How to Buy Stocks In Singapore – Best Way To Get Started in 2024

How to Buy Stocks In Singapore - Best Way To Get Started

Investing in the stock market can be a rewarding way to grow your wealth and achieve your financial goals. The reason why investing is important is its ability to build wealth over time.

Unlike saving, where your money may lose value due to inflation, investing offers the potential for significant returns. Whether you’re investing in stocks, bonds, real estate, or other assets, the key is to let your money work for you by generating returns and compounding your earnings over time.

If you’re in Singapore and looking to buy stocks, there are specific steps you can take to get started. From finding the right online broker to exploring global markets, this guide will walk you through the process of buying stocks in Singapore.

Key Takeaways

  • Check the availability of online brokers in Singapore before choosing one.
  • Understand the basics of brokerage accounts and investment options in Singapore.
  • Diversify your portfolio by investing in a variety of assets on the Singapore Stock Exchange.
  • Set up a brokerage account by opening a CDP account, choosing a brokerage firm, and starting trading.
  • Explore global markets to diversify your investments and gain exposure to different assets.

How to Buy Stocks In Singapore

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Photo by Burak The Weekender on Pexels.com

Not all brokers operate in every country, and selecting one that caters to Singaporean investors is the first step towards a seamless trading experience. To streamline your search, consider these points:

  • Verify the broker’s legal operation within Singapore.
  • Look for brokers that align with your investment style and goals.

Right now, here are the available brokerages in Singapore:

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Photo taken from Seedly Blog

Remember, choosing the right broker is foundational to your investment journey. It’s not just about the availability; it’s also about finding a platform that resonates with your financial aspirations and risk tolerance.

As you embark on this process, keep in mind that investing in Singapore stocks offers stability and growth potential, but also comes with risks such as exposure to global trends and high valuations. It’s essential to weigh your financial goals and risk appetite before committing to any investments.

Opening a Brokerage Account

Opening a Brokerage Account

These days, you don’t have to go through the tedious way of setting up an account by going directly down to the banks. If you are looking to get started with investing, all you need is your smartphone!

Understanding Brokerage Basics

Before diving into the world of investing, it’s crucial to grasp the basics of a brokerage account. A brokerage account is an investment account that allows you to buy and sell securities such as stocks, bonds, and mutual funds. When you open one, you gain access to a trading platform to execute your trades.

In Singapore, setting up a brokerage account involves a few key steps. First, you’ll need to open a Central Depository (CDP) account, which holds the Singaporean stocks you purchase in your name. Next, you’ll choose a brokerage firm that aligns with your investment goals and preferences.

Brokerage accounts are not one-size-fits-all. They come in various forms, each with its own set of features and fee structures. For instance, some accounts are managed by brokers who make investment decisions on your behalf, while others offer a do-it-yourself platform for more hands-on investors.

When selecting a brokerage, consider factors such as commission fees, whether the account is a CDP or custodian account, and the ease of use of the investment platform.

Remember, the right brokerage can significantly impact your investment experience and success.


tiger broker

Looking to start investing, why not try Tiger Broker?

Tiger Brokers offers competitive commission fees for trades across different markets.

It is also practically fee-less in these aspects: no custody fees, deposit (or withdrawal) fees, currency exchange fees, inactivity fees, or account maintenance fees to contend with!

Investment Options in Singapore

Singapore offers a diverse range of investment options, catering to both novice and experienced investors. The Singapore Stock Exchange (SGX) provides a platform for trading in stocks, bonds, mutual funds, and exchange-traded funds (ETFs).

Additionally, investors can explore private investments, such as real estate, commodities, and hedge funds, which are gaining traction according to industry insights.

For those looking to diversify their portfolio, here are some popular investment categories in Singapore:

  • Stocks
  • Bonds
  • Mutual Funds
  • ETFs
  • Real Estate
  • Commodities
  • Hedge Funds

It’s essential to understand the various investment vehicles available and how they align with your financial goals. Doing so lets you make informed decisions and build a robust investment strategy.

