How to Open CDP & Brokerage Account in Singapore (Step-By-Step Guide)
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Are you looking for a comprehensive guide to open a brokerage account in Singapore? As long as you are in Singapore and you want to start invest in Singapore, you’ll need to open a trading account in Singapore.
Here I will guide you from the start to finish with a detailed step-by-step guide to opening a new brokerage account in Singapore.
What Is a Brokerage Account?
A brokerage account is an investment account offered by licensed brokerage firms registered on the Monetary Authority of Singapore MAS. Investor can buy or sell a variety of investment products through depositing funds into their brokerage account.
In Singapore, there is two main types of brokerage account:
- Custodian Brokerage Account: Brokerage where your holding are kept at your brokerage company.
- Central Depository (CDP) Linked Brokerage Account: Brokerage where your holding are kept at your own CDP account.
Choosing Between Custodian vs Central Depository (CDP) Account
When investing in Singapore, you need to understand the distinction between Custodian and Central Depository (CDP) accounts.
As this is the first step you’ll need to take before you can start your stock investing or opening any brokerage account in Singapore
CDP-Linked Account: Owning Your Investments
Opening a CDP-linked brokerage account offers direct ownership of the stocks you purchase, making you a shareholder of the companies you invest in.
Ideal for long-term investors seeking benefits such as:
- Attending annual general meetings (AGMs), voting rights, and receiving company reports.
While it provides advantages, CDP-linked accounts come with higher brokerage fees and additional charges.
Custodian Account: Flexibility and Lower Fees
Opening a custodian account means that the brokerage holds your investments on your behalf. While you don’t enjoy the same shareholder benefits as with a CDP-linked account, custodian accounts offer benefits such as:
- Lower brokerage fees, making them suitable for short-term traders.
Custodian vs Central Depository (CDP) Account Compared
Both Custodian and Central Depository (CDP) Account have their own benefits and drawbacks, and to help you make your decision better, here is a quick comparison table of these two types of brokerage account in Singapore.
Aspect | CDP-Linked Account | Custodian Account |
---|---|---|
Ownership | Direct ownership of purchased stocks | Brokerage holds investments on your behalf |
Shareholder Benefits | AGM attendance, voting rights, annual reports | Limited benefits compared to CDP account |
Trading Flexibility | Centralized stock ownership for trading options | Convenient for short-term traders |
Bankruptcy Safeguard | Safeguards investments in case of broker bankruptcy | Nominee account ownership |
Brokerage Fees | Higher brokerage fees, additional charges | Lower brokerage fees, cost-effective option |
Short-Selling Coverage | Not applicable | Covers accidental short-selling for a fee |
Ideal For | Long-term investors seeking shareholder benefits | Short-term traders pursuing lower fees |
Just my own personal preference, as I do both long-term investing and slightly shorter term trading on the market fluctuation, I do have brokerage that are CDP-Linked Account and Custodian Account. There is no rule that says you should only have one account right?
Most important is that you need to know what you are doing. And if you are just starting off, choosing one that is low fees is probably more important than the account type.
How to Open a Brokerage Account in Singapore
Having a better understanding of CDP-linked account and Custodian Account, now we will guide you step by step in opening a brokerage account in Singapore.
Step 1: Check Your Eligibility
Before getting started on your investment journey, you need to check if you meet the eligibility criteria.
- You must be at least 18 years old to meet the minimum age to open brokerage account.
- You must not in an undischarged bankrupt when applying for a brokerage account.
- You must have a savings or current bank account with one of the following banks: Citibank, DBS/POSB, HSBC, Maybank, OCBC, Standard Chartered Bank, UOB.
Step 2: Open a Central Depository (CDP) Account
Getting started with your investment journey by opening a CDP securities account . These accounts are managed by the Singapore Exchange (SGX), the CDP account securely holds the shares you purchase. The application process is pretty simple.
1. Have a Singapore bank account
To get started in opening your individual CDP account you’ll need to have a saving or current account with one of these banks:
- Local Banks: DBS/POSB, OCBC, UOB
- Other Banks: Citibank, HSBC, Maybank, Standard Chartered Bank
2. Opening your CDP Account
You can open your CDB account for free by one of these 2 ways:
- Either apply online via the SGX website,
- Or, opening your CDP account by filling the form physically at the CDP office.
For Singaporeans and Singapore PR, doing the registration online is much easier as you can simply us “Myinfo” to help you fill-up the forms. You can get started by going into their Online Application form in SGX website.
