Step-By-Step Guide: Opening A CDP And Stock Trading/ Brokerage Account In Singapore
Assuming you have read through the basics of investing and are now ready for the real deal. This article should bring you a step closer to investing in your first stocks.
What Is A Brokerage Account And How Does It Work?
Before investing in your first stock, one will need to open a brokerage account. A brokerage account is a type of account which allows you to buy and sell your investments, mainly stocks, ETFs, certain bonds and REITs.
The brokerage account acts as a middle platform that allows you to invest through it.
In Singapore, one will need a CDP and a brokerage account to invest. Below is the step-by-step guide to doing so.
What Is A CDP Account And How Does It Work?
Before opening a brokerage account, one needs to open a CDP account first.
The Central Depository Account, or commonly known as CDP, is an account to safe keep all the shares you bought through the open market. Operated by the Singapore Stock Exchange (SGX), a CDP acts as a safe for all your stocks.
Stocks and bonds that one buys on the SGX are deposited into his personal CDP account.
Open A Central Depository Account (CDP) Direct Securities Account
1. Have a bank account with a local bank
To open an individual CDP Securities Account, one is required to have a bank account with one of the following banks in Singapore:
- Standard Chartered Bank
Do also note that one needs to be at least 18 years old and not an undischarged bankrupt before he goes on to the next step.
2. Fill Up An Application Form
There is now a faster method to open your CDP account.
Starting from November 2019, you can choose to open a CDP account online and get your account sorted out within 15 minutes.
Source: SGX Facebook post
To apply for your CDP account online, you can click here.
For investors who already have a bank account with the list of banks stated, simply fill up this online application form.
Everything is really convenient now, where one can simply open a CDP account online using MyInfo or an online form.
3. Ensure You Have The Supporting Documents Required
Before you dive in and start filling up all the information in the application form, ensure that you have these supporting documents with you. There will be information of which is required, when opening a CDP account.
Here’s a set of supporting documentation required when opening your CDP account:
- Your NRIC/ Singapore Armed Forced Identity Card/ Singapore Police Force Identity Card/ Malaysia Identification Card/ Passport
- One of the following documents or e-statements (dated within the last 3 months)
– Bank statement from any Monetary Authority of Singapore (MAS) licensed banks; or
– Central Provident Fund (CPF) statement; or
– Latest Notice of Assessment for Income tax
- A Singapore Bank Account
- Photographed/ Scanned copy of your signature
- Tax Identification Number (TIN) for tax residency status outside Singapore
– Country/ Region of Tax Residency
- Tax Identification Number (TIN)
- Completed Form-W9
For application through a broker, the supporting documents required will be:
- Photocopy of NRIC/ Singapore Armed Forced Identity Card/ Singapore Police Force Identity Card/ Malaysia Identification Card/ Passport
4. Application Through Mail/ Brokerage firms
Application Through Mail
If you prefer to apply for your CDP account by mail, here’s where you can mail the application form to.
Mail the signed application form and supporting documents to:
The Central Depository (Pte) Limited
11 North Buona Vista Drive
The Metropolis Tower 2
Or simply head down to SGX CDP Customer Service
Mondays to Fridays – 8.30am to 5.00pm
Saturdays – 8.30am to 12.00pm
Closed on Sundays and Public Holidays
Peak Periods to Avoid
Mondays to Fridays: 11.00am to 2.00pm; and Saturdays
After that, one can set up an account with their preferred local brokerage firms and start investing!
Application through a brokerage firm
Most of the brokerage firms in Singapore should be able to help their customers with their CDP account application when they set up a brokerage account.
Below are the lists of retail brokers that can help you do so:
- CIMB Securities
- DBS Vickers Securities
- iFAST Singapore
- KGI Securities
- Lim & Tan Securities
- Maybank Kim Eng
- OCBC Securities
- Phillip Capital
- RHB Securities Singapore
- UOB Kay Hian
Brokerage/ stock trading Account – Factors To Consider
There are a few factors to consider when choosing the best brokerage/ stock trading account.
- Market access
For an investor looking to invest in foreign exchanges, market access to the rest of the exchanges will be a key factor of consideration.
- Trading fees/ Commission fees
We did a comparison for our readers a while back.
Stock Brokerage (online) Fees Comparison in Singapore
Brokerages Firm Minimum Fees Trading Fees (based on contract amount)
<$50K $50K to $100K $100K Stock Holding: CDP KGI Securities
$25 0.275% 0.22% 0.18% CGS-CIMB Securities $25 0.275% 0.22% 0.18% DBS Vickers $25 0.28% 0.22% 0.18% Maybank Kim Eng $25 0.275% 0.22% 0.18% Lim & Tan Securities $25 0.28% 0.22% 0.18% Phillips Securities (Poems) $25 0.28% 0.22% 0.18% OCBC Securities $25 0.275% 0.22% 0.18% UOB KayHian $25 0.275% 0.22% 0.20% RHB Securities
$25 0.275% 0.22% 0.18% Stock Holding: Custodian FSMOne.com $10 0.08% 0.08% 0.08% Citibank $28 0.25% 0.20% 0.18% Standard Chartered $10 0.20% 0.20% 0.20% Saxo Capital Markets $9-$15 0.10% to 0.12% 0.10% to 0.12% 0.10% to 0.12%
Stock Brokerage (Broker Assisted) Fees Comparison
Minimum Fees Trading Fees (based on contract amount)
<$50K $50K to $100K >$100K KGI Securities
$40 0.50% 0.40% 0.25% CGS-CIMB Securities $40 0.50% 0.40% 0.25% Citibank $50 0.50% 0.50% 0.40% DBS Vickers $40 0.375% 0.30% 0.225% Maybank Kim Eng $40 0.50% 0.40% 0.25% Lim & Tan Securities $40 0.50% 0.40% 0.25% Phillips Securities (Poems) $40 0.50% 0.40% 0.25% OCBC Securities $40 0.50% 0.40% 0.25% RHB Securities
$40 0.50% 0.40% 0.25%
Stock Brokerage (Cash Upfront) Comparison
Minimum Fees Trading Fees KGI Connex $25 0.18% CIMB Securities $8 0.18% DBS Vickers $10 0.12% Maybank Kim Eng $10 0.18% Phillips Securities
(till 30 June 2018)
(till 30 June 2018)
OCBC Securities $18 0.18% UOB KayHian $10 0.12% FSMOne.com $10 0.08%
Further Reading: How to get your Central Provident Fund (CPF) statement
To obtain your CPF statement, simply head over to the CPF Website
Simply head over to log in with your SingPass ID after that to obtain your statement.
Further Reading: How to get your Latest Notice of Assessment for Income tax
To get your latest Notice of Assessment for Income Tax, simply head over to the IRAS Website
From there, simply log in for Personal Tax Matters using your SingPass or IRAS PIN to obtain your latest Notice of Assessment for Income Tax.
If you have any questions on personal finance, feel free to ask our Community, it is a great way to seek pieces of advice from real people.