How to Start Investing in Stocks

From Financial Literacy Wiki

How to Start Investing in Stocks in Singapore

1 Opening a CDP account
- 1.1 Documents you need to bring
2 Stock Trading Account
3 Payment of Shares
4 Articles on Investing in Stocks

Opening a CDP account

To start investing in stocks in Singapore, you need to open a Central Depository (Private) Limited Account or CDP Account. This is an account you maintain with CDP to credit the shares you have bought from the Singapore securities market. You require only one CDP direct securities account. As long as you are above 21 years old and not an undischarged bankrupt, you can apply for a CDP account at the Central Depository's customer service counters today. It is located at the SGX Centre found at Shenton Way. And CDP does not levy any fee for account-opening.

[edit]

Documents you need to bring

**Supporting Documents Needed to Open CDP account**
Nationality	Documents Required
Singaporean	Identification card (IC)
Malaysian	Malaysian IC
Permanent Resident of Singapore	Singapore blue IC / passport and entry or re-entry permit
Other nationality	Passport

If you are overseas you can send your completed application form, together with the certified true copies of the supporting documents as listed above to CDP.

[edit]

Stock Trading Account

After you have open a CDP account, it is time to hunt for a securities trading account. This is the account where you place your buy or sell order of stocks.

Orders can be placed through the Internet by logging on to your Internet Trading Account or placed through the broker by calling them.

Please note that you need to pay a commission for ALL stocks transaction. So when you place an order, make sure you take into account of the commission, otherwise you might be buying it at an expensive level or making a loss when selling. The commission for trading through an Internet Trading Account is usually cheaper than trading through your broker.

[edit]