{"id":506451,"date":"2023-01-26T04:59:00","date_gmt":"2023-01-26T04:59:00","guid":{"rendered":"https:\/\/www.publicfinanceinternational.org\/?p=506451"},"modified":"2023-02-09T10:48:08","modified_gmt":"2023-02-09T10:48:08","slug":"how-to-buy-stocks-singapore","status":"publish","type":"post","link":"https:\/\/www.publicfinanceinternational.org\/how-to-buy-stocks-singapore\/","title":{"rendered":"How To Buy Stocks In Singapore"},"content":{"rendered":"\n

The stock market in Singapore favors passive investors who wish to chill out while collecting monthly dividends. It isn\u2019t rocket science, you don\u2019t need to be an expert to invest in rewarding shares in Singapore. You only need to follow the 5 easy steps<\/strong> we\u2019re going to share with you in this guide, and you should be ready to start investing!\u00a0<\/p>\n\n\n\n

Why it\u2019s a Good Idea to Start Investing in Stocks in Singapore\u00a0<\/h2>\n\n\n\n

Before we jump into showing you how to be a successful investor in Singapore, you should first know why you should even purchase stocks in Singapore.<\/p>\n\n\n\n

Stocks are an excellent addition to any financial portfolio. Investing in stocks can help you develop your savings, maximize your investment income, and safeguard your money from taxes and inflation. you can buy shares of companies listed on every stock exchange<\/a> as a retail investor. It has the potential to generate substantial profits, whether in terms of dividends or capital gains. So overall, investing in shares of companies you trust in is one approach to profit from their future growth.<\/p>\n\n\n\n

You can purchase Exchange Traded Funds (ETFs) in the same way that stocks are, which are funds that track a specific index and usually low-cost. <\/p>\n\n\n

\n
\"Infographic<\/figure><\/div>\n\n\n

How to Buy Stocks in Singapore: 5 Easy Steps<\/h2>\n\n\n\n

As we mentioned earlier, investing in stocks is easier than many people think. In fact, it could be done in only 5 easy steps that are fully digital and take minutes to complete.<\/p>\n\n\n\n

Step 1: Create a Central Depository Account (CDP)<\/h3>\n\n\n\n

A Central Depository Account (CDP) account is required<\/a><\/strong> since it keeps and safeguards your Singapore securities, including stocks and other securities listed on the Singapore Exchange. Dividends will be credited to your CDP only if you link your bank account to it.\u00a0<\/p>\n\n\n\n

If you want, you can skip this step and avoid the account opening<\/strong>, but only if you\u2019re going to make a plan to save money regularly. One option to acquire shares without the need for a broker in Singapore is to set up a Regular Savings Plan (RSP)<\/strong>. These are easy to set up via a provider that offers them, like OCBC, DBS, POEMS, FSMOne, and UOB. <\/p>\n\n\n\n

Alternatively, you can use a broker account with a custodian instead of a CDP-linked broker account.<\/strong> The CDP account is only for Singapore equities, meaning that owning one won't help you buy stocks<\/a> from other countries. the broker you\u2019re dealing with in this case will serve as the custodian for any international stock purchases you make.<\/p>\n\n\n\n

If you\u2019re still in doubt about the CDP account, creating one and testing the waters is a good idea. It shouldn\u2019t take a lot of your time since it no longer requires you to walk down to the CDP branch to create it.<\/p>\n\n\n\n

Step 2: Create an Account with an Online Broker<\/strong><\/h3>\n\n\n\n

Online brokers are a great way to make your trades, but not all online brokers are created equal, so you must do your research before deciding which one you\u2019ll trade with. You need to consider things like your preferred trading currency, trading fees, and minimum funding. <\/p>\n\n\n\n

Once you\u2019ve decided which online broker is the right one, it\u2019s time to sign up for it. The signup process in most respected online brokers is hassle-free, so you shouldn\u2019t have many issues getting your account verified and starting to trade. You can benefit from SingPass <\/strong>in the signup process, which reduces the manual information inputs required and speeds up the process. <\/p>\n\n\n\n

We recommend investing with Interactive Brokers, Phillip Securities or SAXO Markets if you're a beginner. If you buy equities on the Singapore Exchange, these two offer very attractive fees and no minimum commission.<\/p>\n\n\n\n

Step 3: Start Funding Your Account<\/strong><\/h3>\n\n\n\n

Just like you need to top up your e-wallet before making a purchase, you must fund it first before you can buy any stocks in case you're using a pre-funded account. Funding your account can be a prerequisite to getting rewards and bonuses from the Investment platform in Singapore<\/a>.<\/p>\n\n\n\n

Before funding your online trading account, you should first consider the number of shares you plan to acquire as well as their cost.It\u2019s a good idea to have slightly more money in your account than you think you'll need, don\u2019t forget about the fees!<\/p>\n\n\n\n

Step 4: Pick the Stock You Wish to Invest in<\/strong><\/h3>\n\n\n\n

After successfully funding your online trading account, you\u2019ll find yourself in front of many stock options to pick from, to help you narrowing your scope a little bit, you may want to consider one of these three:<\/strong><\/p>\n\n\n\n