Remember, each investment type comes with its own set of fees and charges, which should be factored into your overall investment plan. Whether you’re starting with a small amount or investing a significant sum, there’s an opportunity to grow your wealth in Singapore’s dynamic market.

Benefits of a Brokerage Account

Diversification is a key benefit, as it allows you to spread your investments across various asset classes, potentially reducing risk and enhancing returns over time.

Flexibility is another significant advantage. With a brokerage account, you have the freedom to invest in a wide range of securities, including stocks, bonds, and mutual funds, both locally and internationally. This access to a diverse array of investment options can be crucial for tailoring your portfolio to your specific financial goals.

Brokerage accounts also provide valuable investment tools and resources, empowering you to make well-informed decisions.

Lastly, the convenience of online trading platforms means you can manage your investments anytime and anywhere, giving you control over your financial portfolio. Here’s a quick overview of the benefits:

  • Diversification of investments
  • Access to a variety of asset classes
  • Flexibility to invest locally and internationally
  • Tools and resources for informed decision-making
  • Convenience of online trading

Investing in Singapore Stock Exchange

Investing in Singapore Stock Exchange

Diversifying Your Portfolio

Diversifying your investment portfolio is not just a strategy; it’s a fundamental approach to managing risk and enhancing potential returns. By incorporating a variety of asset classes, you can mitigate the impact of volatility in any single market or sector. In Singapore, investors have the luxury of accessing many investment vehicles to achieve this diversification.

The key to successful portfolio diversification is not just the number of assets, but the quality and correlation between them. Ensuring that your investments are spread across different industries and geographies can help in balancing the risks and rewards.

For instance, you might consider the following options for your portfolio:

  • Stocks from various sectors such as technology, healthcare, and finance
  • Bonds, including government and corporate
  • Mutual funds that offer exposure to a mix of assets
  • Exchange-traded funds (ETFs) that track specific indices or commodities

Investing in foreign currencies can also offer a hedge against local currency fluctuations and provide additional layers of diversification. Remember, the goal is to build a portfolio that aligns with your financial objectives and risk tolerance.

Asset Options in SGX

The Singapore Stock Exchange (SGX) is not limited to traditional stocks; it also offers a variety of exchange-traded funds (ETFs), which provide investors with the opportunity to diversify their portfolios. ETFs enable exposure to a wide array of assets, including commodities, currencies, and global equities.

When considering options, it’s important to note that there is not much difference between options in Singapore and those in the US. Both are derivatives based on an underlying instrument, and the trading principles are similar. However, the US market offers greater liquidity due to its size.

Investing in Singapore real estate is challenging due to aging population, tight policies, and high taxes. Stocks offer low entry barriers and diversification through ETFs.

For those interested in options, here are some key points to remember:

  • Be wary of unregulated online trading platforms.
  • Understand the difference between warrants and listed options.
  • Many Singaporean option traders prefer the US market for its depth and liquidity.

Trading Foreign Currencies

When engaging in the Singapore Stock Exchange (SGX), trading foreign currencies can be a strategic move to diversify your investment portfolio. Understanding the associated fees and charges is crucial for effective currency trading. For instance, different markets may impose varying broker fees and financing charges, which are often settled in SGD.

Fees and charges for trading foreign currencies can include:

  • Broker fees for transferring foreign shares
  • Additional charges for specific markets like the UK, Japan, Australia, Europe, and the Philippines
  • Financing charges on an annual percentage rate basis

It’s important to stay informed about the latest fee structures as they are subject to change without prior notice. Keeping abreast of these changes can help you manage your investments more efficiently.

For a detailed breakdown of fees, consider the following table:

MarketBroker FeeFinancing Charge
UKUSD 25SGD 6% p.a.
JPJPY 1,000USD 7% p.a.
AUUSD 12HKD 7% p.a.
EuropeUSD 75
PHPHP 200

Remember, when trading currencies, it’s not just about the potential profits; it’s also about minimizing costs and understanding the financial implications of your trades.

