What Is a Brokerage Account and How to Set One Up
Updated: 27 Jul 2026
Written bySingSaver Team
Team
⚡ Quick Answer
| Product Name | Min. Trades for Rewards | Account Opening Fee | Min. Deposit |
|---|---|---|---|
| 0 | S$0 | S$2,000 | |
| 0 | - | S$2,000 | |
| 0 | S$0 | S$1,000 |
Decision Guide
For Singaporeans looking to invest in the stock market and beyond, a brokerage account is your gateway.
A brokerage account Singapore investors use is an account that provides you with the means to buy and sell a variety of investment products. This includes stocks, Exchange-Traded Funds (ETFs), Real Estate Investment Trusts (REITs), and bonds, all of which can be listed on the Singapore Exchange (SGX) or on international exchanges.
CDP account vs custodian account Singapore: what's the difference?
When it comes to securities traded on the SGX, it's important to understand the role of the Central Depository (CDP). The CDP acts as the central securities depository for Singapore, holding these securities electronically on behalf of investors. This streamlines the clearing and settlement process, making trading more efficient. It's also crucial to clarify that when you invest through a brokerage account, you directly own the securities — the brokerage firm acts as an intermediary, executing your buy and sell orders.
As for the terms associated with a brokerage account, it's important to understand that there are subtle differences in their definitions:
- A "brokerage account" is the general term for an account held with a brokerage firm for investing.
- A "trading account" might emphasise the account's use for active trading and contains securities, cash or other holdings.
- A "custodian account" or "nominee account" specifically refers to an account where the broker holds the securities for you, but in Singapore, the CDP plays this role for SGX-listed securities — so the CDP account vs custodian account Singapore distinction essentially comes down to which market you're trading in.
Before You Compare
What markets you plan to trade
SGX stocks typically need a CDP account; foreign markets need a custodian/nominee account.
Minimum deposit requirements
These vary meaningfully between platforms, from S$0 to several thousand dollars.
Fee structure
Compare commission fees, platform fees, and any inactivity or custodian fees.
Self-directed vs managed
Decide between an online brokerage account and a robo-advisor based on how hands-on you want to be.
MAS regulation
Confirm the platform is licensed and regulated by the Monetary Authority of Singapore.
Benefits of having a brokerage account
What individual brokerage accounts can offer is a range of advantages for investors, from accessing diverse investment opportunities to providing flexibility in managing your portfolio.
- Investment Access: Brokerage accounts provide access to a wide array of investment options. You can trade securities on the SGX and also tap into global markets such as the US New York Stock Exchange, Hong Kong Stock Exchange (HKEX), and London Stock Exchange (LSE).
- No Caps or Limits: Unlike schemes like the CPF or SRS, brokerage accounts generally do not impose contribution limits.
- Liquidity and Flexibility: Brokerage accounts offer a high degree of liquidity. You can typically sell your investments whenever the market is open.
- Platform Variety: Investors can choose from various platforms, including those offered by traditional banks like DBS and OCBC, or online brokers such as moomoo, Longbridge, and uSMART SG.
- Educational and Tooling Benefits: Many brokerage platforms offer valuable educational resources and analytical tools, including market data, charting tools, company research, and investment insights.
What is the process involved in using a brokerage account?
You typically fund your brokerage account through convenient methods like instant deposit via direct debit authorisation, bank transfers, FAST, GIRO, and telegraphic transfer (TT).
When you're ready to trade, you'll place an order through your brokerage platform:
- A market order executes immediately at the best current market price.
- A limit order lets you specify the maximum price you're willing to pay when buying or the minimum price you'll accept when selling.
- A stop limit order is a conditional order that only becomes a limit order once the security's price reaches a certain stop price.
After a trade is executed, there's a settlement period before securities and funds are officially exchanged. For trades on the SGX, the standard settlement cycle is T+2 (two business days after the trade date). Settlement cycles can vary for trades on foreign exchanges.
| Brokerage | Min. Comm. Fee | Min. Trade Fee | Min. Deposit for Rewards | SingSaver Reward |
|---|---|---|---|---|
| moomoo SG | S$0 | S$0.99/order | S$2,000 | S$150 Upsized Cash via PayNow |
| Longbridge | S$0 | 0.03% | S$2,000 | S$160 Upsized Cash via PayNow |
| uSMART SG | US$0 (US stocks) | US$0.88/order | S$1,000 | Up to S$160 Cash / S$170 eCapitaVoucher / 10,000 MaxMiles |
Unlock SGX potential: Top brokerage platforms for Singapore stocks
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Which platforms to set up a brokerage account
Established banks in Singapore have brokerage arms, offering a full suite of financial services. Examples include DBS Vickers, OCBC Securities, and UOB Kay Hian.
Meanwhile, online-only/custodian brokers operate primarily online, offering a more streamlined and often cost-effective way to trade. Examples include moomoo, Longbridge, uSMART SG, Tiger Brokers, and Saxo Markets. Lastly, robo-advisors like Endowus and StashAway offer automated investment management based on your risk tolerance and financial goals.
As for opening brokerage accounts, Singaporean investors can mainly select from two types.
Online brokerage account
Digital platforms commonly offer online brokerage accounts, which give you the ability to buy and sell investments directly through a website or mobile app. This type of account often appeals to self-directed investors who are comfortable making their own investment decisions and are looking for lower trading costs.
