With 52% of Singapore residents investing in stocks, it’s clear that stock trading is gaining popularity. Online brokerage platforms like Tiger Brokers and Interactive Brokers have grown in popularity due to their comprehensive tools that help users build their wealth.
This post will compare the two platforms to help you choose the best one for your financial goals and investment time horizon.
Tiger Brokers vs Interactive Brokers Comparison
Interactive Brokers and Tiger Brokers both offer various investment options, including stocks, ETFs, futures, and metals. Tiger Brokers has lower commission and platform fees and uses CDP stock holding. Both platforms have no minimum funding, inactivity, or custody fees. Payment methods differ, so investors should choose based on their preferences.
Here is how Interactive Brokers compares to Tiger Brokers:
|
|
Interactive Brokers | Tiger Brokers |
|
Trading products |
Stocks, ETFs, cryptocurrencies, bonds, options, futures, FX, mutual funds, metals, | Stocks, futures ETFs, REITs, indices, metals, treasury, energy |
|
Minimum commission fee (SG stocks) |
0.08% | 0.03% |
|
Platform fee (SG stocks) |
None | 0.03% |
|
Minimum commission fee (US stocks) |
0.005 USD per share | 0.005 USD per share |
|
Minimum funding amount |
None |
None |
| Stock Holding Type | Custodian |
CDP |
| Trading platforms | Trader Workstation, Client Portal, IBKR Mobile and IBKR APIs |
Tiger Brokers’ desktop app and mobile app |
| Payment method | Bank transfer and cheque |
Credit/ Debit, FAST, PayNow, Internet Bank Transfer or Card, MEPS, Wise |
| Inactivity fee | None |
None |
| Custody fee | None |
None |
More Details
1. Commission Fees
Tiger Brokers:
- US Stocks and ETFs $0.01 per share or a Minimum of $1 per order, whichever is greater: $1
- SG stocks and ETFs 0.03% of trade value: 0.03%
- SG stocks, ETFs, DLC and Warrants: 0.06%
- Future Fee SG stocks online 0.06% of trade value
Interactive Brokers:
- Fixed commission fee of 0.08% with a minimum commission of S$2.50 on the fixed account tier
- 0.02% to 0.05% on the tiered account
- US stocks, the platform charges between 0.0005 to 0.0035 USD per share
2. Maintenance Fee
Tiger Brokers: Not Applicable
Interactive Brokers: Not Applicable
3. Market Access
Tiger Brokers:10 Markets in Singapore, China, Australia, and the US
Interactive Brokers: Available in more than 135 markets in 33 countries
4. Sign-Up Promotions
Tiger Brokers: New users get unlimited trades of US stocks and a year of unlimited commission-free trades for China, SG and US stocks. A free GoPro share when you open your account for the first time. Five free commission-free trades for options within the first 30 days.
Interactive Brokers: Referral program. New users get invited by existing platform users. For each referred client, you get $200 when the client opens a joint, individual, retirement or trust account and funds it by maintaining an account balance of at least $10,000 annually.
5. Trading Platforms and Tools
Tiger Brokers: Desktop app and mobile app
Interactive Brokers: Client portal, trader workstation, IBKR APIs, IBKR Mobile
6. Customer Support
Tiger Brokers: 24/5 customer service, integrated digital support, a learning centre and a demo account.
Interactive Brokers: 24/7 customer service, phone and email support
7. Account Types and Minimums
Tiger Brokers: Paper account, Prime account and fund mall account with no account minimum.
Interactive Brokers: IBKR Pro and IBKR Lite with no account minimums.
8. Security and Regulation
Tiger Brokers: Hold a Capital Markets Services License under the Securities and Futures Act (CAP. 289), the MAS (Monetary Authority of Singapore) and protected by Securities Investor Protection Corporation (SIPC).
Interactive Brokers: Licensed and regulated by the Monetary Authority of Singapore.
9. Interface
Tiger Brokers: Beginner-friendly interface
Interactive Brokers: User-friendly interface
Tiger Brokers: Best for the Lowest Commission Fees in the Market
Tiger brokers entered Singapore’s investment scene in 2020. The platform has since changed the games offering one of the market’s lowest commission fees. Tiger Brokers maintains a competitive edge with no hidden fees, low commission fees, easy access to global markets, attractive promotions and an easy-to-use mobile and desktop trading platform.
