SGX vs. US Stock Trading Costs: A Complete Breakdown for Singapore Investors

Trading costs are the total fees you pay to execute a stock trade – commissions, exchange fees, clearing charges, and often the overlooked cost of currency conversion. In a 2026 analysis by investment platform comparison site Seedly, a typical SGD 10,000 trade on SGX incurred total fees of around SGD 12, while the same notional value in US stocks could cost anywhere from SGD 5 to over SGD 100, depending entirely on the broker and forex method you choose. This gap makes cost comparison essential for every Singapore investor.

Brokerage Commission: Flat Fees vs. Zero‑Commission Models

Brokerage commission is the fee your broker charges to execute the order. For SGX stocks, most brokers quote a percentage rate with a minimum. At Tiger Brokers and moomoo, the standard is 0.08% of trade value, minimum SGD 2.50 per order. Interactive Brokers (IBKR) uses the same 0.08% tier for SGX but with a lower minimum of SGD 2.00. For a SGD 5,000 buy, your commission is SGD 4.00, while a SGD 1,000 trade still costs the SGD 2.50 floor.

US stock commissions are more fragmented. IBKR’s tiered plan charges USD 0.0035 per share, minimum USD 0.35, with a cap of 1% of trade value. A 100‑share order of a USD 100 stock costs just USD 0.35. Tiger and moomoo offer zero‑commission US trades for stocks posted over USD 1, making the headline fee USD 0.00. However, these brokers earn revenue through payment for order flow (PFOF) and wider forex spreads, which we quantify later. A 2026 Seedly survey found that 72% of Singapore investors under SGD 50,000 portfolio use zero‑commission platforms, but only 14% fully understand the embedded FX costs.

Exchange & Regulatory Fees: SGX’s Visible Cost vs. US Near‑Zero Levies

Every trade on SGX incurs a trading fee of 0.0075% and a clearing fee of 0.0325%, both on contract value, plus 9% GST. Combined, that’s about 0.04% of the trade, capped at SGD 600 per side. On a SGD 10,000 transaction, you pay SGD 4.36 in exchange and clearing fees.

US markets are radically cheaper. The SEC fee is USD 8.00 per USD 1,000,000 of principal on sells only – effectively 0.0008%. The FINRA Trading Activity Fee is USD 0.000145 per share sold, capped at USD 7.27 per trade. For a USD 10,000 sell order of 100 shares, total exchange fees come to about USD 0.08. That’s roughly 100 times less than SGX’s levy for the same dollar value. So, while SGX fees are transparent and capped, they are a fixed drag that US markets largely avoid.

Forex Costs: The Hidden Drag That Can Double Your Bill

Singapore investors buying US stocks must convert SGD to USD. This step can completely alter the cost equation. Bank‑based brokers like DBS Vickers or OCBC Securities typically apply a forex spread of 0.8%–1.2% on the mid‑market rate. An SGD 13,500 conversion (≈USD 10,000) at a 1% spread adds SGD 135 in hidden cost – more than ten times the combined commission and exchange fees for the trade itself.

Multi‑currency brokers slash this dramatically. IBKR’s FX Trader uses interbank rates with a tiny commission of 0.002% (minimum USD 2.00). That same conversion costs just SGD 2.70. Tiger Brokers and moomoo offer built‑in currency exchange with a spread around 0.3%–0.5%, making the fee about SGD 40–67. A 2026 report from MoneySmart.sg showed that the median investor using IBKR for FX paid only 0.02% in conversion cost, versus 0.89% at traditional banks. For anyone trading US stocks regularly, switching to a low‑cost FX multi‑currency account is the single largest cost‑saver available.

Custody & Platform Fees: CDP Safety vs. Sub‑Account Charges

SGX stocks bought through a broker are usually held in your Central Depository (CDP) account. There is no annual custody fee. This creates a permanent cost advantage for long‑term buy‑and‑hold investors. Your holdings stay free forever.

US stocks, by contrast, sit in a broker’s custodian or sub‑account. Most zero‑commission platforms charge nothing for custody, but some premium brokers levy fees. Saxo Markets, for example, charges a 0.12% per annum custody fee on all foreign shares, including US listings, with a minimum of USD 5 per month. That’s USD 60 a year, eating into returns. IBKR, Tiger, and moomoo do not charge custody fees. But note: if you hold US stocks with a Singapore bank‑broker, you may see a monthly statement charge of SGD 2–5, equating to SGD 24–60 yearly. Over a decade, these seemingly tiny costs compound into a meaningful disadvantage.