For Foreigners doing the registration is slightly more complicated. Check out the SGX website on the CDP account registration here.
Quick Tip: For Singaporeans and PR, you can expedite the process by using your SingPass login to autofill application details. Opening a CDP account online is much easier.
Step 3: Select Your Preferred Brokerage Firm
With your CDP account created, you can now do your research and choose the right brokerage firm that aligns with your investment goals.
While there are many brokerage firms available, getting started with brokerage that is a member of the Singapore Stock Exchange will be wise.
Now is the time for you to choose between a CDP-Linked Account Brokerage and a Custodian Account Brokerage. To help you with your choice, here we’ve complied a top brokerage who are also members of the (SGX).
BROKERAGE | MIN. FEES (SGD) | TRADING COMMISSIONS (SGD) | ACCOUNT TYPE | CUSTODIAN FEES (SGD) |
---|---|---|---|---|
Moomoo Singapore | $0.99 | 0.03% Trade Value | Custodian | No custodian fees |
Tiger Brokers | $0.99 | 0.03% Trade Value | Custodian | No custodian fees |
Phillip Securities | $25.00 | 0.08% Trade Value | Custodian | $15 Per Quarter |
KGI Securities | $25.00 | 0.18% Trade Value | Custodian | $2.14 Per Quarter |
Lim & Tan Securities | $25.00 | 0.18% Trade Value | Custodian | $15 Per Quarter or 0.0025% pa of Market Value of Share |
iFAST Financial | $8.80 | 0.08% Trade Value | Custodian | No custodian fees |
Maybank Kim Eng Securities | $25.00 | 0.275% Trade Value | CDP | Not Applicable |
DBS Vickers | $25.00 | 0.12% Trade Value | CDP | Not Applicable |
UOB Kay Hian | $25.00 | 0.18% Trade Value | CDP | Not Applicable |
OCBC Securities | $25.00 | 0.275% Trade Value | CDP | Not Applicable |
CGS-CIMB Securities | $25.00 | 0.18% Trade Value | CDP | Not Applicable |
Note: Data are consolidated, checked for accuracy and ensure outmost reliability by the Author through hours of research into each of the brokerage platforms, the author aims to provide the most accurate data by following strictly according to our editorial guidelines but always do your own due diligence before investing. Fees are for Singapore Stocks only.
When choosing which brokerage to open your account, you should also take into account that you should choose one that offers user-friendly platforms, research tools, and competitive fees.
Your chosen brokerage will be your gateway to the world of trading.
And personally I uses Moomoo for many of my trades not only it is one of the members of the SGX, it offers one of the lowest trading fees.
BEST FOR: Beginner Retail Investors and Professional Traders Looking For All-In-One Trading App to Invest in SG, US, HK and China.
securely through Moomoo’s website
Quick Tip: Consider factors such as brokerage fees, trading platform features, and customer support when choosing the best brokerage firm for your needs.
Step 4: Gather Essential Documents
When you have chosen the brokerage account of your choice, it’s time to get started in getting all your necessary documents in place for your brokerage account application.
Online Brokerage Account Application
Singaporean or Singapore Permanent Resident | Foreigner |
---|---|
General documents for application: ✔ Completed Trading Account Application Form ✔ Completed CDP Linkage Form ✔ Copy of NRIC or 11B and Passport (For NSF) ✔ Copy of supporting document reflecting your name and residential/mailing address | General documents for application: ✔ Completed Trading Account Application Form ✔ Completed CDP Linkage Form ✔ Copy of IC or Passport ✔ Copy of supporting document reflecting your name and residential/mailing address |
Or, if you want to skip all the complicated steps, the easy way is to open your brokerage account using the following: ✔ Scanned softcopy of your NRIC (Front and Back), 11B or Passport ✔ SingPass login and automatically fill up all the information by “Myinfo“ | NA |
In-Person Brokerage Account Application
Singaporean or Singapore Permanent Resident | Foreigner |
---|---|
General documents for application: ✔ Completed Trading Account Application Form ✔ Completed CDP Linkage Form NRIC or 11B and Passport (For NSF) ✔ Original supporting document reflecting your name and residential/mailing address | General documents for application: ✔ Completed Trading Account Application Form ✔ Completed CDP Linkage Form IC or Passport ✔ Original supporting document reflecting your name and residential/mailing address |
These documents typically include your identification, proof of residence, and banking details.
Quick Tip: Be sure to have scanned copies of your NRIC, passport, and relevant supporting documents ready for a smooth application process.
