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Singapore’s stock exchange is packed with blue-chippers such as SIA, DBS and Singtel. Find out all you need to know about the SGX and the stocks that are on it.
Read the latest news about Singapore Stocks Investment products in Singapore and the best money saving tips.
What are Singapore stocks and how does it work?
Singapore stocks refer to stocks listed on the Singapore Exchange (SGX). Investors or traders can purchase Singapore stocks off the SGX with a brokerage account. This brokerage account can be opened with any broker of choice.
Reasons to invest in Singapore stocks
Investors have the option to invest in financial markets of many different countries. With Singapore stocks, there is a sense of familiarity – they may be brands you shop at, bank with or use on a daily basis. Examples of such ‘homely’ stocks include DBS, CapitaLand, ComfortDelGro and Sheng Siong.
Setting goals with Singapore stocks
Your investment goals help to determine your investment style and the products you invest in. Example of goals include:
You can have multiple investment goals. With Singapore stocks, many investors look to generate passive income, investing in stocks that regularly pay out dividends, such as bank stocks or Real Estate Investment Trusts (REITs).
Understanding types of investment products
Products available for you to trade include:
Getting started with your CDP and trading accounts
You will need a Central Depository (CDP) account to buy and sell shares on the SGX. Your CDP account safekeeps the securities that you purchase. Read more about the CDP account.
You will also require a brokerage account. In Singapore, you can choose between a CDP-linked account or a custodian account. Compare the pros and cons of a CDP-linked vs custodian account here.
Know your brokers and how to choose the best brokerage
You can choose a brokerage firm based on factors such as:
To trade Singapore stocks, have to use your brokerage account or have your broker execute the trade for you. If you are using your brokerage account to trade, do keep a look out for the price you are buying or selling the security at, as well as the number of units you are trading. The SGX trading hours are 09:00am to 05:00pm with a mid-day break from 12:00pm to 01:00pm.
There are hundreds of stocks on the SGX for you to choose from. Besides stocks, you can also find fixed income products, derivatives and more on the SGX.
When buying a stock, base your decision on some of these factors:
You first have to decide if you prefer a brokerage account that is CDP-linked — useful for SGX stocks whereby the stocks purchased under your name will be credited into your CDP account. Alternatively, you can also consider a custodian account, sometimes referred to as a pre-funded or cash upfront account. You can have multiple brokerage accounts linked to your CDP account.
Yes, foreigners can invest in Singapore stocks. Similar to Singaporean investors, foreigners can also open a CDP account and brokerage accounts.