As the day of collecting rewards for completing TIGER cards draws near, there needs to be more thought and planning in what to redeem.
Used some points to redeem a Silver Futures voucher but it was a bad idea... Here's why:
Have not traded futures before, so naturally thought that it costs around USD20 to buy a contract and just need to buy 3 contracts to use up the USD50 voucher, totalling around USD60.
WRONG.
It actually requires around USD10,000 per contract as Initial Margin... This means USD30,000 to buy 3 contracts to use up the USD50 voucher.
Silver futures margin requirement
Even the Micro Silver Futures would take USD2,000 Initial Margin each for a total of USD6,000 Initial Margin requirement.
USD50 futures vouchers are undoubtly the best use of points, but do note the margin requirement before redeeming...
Best value
The one with the lowest margin requirement would be Micro E-mini Russell 2000 at around USD600, next would be Micro E-mini Dow Jones at around USD900. Both have a lower "Intraday Initial Margin" at USD500 and USD800 respectively.
Micro E-mini Russell 2000 futures margin requirement
The second best value for points is the SGD20 ETF vouchers. Redeeming it should be much more straight forward. Buying and selling of ETFs works just like any other stock.
Special mention for anniversary prize items like umbrella, bag and towel which will be released on 8th July.
Other prizes are not really points efficient.
Kudos to Tiger support who offered a USD5 voucher for my mistake... Making this a USD45 mistake...
Hope this post helps prevent others from making the same mistake.
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