It is currently listed on many stock exchanges across the global markets, including Hong Kong, the United States, China, Singapore and Australia. Here are the stock exchanges where it is listed on:
- Hong Kong Exchanges (HKEX)
- Singapore Exchange (SGX)
- US Stock Exchanges
- American Stock Exchange (AMEX)
- New York Stock Exchange (NYSE)
- NASDAQ Stock Market (NASDAQ)
- Over-the-counter (OTC)
- Pink Sheet Exchange (PK)
- Australian Securities Exchange (ASX)
- China Stock Exchange
- Shenzhen Stock Exchange (SZSE)
- Shanghai Stock Exchange (SSE)
Pros
- Quick and easy sign-up process with very attractive perks.
Cons
- Very new in the Singapore market.
Fees
Fees are among the essential points to consider when making an investment plan. Tiger Brokers offers different types of products you can choose from. Tiger Brokers is known for their low fees, such as 0.03% commission per trade and sometimes as low as $0, with no custody fee on all Singapore stocks.
Here is an overview of the fees charged on stocks and ETFs:
- Singapore stocks: 0.03% with a min. S$0.99 per trade
- US stocks: US$0.005 with min. US$0.99 per trade
- Hong Kong stocks: 0.03% per trade, min. HK$7 per trade
- China A-shares: 0.03% per trade, min. CNH7 per trade
- Australia stocks: 0.03% per trade, min. AU$2 per trade
The fees charged are for executing the trade. It does not include charges by the individual stock market, such as the settlement fee, trading fee and others. It is also important to remember that the platform charges a platform fee per trade on top of the commissions.
Here is an overview of the platform fees charged by Tiger Brokers on Stocks and ETFs:
- Singapore stocks: 0.03% platform fee per trade with a minimum of S$1 per trade
- US stocks: US$0.005 with minimum US$1 per trade
- Hong Kong stocks: 0.03% per trade, minimum HK$8 per trade
- China A-shares: 0.03% per trade, minimum CNH8 per trade
- Australian stocks: 0.07% per trade, minimum AU$6 per trade
You will incur all the charges mentioned above once you execute a trade.
Interactive Brokers: Best for Low-Cost Investment with Access to the Global Market
Interactive Brokers was listed on the NASDAQ in 2007. It has since remained a low-cost online brokerage firm allowing investors access to a wide range of global investment assets. These assets include options, stocks, futures, bonds, currencies and funds.
The platform’s client base continues growing, with over 37% of its accounts coming from Asia. Interactive Brokers has since opened an office in Singapore in 2020. Despite being new in the country, IBKR was a well-known brokerage firm by investors in Singapore before then.
Pros
- It allows you to invest in various products through a single account with low trading costs that are pretty hard to beat.
Cons
- Unlike its market peers, the platform does not offer any sign-up promotions.
Fees
While IBKR boasts of low fees, it does not mean it does not charge any fees. Here is an overview of the charges you can expect once you one an IBKR account.
|
|
IBKR Pro | IBKR Lite |
|
Minimum balance |
US$0 | US$0 |
|
Maintenance fee |
US$0 |
US$0 |
| Interest paid on idle cash balances | Benchmark minus 0.5% |
Benchmark minus 1.5% |
| Interest charged for margin loans | Starts at Benchmark plus 1.5%, with lower rates for higher loan values.4 |
Benchmark plus 2.5% |
Interactive Brokers offers two types of structured pricing. These include:
Fixed Pricing: You are charged a fixed rate per share, including all the regulatory and exchange fees. The charges could be a fixed fee per share, like US$0.005 per share for US stocks or a percentage of the trade value, like 0.08% of the trade value of the SG stocks.
Tiered Pricing: With this pricing structure, the pricing will depend on your trade volume. The price is also primarily affected by regulatory, exchange and clearing fees.
Related Questions (FAQs)
1. Which Platform Has Lower Fees, Tiger Brokers or Interactive Brokers?
Tiger Brokers has more attractive offers including up to 60 commission-free trades, free shares and rewards in Tiger coins. They charge lower fees that Interactive brokers. Tiger brokers do not impose any custodian, inactivity fee, or minimum funding account.
2. Which platform offers better research resources, Tiger Brokers or Interactive Brokers?
Interactive brokers offer better research resources than Tiger brokers. The platform also has a variety of trading platforms, including the traders’ workstation, client portal, IBKR APIs and IBKR mobile.
3. Can I Trade in Multiple Markets Using Tiger Brokers or Interactive Brokers?
Yes. Tiger Brokers has access to US, China, Hong Kong and Singapore markets in 9 currencies. On the other hand, interactive brokers have access to over 153 markets in 33 countries and allow you to trade in 23 currencies.
