SGX Lot Size, REIT Interest Coverage Ratio and Brokerage Fees 2026

A board lot on the Singapore Exchange (SGX) is the standardised minimum trading unit for equities and REITs listed on SGX-ST. Since 19 January 2015, all SGX board lots consist of 100 shares or units. Before that date, the standard lot size was 1,000 shares — meaning the switch to 100-share lots significantly reduced the minimum investment amount for higher-priced stocks. If a stock trades at S$4.50, one board lot costs S$450 (before fees). Odd lots (fewer than 100 shares) can be traded on the Unit Share Market (USM), but typically at wider bid-ask spreads and lower liquidity.

The SGX clearing fee is charged by Singapore Exchange (SGX) via the Central Depository (CDP) at a rate of 0.0325% of the contract value for every SGX trade — both buy and sell sides. For example, a S$10,000 purchase incurs a clearing fee of S$3.25. The clearing fee is subject to 9% GST (an additional S$0.29 in this example). There is a monthly cap of S$600 per CDP account on clearing fees, which protects very high-volume traders. The clearing fee is separate from your brokerage commission and is charged automatically by your broker on behalf of SGX.

The SGX trading fee (also called the access fee) is 0.0075% of contract value, charged on both buy and sell transactions on SGX-ST. It is distinct from the SGX clearing fee (0.0325%). Both fees are levied on the same trade value, so the combined SGX-imposed fee rate is 0.04% per transaction. On a S$10,000 trade: clearing fee = S$3.25, trading fee = S$0.75 — total SGX fees of S$4.00 before GST. These fees are non-negotiable regardless of which broker you use, as they are paid directly to SGX/CDP. Brokerage commission is the variable component that differs between brokers.

A CDP-linked brokerage (DBS Vickers, OCBC Securities, UOB Kay Hian, POEMS, Standard Chartered Online Trading) settles your SGX trades directly into your Central Depository account. Your name appears as the registered holder of the shares, you receive distributions and corporate actions (rights issues, dividends) directly from the company/REIT manager, and your shares are legally separated from the broker’s assets. A custodian brokerage (Tiger Brokers, moomoo, IBKR, Syfe Trade, Webull) holds your shares in an omnibus account in the broker’s name. You have beneficial ownership but are one step removed — distributions flow through the broker, and in a broker insolvency scenario, recovery is through the broker’s financial protection scheme rather than direct CDP ownership.

Among custodian brokerages, moomoo has been widely cited as offering one of the lowest commission rates for SGX trades in 2026 — from S$0.99 flat per trade, subject to ongoing promotional terms. Tiger Brokers offers from S$1.99 flat per SGX trade. Syfe Trade has offered as low as S$1 per trade. Among CDP-linked brokerages, DBS Vickers Cash Upfront is the most cost-competitive, charging 0.12% with a minimum of S$10.90 per trade — the lowest CDP-linked rate in the market. Traditional online rates (DBS Vickers Online, OCBC Securities, POEMS) typically start at 0.25%–0.28% with a S$25 minimum. Always verify current rates directly with the broker, as commission schedules are periodically revised.

The Interest Coverage Ratio (ICR) measures a REIT’s ability to service its interest payments from operating income. The formula most commonly used for S-REITs is: ICR = EBITDA ÷ Total Interest Expense, where EBITDA is earnings before interest, taxes, depreciation, and amortisation for the trailing 12-month period. Some REIT managers use Net Property Income (NPI) instead of EBITDA. A higher ICR indicates the REIT generates significantly more income than needed to cover interest — for example, an ICR of 3.0× means the REIT earns three times its interest costs from operations. The relevant figures are disclosed in the REIT’s quarterly or semi-annual financial statements filed on SGX’s announcement platform.

Under the MAS Property Fund Guidelines (Appendix 2), a S-REIT or property trust whose aggregate leverage exceeds 45% of the value of its deposited property must maintain an ICR of at least 1.5 times. This rule was introduced as part of MAS’s 2022 revision to the REIT leverage framework, which simultaneously raised the maximum leverage ceiling from 45% to 50% conditional on meeting the ICR floor. The 1.5× minimum is a regulatory hard floor, not a target. If a REIT’s ICR falls below 1.5× while its gearing is above 45%, it cannot incur any further debt until it restores the ratio — typically through asset sales, equity issuance, or income growth.

The MAS minimum of 1.5× is the regulatory floor, not an indicator of health. Industry practitioners broadly use the following interpretation: ICR below 1.5× = MAS breach (if gearing >45%); ICR 1.5×–2.0× = watch zone (marginal buffer, vulnerable to rate rises); ICR 2.0×–3.0× = adequate; ICR above 3.0× = strong. Well-capitalised, investment-grade S-REITs like CapitaLand Integrated Commercial Trust, Mapletree Industrial Trust, and Frasers Centrepoint Trust have historically maintained ICRs above 3×. REITs with predominantly overseas assets (US office, European logistics) that carry higher-cost foreign currency debt or floating-rate exposure have been under more ICR pressure since 2022.

