Investing in the U.S. stock market has become more accessible than ever, thanks to online brokerage platforms like Tiger Brokers. Whether you’re a seasoned investor or just getting started, understanding the cost structure of trading U.S. Stocks are essential to managing your investment strategy. Tiger Brokers offers transparent fee structures for U.S. stock trading, which include both commission fees and platform fees.
This blog will break down the details of these fees, so you can make informed decisions about your investments on the Tiger Trade app.
Commission Fees: A Closer Look
When you trade U.S. stocks through Tiger Brokers, you’ll encounter commission fees for each order. Here’s how these fees are structured:
USD 0.005 per share: For each share you trade, Tiger Brokers charges a small fee of USD 0.005. This fee applies regardless of the size of the order or the stock’s price.
Minimum charge of USD 0.99 per order: Even if your trade involves only a small number of shares, the minimum commission charged per order will be USD 0.99. This ensures that small trades are still covered by a minimum fee.
Maximum charge of 0.5% of trade value per order: For larger trades, the commission will be capped at 0.5% of the total trade value. This means that if you place a large order, the commission won’t exceed this percentage of the total value of your trade, even if it would otherwise be higher.
Example of Commission Fee Calculation:
If you buy 100 shares of a U.S. stock priced at USD 50 per share, the commission fee would be:
100 shares x USD 0.005/share = USD 0.50 (Since the minimum fee is USD 0.99, you would pay USD 0.99 for this trade).
If you place a larger order, say 1,000 shares at USD 50 per share, the total commission would be:
1,000 shares x USD 0.005/share = USD 5.00 (which is under the maximum cap of 0.5% of trade value).
So, for a USD 50,000 trade, the commission fee would be USD 5.00.
Platform Fees: Additional Costs to Consider
In addition to the commission fees, Tiger Brokers also charges a platform fee for trading U.S. stocks. Here’s the breakdown:
USD 0.005 per share: Just like the commission fee, the platform fee is also USD 0.005 per share.
Minimum charge of USD 1 per order: If your trade is smaller, you’ll still be charged a minimum platform fee of USD 1 per order. This ensures that smaller trades are covered by a base platform fee.
Maximum charge of 0.5% of trade value per order: Similar to the commission fee, the platform fee is capped at 0.5% of the trade value for larger trades. This means that you won’t pay more than this percentage of the total trade value in platform fees.
Example of Platform Fee Calculation:
For a trade of 100 shares at USD 50 per share, the platform fee would be:
100 shares x USD 0.005/share = USD 0.50 (Again, since the minimum is USD 1, you would pay USD 1.00 for this trade).
For a larger trade of 1,000 shares at USD 50 per share, the platform fee would be:
1,000 shares x USD 0.005/share = USD 5.00 (This is within the 0.5% cap, so you would pay USD 5.00 for this trade).
Combining the Costs: What Will You Pay for Each Trade?
When trading U.S. stocks on the Tiger Trade app, both the commission and platform fees will apply. Let’s take a look at an example to see how these costs combine:
Example:
Trade of 500 shares of a U.S. stock priced at USD 100 per share:
Commission Fee: 500 shares x USD 0.005/share = USD 2.50
Platform Fee: 500 shares x USD 0.005/share = USD 2.50
Total Fees: USD 2.50 (Commission) + USD 2.50 (Platform Fee) = USD 5.00
If the total value of your trade exceeds the maximum commission and platform fee caps (0.5% of the trade value), your fees will be capped accordingly.
Key Takeaways:
Commission and platform fees are USD 0.005 per share.
There are minimum fees of USD 0.99 per order for commission and USD 1 per order for the platform fee.
The maximum fees are capped at 0.5% of the trade value per order.
For large trades, the fees are calculated based on the trade size but will not exceed 0.5% of the total trade value.
Why Choose Tiger Brokers for U.S. Stock Trading?
Despite the associated fees, Tiger Brokers offers several advantages for U.S. stock traders:
Low commission structure: With fees starting as low as USD 0.005 per share, Tiger Brokers is a cost-effective platform for trading U.S. stocks.
Access to major U.S. markets: With Tiger Brokers, you can easily access and trade U.S. stocks and manage your investments in one place.
Competitive pricing: The transparent fee structure makes it easier for you to estimate the costs of trading in advance, so there are no surprises.
Conclusion
By understanding the Tiger Brokers’ fee, you can plan your trades and optimize your investments. If you have any questions or need further clarification on fees, don’t hesitate to reach out to Tiger Brokers’ customer service or check the app for more details to your prudent investment.