>> Best brokerage accounts for online stock trading
Managed brokerage account
In contrast, a managed brokerage account involves having a professional investment manager make investment decisions on your behalf. This option might be suitable for investors who prefer a hands-off approach, though managed accounts usually come with higher fees compared to online brokerage accounts.
How to set up a brokerage account
Opening a brokerage account Singapore-based investors use involves a relatively straightforward process.
Generally, you need to be 18 years or older to open a brokerage account, with eligibility extending to Singaporean citizens, PRs, and foreigners (with the necessary documentation).
If you plan to trade stocks listed on the SGX under your own name, you'll need a CDP account. This is where your SGX-traded securities will be held. If planning to buy overseas-listed securities, you'll typically need a nominee/custodian account instead.
Next, select a brokerage firm that suits your investment needs. Consider factors such as access to specific markets, commission fees and other charges, and trading platform features.
Most brokerages in Singapore offer online applications for convenience. Required documents typically include NRIC for Singaporeans and PRs (or a passport for foreigners), the completed CDP linkage form, and supporting documents that show your name and mailing address, like utility bills and account statements.
Once your application is approved, you'll need to deposit funds — this brings up a common question: what's the minimum deposit brokerage account Singapore platforms actually require? This varies significantly: some platforms like uSMART SG have no minimum balance to open an account, while others set thresholds around S$1,000–S$3,000 to unlock sign-up rewards. Common funding methods include FAST and linking your existing bank account.
Also, keep an eye out for new user promotions offered by brokerage firms in Singapore — these may include commission fee waivers, vouchers, cash rebates, and more.
The relationship between brokerage accounts and taxes
In Singapore, there's no capital gains tax, which means any profits you make from selling assets like stocks or ETFs are generally not subject to taxation.
However, when it comes to dividends, the rules differ. Dividends from Singaporean companies are typically tax-free. Dividends from foreign companies may be subject to withholding tax in their respective countries — for example, US dividends often face a 30% withholding tax since there's no tax treaty between the US and Singapore. Similarly, Hong Kong-listed dividends face a 10% withholding tax for H-shares.
Interest earned by individuals in Singapore, such as from bond coupons, is generally not taxed. Finally, the 9% Goods and Services Tax (GST) may apply to certain fees charged by your brokerage firm.
Brokerage account vs retirement account
While both brokerage accounts and retirement accounts are investment vehicles, they serve different purposes:
| Brokerage account | CPFIS | SRS | |
|---|---|---|---|
| Withdrawals | Anytime, subject to trade settlement times and market hours | Restricted, generally allowed from age 55 | Permitted, but penalties apply before statutory retirement age |
| Tax treatment | Capital gains generally not taxed | No tax on investment gains, interest, or dividends | Contributions get tax relief; only 50% of withdrawals taxable |
| Contribution limits | None | Min. S$20,000 (OA) / S$40,000 (SA) to start; stocks capped at 35%, gold at 10% of investible savings | S$15,300/year (citizens/PRs); S$35,700/year (foreigners) |
| Purpose | General investment, wealth building | Primarily retirement savings | Primarily retirement savings |
Frequently asked questions about brokerage accounts
The minimum age to open a brokerage account in Singapore is generally 18 years old. This is the legal age of majority in Singapore, and most brokerage firms adhere to this requirement.
Yes, foreigners can typically open brokerage accounts in Singapore, but the requirements may vary between different brokerage firms. Common documents required might include a valid passport, proof of address, and a completed CDP linkage form. It's best to check with the specific brokerage you're interested in for their exact requirements.
Brokerage fees can vary significantly. Common fees include:
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Commission fees: Charged per trade (buying or selling).
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Platform fees: These are charged for using the trading platform.
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Inactivity fees: These fees apply when your account remains inactive for a certain duration.
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Custodian fees: These fees are charged for holding securities.
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Whether you need a CDP account depends on what you plan to trade. If you're trading stocks listed on the SGX, you'll generally need a CDP account, as the CDP holds these securities electronically. However, if you're trading securities on foreign exchanges, a CDP account might not be required. Some brokers offer custodian or nominee accounts where they hold the foreign securities on your behalf.
Yes, many brokerage accounts in Singapore provide access to foreign stock markets, including the NYSE and HKEX. This allows investors in the country to diversify their portfolios internationally.
Your investments in a brokerage account are subject to market risks, meaning their value can go up or down. However, Singapore has a robust regulatory framework to protect investors. The Monetary Authority of Singapore (MAS) regulates brokerage firms to ensure they meet certain financial and operational standards, such as licenses10. Meanwhile, the Securities and Futures Act’s Investor Compensation Scheme in Singapore mandates organisations to have a fidelity fund to provide limited compensation to eligible investors in the event of a brokerage firm's agent misuses or misappropriates money supposed to be used for investing11.
Disclaimer: The information on this page is for general educational and informational purposes only and should not be considered financial or investment advice.
About the author
SingSaver Team
At SingSaver, we make personal finance accessible with easy to understand personal finance reads, tools and money hacks that simplify all of life’s financial decisions for you.
The information on this page is for educational and informational purposes only and should not be considered financial or investment advice. While we review and compare financial products to help you find the best options, we do not provide personalised recommendations or investment advisory services. Always do your own research or consult a licensed financial professional before making any financial decisions.