1. Basics of Auto-Invest via your Tiger Trade app
1.1 What markets are available to invest in using the Auto-Invest function via your Tiger Trade app?
Currently, Auto-Invest Plans are available for most of the popular US and HK stocks.
1.2 How do I set up Auto-Invest via my Tiger Trade app?
In order to participate in an Auto-Invest Plan (“AIP”), you could:
Set up an automatic payment from your bank account or transfer a lump sum into your Tiger Account’s Securities segment. Please note that cash for an Auto-Invest order is only earmarked on its trading day. Please ensure you have a sufficient amount in the right currency for each of your Auto-Invest purchases.
Hold sufficient cash of the right currency (USD or HKD) for your Auto-Invest order, e.g., you should convert NZD to USD or HKD before your Auto-Invest order is placed.
Set up an Auto-Invest Plan via your app by selecting your preferred stock, clicking the "Add a plan now" button (like the screenshot below), and following the instructions by entering the amount and the frequency you want to invest.
1.3 What is the minimum amount that I can start to Auto-Invest with?
The minimum amount to start an Auto-Investment is USD 2 for US securities and HKD 500 for HK securities.
1.3.1 Can I trade on margin for my Auto-Invest Plan?
Yes, if you have an account approved for our margin facility and have manually enabled the function by checking "Margin allowed" on the Auto-Invest set-up page, your margin allowance will be available for your AIP. Margin interest charges apply.
1.3.2 Can funds be directly debited from my bank account?
Yes, you may add a bank account that Akahu supports as your AIP funding method. If you choose a bank account with a currency different from your AIP to fund your AIP, you authorise Tiger to debit your AIP order from your chosen bank account at the prevailing exchange rate, which includes a regular FX fee. Your direct debit will be processed by:
the US Eastern Time day before your Auto-Invest order is scheduled at 21:00 for a US security’s Auto-Investment;
the GMT+8 day before your Auto-Invest order is scheduled at 09:00 for an HK security’s Auto-Investment.
1.3.3 Can I use vouchers or commission-free cards for auto- invest?
Auto-Invest only supports the use of Auto-Invest specific vouchers.
1.3.4 When and at what price will the investment be filled?
Your order will be aggregated and placed with other Auto-Invest orders of the same date specified by you in the form of limit orders.
For a US security’s Auto-Investment, the order will be placed at around 13:30 ET. For days that the market closes early, the order placement time will be advanced to around 10:30 ET.
For a HK security’s Auto-Investment, the order will be placed at around 09:00 HKT.
For both markets, if your specified date is not a trading day (e.g., Saturday, Sunday, or some other holiday), the order time will be postponed to the next trading day. If extreme weather conditions cause a temporary closure of the exchange, a scheduled Auto-Invest order will fail for that day.
1.3.5 At what time zone will the order be placed?
Your Auto-Invest orders will be placed according to the time zone of the exchange where the security is listed. Say, you set up a weekly US stock’s Auto-Invest plan for Monday, then its order will be placed every Monday by US Eastern time.
1.3.6 Can I cancel or modify my auto-investment plan?
Yes, you can make changes to your plan. However, you will not be allowed to modify or cancel an Auto-Invest plan half an hour before the execution of the auto- invest order. Auto-Investment orders can not be cancelled after the orders are placed.
1.3.7 How can I cancel or modify my Auto-Invest Plan in the Tiger Trade app?
To cancel or modify your AIP go to My Auto-Invest Plan>click on the stock/ETF>manage>choose edit or cancel the plan.
1.3.8 Can I resume my Auto-Invest Plan after cancellation?
Yes, you can resume your cancelled investment plan under My Auto- Invest Plan.
1.3.9 Why did you skip my current investment cycle?
Your Auto-Invest Plan might have been skipped for the following reasons:
The ETF or stock could not be traded on that day.
A circuit breaker was encountered when placing an order.
Your Securities segment had a trading restriction.
You did not have enough available funds in your Securities and Fund segment combined.
The order may trigger a margin call notification/forced liquidation.
1.3.10 Will I get a reminder before my order is placed?
Yes, an in-app notification will be sent 2 calendar days (EST/HKT) before an Auto-Invest order is placed.
1.3.11 Will I get a reminder if my order is filled or cancelled?
Yes, an in-app notification will be sent when an order is filled or cancelled. Also, a single failure of a scheduled order will not affect your Auto-Investment plan for your future orders.
1.3.12 Where can I check my order?
You can check your order on the Tiger Trade app>go to Portfolio>Orders. You can also check your orders by clicking on Portfolio>More>Auto-Invest. Your AIP orders’ statuses will be reflected on your account after hours.
1.4 What are your fees for Auto-Investment Plans?
For a US security’s Auto-Invest order, it is the same as placing an order manually on standard US securities’ trading fees.
For an HK security’s Auto-Invest order, it is the same as placing an order manually.
1.5 Other things you may need to know about Auto-Invest in the HK market
If the investment amount you set is not enough to buy one board lot of shares, it may be purchased in an odd lot. Since the liquidity and price for odd lots may be inferior to board lot shares, it is possible to have a filled price higher than the market high displayed on the stock detail's page or to not have a filled order.
Some orders may not be executed at all, because, but not limited to:
Insufficient Auto-Invest funds to buy 1 board lot of stock after deducting the estimated fees.
Poor market liquidity or extreme weather conditions cause relatively low overall purchase volume.
Tiger will decide on the specific purchase volume based on its own risk control rules and the market situation on that day. If the overall purchase volume is relatively low, it is possible to not have a filled order.
