Tiger Brokers Unmarketable Parcels?

Moo Deng on 11/11/2024 - 17:14
Last edited 11/11/2024 - 17:14

Keep getting emails from Tiger Brokers along the lines of the following:

Dear client,

Tiger Brokers is excited to announce that we will soon transition to direct securities ownership for Australian securities.

However, our records indicate that you are holding Australian securities worth less than a marketable parcel. Unfortunately, ASX rules prevent us from transferring these securities. This means that during the transition to direct securities ownership, these securities cannot be transferred to your new Holder Identification Number (HIN).

What is a marketable parcel?

ASX defines a marketable parcel as a security holding with a value of AUD 500 or greater.

What unmarketable parcels am I currently holding?

To identify the unmarketable parcels currently in your Tiger Brokers account, log in to the Tiger Trade App, and navigate to the ‘Portfolio’ tab at the bottom of the page. Under the ‘My Portfolio’ section, you will find the market value of each of your holdings.

What can I do about it?

For each unmarketable parcel that is currently held in custody for you, the options available to you are:
Sell any securities that do not meet the marketable parcel definition, i.e. are valued at less than AUD 500.
Buy additional units in the unmarketable parcel’s securities so that combined, they become a marketable parcel
If you are holding the same securities with another party (another broker or share registry), you may be able to combine your shareholding to make it marketable. Simply > navigate to the ‘Portfolio’ tab, click ‘More’, and you will find the ‘Share Transfer In’ option in the app to initiate your share transfer.

Limited time offer

If you choose to sell your shares valued at less than AUD 500, Tiger Brokers would like to offer you free commission. This means that you won’t pay any commission on the sale of your unmarketable parcels. To take advantage of this offer, place a market order for the entire parcel of shares valued at less than AUD 500 on or before 30 November 2024.

Thank you for your continued trust in Tiger Brokers. Stay tuned for more information regarding the transition to direct securities ownership. If you have any questions, please do not hesitate to contact us.

Happy investing!

Tiger Brokers (Australia)

My questions:

1) If I ignore the notice and do nothing, what is the impact? Tiger Brokers will still continue to hold those shares for me and I can sell them again in the future?
2) If I do decide to sell to take them up on their offer of free commission trades, do I just sell each share individually, or does that free commission trade only refer to one trade? If so, how do I sell all the stocks at once for the entire parcel of shares?

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Comments

  • Baysew on 11/11/2024 - 17:28
    +1

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  • SBOB on 11/11/2024 - 17:38
    +3

    Current Tiger Brokers is the custodian of your shares.
    They giving you the option to either offload then for no fee (ie sell them) or buy a few more bucks so they can then transition those shares directly into your own HIN holding.

    Seems like a no brainer to just pick one, especially as if it's under $500 it's either
    - random holding that's not going to change your life so just sell
    - the next NVIDIA so you'd be insane not to at least get it to the level meaning the shares will be held by you and not someone else/custodian

    how do I sell all the stocks at once for the entire parcel of shares?

    Sell order,
    Choose quantity and elect all/maximum/enter share holding total,
    choose market or price (it's under $500, just do market),
    press Sell button,
    "profit"?

  • AngoraFish on 11/11/2024 - 19:14
    +2

    1) Your stock will most likely end up in a holding company with no assets and no mechanism for you to access those stocks because they no longer have any staff to organise that for you, or even a trading license to do so if they did have staff. In effect you'll be losing the stocks, but you'll be unable to book a loss against them because you will still technically "own" them. Even if the stocks do later increase in value at some stage to the point that they're worth more than $500 they still won't be attached to a broker and therefore you still won't be able to sell or trade them. If you get lucky, you might find that the company itself offers to buy small parcels off you but this would be extremely rare and entirely dependent on that company remaining solvent and interested in doing such a thing.

    2) You sell stocks in bulk parcels worth at least $500, you don't ever sell stocks individually. So, 3 stocks @ $200 a share = $600 or 60 shares @ $10 a share = $600. Both are a single, identical transaction. The offer applies to every company in which you own less than $500 worth of stock. In this case you are getting one free "trade" per company you own stock in, regardless of how many shares you hold in each of those companies. When entering the sell order there will be a box asking you how many shares you want to sell, make sure that number is all of them.

    Tiger Brokers' offer to buy your unmarketable parcels is a good offer and you should take it. What they will do is combine all of their customer's leftovers into a larger marketable parcel and offload them that way, but this isn't something they can do if they don't own them.

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