A Lot has Changed
19 January 2015 - 31 March 2015
Description
From 19 January, the minimum lot size in the securities market will be reduced from 1,000 to 100 units.
In line with SGX’s initiative to encourage investors to trade in the new board lot size of 100s, we will be offering the following incentives for all OCBC Securities (OSPL) customers who trade in lot sizes of up to 900 shares between 19 January and 31 March 2015:
Existing OSPL Customers
· 30% rebate off brokerage commission rates or the minimum commission chargeable, whichever is higher
· S$10 NTUC shopping voucher for a minimum of three small board lot trades executed in the month
New Customers
· new customers enjoy waiver of minimum brokerage commission fee for the first trade executed within the promotion period.
· 30% rebate off brokerage commission rates or the minimum commission chargeable, whichever is higher, for subsequent trades
· S$10 NTUC shopping voucher for a minimum of three small board lot trades executed in the month
Scenario:
Customer buys 9 lots (i.e. 900 shares) of stock X at traded price per share at S$5.
Contract value = S$5 * 900 = S$4,500
Example 1: Existing customers enjoy 30% rebate off minimum brokerage commission fee
Broker-assisted trade
(brokerage commission rate of 0.50% for contract value ≤ S$50,000)
Online trade
(brokerage commission rate of 0.275% for contract value ≤S$50,000)
Minimum brokerage commission fee of S$40 usually applies.
During promotion period, customer enjoys 30% rebate off minimum brokerage commission fee = 30% * S$40 = S$12
Effective brokerage commission paid, net of rebate = S$40 - S$12 = S$28
Minimum brokerage commission fee of S$25 usually applies.
During promotion period, customer enjoys 30% rebate off minimum brokerage commission fee = 30% * S$25 = S$7.50
Effective brokerage commission paid, net of rebate = S$25 - S$7.50 = S$17.50
*Note: Customers pay minimum brokerage commission upfront first, rebates are credited by 30 April 2015.
Example 2: No minimum brokerage commission fee (applicable to new customers who execute their first trades within the promotion period)Broker-assisted trade
(brokerage commission rate of 0.50% for contract value ≤ S$50,000)
Online trade
(brokerage commission rate of 0.275% for contract value ≤S$50,000)
Effective brokerage commission paid = 0.50% * S$4,500 = S$22.50
Rebate of S$17.50 (net of usual minimum brokerage commission fee of S$40 - ) will be given.
Effective brokerage commission paid = 0.275% * S$4,500 = S$12.38
Rebate of S$12.62 (net of usual minimum brokerage commission fee of S$25) will be given.
*Note: Customers pay minimum brokerage commission upfront first, rebates are credited by 30 April 2015.
* For Existing OSPL Customers, you may click here for the full Terms and Conditions.
* For New Customers, you may click here for the full Terms and Conditions.
High-priced stocks will become more affordable and you can build a diversified portfolio more effectively. Contact your trading representative for more information now. Alternatively, contact OCBC Securities at 1800 338 8688 or cs@ocbcsec if you have any questions.
We look forward to serving you soon.
Information is correct at the time of posting on 20 January 2015.
IMPORTANT NOTES
Trading in securities can be very risky, and you may lose all or more than the amount invested or deposited. Where necessary, please seek advice from an independent financial adviser regarding the suitability of any trade or investment product taking into account your investment objectives, financial situation or particular needs before making a commitment to trade or purchase the investment product. You should consider carefully and exercise caution in making any trading decision whether or not you have received advice from any financial adviser.