What is a Cash Boost account?
The Cash Boost Account is a new account type introduced to meet the needs of investors. Instead of having to fund the account to trade, you are given a credit limit which you may use to purchase stocks. This means that you are able to trade once your account gets fully approved!
Why use a Cash Boost account?
Buy up to SGD 20,000 or beyond as soon as your account gets approved.
No upfront deposit required.
High capital utilization while allowing you to capture market opportunities.
Contra Trading: No need to fund the full settlement amount, simply sell before settlement date and pay the difference between your buy & sell trades.
Supports trading of stocks and ETFs for Singapore, United States, Hong Kong and China A-shares (Northbound).
What are the differences between a Cash Boost account, a margin account, and a cash account?
| Cash Boost Account | Cash Account | Margin Account |
Required cash/collateral to trade | No | Yes | Yes |
Opportunity of higher return | Yes* | No | No |
*Cash Boost Account enables you to make purchases using credit limit, allowing you to buy beyond your current available funds, which may potentially incur losses exceeding your account balance.
What is Contra Trading?
Contra represents a trading method in which the investor refrains from taking possession of the stocks bought or delivering the stocks sold. The investor buys the stocks without any cash upfront and sells them after a period of time. The investor then makes arrangements to settle any outstanding differences, which may result in either profits or losses.
How can the Contra Trading feature of a Cash Boost account be utilized to improve the efficiency of capital utilization?
Imagine Tom spots a good trading opportunity but his current funds will only be available 3 days later, he can use his Cash Boost Account's limit to buy the stock first. Scenario 1 - Funds delayed 3 days later, due to unforeseen circumstances, Tom's funds are still not available. Thankfully, the stock price increased from when he bought them. Tom sells away the stock and pockets the difference as profit, without even having to settle the outstanding buy trade. This is also known as Contra Gain. Scenario 2 - Settling the buy trade 3 days later, Tom decides to keep the stock for the long term. He transfers his funds to his Cash Boost Account to settle the trade.
How does Contra Trading work in a Cash Boost account?
The Cash Boost Account comes with a default credit limit. To start, simply place a buy order. Once the buy trade is done, it will become an Unsettled Buy (Outstanding Buy).
Investors can choose to settle their trades before settlement date (due date), which is T+2 for Singapore and Hong Kong markets, and T+1 for United States and China market. If your Cash Boost account does not have sufficient funds to settle the trade, force-selling may be conducted on or before due date+2.
After a corresponding Sell trade is performed, a Contra will be formed. You will have to settle the difference between your buying price and selling price. If this difference is positive, known as "Contra Gain", you get to keep the profits. If the difference is negative, known as "Contra Loss", you will have to make payment to settle it. Assume Tom bought 100 shares at USD 10 a share and subsequently performed a Contra Sell, 3 Trading Days later:
| Scenario 1 - Contra Gain | Scenario 2 - Contra Loss |
Purchase Price | USD 10 | USD 10 |
Contra Sell Price | USD 15 | USD 8 |
Difference (Price difference × Quantity） | (USD 15 - USD 10) × 100 = USD 500 | (USD 8 - USD 10) × 100 = USD -200 |
Trading-related fees are not factored in the above examples. Scenario 1 - Tom netted a Contra Gain of USD 500. This amount will be deposited into his Cash Boost Account.
Scenario 2 - Tom incurred a Contra Loss of USD 200. Tom will need to make payment into his Cash Boost Account as soon as possible to avoid interest.
What markets or financial instruments does the Cash Boost account support?
Supports trading of stocks and ETFs for Singapore, US, HK and China A-shares (Northbound).
Currently does not support options, government bonds, or funds.
Who can open a Cash Boost account?
Singapore Citizens and users who reside in Singapore and have opened a prime account.
What documents are required to open a Cash Boost account?
The same as documents required for Prime Account.
Is direct link to a Central Depository (Pte) Limited (CDP) GSA Account supported?
Yes, you are able to link your individual CDP GSA Account and sell stocks via Cash Boost Account.
Do note that buying stocks and custodizing with CDP is currently not supported. Stocks purchased via Cash Boost Account will be held by Tiger Broker's custodian for the respective markets.
