If you are prepared to start investing, the Singaporean stock market is where you should start your first investment. Almost everyone living in Singapore knows about SGX (Singapore Exchange) even if they have never invested in any kinds of stocks on the market.
The Singapore exchange is a market where you can sell and buy stocks. The best way you can start investing is through an online platform and start building your investment profile.
Are you not sure about which companies you should invest in? Do you think about investing in big companies like Singapore Airlines, CapitaLand, Singtel or are you thinking to buy smaller-company stocks?
It is not easy to make a profit from a stock exchange market that’s why we have made a guide to help you decide where you should start investing.
Source: Admiral Markets
Stock exchange account
Normally to start making any kind of investing, you will need to have an account. You will need to make a brokerage profile that has access to buying and selling stocks from the SGX.
There are many online brokerages to choose from in Singapore but do not worry, we are going to focus on that shortly.
Which brokerage firm to choose?
The first thing every young investor should look for is the annual year rate charged by the broker. If you check most brokers in Singapore, you will find that many of the charge similar rates. It usually is between 0.11% and 0.290% of trading value. They could also charge a minimum of 10$ and as high as 25$ per transaction.
Although, there are other factors you should consider when choosing a broker, the commission rates are probably the most important thing.
Source: Retail Gazette
Transferring funds
When you are buying stocks, you need to consider how you will pay for them. Most investors open a stock trading account with a new bank account and then add money to their bank account. By doing this, your brokerage account will have direct access to your bank account. This means that when buying stocks, the money will be automatically be paid, and the same happens when you sell stocks. The money goes directly into your bank account.
You can also pay for your stocks through an ATM, but most people find this very inconvenient.
If you are interested in the stock market and want to make some money out of it, you can read more for some trading tips on the Singaporean market.
CDP Account
If this is the first time you are buying stocks in Singapore, you will have to open a CDP (Central Depository) account.
A Central Depository account will store all the SGX stocks that you are buying. Usually, brokerage firms have temporary CDP accounts under your name, and when you buy stocks, they automatically store them there. This is why you should make your own CDP account where you can store your stocks by yourself, and you will have the freedom to change brokerage firms as you please.
Source: MarTech Advisor
These are the first steps any new investor should do before buying or selling any stocks on the Singaporean Exchange market. So if you are planning on becoming a good investor, make sure to follow our guide.