Step 5: Submit Your Account Opening Application
There are two ways for you to submit your application to open your brokerage account:
- Online: Preferred way to submit your application, and most brokerages in Singapore offer the option to apply online. Simply, fill out the application form, upload your documents, and submit your application digitally. You can also choose to use SingPass “Myinfo” for your application.
- In Person: Available only for brokerage with a physical office such as the banks. Even so, you need to go to the brokerage’s office for the application process. You’ll need to bring all your original documents with you and you will be tasked to fill up the application form. While you are at the brokerage office, a representative will guide you through the application process.
Many of the low cost brokerage companies do not have “In-Person” application process, you will need to apply through online.
Personally, I think online application is the best way to get started, not only you do not need to travel to the brokerage office, avoid the tedious process of filling physicals forms, you have more options of brokerage firm to choose from when opening your account.
Quick Tip: Online application and expedite your application process from a few weeks to a few days. Not only you can use SingPass “Myinfo” to fill up the forms, some of the top online broker offer welcome bonus for new account sign up.
Step 6: Account Review and Knowledge Assessment
Depending on the type of investments you plan to trade, you may undergo a Customer Account Review (CAR) or a Customer Knowledge Assessment (CKA).
You do not need to go through a CAR or CKA assessment if you are investing in the general investment products such as:
- Stocks
- Bonds
- REITS
However for more advanced trading of Specified Investment Products (SIP), you’ll need to go through a CAR or CKA assessment to ensure you have the necessary knowledge to understand complex investment products. These are investment products such as:
- Mutual Funds
- Options
- Futures
- CFDs
If you are a new investor, it is better if you can just stock to the general investment products such as stocks, bonds and REITs.
Not that these investment do not have risk (in fact all investment have risk), the advance investment product uses leverage which can be very dangerous (may even lead to bankruptcy) if you don’t know what you are doing.
Quick Tip: These assessments are designed to protect you and ensure you make informed investment decisions. Embrace them as opportunities to enhance your investment literacy.
Important Warning: Many investment Gurus ask new investors to invest in Options, saying it is a new way to earn money fast. Options can be very dangerous. Options is good investment tool, but only if you know what you are doing. Avoid any derivatives trading if you are new to investing.
Step 7: Start Trading
With your brokerage account successfully opened and linked to your CDP account, you’re ready to start trading after you’ve fund your account.
But before you place your first trade, you should get yourself familiarized with the brokerage’s trading platform. Many of the top brokerage have their trading platform designed for the professionals and it can feel overwhelming for new investors.
- Explore the brokerage’s trading platform
- Learn how to execute trades by reading their user guides or video training guides.
- Observe market trends and make an informed decision before you place your trade.
Many of the best brokerage have evolved to have more user-friendly interface or offer “Paper Trading” where you get to trade using virtual money. This way you can get used to the platform while not risking any of your hard earn money.
Quick Tip: Begin with a diversified portfolio to manage risk. Invest in a mix of asset classes and industries to optimize your investment strategy. Opening a trading account is just the beginning. Consider reading my investment guide before you get started.
Step 8: Regular Portfolio Review
Whether you’re a long-term investor or a trader, regularly review your investment portfolio can guide you closer to your investment goals. This process is ongoing and should be done at least once a year. However, the period you choose can differ between individuals.
- Keep track of market movements and stay informed about economic developments that may impact your investments.
- Understand the changes of each company you have invested.
- Rebalance your portfolio according to your risk tolerance level.
Quick Tip: Use research tools provided by your brokerage to stay updated on market trends and news. Some of the best brokerage offers Trading App which can help you keep updated to the latest changes on the market, empowering you to make well-informed investment decisions.
How Does a Brokerage Account Work?
Brokerage account works by letting investors access to publicly traded instruments such as stocks, bonds, Real Estate Investment Trust (REITs), Exchange Traded Funds (ETFs) and more.
The brokerage account serves as the middleman that facilitates the buying and selling of these investment products.
Choosing a The Right Broker to Open a Brokerage Account in Singapore
With so many brokerage firms in Singapore, set up an account to trade is quite easy. However, knowing to open which brokerage account and start investing can be quite confusing.
While I’ve handpicked the “Best Brokerage Account in Singapore“, here are some factors to consider when choosing a brokerage to open an account for online trading.
1. Market Access
Brokerage account connects you to the stock market, allowing you to engage in transactions that can potentially yield significant returns.
Depending on which brokerage you open your account with, you can get access to different market access (Stock Exchange Access).