2. Auto-Invest rate of return and calculator formula description
2.1 Auto-Invest rate of return:
2.1.1 What is Auto-Invest rate of return?
The Auto-Invest rate of return is a historical back-test rate of return, which is calculated based on the historical price of stocks and ETFs, assumptions include system set Auto-Invest period and Auto-Invest duration, etc. The calculation result of Auto-Invest rate of return is for reference only, and does not represent a prediction or indication of future returns, nor does it constitute any financial advice. Tiger cannot guarantee the accuracy of the calculation result. Investors need to independently evaluate the risk well to make investment decisions.
2.1.2 How to calculate the back-test return rate of Auto-Invest?
The Auto-Invest rate of return adopts a simple yield calculation formula: the Auto-Invest yield = the cumulative return in the Auto-Invest cycle/the cumulative Auto-Invest amount in the Auto-Invest cycle * 100%
Accumulated Return = (Current Price * Accumulated Auto-Invest Amount) - Accumulated Auto-Invest Amount
Cumulative Auto-Invest amount = Auto-Invest amount per period * Auto-Invest period
2.1.3 The relevant assumptions of the Auto-Invest rate of return formula?
Auto-Invest frequency: Auto-Invest is set to recur every Monday. If a Monday of the Auto-Invest cycle is a non-trading day, the system would then skip that Monday.
Auto-Invest cycle: Take the last trading day when a calculation is generated and backdate 365 calendar days as 1 year, and so on. If the listed time of the investment is less than the multiple of 365 days, only the remaining actual days are calculated in that year.
Auto-Invest price: The Auto-Invest transaction price and the current price are calculated from stock split price . If there is a corporate action such as a stock split, the calculator will generate the results by using the split-adjusted prices. Dividends, commissions and other transaction fees (such as foreign exchange fees) are not included in the calculation of historical back-testing yields.
2.1.4 How often is the Auto-Invest yield updated?
The Auto-Invest yield is updated on a daily basis based on the closing price of the most recent trading day. Since actual Auto-Invest orders are not specifically designed to invest at closing prices, the results shown on the calculator will have limited reference value. Investors should not rely entirely on this calculation.
2.2 Auto-iInvest Calculator
2.2.1 What is a Auto-Invest Calculator?
The Auto-invest Calculator is a visual tool to back-test historical return rate of Auto-Invest plans. Based on the historical prices of stocks and ETFs, the historical rate of return can be computed by setting parameters such as fixed investing amounts, investing frequencies, and investing length. The calculation result of Auto-Invest rate of return is for reference only, and does not represent a prediction or indication of future returns, nor does it constitute any financial advice. Tiger cannot guarantee the accuracy of the calculation result. Investors need to independently evaluate the risk well to make investment decisions.
2.2.2 How is the back-test return rate calculated by the Auto-Invest Calculator?
The back-test return rate of the Auto-Invest calculator is the same as the back-test return rate of Auto-Invest. It adopts a simple yield calculation formula: the Auto-Invest yield = the cumulative return in the Auto-Invest cycle/the cumulative Auto-Invest amount in the Auto-Invest cycle * 100%.
Accumulated Return = (Current Price * Accumulated Auto-Invest Amount) - Accumulated Auto-invest Amount.
Cumulative Auto-Invest amount = Auto-Invest amount per period * Auto-Invest period
2.2.3 What assumptions does the calculator use?
The back-testing historical return of the calculator uses the closing price of the relevant Auto-Invest dates. However, since actual Auto-Invest orders are not specifically designed to invest at closing prices, the results shown on the calculator will have limited reference value. Investors should not rely solely on those calculation results.
If there is a corporate action such as a stock split, the calculator will generate the results by using the split-adjusted prices.
The results do not take into account the impact of dividends, commissions and other transaction fees (e.g.,
:foreign exchange conversion fees).The Auto-Invest period takes the latest trading day as reference and dates 365 days back for 1 year, 730 (365+365) days for 2 years, and so on. The Auto-Invest period used will be the actual days for stock or ETF data that is less than the multiples of 365 days.
If a set Auto-Invest day for back-testing a security happens to be a non-trading day or a day that such a security did not support trading, the test will not include an Auto-Invest event for this day.
2.2.4 What can investors get from the Auto-Invest calculator?
Compare the historical returns on Auto-Invest of different stocks or ETFs within the same period.
Compare the historical returns on Auto-Invest of the same stock or ETF investment within different periods or with different investing frequencies.
3.1 What are the screening criteria for the most popular Stocks/ETFs?
This displays the highest-traded stocks and ETFs available for Auto-Invest with positive back-testing returns according to the Auto-Invest Calculator for the most recent 3 full calendar months.
3.2 How often is the above investment list updated?
The above investment lists are updated the second week of the month.
4.1 What filters do you provide to screen Stocks/ETFs?
High Dividend Yield：1. Dividend Yield⩾4%，2. Price>$5
Buffet：1. Float market cap⩾$500M，2. Net profit growth rate annual⩾6%, 3. Growth margin (TTM) annual⩾30%, 4. OP/EBT annual⩾70%, 5. ROE YOY annual⩾10%, 6. Price>$1
Value & Growth：1. P/E (TTM) 0-30，2. Market Cap>$500M, 3. ROE YOY annual⩾20%, 4. Growth margin (TTM)⩾5%, 5. Revenue growth rate annual⩾20%, 6. Price>$1
Undervalued： 1. Float Market Cap⩾$500M，2. Growth margin (TTM) annual⩾30%, 3. P/E (TTM)≤15, 4. Price>$1
4.2 How often are the above indicators updated?
Among the above indicators, the stock price and the dividend yield use the latest data, while the circulating market value, the total market value and the Price-To-Earnings Ratio use the data of the most recent trading day.