. A clear indicator on the upper right corner of the page will show whether fractional shares are supported for that particular instrument.
Placing an Order
When ready to place an order, the process is straightforward:
- Enter the Quantity in Decimals: Investors can enter the desired quantity of the share they wish to purchase in decimal form using the numeric keypad. The minimum quantity that can be bought is as little as 0.00001 of a share.
- Minimum Order Amount: The minimum order amount is set at USD 1, making it extremely accessible for anyone looking to start small. This limit can be adjusted, so investors should stay updated with the app’s features.
- Order by Amount: Instead of specifying the quantity, investors can also choose to place an order by specifying the amount in USD they wish to spend, with USD 1 being the minimum.
Execution and Market Volatility
After placing an order, investors should note that due to market volatility, there might be a slight difference between the executed amount and the initial order amount. This variance is a normal part of trading fractional shares, where prices can fluctuate rapidly.
Conclusion
Fractional shares are a fantastic way for investors in Singapore to engage with the stock market more flexibly. With the ability to invest smaller amounts in high-value stocks, individuals can diversify their portfolios without significant initial capital. The Tiger Trade app by Tiger Brokers facilitates this process with a user-friendly interface and up-to-date technology, making it simpler for investors to start their investment journey or expand their current portfolios.
Tiger Brokers remains committed to providing innovative solutions that enhance the investing experience, and with fractional shares available through the Tiger Trade app, the firm is helping democratize investment opportunities for everyone. Whether you are a seasoned investor or just starting, Tiger Brokers and the Tiger Trade app offer the tools and resources needed to navigate the world of fractional shares effectively.
