This article looks at the online investing platform Tiger Brokers and assesses whether it’s a viable option for people looking to expand their investment portfolio.
The Good
- Opportunity for trading international stocks
- Great offer for opening an account – 0 brokerage fees for 3 months on ASX and US stocks
- Easy to use App with great visuals
- A free APPL share on your first qualifying deposit (over AUD 3000)
- Good trading fees in regard to market comparison
- NO minimum deposit – making it easier for new starters
- Free in-depth market data for US and ASX stocks
- Referral incentives (free $100 in stocks when you refer a friend
The Bad
- Not very cost-effective when it comes to U.S. stocks – there are definitely better options out there
- Tiger Brokers brokerage fee structure can be slightly confusing
- No access to Bitcoin or Crypto as yet
Verdict: Fee structure is a little complex, but they have some great sign-up incentives
CaptainFI is not a financial advisor and this article is not financial advice. This website is reader-supported, which means we may be paid when you visit links to partner or featured sites, or by advertising on the site. For more information please read my Privacy Policy, Terms of Use, and Financial Disclaimer.
Introduction
FinTech is hot property right now and it’s opened the art of investing up to the ordinary person. In recent times, there were many myths about investing that it was only for the ‘rich’ or people with significant financial backgrounds. However, with the emergence of this new Tech market, options have become available for the average Joe where they can invest money and become educated around the subject at the same time.
Tiger Brokers is another of the latest offerings in the FinTech investing field where users can diversify their investment portfolios and buy international stocks. It’s certainly a lot easier than it used to be, and this Tiger Brokers review looks at this product and asks if the hype is warranted.
Who are Tiger Brokers?
Tiger Brokers is an online brokerage firm or investment platform that allows you to diversify your portfolio into international markets, such as H.K. stocks and U.S. stocks. Tiger Brokers were founded in 2014 by a man named Wu Tianhua. Tiger Brokers have over 1.7 million account holders with an annual trading volume of over 219B USD. With offices in Singapore, Auckland, Sydney, New York and Beijing, they are an international company with a large standing in the financial services space. With such a large backing, one could certainly surmise that Tiger Brokers would be around in Australia for a long time.
How reliable are Tiger Brokers?
Tiger Brokers are regulated by the relevant authorities in the countries they perform business in. For example, Tiger Brokers are regulated in Singapore by the Monetary Authority of Singapore. It’s important that you do your research before signing up to brokerage companies like Tiger Brokers. There are some out there that aren’t regulated by the relevant financial institutions, and this can cause a lot of heartbreak down the track.
So, while your investments are sometimes not a reliable and sure thing, Tiger Brokers are under the watchful eye of financial regulators.
“Our philosophy is simple, on our platform – Tiger Trade, everyone should have access to the market, and reach for the best and grow to their full potential as investors. With this in mind, the company has designed a platform that is innovative, user-friendly and focuses on the power of knowledge.”
Tigerbrokers.com.au/about
How much do they charge?
At the moment, Tiger Brokers are charging $0 brokerage fees for ASX and U.S. stocks for 3 months once you sign up. They’re also offering a free APPL share on the first qualifying deposit you put into Tiger Brokers. More information is available for this on their website, along with all the brokerage, pass-through and other service fees which are detailed in full. It’s worth taking advantage of the 0 brokerage fees on U.S. stocks over the first 3 months, as Tiger Brokers usual brokerage fees for this market are actually quite high in comparison to others.
To give a high-level overview of what Tiger Brokers charge, however, you are looking at paying a commission-style brokerage fee of 0.03% x Trade Value on a minimum order of HKD 7 when buying stocks on the Hong Kong exchange. If investing in the ASX (Australian Securities Exchange), you pay 0.025% x Trade Value on a minimum order of AUD 2.50 for a commission-style brokerage fee.
It’s worth noting that while brokerage fees on Tiger Brokers are quite competitive, they can have a fee structure that can be a little confusing – particularly for first-time investors.
What can you invest in through Tiger Brokers?
To quote Tiger Brokers website, you have “Worldwide Access With One Account”. If you have an account with Tiger Brokers you will have access to financial markets across ASX stocks, US stocks, H.K. stocks (Hong Kong) through Hong Kong Securities, US options such as the New York Stock Exchange and also ETFs (Exchange Traded Funds). This allows investors to gain access to other worldwide investments and diversify their portfolio by tapping into the American and Hong Kong stock markets.
Be sure that you do proper and thorough research into ANY market that you’re thinking of investing in. If you’re still unsure, then speak to a professional such as a financial advisor before you take the plunge.
Are they regulated?
Yes, Tiger Brokers are listed and regulated by ASIC which is the Australian Securities and Investments Commission. ASIC is an independent arm of the Australian government that regulates corporations and financial services. Their sole aim is to protect Australian consumers, investors and creditors.