- Singapore: Singapore Stock Exchange (SGX)
- United States: New York Stock Exchange (NYSE), Nasdaq Stock Exchange (NASDAQ)
- Hong Kong: Hong Kong Exchanges (HKEX)
- China: ShangHai Stock Exchange (SSE) or Shenzhen Stock Exchange (SZSE)
- Etc.
2. Investment Options
Types of investment option is another factor to consider, depending on what is your investment goal, you should consider what types of investment products are offered for the brokerage:
- Stocks and Bonds
- Exchange-traded funds (ETFs)
- Real estate investment trusts (REITs)
- Mutual Funds
- CFDs, Options and Futures
A brokerage account offers a diverse array of investment choices.
3. Research Tools
Many brokerage platforms provide inbuild investment tools for you to make assessment of your potential investments. These tools includes:
- Real-time quotes and Level 2 quotes
- Fundamental analysis data
- Technical analysis tools
- Basic and advanced charting tools
- Latest market information, company news and announcements
- Analyst insights and commendatory
Investment tools are there to assist you in making informed investment decisions. Your perfect brokerage platform should be a platform that offers the investment tool that you’ll use and need.
As a investor, it is good to understand that more investing tools isn’t always good, but not having the right investing tool is always bad.
4. Trading Flexibility
In our busy life, we want flexibility even in our investment, with a trading platform that offers high flexibility in how you can control your trade can be extremely helpful.
- Market order
- Limit order
- Stop loss
- Good-till-cancel
With trading flexibility, you can execute trades at your convenience, enabling you to react to market trends and news in real time.
5. Portfolio Management
Track and manage your investments through the brokerage platform can give you a better clarity on your investment performance and let you understand if you are moving towards your investing goals.
- Watchlist Creation
- Holdings Visualization
- Profit and Loss Visualization
With a good portfolio management system it keep you updated on your financial progress.
And on a further note, your portfolio management is especially important if you are using a CDP-Linked Brokerage account.
- For CDP-Linked Brokerage account, your shares are not kept with the brokerage, it can be troublesome to get the information of your holding. Syncing of your trades between your brokerage and your CDP account will be preferred to prevent confusion.
- On the other hand, Custodian Brokerage Account will give you a better clarity on your portfolio as your shares are held by the brokerage itself.
Open a Singapore Brokerage Account And Start Investing
Getting started in opening your brokerage account is just your first step into the world of investing. Choosing the right brokerage account can help you unlock many financial possibilities for years to come. And when you are lost and confused you can check out these article that can help you in your journey:
Whether you choose a CDP-linked brokerage account or a custodian brokerage account, it is good to invest in yourself by getting educated in investing before you buying your first share.
If you are considering to invest in the international market here are a few complete guide that will help you in getting started:
- Investing in the United States Stock Exchange (Nasdaq, New York Stock)
- Investing in China Stock Exchange (SZSE, SSE)
- Investing In Singapore Stock Exchange (SGX)
- Investing in Hong Kong Stock Exchange (HKEX)
Your investment journey is a personal one. As you embark on this journey, continuously educate yourself, adapt to market changes, and stay committed to your financial goals.
If you are still wondering which online trading account to get started, you may want to consider Moomoo, they are currently having some of the best promotions when you signup a new account with them.
- Extra S$20* FREE Cash Coupon.
- Claim 4 x FREE stock bundle worth S$280* with $10,000 deposit & 8 buy trades.
- Get additional S$260* FREE AAPL stock with $100,000 deposit.
- Earn 31 days 6.8%* p.a. return on idle cash with Moomoo Cash Plus
- Low commission fee for SG and HK stocks, ETFs and options.
- Lifetime $0 commission free* for US stocks.
Moomoo Promo: Low Commission + Free Stock
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Read Also:
- 7 Online Brokerages vs Traditional Brokerages in Singapore: Making The Right Investment Choice
- How to Use Webull Singapore to Trade, Buy and Sell Stocks? (Beginner’s Guide)
- How to Use Moomoo to Trade, Buy and Sell Stocks? (Beginner’s Guide)
- Best Trading Platform For Beginners in Singapore (Students, NSF, Fresh Graduates)
- Day Trading For Beginners: Guide On How To Become a Day Trader
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Antony C. is a dividend investor with over 15+ years of investing experience. He’s also the book author of “Start Small, Dream Big“, certified PMP® holder and founder of IncomeBuddies.com (IB). At IB, he share his personal journey and expertise on growing passive income through dividend investing and building online business. Antony has been featured in global news outlet including Yahoo Finance, Nasdaq and Non Fiction Author Association (NFAA).