Dividend Withholding Tax: The 30% Penalty on US Income

Cost comparisons often ignore taxes, but for dividend seekers, the US withholding tax is a permanent drag. Singapore has no double‑tax treaty with the US that reduces the rate, so the full 30% withholding tax applies to all US dividends paid to Singapore residents. A US stock yielding 3% gross will hand you only 2.1% net after tax. To match a tax‑free SGX dividend yield of 4%, a US stock would need a gross yield above 5.7%. In 2026, the STI’s average dividend yield was 4.6% while the S&P 500 offered just 1.4%. For income‑focused portfolios, SGX’s tax‑free advantage can outweigh even the lowest trading costs.

Total Cost Scenarios: Which Market Is Cheaper at Your Trade Size?

Let’s walk through what matters most: real Singapore investor profiles at three trade sizes. All costs include commissions, exchange fees, forex (using IBKR FX for US, no conversion for SGX), and custody, where relevant.

Scenario 1: Small Trade of SGD 1,000

• SGX: Commission SGD 2.50 (minimum) + exchange/clearing SGD 0.44 = SGD 2.94 (0.29%).
• US (via IBKR): Buy 2 shares of a USD 370 stock (≈SGD 500 each). Commission USD 0.35 + forex SGD 0.07 = total SGD 0.54. US is 82% cheaper.

Scenario 2: Medium Trade of SGD 10,000

• SGX: 0.08% commission SGD 8.00 + fees SGD 4.36 = SGD 12.36 (0.12%).
• US via bank‑broker (1% FX): Commission USD 0.00 + FX SGD 135 = SGD 135.00 (1.35%). SGX is 91% cheaper.
• US via IBKR: Commission USD 0.35 + FX SGD 2.70 = SGD 3.18. US is 74% cheaper than SGX.

Scenario 3: Large Trade of SGD 100,000

• SGX: 0.08% commission SGD 80.00 + fees SGD 43.60 (capped somewhat? The cap SGD 600 per side, not reached) = SGD 123.60 (0.12%).
• US via IBKR: Commission USD 0.35 (1,000‑share order of USD 74 stock) + FX SGD 2.70 = SGD 3.18. US remains a tiny fraction.

The break‑even point where SGX becomes cheaper than a zero‑commission US trade is purely a function of forex. With a bank spread, SGX wins at any size. With IBKR’s forex, US wins across almost all trade sizes. The 2026 data shows that Singapore investors using bank forex lose an average of 0.92% per US trade, meaning an SGX trade becomes the better deal once your forex cost exceeds the 0.12% total SGX fee – a situation that happens the moment you convert more than a few thousand dollars through a bank.

Optimizing Your Costs as a Singapore Investor

Pick a multi‑currency broker even if you mostly buy SGX. IBKR offers the tightest FX spreads and gives you the option to add US stocks at next to zero total cost. For small, irregular US purchases, Tiger’s and moomoo’s zero‑commission apps with a 0.3% FX spread still beat typical bank channels. Aggregate your USD needs monthly, convert once, and trade later. Use a CDP‑linked account for SGX positions you intend to hold long‑term, avoiding custody fees. Finally, if dividends matter more than growth, weight your portfolio toward SGX to capture the full tax‑free 4.6% yield rather than a diluted 2.1% from US payers.

FAQ

What is the cheapest way to buy US stocks from Singapore? Using Interactive Brokers, the total cost for a SGD 10,000 trade including commission and forex is approximately SGD 3.18 (0.03%). In contrast, the same trade through a bank broker costs around SGD 135 due to forex spread alone.

Does SGX charge more than US exchanges? SGX’s exchange and clearing fees total about 0.04% of trade value, roughly 100 times higher than US equivalent fees (0.0008% SEC + FINRA on sells). However, the overall cost of a US trade can be much lower if you use a multi‑currency broker with tight forex spreads.

Do I pay tax on US dividends as a Singapore investor? Yes. The US levies a 30% withholding tax on dividends paid to non‑resident aliens, regardless of tax treaty. A 3% US dividend yield becomes 2.1% net. Singapore‑listed dividends are tax‑free for individual investors.

This article does not constitute financial advice.