Setting Up a Brokerage Account

Setting Up a Brokerage Account

Opening a CDP Account

To participate in the Singapore stock market, opening a Central Depository (CDP) account is a crucial step. This account serves as a safekeeping facility for the securities you purchase on the Singapore Exchange (SGX). It’s important to note that a CDP account is distinct from your brokerage account, but it is a prerequisite for trading.

When selecting a brokerage firm, ensure that they offer a CDP-linked account for direct control over your investments and potentially lower fees.

The process of opening a CDP account involves providing personal details such as your name, address, and identification documents. You may also be required to submit proof of income and residency. Here’s a simplified checklist for your reference:

  • Choose a brokerage firm that offers CDP-linked accounts.
  • Gather necessary personal information and documents.
  • Provide financial details, including proof of income and residency.

Remember, a CDP-linked account is generally more advantageous than a custodian account, as it allows for direct ownership and management of your securities. However, not all brokerage firms may provide this option, so it’s essential to verify this before proceeding.

Choosing a Brokerage Firm

After narrowing down your options, choosing the right brokerage firm is a critical step. It’s essential to consider not only the fees and charges but also the range of services offered. A good brokerage firm should align with your investment goals and provide a seamless trading experience.

When evaluating different firms, consider the following points:

  • The fees structure for trades and account maintenance
  • The variety of investment options available
  • The user-friendliness of the trading platform
  • The quality of customer support

Remember, the brokerage firm you select will be your partner in investing, so take the time to make an informed decision.

It’s also worth noting the comparison of the best investment platforms in Singapore, which includes DBS Vickers, Saxo Markets, POEMS, FSMOne, TD Ameritrade, and IG Markets. Each platform has its own strengths and weaknesses in terms of fees, investment options, user interface, and customer support. Make sure to compare these aspects to find the best fit for your investment strategy.

Starting Trading

Once your brokerage account is active, you’re ready to embark on your investment journey. Begin by setting clear investment goals and a time horizon for your stock market endeavors. This aligns with the beginner’s guide to stock investment, which emphasizes the importance of planning for long-term objectives, such as retirement.

It’s crucial to start with a solid understanding of the market and the stocks you’re interested in. Take the time to learn about different companies, their performance, and market trends.

As a new investor, consider starting with dividend-paying stocks, which can provide a steady income stream. Diversify your portfolio to spread risk and increase the potential for returns. Here’s a simple checklist to help you get started:

  • Set your investment goals and time horizon
  • Learn about the stock market and investment strategies
  • Choose the right brokerage firm
  • Consider using a robo-advisor for automated investments
  • Start with dividend stocks
  • Diversify your investments

Remember, investing is a journey that requires patience, diligence, and continuous learning. With the right approach, you can grow your wealth and achieve your financial goals.

Exploring Global Markets

Exploring Global Markets

Diversifying Your Portfolio

Diversifying your investment portfolio is a fundamental strategy for managing risk and enhancing potential returns. Investing in a variety of asset classes can help mitigate the impact of market volatility on your investments. In Singapore, a well-diversified portfolio might include a mix of stocks, bonds, mutual funds, and ETFs.

By spreading your investments across different asset categories and geographic regions, you can reduce the risk of significant losses.

Here are some diversification strategies to consider:

  • It’s not just stocks vs. bonds.
  • Use index funds to boost your diversification.
  • Don’t forget about cash and other liquid assets.

Remember, diversification is not just about adding different assets, but also about balancing them in a way that aligns with your financial goals and risk tolerance.

Global Investment Opportunities

Expanding your investment horizon beyond Singapore opens up a world of possibilities. Investing in foreign stocks allows you to tap into growth opportunities in both emerging and developed markets. For instance, markets like China and India offer the potential for high growth, while Europe and Japan provide stability and innovation.

When considering global markets, it’s important to understand the various investment vehicles available. These include stocks, ETFs, bonds, and mutual funds. Each vehicle has its own risk profile and potential for returns, making it crucial to align them with your investment goals.