Tiger Brokers AU Pty Limited also has an Australian Financial Services Licence (AFSL) number (300767).
“Education is an integral part of successful investing. We integrated trading data, insights, and tools into Tiger Trade to give everyone a better understanding of the evolving market and the total capacity to build up their skills..”
Tigerbrokers.com.au/about
Can I buy Bitcoin on Tiger Brokers?
While not effective yet, there are plans for Tiger Brokers to offer Crypto trading services outside of China, including Bitcoin. In this press release back in July 2021, Tiger Brokers announced that in collaboration with Futu, they’ll be offering crypto trading services.
This service however was only going to be offered outside of China, due to the crackdown on crypto from the Chinese government.
Advantages of using Tiger Brokers
- Opportunity for trading international stocks
- Great offer for opening an account – 0 brokerage fees for 3 months on ASX and US stocks
- Easy to use App with great visuals
- A free APPL share on your first qualifying deposit (over AUD 3000)
- Good trading fees in regard to market comparison
- NO minimum deposit – making it easier for new starters
- Free in-depth market data for US and ASX stocks
- Referral incentives (free $100 in stocks when you refer a friend)
Disadvantages of using Tiger Brokers
- Not very cost-effective when it comes to U.S. stocks – there are definitely better options out there
- Tiger Brokers brokerage fee structure can be slightly confusing
- No access to Bitcoin or Crypto as yet
FAQs about using Tiger Brokers
Who is Tiger Brokers backed by?
Tiger Brokers is backed by a few different investors, most notably Interactive Brokers, Xiaomi, ZhenFund and Jim Rogers, the famous American investor based out of Singapore.
Tiger Brokers is an online broker-dealer, listed in NASDAQ.
Are Tiger Brokers good for beginners?
Tiger Brokers could be a good place for beginners to start. This is due to the fact that Tiger Brokers has a demo account for U.S. stocks. This is almost a ‘try before you buy’ deal where you can gain experience in what it’s like to buy stocks before you actually do it.
Are Tiger Brokers CHESS sponsored?
Yes, Tiger Brokers are CHESS sponsored, but you will not get a unique Holder Identification Number – This is similar to Superhero. The easy way of explaining this for those who don’t understand what this means is that if you buy stocks on the ASX through Tiger Brokers then they will be held in their name for you. It is typical for low-cost brokers or micro-investing platforms to place stocks in a different legal entity’s name. This is usually to keep costs low.
Similar to other fintech companies in Australia, all client assets are held in custody with Tiger Brokers Australia, and that’s why Tiger Brokers will be able to offer a competitive brokerage rate to our clients. Please note that Tiger Brokers is authorised to provide custodial service to Australian retail clients as per our Australian Financial Service License: 300767.
Tiger Brokers, September 2022
Do Tiger Brokers have an App?
Yes, you can grab the Tiger Trade App on the App Store or Google Play. The app rates highly on both platforms, with a 4.6* rating on the App Store and a 4.2* rating on Google Play. The app ranks highly for usability.
Conclusion
So, is Tiger Brokers worth the hype? If you’re looking to expand your investment portfolio into global markets then yes, Tiger Brokers is worth the hype. It’s a great option, mostly offering good, comparable fees and so it’s definitely worth looking into.
As always though, if you are looking to invest through any platform, then carry out your research before doing so. Investing and parting with your hard-earned cash is a big thing, you need to ensure you’re making informed trading decisions for you and your financial goals.
Other brokers to choose from
Big 4 banks
- CommSec Share trading [this is who I started out investing with]
- NAB Trade
- ANZ Trade
- Westpac Trade
Fintechs and smaller banks
Microinvesting platforms
Captain FI is a Retired Pilot who lives in Adelaide, South Australia. He is passionate about Financial Independence and writes about Personal Finance and his journey to reach FI at 29, allowing him to retire at 30.
can you please clarify on tiger broker and CHESS sponsorship? I saw a FAQ on tiger broker’s own website that says they’re not CHESS sponsored and individuals won’t have stocks registered in their own names.
Hey G – yes they use the custodian arrangement so you wont have your shares held on a unique HIN – from Tiger Brokers website “Similar to other fintech companies in Australia, all client assets are held in custody with Tiger Brokers Australia, and that’s why Tiger Brokers will be able to offer a competitive brokerage rate to our clients. Please note that Tiger Brokers is authorised to provide custodial service to Australian retail clients as per our Australian Financial Service License: 300767. Client’s investments through Tiger Brokers are not individually CHESS sponsored, that means clients don’t have an individual investor holder identification number (HIN). Instead, clients’ shares are legally held in custody by Tiger Brokers for the client’s beneficial ownership, which means clients assets are still held in their individual names, and are the beneficial owners of their shares, additionally clients are also entitled to participate in corporate actions that are associated with those shares.” Cheers, CF