To start to trade stocks in Singapore, you will be required to go through a simple sign-up process with a brokerage firm of your choice.
The invention of the Internet has brought about many changes in the way that we conduct our lives and our personal business. We can pay our bills online, shop online, bank online, and even date online! And of course, we can even buy and sell stocks online. Traders love having the ability to look at their accounts whenever they want to, and brokers like having the ability to take orders over the Internet, as opposed to the telephone.
All Singapore brokers and brokerage houses now offer online trading to their clients. Another great thing about trading online is that fees and commissions are often lower. However, while online trading is great, there are some drawbacks still. For instance, if you are new to investing, having the ability to actually speak with a broker can be quite beneficial. If you aren’t stock market savvy, online trading may be a dangerous thing for you. If this is the case, make sure that you learn as much as you can about trading stocks before you start trading online.
You should also be aware that you don’t have a computer with Internet access attached to you. You won’t always have the ability to get online to make a trade. You need to be sure that you can call and speak with a broker if this is the case, or be able to trade using your mobile phone. This is true whether you are an advanced trader or a beginner.
Singapore Brokerage Account
To start off, you will need to choose from one of the several brokerage firms around. Some popular brokerage firms include:
- DBS Vickers
- Lim and Tan Securities
- OCBC Securities
- Philips Securities
- Kim Eng Securities
Depending on the firms, you may be asked to place a refundable opening deposit. Most brokers just require proof of earnings, i.e. with a payslip. Sometimes trading representatives or brokers may waive these requirement, or they may hold promotions or fairs which typically waive this as well.
Central Depository (CDP)
Besides an account at a brokerage, you’ll also need what is known as a Central Depository account. All stocks that you own are held in your CDP account. If you have never traded stocks before, you most likely do not own a CDP account, and your very first brokerage account will come with a CDP account opening form that you can fill up as well.
Electronic Payment for Shares (EPS)
In the past, any outstanding payment to your brokerage had to be settled in the form of cheques. This form of payment conveniently links your bank account to your brokerage, so that you can login into your Internet banking account and pay for any outstanding contracts there. This is highly recommended.
Category: Singapore Stock Market Help