Investing in China A-shares has become increasingly popular as global investors seek exposure to China’s rapidly growing economy. Tiger Brokers offers an easy and efficient platform to trade China A-shares, but understanding the fee structure is key to managing your investment costs effectively. In this blog, they will walk you through the commission fee and platform fee for trading China A-shares on the Tiger Brokers’ app, so you know exactly what to expect.
Tiger Brokers’ Fee Structure for China A-Shares
When you trade China A-shares via Tiger Brokers, you will incur two primary fees: the commission fee and the platform fee. Both of these fees are calculated based on your trade value.
- Commission Fee
The commission fee is charged for executing your trade order on China A-shares. For China A-shares, the commission fee structure is as follows:
0.03% of the Trade Value
Minimum Fee: CNH 7 per order
How the Commission Fee Works:
Small trades: If your trade value is low, you will pay the minimum commission fee of CNH 7.
Larger trades: For higher-value trades, the commission fee is calculated as 0.03% of the trade value, which increases with the size of the transaction.
Example:
Example 1: Small Trade (CNH 1,000)
For a trade worth CNH 1,000, the commission fee would be CNH 0.30 (0.03% of CNH 1,000). Since this is below the minimum fee, you will be charged the minimum commission fee of CNH 7.
Example 2: Larger Trade (CNH 50,000)
For a trade worth CNH 50,000, the commission fee would be CNH 15 (0.03% of CNH 50,000), which exceeds the minimum fee. Therefore, you will be charged CNH 15.
- Platform Fee
The platform fee is charged for using the Tiger Trade app to access and execute your China A-share trades. For China A-shares, the platform fee is structured as follows:
0.03% of the Trade Value
Minimum Fee: CNH 8 per order
How the Platform Fee Works:
Small trades: If your trade value is small, the minimum platform fee of CNH 8 applies.
Larger trades: For larger trades, the platform fee is 0.03% of the trade value, just like the commission fee.
Example:
Example 1: Small Trade (CNH 1,000)
For a trade of CNH 1,000, the platform fee would be CNH 0.30 (0.03% of CNH 1,000). Since this is below the minimum fee, you will be charged the minimum platform fee of CNH 8.
Example 2: Larger Trade (CNH 50,000)
For a trade of CNH 50,000, the platform fee would be CNH 15 (0.03% of CNH 50,000), which exceeds the minimum fee. Therefore, you will be charged CNH 15.
Total Fees: Combining Commission and Platform Fees
When you place an order for China A-shares on Tiger Brokers, both the commission fee and the platform fee are applied. Let’s calculate the total fees for a larger trade.
Example: Trade of CNH 50,000
Commission Fee: CNH 15 (0.03% of CNH 50,000)
Platform Fee: CNH 15 (0.03% of CNH 50,000)
Total Fees: CNH 30 (CNH 15 + CNH 15)
Why Choose Tiger Brokers for China A-Shares Trading?
Low Minimum Fees: With a minimum commission fee of CNH 7 and a minimum platform fee of CNH 8, Tiger Brokers offers competitive pricing for China A-shares investors.
Transparent Fee Structure: There are no hidden charges. The fees are straightforward and easy to understand, allowing you to plan your trades more effectively.
Efficient Trading Platform: Tiger Brokers provides access to the China A-share market through a robust and intuitive platform, allowing you to trade efficiently with real-time market data and advanced tools.
Conclusion: Understanding Tiger Brokers’ Fees for China A-Shares
When investing in China A-shares, understanding the associated commission fees and platform fees is essential for managing your investment costs. The commission fee and platform fee are both charged at 0.03% of the trade value, with minimum fees of CNH 7 and CNH 8, respectively. By understanding Tiger Brokers’ fee, you gain access to a powerful trading platform with transparent pricing, making it easier for you to invest in China’s A-share market.