By diversifying your portfolio internationally, you not only spread risk but also increase the potential for higher returns. This strategic approach can be a key component in building a sustainable financial future.

Here’s a quick overview of the types of accounts you can consider for global investments:

  • All Online Brokerage Accounts
  • US Stocks Investment Accounts
  • CFD Investment Accounts
  • Forex Investment Accounts
  • RoboAdvisors

Remember, while the opportunities are vast, it’s essential to be aware of the fees and charges associated with international investing. These can vary significantly between brokers and markets, so thorough research and comparison are advisable before making any commitments.

Exposure to Different Assets

Gaining exposure to different assets is a strategic move for investors looking to build a robust portfolio. Diversifying across various asset classes can reduce risk and increase the potential for returns. In Singapore, the SGX offers a plethora of options, including stocks, bonds, ETFs, and more.

By investing in global markets, you not only diversify your portfolio but also tap into the growth potential of different economies and sectors.

For those interested in the international scene, the opportunities are vast. Here’s a quick glance at the types of assets you can invest in:

  • Stocks: A share in the ownership of a company.
  • Bonds: A fixed income investment that represents a loan made by an investor to a borrower.
  • Mutual Funds: Investments pooled together and managed by professionals.
  • ETFs: Funds that track indexes, commodities, or baskets of assets.

Each asset class comes with its own set of risks and rewards, and understanding these is crucial for making informed investment decisions. Remember, the key to successful investing is not just about choosing the right assets, but also about timing and market conditions.

Venture into the vast opportunities of the global market with our comprehensive guides and expert insights at HustleVentureSG. Whether you’re looking to invest in stocks, real estate, or cryptocurrencies, or seeking to start a lucrative side hustle, our resources are tailored to help you make informed decisions and maximize your financial potential. Don’t miss out on the chance to elevate your investment game and entrepreneurial endeavors. Visit our website now to explore our full range of articles and tools designed to empower your journey towards financial success.

Buy your first stock

Investing in stocks from Singapore offers a wide range of opportunities for individuals looking to grow their wealth and diversify their portfolios. By finding an online broker, opening a brokerage account, and understanding the basics of investing in the Singapore stock market, investors can take advantage of market opportunities both locally and globally.

With the right knowledge and preparation, anyone can start their investment journey in the stock market and explore various asset classes to achieve their financial goals.


tiger broker

Looking to start investing, why not try Tiger Broker?

Tiger Brokers offers competitive commission fees for trades across different markets.

It is also practically fee-less in these aspects: no custody fees, deposit (or withdrawal) fees, currency exchange fees, inactivity fees, or account maintenance fees to contend with!

Frequently Asked Questions

How do I find an online broker in Singapore?

To find an online broker in Singapore, you can use a broker finder tool that narrows down choices suitable for your investment goals. Additionally, you can compare broker options using a side-by-side comparison table.

Why do I need a brokerage account to invest in Singapore stocks?

A brokerage account is necessary to buy and sell stocks in the Singapore stock market. It provides access to a range of investment options and allows you to trade in foreign currencies for diversification.

What is a CDP account and why do I need it for trading in Singapore?

A Central Depository (CDP) account holds your shares in electronic form and is required for trading in Singapore. It is an essential component for managing your investments effectively.

What are the benefits of diversifying my portfolio in the Singapore stock market?

Diversifying your portfolio in the Singapore stock market helps reduce risk by spreading investments across different assets. It also allows you to take advantage of various market opportunities and potential growth.

Can I trade in global markets through a brokerage account in Singapore?

Yes, with a brokerage account in Singapore, you can access global markets and invest in a wide range of assets beyond Singapore. This provides opportunities for diversification and exposure to different market environments.

What are the key considerations when choosing a brokerage firm in Singapore?

When selecting a brokerage firm in Singapore, consider factors such as trading fees, customer service, platform features, and the range of investment products offered. It’s important to choose a firm that aligns with your investment objectives and preferences.

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