Buying USD-denominated stocks in SGX

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:

  1. Settle the order in SGD — minimum commission SGD25.00
  2. Settle the order in USD — minimum commission USD12.50
  3. 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.

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9 responses to “Buying USD-denominated stocks in SGX

  1. Hi choozm,

    May I know the difference between 2 and 3? and For 1, US$25 is very high!

    Thanks for the info. Looks like I’ll be opening an account with lim&tan too.

  2. Hi kite,

    I made a mistake in my post and have corrected it.

    (1) should be SGD25.

    (2) is settled with USD bank draft, which is quite troublesome.

    (3) is settled in SGD like normal SGD stocks, and at SGD17 converted from USD, it is cheaper than (1).

  3. Hi Choozm,

    If I choose to settle in USD, do I always need to call L&T? Won’t they automatically convert and inform the total amount in SGD payable to them? Or do they expect me to mail them a USD cheque?

    Thanks!

  4. Hi banyan,

    When submit the order online, there is a option for settlement. If you choose USD, you need to do either:
    1. mail in USD cheque, or
    2. call Lim&Tan within T+2 to convert total order value to SGD. You need to do this for *every* USD trade you want to pay in SGD.

    Hope this helps.

  5. oic. I can see the converted SGD amount after logging L&T website. But no contract is shown in my DBS’s EPS entry yet. I will call them next Monday.

    Thanks again!

  6. Somehow i missed the point. Probably lost in translation 🙂 Anyway … nice blog to visit.

    cheers, Parsonage!!

  7. Hi, Just wondering, how do I place an order for an ETF? Am currently interested in SPDRS, but seems “wierd”, because on the SGX its not traded during daytime (maybe cause it’s trading according to US time)? Do I just place an order on L&T as per normal share buy/sell?

  8. Hi asphodeli, I am not sure on the trading hour of SPDRS in SGX. But its lack of buy/sell queue discourage me from owning it.

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