4. How Do I Open and Fund an Interactive Brokers Account?
Here are the steps you need to follow when opening an IBKR account:
- Create your username and password. Afterward, you must confirm your email address and select your region or country.
- Verify your email account.
- Fill in your personal information, including your income, tax and residency. You can retrieve data from your SingPass account to speed up your application process.
- Finish filling up your form.
- Fund your investment account at start trading. It is important to note that some products, such as leverage products, must meet eligibility criteria to allow you to trade them.
To fund your Interactive Brokers account, you must transfer your assets through a bank wire transfer. You can fund your account with currencies including USD, SGD, CNH, HKD and GBP.
5. How Do I Open and Fund My Tiger Brokers Account?
Here are the steps you need to follow to open and fund your Tiger Brokers account:
- Go to Tiger Brokers’ online application page.
- Follow all the steps to submit all your supporting documents, such as proof of address and NRIC.
- Choose between a cash or margin account.
- Fund your account via a bank transfer.
- Your funds will be deposited into your account once you click ‘Funds Remitted. Inform Tiger to Check’ on the app. Your funds’ deposit will be updated immediately in your account. Once your funds have been updated, you can start trading immediately.
Please note that you can also use SingPass to speed up your application process.
6. How Do Interactive Brokers and Tiger Brokers Compare to Moomoo and TD Ameritrade?
Here is a comparison table to show how the 4 top brokerage firms compare:
|
|
Tiger Brokers | Interactive Brokers | TD Ameritrade | Moomoo |
|
Commission fee |
|
|
$0 (for US exchange-listed stocks, ETFs and options trades) |
|
| Minimum deposit | None, but min. S$1,000 is required for the sign-up promotion | None | None |
None, but a minimum deposit of S$100 is required to be eligible for sign-up promotion |
| Maintenance fee | None | None | None |
|
7. What Are Promotions Available for Tiger Brokers?
Tiger Brokers has the most attractive sign-up promotions for beginner investors. Here are promotions you can enjoy on the platform:
- One free NASDAQ: GPRO shares when you open an account for the first time.
- One hundred eighty days of unlimited trades for US stakes and a year of unlimited commission-free trades for SG, HK and China A stocks.
- 3-day, 20% yield coupon.
- Five commission-free trade for options in 30 days.
- One-month Ryde subscription.
- 0.88 HP fractional share trading and a chance to win a free stock worth S$12 to S$320 when you fund S$1,000 into your account.
- Free Apple share when you fund for a newly-approved account when you fund at least S$10,000 and make ten new buy trades during the promotional period.
8. Why Should You Consider Investing in Interactive Brokers?
Here are some significant reasons why you should consider investing in IBKR:
- Low-Cost Trading
Interactive Brokers offer competitive, low charges, and the lowest in the industry. However, the competitive fees do not apply to stocks and other asset classes such as forex.
- Allows You to Invest Globally in a Wide Range of Products
When investing, diversification is critical. Your portfolio should be made up of a variety of assets such as bonds, funds, stocks and more. With a single Interactive Brokers account, you can invest globally in various investment assets. IBKR is present in 135 markets worldwide and 33 countries, allowing investors to look beyond their shores and invest in companies listed abroad.
- No Minimum Balance Required
Many beginner investors fail to start on their investment journey due to the minimum capital required when getting started. IBKR Lite and IBKR Pro require no minimum balance or starting amount making it very easy for investors to start trading on the platform.
- Upgraded Trading Tools
IBKR allows you to optimize your margin trading strategy with various tools, more than 100 order types, and trading algorithms. The platform also offers trading APIs that allow you to build a custom trading application and automate your trading strategies. IBKR also has a campus that will help you understand its trading tools and how to utilize them.
Read Also: Best Mutual Funds Singapore and Moomoo vs Tiger Broker
Closing
While Tiger Brokers is a new entrant in the market, the platform offers lower fees and attractive promotions than Interactive brokers. These two platforms will allow you access to global markets at low trading fees. It is important to remember that Tiger Brokers is yet to establish an excellent reputation as Interactive Brokers. However, they are both suited for beginner investors.
Key takeaways
- Interactive and Tiger Brokers are suited for beginner investors thanks to their easy-to-use platforms.
- IBKR and Tiger Brokers will allow you access to global markets at low trading fees.
- Tiger Brokers is a reasonably new entrant in the market, but it gives Interactive Brokers fair competition in terms of trading fees and sign-up promotions.
Do you require urgent funds for a personal or emergency matter? Instant Loan offers the top personal loan deals from three of Singapore’s best banks, with manageable repayment options and competitive interest rates. Apply now to get started.
