Recently I bought Lyxor Japan ETF in SGX which is denominated in USD. I use Lim&Tan broker to buy USD-denominated stocks because its minimum commission is lower at USD12.50. I would usually click the estimated commission link to check how much commission is payable before I submit my order. If I choose to settle the order in SGD, the minimum commission becomes SGD25. Given the current USD:SGD exchange rate, it is more expensive than the commission in USD. If I choose to settle the order in USD, and convert the total order value to SGD, which commission is applied?
I emailed Lim&Tan helpdesk to clarify and received their call on the same day. Below is Lim&Tan’s reply:
- Settle the order in SGD — minimum commission SGD25.00
- Settle the order in USD — minimum commission USD12.50
- Settle the order in USD, then call Lim&Tan within T+2 to convert total order value to SGD — minimum commission USD12.50 converted to SGD, which is currently about SGD17.
Of course, I use the third way to buy Lyxor ETF because the commission is cheaper.