SINGAPORE – Starting Oct 5, it will become more affordable for retail investors to trade higher-priced stocks and real estate investment trusts (REITs) on the Singapore Exchange (SGX).
They will be able to buy an initial group of 11 stocks priced above $10 in smaller quantities, thereby lowering their investment outlay.
The revised board lot framework caters for two scenarios: where prices are between $10 and $100, the minimum trading quantity will be cut from 100 units to 10 units, and where prices are above $100, the minimum trading size will be just one unit.
ST takes a closer look at the eagerly awaited reduction of board lot sizes in October.
1. Which stocks will see their board lot size reduced from 100 shares to 10 shares, and what happens if their share prices fall?
The three local banks are among the 11 stocks which will drop to smaller trading sizes from Oct 5.
They are DBS, Great Eastern Holdings, Haw Par Corporation, Jardine Cycle & Carriage, Jardine Matheson Holdings, Keppel, OCBC, Prudential, SGX, UOB and Venture Corporation.
These 11 stocks accounted for 35 per cent of trading activity on SGX in the first six months of 2026.
Chawla Vikramjit Singh, director and head of securities (retail sales) at Phillip Securities, said that for investors with smaller budgets, the amount of money needed to buy a full board lot limits which stocks they can consider and how much of their cash is tied up in just one company.
Take, for example, DBS, which closed at $69.10 on July 8. An investor would need $6,910 for a lot of 100 DBS shares.
According to the Ministry of Manpower, the average gross monthly income from employment was $6,593 in the first quarter of 2026.
This means that an average earner would not be able to buy a single lot of DBS, even if they invested their entire month’s salary into the stock.
Chawla said that lowering the price barrier gives the everyday investor more flexibility to purchase pricier shares and build up their investments gradually.
In the DBS example, the investor would need to fork out only $691 for a lot of 10 DBS shares starting Oct 5. This leaves them with money from their pay cheque for other investments, personal savings and daily living expenses.
SGX noted that the smaller trading sizes for the 11 stocks will remain even if their share prices subsequently fall below the threshold, which is between $10 and $100.
Adeline Gao, a research analyst on the research and portfolio management team at FSM Global, said this provides certainty for investors and avoids creating odd lots or loose shares.
Chua Yi Wen, Singapore head of investment products at DBS Consumer Banking Group, said brokers and trading systems also do not need to constantly reset their parameters every time prices move.
“The aim is to send a clear signal that SGX means to make investing more accessible, not less,” she added.
2. Currently, there are no shares trading above the second threshold of $100. Why set a one-share trading limit for stocks over $100?
Gao said the framework is intended to be future-proof rather than addressing only today’s market.
She added that share prices can appreciate over time or new high-priced companies may list on the SGX.
When this happens, the guidelines are ready. Gao said: “By establishing the framework in advance, SGX ensures that investors will be able to purchase these higher-priced securities in more affordable quantities without requiring further rule changes.”
3. Would more stocks see their trading sizes cut?
SGX will conduct a review every calendar quarter to determine if additional instruments qualify for the smaller board lot sizes.
Besides shares and REITs, the lot size adjustments also apply to other financial instruments, such as business trusts, company warrants and depository receipts.
The next review will take place in January 2027.
Financial instruments will be assessed based on their daily closing prices from July to December 2026.
The SGX noted that new additions will be announced in the first five trading days after each quarter ends and will take effect within the first five trading days of the second month.
FSM Global’s Gao said investors can check the lot size of a particular security by referring to the order ticket on their broker’s trading platform.
This ticket is the digital form where users input trade details when they buy or sell shares.
She added that investors can also refer to the quarterly announcements and circulars published on SGX’s website for any changes.
4. What about investors with odd lots? How easy is it to sell them, and would a universal one-share minimum solve the problem?
The reduction in minimum trading sizes will help alleviate the problem of odd lots for eligible securities. Odd lots are loose shares which fall short of a standard board lot.
Gao noted that holdings of 10, 20 or 30 shares, currently considered odd lots, will become standard board lots from Oct 5.
Even so, investors who still need to buy or sell remaining odd lots can do so through the SGX Unit Share Market.
Chawla from Phillip Securities noted that “liquidity and pricing may differ from the regular market and should be considered when transacting”.
This is because there are fewer buyers for small batches of shares. The buy-sell prices may also not be as attractive as in the regular market, Gao noted.
Often there are also strict price limits, where the investor sets the price they are willing to accept and the order sits in the trading system until a willing buyer matches the exact asking price.
Consequently, odd-lot transactions take longer to complete than standard board lot trades, Gao said.
The problem of odd-lots could be resolved entirely if the minimum trading size for all stocks dropped to one share.
However, a one-share trading limit might not benefit most investors.
DBS’ Chua said that for shares which are trading below $10, a full lot of 100 shares costs less than $1,000 – an amount within most retail investors’ reach.
She added that lowering the board lot size to one share would not add much benefit and could even raise costs.
“Every trade carries fixed fees that will hit smaller orders much harder,” Chua said.
5. Why don’t my trading fees come down as board lots get smaller?
While smaller board lots lower the entry barrier for retail investors, brokerage commissions, exchange fees and other transaction charges remain unchanged.
Chawla noted that these underlying costs must still be considered, particularly for smaller trades.
Ultimately, FSM Global’s Gao noted, an investor’s overall trading costs depend largely on their broker’s fee structure.
“If your broker charges commissions as a percentage of trade value without a minimum fee, buying fewer shares will generally result in a lower dollar commission.
“However, if your broker imposes a minimum commission per trade, purchasing smaller quantities may result in a higher effective transaction cost as a percentage of your investment,” she said.
