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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.

Before investing in your first stock, one will need to open a brokerage account. Below is the step-by-step guide to doing so. 

What Is A CDP Account?

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 like 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:

  • Citibank
  • DBS/POSB
  • HSBC
  • Maybank
  • OCBC
  • Standard Chartered Bank
  • UOB

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

For investors who already have a bank account with the list of banks stated, simply fill up this application form.

  • Print it out and sign it after you have done so.

3. Ensure you have the supporting documents required

There are basically 2 ways to opening a CDP account after this.

One can either:

  • Mail the forms and necessary supporting documents to The Central Depository (Pte) Limited
  • or apply through a preferred broker

For application through the mail, the supporting documents required will be:

  • Photocopy of 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

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

Mail the signed application form and supporting documents to:

 The Central Depository (Pte) Limited
11 North Buona Vista Drive
#06-07
 The Metropolis Tower 2
 Singapore 138589

Or simply head down to SGX CDP Customer Service

Operating Hours
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:

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

     Brokerages (Online)Minimum Fees
    (S$)
    Trading Fees (based on contract amount)
    (S$)
    <50K50K
    -
    100K
    >100K
    Stock Holding: CDP
    1KGI Connex250.275%0.22%0.18%
    2CIMB Securities250.275%0.22%0.18%
    4DBS Vickers250.28%0.22%0.18%
    5Maybank Kim Eng250.275%0.22%0.18%
    6Lim & Tan Securities250.275%0.22%0.18%
    7Phillips Securities (Poems)250.28%0.22%0.18%
    8OCBC Securities250.275%0.22%0.20%
    9UOB KayHian250.275%0.22%0.20%
    10RHB Securities250.275%0.22%0.18%
    Stock Holding: Custodian
    3FSM One100.12%0.12%0.12%
    11Citibank280.25%0.20%0.18%
    12Standard Chartered100.20%0.20%0.20%
    13Saxo Capital Markets150.12%0.12%0.12%

    Stock Brokerage (Broker Assisted) Fees Comparison

     Brokerages
    (Broker Assisted)
    Minimum Fees
    (S$)
    Trading Fees (based on contract amount)
    (S$)
    <50K50K
    -
    100K
    >100K
    1KGI Connex400.50%0.40%0.25%
    2CIMB Securities400.50%0.40 - 0.50%0.25 - 0.50%
    3Citibank400.50%0.50%0.40%
    4DBS Vickers400.375%0.30%0.225%
    5Maybank Kim Eng400.50%0.40%0.25%
    6Lim & Tan Securities400.50%0.40%0.25%
    7Phillips Securities (Poems)400.50%0.40%0.25%
    8OCBC Securities400.50%0.40%0.25%
    9RHB Securities400.50%0.40%0.25%

    Stock Brokerage (Cash Upfront) Comparison

     Stock Brokerage
    (Cash Upfront)
    Minimum Fees
    (S$)
    Trading Fees
    1KGI Connex250.18%
    2CIMB Securities180.18%
    3DBS Vickers100.12%
    4Maybank Kim Eng100.18%
    5Phillips Securities
    (Poems)
    10
    (till 30 June 2018)
    0.12%
    (till 30 June 2018)
    6OCBC Securities180.18%
    7UOB KayHian100.12%

Read User Reviews On Online Brokerages In Singapore 


Further Reading: How to get your Central Provident Fund (CPF) statement

To obtain your CPF statement, simply head over to the CPF Website

CPF

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

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.


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