Shares bought through Tiger Brokers can only be sold through Tiger Brokers. If you wish to sell through another stockbroker, you will need to transfer out your share holdings to the custodian account of the relevant broker. Please note that there may be transfer fees involved for such transfers.
Does a Cash Boost account require a deposit?
No. You are able to trade once your account and credit limit gets approved. However, if there is an outstanding "Contra Loss" or an outstanding buy contract you wish to settle, you will have to deposit funds to settle it to prevent interest charges or force selling.
What deposit methods are supported by the Cash Boost account?
You can use DDA fast deposit, bank transfer and Wise to deposit. Please note, you need to initiate Wise deposit within Tiger Trade App / official website. We can not receive the funds transferred directly from your Wise account.
What is the limit of a Cash Boost account?
Under specific conditions, after the Cash Boost account is opened, the system will automatically grant a Credit Limit of SGD 20,000.
How can I increase the credit limit of my Cash Boost account?
Submit the credit limit application through the APP.
Special instructions:
With Singpass, you can directly obtain Singpass data and submit the application without manually entering annual income, employer information, and asset-proof documents.
Without Singpass, you need to manually enter annual income, and employer information, and upload asset-proof documents.
How to withdraw funds from a Cash Boost account?
You can submit withdrawal requests via the "Withdraw" function in Tiger Trade App / official website.
How to trade using a Cash Boost account?
No upfront is required to use the Cash Boost account for trading once the account is fully approved.
How to view my position in Cash Boost account？
After the order is executed, you can view the position details in real-time in the portfolio page. The details of the outstanding position can be viewed within 12 hours after market trading hours.
Trades or contra positions which have been cash settled can be viewed in the settled position page.
Which stocks support Contra Trading?
Clients can use the credit limit granted in the account to trade stocks and ETFs. Tradable markets including Singapore, US, Hong Kong and China A-shares (Northbound).
Is short selling possible?
Cash Boost account currently does not support short selling.
How to view profits or losses from Contra Trades?
You can view the profits & losses through the positions page/all functions - outstanding positions.
When should I pay for the losses from Contra Trades?
You are required to settle all outstanding Contra losses within the next 5 calendar days to avoid the permanent suspension of your Contra facilities.
Please be aware that outstanding Contra losses are subject to interest charges as follows:
US/CN Market: Interest charges will begin accruing from the 7th trading day after the buy trade.
SG/HK Market: Interest charges will begin accruing from the 8th trading day after the buy trade.
Failure to settle the outstanding amount by the specified deadline may result in legal proceedings being initiated against you. This could also lead to your account being placed on the SGX Delinquent List. Additionally, any administrative legal fees will be charged to your Cash Boost account.
What are the settlement priorities for my trades and contra losses？
All outstanding buy contracts and contra losses will be automatically settled on Trade Date if the account has sufficient funds in the settlement currency, following a "first in, first out" (FIFO) manner.
Priority for settlement using the account available funds in the settlement currency at the point of settlement is as follows:
Outstanding buy contract with older trade date will be settled first
For same trade day, contracts with higher value will be settled first
Contra loss will then be settled (can be partial settled)
When can I withdraw my contra gain and sale proceeds?
Contra gain and sell proceeds (with sufficient settled holding and no corresponding unsettled buy contract to contra) will be auto settled and credited to the account on the same trading day and become available funds for other settlement. However, the fund can only be withdrawn or converted after market settlement due date.
What happens if I fail to pay for the losses from Contra Trades on time?
If there is oustanding "contra loss" overdue for more than 5 trading days, the account's credit limit will be reduced or frozen until all outstanding "contra losses" are settled.
If the client fails to make payment for the contra loss within a specified time frame, their account may be flagged for inclusion in the delinquent list that will affect their credit standing in Singapore.
When will my stocks be forcibly liquidated?
If the account does not have sufficient funds to settle the outstanding buy contract, client should close the position or top up account on or before settlement due date + 1, otherwise the buy contract will be forced sold on forced liquidation day (settlement due date +2), resulting in a reduction/frozen of the account's credit limit.
How does the Cash Boost account charge fees?
