A minimum commission is a fixed floor, so it takes a bigger share of a small trade than of a large one. OCBC Securities removed its floor on online SGX trades from 5 October, and says about a quarter of its clients’ Singapore holdings are odd lots. Also on 5 October, Far East Orchard agreed to raise its stake in a hotel trust’s managers to 75%, which is different from owning the trust.
OCBC Securities just removed its minimum commission on online SGX trades from 5 October, and it matters most if you trade in $500 to $1,000 chunks or hold odd lots from scrip dividends. I walk through why a fixed floor takes a bigger bite out of a small trade, and why the broker accepts lower revenue per transaction. Then we unpack Far East Orchard’s deal to own 75% of the managers of Far East Hospitality Trust, and why $3.9 billion in assets under management is not the same as $3.9 billion in earnings for shareholders.
Key takeaways:
OCBC’s MD cited one trade falling from $25 to about $2 in commission after the change
Roughly a quarter of OCBC clients’ Singapore holdings are odd lots, often from scrip dividends
Board lot sizes for 11 stocks, including major banks, were cut on 5 October
Far East Orchard is paying $28.3m cash to lift its stake in the hotel trust’s managers to 75%
Pro forma EPS would have risen 3.7% in FY2025, while AUM jumps 86% to $3.9 billion
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