Frequently Asked Questions about SMART Plan

What is SMART Plan?

SMART Plan enables you to subscribe to periodic investment by investing a fixed sum on a regular basis based on your chosen interval from daily, weekly to monthly. This helps you accumulate your investment steadily and progressively.

There are more than 10,000 US & SG stocks/ETF available for SMART Plan. The investment can be funded using the fund in your uSMART trading account, automatic e-GIRO deduction from your bank or combination of both aforesaid deduction method.

With a fixed amount invested periodically, you can buy more shares when prices are low and fewer shares when prices are high. Over time, as you accumulate more shares when prices are cheaper, you will be able to potentially lower the average purchase price per share which known as Dollar Cost Averaging (DCA).  

DCA is an investment strategy that may allow you to benefit from the volatile market. Because of the consistent exposure you get to the market, the idea is that you ride out the ups and downs in the long-term and benefit from the market’s upward trajectory.

 

Which account types are eligible for SMART Plan?

Both Cash and Margin account are eligible to benefit from SMART Plan.

 

What is the minimum value that for each investment placed via SMART Plan?

This SMART Plan allows you to put aside as little as SGD100/USD100 for each investment.

 

What is the frequency of investment available in SMART Plan?

Client will have the option to select a specific timing (30 mins interval) and specific investment period from Daily, Weekly to Monthly.

 

Is SMART Plan available for both buy and sell orders?

SMART plan is only available for buy order.

 

What are the counters available for SMART plan?

More than 10,000 US & SG stocks/ETF are available for SMART Plan. The list of eligible stocks can be found in the uSMART APP.

 

What are the charges for SMART Plan?

No extra fee for using SMART Plan, however standard fees and charges apply for all order done under SMART Plan. Please refer to our pricing guide to better understand the different fees and charges involve.

 

What is the order type available for SMART Plan?

Order for SMART Plan will be submitted using Market order.

 

What currencies will be used to settle the trades executed from SMART Plan?

All trades will be settled in traded currency of the chosen stocks/ETF.

 

Will I be subjected to debit interest charge for using SMART Plan?

1) If fund is deducted from the "e-GIRO Bank Account" and where the settlement currency of the specified Security is not in SGD:

• a. The SGD equivalent amount (with buffer for the exchange rate fluctuation) will be deducted from the "e-GIRO Bank Account". Due to currency fluctuation, each deduction of SGD equivalent will differ in accordance with the prevailing rate.
• b. Auto currency conversion will be performed from SGD to settlement currency of the specified Security stated in the Investment Instruction.

2) If the Debit Method for the Margin Account is from “uSMART Securities Account”, the purchase of the specified Security in the SMART plan may result in margin loan, alternative currency loan or debit interest. Auto conversion of deficit currency balances is not available and debit interest will be charged for the deficit currency balances.

 

Can I setup multiple investment instruction under SMART Plan?

Yes.

 

What if my bank account does not have sufficient fund for e-GIRO deduction?

If the “e-GIRO Bank Account” Deduction Method is unsuccessful for consecutive 3 Investment Dates, the Investment Instruction will be suspended.

 

Why was my order placed via SMART Plan being rejected?

Here are some order rejection reasons that you may see:

1) The counter is suspended for trading (for “e-GIRO Bank Account” Debit Method, the SMART Plan Amount will still be deducted on the Investment Date and Time and credited into your uSMART Securities Account.)

2) Insufficient investment amount in the account at the point of order placement

 

Is my money and assets held with uSMART Securities Singapore Pte Ltd ("USPL") safe?

uSMART is regulated and supervised by The Monetary Authority of Singapore. In compliance with section 104 of the Securities and Futures Act (“SFA”) and the provisions of the Securities and Futures Regulations (SFR), we protect your monies and assets by keeping them in client segregated accounts separated from our own with proper record keeping and controls put in place.

Section 104A of the SFA provides that monies and assets belonging to customers are not available for payment of uSMART debts and shall not be liable to be paid or taken in execution under an order or a process of any court.