Like Cash accounts, Cash Boost accounts only charge transaction-related commissions, fees, and escrow fees for specific markets.
For relevant commission fees, you can refer to following content:
Market | Commission | Platform Fees |
SG | 0.10%*transaction amount Min. SGD 4.99 per order | 0.12%*transaction amount Min. SGD 5 per order |
US | 0.10%*transaction amount Min. USD 4.99 per order | 0.12%*transaction amount Min. USD 5 per order |
HK | 0.10%*transaction amount Min. HKD 35 per order | 0.12%*transaction amount Min. HKD 40 per order |
CN | 0.10%*transaction amount Min. CNH 35 per order | 0.12%*transaction amount Min. CNH 40 per order |
Pass through fees apply.
How is interest charged?
Accrued interest will be charged on your outstanding positions or Contra loss after the settlement due date+4 for SG & HK markets, and settlement due date+3 for the US & CN market. Please pay the Contra loss as soon as possible to avoid interest charges.
What are the interest rate charges in Cash Boost Account?
You will be subjected to interest charges based on the type of balances in your account as follows:
Type of Balances | Interest Start Date | Interest Rate (SGD, USD, HKD) |
Settled Negative Cash Balances | Immediate | 8.50% per annum |
Outstanding Contra Loss | 5 trading days after the Settlement Due Date of the Buy Contract | 8.50% per annum |
For interest rate charges on currencies other than SGD, USD, and HKD, please refer to our official website.
Important Note: Failure to settle the outstanding amount by the specified deadline may result in legal proceedings being initiated against you. This could also lead to your account being placed on the SGX Delinquent List. Additionally, any administrative legal fees will be charged to your Cash Boost account.
What are the features of auto currency conversion?
Auto currency conversion will be performed if there are outstanding positions due for force selling or outstanding contra loss in the settlement currency on a best effort basis. It is client's responsibility to ensure sufficient balances in the settlement currency to avoid the contract being force sold when there is sufficient balances in other currencies.
Will the Cash Boost account come with auto currency conversion facility？
Yes, auto currency conversion is switched on by default.
Can the coupons I received support a Contra account?
If the coupon obtained indicates the coupon supports Cash Boost Account, then it can be used when trading with Cash Boost Account.
Why was my credit limit suddenly reduced?
As part of our risk control measures, your credit limit will be reduced by three times the total outstanding contra losses. The limit will be reinstated once the account has sufficient funds to settle the contra losses after the market closes.
What is the difference between a Cash Boost Account and a CDP Account?
Your Cash Boost Account is opened with TIGER BROKERS (SINGAPORE) PTE. LTD., a SGX-ST Trading Member, as well as a Clearing Member and CDP Depository Agent. When you buy Singapore shares with Tiger Brokers, they are custodised under Tiger Brokers' nominee account with CDP.
If you have linked your individual CDP Account with your Cash Boost Account to facilitate the selling of securities held in your CDP Account, these sell trades will still be reflected in your CDP Account statements but you will receive transaction confirmation notes from Tiger Brokers.
How can I retrieve my Individual CDP Account number?
CDP account holders can retrieve their Individual CDP Account number by logging into SGX website or through an automated answering service at SGX by following the steps here.
Do I need to open an individual CDP Account in order to trade with Cash Boost Account?
No, you do not need to open an individual CDP account in order to trade stocks with Cash Boost Account. You simply need to open a Cash Boost Account. Account opening is free and there is no maintenance fee.
If you already have an existing individual CDP Account, you can apply to link this account to your Cash Boost Account to sell your holdings in this CDP Account through Tiger Brokers.
What's the difference between "Sell" & "CDP Sell" order in Cash Boost Account?
After linking your CDP account to Cash Boost Account, you will notice that you can select "Sell" or "CDP Sell" on the trading page for SGX stocks. An order submitted under "Sell" indicates that you wish to sell the shares held in your Cash Boost Account, which is reflected in Tiger Trade > Portfolio. An order submitted under "CDP Sell" indicates that you wish to sell the shares held in your linked CDP Account. Do note that CDP holdings are not reflected in your Cash Boost Account. Please ensure you have sufficient holdings in your CDP before submitting the order.