By MoneyBees
Work out your new average cost per share after buying more at a lower price, with fees counted, the shares needed to reach a target average and the rise you need to break even.
Add what you paid for the shares you hold to what you pay for the new ones, fees included, then divide by the total number of shares. 1,000 shares at S$2.00 plus 1,000 at S$1.50 with S$10 in fees is S$3,510 for 2,000 shares, S$1.755 each.
Shares needed = (shares held x (your average - target) + fees) / (target - price). The target must sit between today's price and your current average. Round up to a full board lot.
No. Your paper loss on the shares you already hold stays the same. Averaging down lowers the price the stock must recover to for the whole holding to break even, but you now have more money at risk if it keeps falling.
Yes. Commission, exchange fees and GST are part of what each share cost you. Brokers usually show an average that includes them, so small trades can raise your average more than you expect.
Most SGX shares trade in board lots of 100. From 5 Oct 2026, SGX reduces the lot to 10 shares for qualifying stocks priced above S$10 and to 1 share above S$100, starting with 11 stocks and reviewed every quarter.
Generally not. IRAS treats gains from buying and selling shares as personal investment gains, which are not taxable, unless you are trading shares as a business.
Averaging down is buying more of a stock because its price fell below what you paid. Dollar cost averaging is investing a fixed amount on a fixed schedule whatever the price.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).