Risk Warnings for Stocks and Exchange Traded Funds
This document contains the risk warnings for Stocks and ETFs. When you agree to this document, you are taken to have read, understood and agree to the risks disclosed below.
When you agree to the Product Terms, you are agreeing to the following risks:
Fractional share/ETF trading is only available on eligible shares and ETFs. Eligible shares and ETFs are subject to change without notice.
Orders for whole and fractional shares/ETFs may be executed separately and at different prices. It is also possible that only part of the order may be executed.
There is a possibility that fractional shares/ETFs may not be executed on the exchange where the shares/ETFs are listed. It may be executed over-the-counter, which could lead to price differences and possible delays in execution. An affiliate of our execution broker will generally act as a counterparty when facilitating orders for fractional shares/ETFs and may execute transactions as principal to complete orders. However, you will always remain the beneficial owner of your fractional shares/ETFs.
You will not have voting rights with fractional shares/ETFs.
You will not be able to participate in voluntary corporate actions or make elections, and you may receive default outcomes determined by us.
There may be delays in manufactured dividend payments and you may not receive the full dividends from the issuer of the share/ETF.
Fractional shares/ETFs traded and holdings are recorded up to four decimal places. Rounding may occur in transactions, manufactured dividends or corporate actions (if any) which may result in minor discrepancies.
When you agree to the Product Terms, you are agreeing to the following risks:
Market risk: The prices of shares and ETFs can go up or down and may be volatile due to company performance, news or adverse market conditions.
Tracking Error: ETFs may not always match exactly the performance of the index they aim to track due to price volatility or market conditions.
Liquidity risk: Some shares or ETFs may be difficult to buy or sell quickly due to high volatility or low trading volume.
Foreign exchange risk: When investing in U.S. or overseas assets using Singapore dollar, changes in exchange rates may affect your returns when converted back to your home currency. There is risk of rounding adjustments, where we use FX rates up to 4 decimals. The final converted amount may vary due to rounding.
Country & Political risk: Investment in foreign markets, including the U.S., may be affected by changes in laws, regulations (including tax regulations) and political events that affect the value of your investments.
Tax risk: Proceeds from the sale of shares or ETFs or the receipt of any dividends and other income may be or may become subject to tax, levies, duties or other fees or charges imposed by the authorities in that market, including withholding tax.
Third-party risk: Transactions will be carried out through third parties (for example, a broker or a custodian) appointed in good faith by us or by our nominees or custodians. There is a risk that these third parties cannot meet their obligations. For example, orders may not be transmitted or executed, and outstanding trades made through the execution broker may not settle. This could cause the value of your investments to fall.
Risks of investing in American Depository Receipt (ADR): An ADR is issued by a financial institution that represents shares in a foreign company. ADRs listed on U.S. stock exchanges allow investors to buy or sell shares in foreign companies and they are traded in U.S. dollars. Investing in ADRs is subject to market, liquidity, foreign exchange, country and company-specific risks, like investing in common company shares. In addition, there are other specific risks associated with ADRs:
Fluctuations in exchange rates between the U.S. dollar and the home currency can impact the value of the ADRs.
Financial institutions that issue and manage the ADRs may charge custodial fees and these are usually deducted from dividends or passed through by the brokerage firm.
ADRs may not trade as frequently as the underlying shares they represent and could be delisted from the U.S. exchanges, making them less liquid and harder to trade.
Low-priced U.S. stocks and cryptocurrency-linked ETFs risk: Trading in low-priced U.S. stocks (below USD1) involved significant risks such as high price volatility, low liquidity and the possibility of getting delisted. Cryptocurrency-linked ETFs carry similar risk of high price volatility. You may incur substantial or possibility of full capital loss. Please ensure you understand the risks and trade with caution.
Trading facilities and electronic trading: Our trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and computer systems, there is a risk associated with using these systems - including hardware or software failure. The result of any system failure may be that your order is either not executed according to instructions or is not executed at all. You should also be aware that the Internet is not a completely reliable transmission medium and there may be delays in service provisions.
An overseas-listed investment product* is subject to the laws and regulations of the jurisdiction it is listed in. Before you trade in an overseas-listed investment product or authorise someone else to trade for you, you should be aware of:
The level of investor protection and safeguards that you are afforded in the relevant foreign jurisdiction as the overseas-listed investment product would operate under a different regulatory regime.
The differences between the legal systems in the foreign jurisdiction and Singapore that may affect your ability to recover your funds.
The tax implications, currency risks, and additional transaction costs that you may have to incur.
The counterparty and correspondent broker risks that you are exposed to.
The political, economic and social developments that influence the overseas markets you are investing in
These and other risks may affect the value of your investment. You should not invest in the product if you do not understand or are not comfortable with such risks.
*An "overseas-listed investment product" in this statement refers to a capital markets products that is approved in-principle for listing and quotation only on, or listed for quotation or quoted only on, one or more overseas exchanges.
This statement is provided to you in accordance with paragraph 29D of the Notice on the Sale of Investment Products [SFA04-N12].
Last updated on: 29 Oct 2025, Version: 1
