Blog / How to buy stocks in Singapore
Thursday, 24 January 2013 at 04:59
How to buy stocks in Singapore?
Have you been not used to the Singapore Stock Market, not a clue how to choose stocks in Singapore?
In this article you will learn everything about buying shares in Singapore. This is mainly for novices who've not bought any stocks before and wish to begin Stock Investing or Trading. Hopefully looking at this text, you will have clear picture in what to complete exactly to begin buying shares in Singapore, so let’s begin.
How to buy stocks in Singapore
1. How to get stocks in Singapore - Select a Stock broking firm
These are a listing of local Stock brokerage firms that you can consider opening a trading account with to start buying shares in Singapore. Most of them provide pretty much exactly the same suit of items and services. For any comprehensive comparison of the different broking firms in Singapore, just click here.
Listed here is a set of Local Stock brokerage firms in Singapore
1) Phillip Securities Online Stock and Share Trading-POEMS
2) Fraser Securities www.amfraser.com.sg
3) Lim & Tan Securities LIM & TAN Securities
4) CIMB Securities www.itradecimb.com.sg/
5) Maybank Kimeng Securities Maybank Kim Eng
6) OCBC Securities iOCBC - Your own personal e-Broker
7) DMG and Partners Securities DMG & Partners Securities
8) UOB Kay Hian UTRADE presented by UOB Kay Hian
9) DBS Vickers DBS Vickers Stock trading online
When it is a time opening a regular trading account, you would have to drop by the broker personally for verification purposes. It’s absolve to open a free account where there are not any maintenance fees for any trading account too.
Remember that should you go down to any brokerage firm and open a trading account with no part of mind to service you, you will almost certainly be placed within dealing team (using a general hotline) whereby it’s just about DIY and you're simply virtually left on your own. So if your family members, relatives or friends have recommended a good stock broker, do engage him/her. Should you still need nobody in your mind, you can consider us. Using a good stock broker that will help you does make a massive difference in the manner you commence your stocks trading and investment journey.
These local stock brokerage firms highlighted above are those that permit contra trading. Essentially, contra trading means you'll be able to choose the stocks without having to pay on their behalf first. You might be given a due date with the idea to pay for your sell or buy off your stocks thereby incurring a gain or perhaps a loss. Click here to know more about contra trading.
2. How to get stocks in Singapore - Documents needed
After you have chosen a regular broking firm in Singapore, after that you can head down to your preferred firm together with these documents:
3. Original identity card (for Singaporean/Singapore PR)
4. Original identity card (for Malaysian) / Passport (for Foreigner) Original power bill as proof of residential address (where applicable)
5. Passbook of local banks (DBS, OCBC, UO - the lender account you desire to use to fund your stocks purchase.
6. Payslip or proof salary (optional) - if you'd like a greater trading limit from the beginning.
3. Buying stocks in Singapore - Open a CDP Account
CDP means Central Depository (Pte) Ltd. This account is when all your shares bought inside the Singapore stock exchange are kept. You will have record from the movement of shares in and out of this CDP account. At any one time, if you would like to know the stocks which you now have and the exact quantity, you can check your CDP account online.
You are able to go on to SGX building to spread out a CDP account directly. So why do that when you can fit everything in one shot at the broking firm itself, as you have to visit in that area anyway, right? Just fill up the CDP account opening form on the broking firm itself.
If you're opening this account for the very first time, please be aware that you'll definitely need to go down personally for verification purposes as mentioned earlier. To understand in detail regarding your CDP account, click here.
4. How to buy stocks in Singapore - Open a regular Trading Account
To start buying shares in Singapore, you should open a stock trading account at the broking firm. To spread out a stock trading account, please note that one should be a minimum of 18 years of age, no undischarged bankrupt and have no delinquent records with any stock broking houses in Singapore.
Forms to fill to spread out your Trading Account are:
Trading account Application form
This is actually the main trading and investing account which you will use to buy or sell stocks. When you have an investing representative in your mind, do fill his/her name inside the form, or even, the brokerage firm will randomly appoint you with one. You can look at us.