The primary cause was the rapid rise in global interest rates from 2022. Many S-REITs carry a mix of fixed-rate bonds and floating-rate revolving credit facilities. As the US Federal Reserve raised rates from near zero to 5.25%–5.50% and SORA (Singapore Overnight Rate Average) climbed above 3.5%, the interest expense on floating-rate borrowings increased substantially — often doubling or tripling on those tranches. For REITs with high floating-rate debt proportions, total interest expense rose faster than NPI could grow through rental reversions and new acquisitions, compressing the ICR. REITs with heavily US-focused portfolios (Manulife US REIT, Keppel Pacific Oak US REIT) faced the dual headwinds of US office market weakness and high borrowing costs.

Yes. Under the CPF Investment Scheme (CPFIS-OA), Singapore citizens and PRs can invest CPF Ordinary Account savings (above the first S$20,000) in approved SGX-listed stocks, S-REITs, and ETFs. CPFIS trades go through a CPFIS-approved broker (DBS Vickers, OCBC Securities, UOB Kay Hian, POEMS) and are settled into a CPFIS sub-account linked to your CDP account. The same brokerage commission schedule applies — no CPFIS-specific discount. The key cost to factor in is the opportunity cost of CPF OA interest: every dollar invested via CPFIS foregoes the guaranteed 2.5% per annum (plus additional interest on the first S$60,000 of combined CPF balances). For break-even analysis, your CPFIS investment must return at least 2.5% above your all-in brokerage costs per year.

The break-even sell price for an SGX purchase accounts for both buy-side and sell-side costs. A simplified formula: Break-Even Price = [Total Buy Cost + Estimated Sell Commission + SGX Sell Fees] ÷ Number of Shares. Total Buy Cost = (Shares × Buy Price) + Buy Commission + SGX Clearing Fee (buy) + SGX Trading Fee (buy) + GST on buy fees. Estimated Sell Commission and fees are calculated similarly at the projected sell price (often approximated using the buy price for break-even purposes). The SGX Lot Size & Cost Calculator handles this automatically — including GST at 9% and the minimum commission floors for your chosen broker — so you know exactly what price you need to reach before turning a profit.

Yes. As of 1 January 2024, Singapore’s Goods and Services Tax rate is 9%. GST applies to brokerage commission charged by your broker (as this is a financial advisory/dealing service fee) and to SGX clearing fees. The SGX trading fee is also subject to GST. This means the effective all-in fee rate is consistently higher than headline rates suggest. For a S$5,000 trade on DBS Vickers (min S$25 commission + S$1.625 clearing + S$0.375 trading): total fees before GST = S$27.00; GST = S$2.43; total fees = S$29.43 — nearly 6% of the face value of the trade on a small lot purchase.

An odd lot is any quantity of shares fewer than one full board lot (i.e., fewer than 100 shares). Odd lots arise when you receive shares from a rights issue or stock dividend that do not total a round 100. Odd lots can be traded on the Unit Share Market (USM) — a separate matching engine on SGX — but USM trades typically have wider spreads and lower liquidity than the main board. You cannot add a fractional lot to a standard board lot order on the main market. If you hold, for example, 142 shares (one 100-share lot + 42 odd shares), you can sell the 100-share lot on the main board and the 42-share odd lot on USM separately, or wait until you accumulate 58 more odd shares to form a second full lot.

ICR and DPU are connected through the REIT’s distributable income. A declining ICR — caused by rising interest expense — directly reduces the net income available for distribution. If a REIT’s interest costs increase by S$10M annually while NPI is flat, the distributable income falls by S$10M, and DPU declines proportionally based on total units outstanding. Additionally, a REIT with a low ICR faces a constraint: it cannot easily reduce its interest burden by refinancing into more debt at lower cost (since it may need to reduce overall leverage). The risk of a DPU cut or equity fundraising (which dilutes DPU per unit further) is meaningfully higher for REITs with ICR below 2.0× compared to those above 3.0×.

For S-REIT income investing, the CDP model has practical advantages: distributions flow directly from the REIT manager into your designated bank account without any intermediary delay or processing step; you participate automatically in DRIP schemes (by submitting election forms to the share registrar); and your units are held directly in your name for corporate action entitlements (rights issues, AGM voting). The CDP account is free and can be opened online at cdp.sgx.com. For investors focused primarily on growth stocks or high-frequency tactical SGX trades, the fee savings of custodian brokers may outweigh the ownership advantages of CDP. The hybrid approach — CDP for core S-REIT income positions, custodian for growth/tactical trades — is the most practical solution for most SG investors in 2026.

This is a critical distinction between CDP and custodian accounts. Custodian brokers regulated by MAS under the Securities and Futures Act are required to keep client assets segregated from the broker’s own assets — meaning your shares should not be used to satisfy the broker’s creditors in an insolvency. Singapore also has the Securities Investors Association Singapore (SIAS) and MAS investor protection frameworks. However, recovery from a custodian broker insolvency involves a liquidation process and can take time — whereas CDP-held shares are immediately accessible regardless of broker status, as CDP directly maintains your register. For large, long-term S-REIT positions that you do not intend to trade frequently, the CDP model provides an additional layer of separation that many income investors find reassuring.