Giro or EPS (Electronic Payment for Shares) form
These are the basic 2 methods which you can use to fund your stocks purchase. You are able to only select one. For Giro, the funds will be deducted from the bank-account; there is no need to complete anything. For EPS, you would have to effect the payment yourself although the ATM or internet banking. Remember that you may also use cheque to pay into the 2 methods. E mail us to find out which method is the most effective for you personally?
CDP Linkage form (to link your Stock trading account to your CDP account)
You may be given a statement from CDP informing you that both accounts are already linked, and you will start trading.
5. How to buy stocks in Singapore - Before choosing your first stock in Singapore
When the trading account is opened, you may receive statements by send from your brokerage firm containing your trading account number and password. This will take roughly Three to five working days.
You will also received statements to inform you your CDP account has been opened. Once you've received a confirmation statement informing you that both your trading account along with your CDP account are already linked, it is possible to commence trading. Note that any transactions executed via your Cash Trading Account just before linkage approval could lead to failed trade and losses. Please check along with your broker if you are unsure.
With the trading account number and PW out of your broker agent, place the an investment online from the brokerage online platform. You can even call your broker on the phone and he will place your order to suit your needs. (Remember that the commission is slightly more expensive if your broker would get it done for you personally)
Some brokers may need one to place a first deposit of $1k to $5k or request to talk to your payslip so that you can start placing any orders. In the first place, most buy credit limit starts at $20k (the amount of money of shares you should buy), if it's not sufficient, it is possible to speak to your broker to increase it further.
6. Buying shares in Singapore - Placing your first make an online purchase.
Together with your username and password, it is possible to login for the online platform. You will be able to determine a table such as this -
When it is during trading hours (9am to 5pm), these quotes and prices will be blinking away FYI. Before you click anything, let's direct you on the basics of the way to purchase stocks in Singapore and the columns you should take note.
Let’s utilize the first counter in the list (YHM) as an example. You can look at the columns BVol (K), Buy, Sell and SVol (K). For YHM, the buy prices are 0.027 as well as the sell cost is 0.028 currently. You can put a buy order to queue at 0.027. By doing this, there's no guarantee that the trade will be performed, it all depends if people are throwing on the stock in the Buy price. If you don't want to wait and want to buy direct, you can put an order to get at 0.028 and also the trade will be done immediately. Observe that you may also queue to purchase below 0.027 that will place you further behind the queue.
During periods of high market volatility, the Buy and Sell price can fluctuate.
7. Buying shares in Singapore - How to proceed after stock purchased?
Finally, before using the stock, most broking firms will provide you with Three days to be in the purchase up till T 3, you can do an EPS by 7pm on T 3. If you sell off your position within this 3 days and you also don't need to effect payment and definately will either realize a contra gain or get in a contra loss.
Initially Rate Brokers, the whole customers are given one more Two days, making the contra period 5 days up to T 5. Contact us to understand more.
To get a clear knowledge of contra exchanging Singapore, just click here.
8. Buying shares in Singapore - What goes on after selling stocks?
Let's say you sell off the shares you've already found, the funds will reach your bank account on T 4. Meaning let's say you sell on the Monday (T date), by Friday (T 4) you'll be able to talk to your funds inside your bank account.
How to buy stocks in Singapore
Thanks for reading till here, chances are, you should have a fairly clear idea how you may get started with buying shares in Singapore.
We hope we now have answered your question concerning how to buy stocks in Singapore thoroughly. This is extremely much list of positive actions if you'd like to start out buying shares in Singapore. In conclusion you would have to open a stock trading account and CDP account with your local stock broker of your choice. For those who have a brokerage in mind, that might be great, or even, you can look at us.
Any questions you would like answered privately, just e mail us, alternatively, you can even chat with us on our homepage using the chat box at the bottom right hand corner.
Go ahead and comment below on stuff that we now have overlooked. We will reply promptly. Thank you.