Overview

Getting started with a brokerage account in Singapore can be an intimidating process. However, it is important to understand the basics of how a brokerage account works and the potential benefits it can bring to your business.

Interested in investing stocks? You should stick with this article and continue reading for more information below.

Need For Two Separate Accounts: A Brokerage Account And A Central Depository (CDP) Account

The trading and keeping of shares in Singapore is enabled by two complimentary account types: a brokerage account and a Central Depository (CDP) account.

The brokerage account is created with a licenced brokerage business and allows buy and sell orders to be placed on the Singapore Exchange (SGX).

Shares acquired on the SGX, on the other hand, are not kept immediately in the brokerage account. Instead, they are stored electronically in The Central Depository Pte Ltd's (CDP) Central Depository system.

The CDP account can be linked to the brokerage account for efficient transaction processing. Maintaining and managing both account types is crucial for meeting compliance requirements as well as accessing the full range of share trading services in Singapore.

Brokerage Account: What Does It Do For Your Business?

Opening a brokerage account provides businesses access to securities exchanges for investing and trading purposes. A brokerage account is a fundamental tool for businesses looking to participate in the financial markets.

The Benefits of a Dedicated Business Brokerage Account

There are some advantages to opening a dedicated business brokerage account instead of just using a personal account for business investment purposes:

• Separation of funds - Keeps business investments and transactions separate from personal finances. This supports proper record keeping and accounting.
  
  
• Additional buying power - Business accounts allow investing the full amount of business capital available, not just personal funds.
  
  
• Possible tax benefits - Money earned in a registered business account may have different tax implications than in a personal account.
  
  
• Limited personal liability - With a registered corporate account, the business itself has liability for any investment losses rather than the individual owners.
  
  
• More account services - Some brokerages provide extra services and support for registered business accounts.
  
  
• Credibility - A separate business account shows vendors and partners you are a registered business entity.
  
  
• Compliance - Keeping investments in a designated business account simplifies adhering to accounting, regulatory and compliance requirements.
  
  

What Can You Do With CDP Account?

The CDP Account holds all the shares bought through the SGX while the Brokerage Account is used to facilitate trading activities on the SGX. You will need to provide personal information such as identity documents and proof of address when opening both accounts.

A CDP Account is a secure account that holds all the shares bought through the SGX. It is important to note that you cannot trade directly from your CDP Account, but instead must use a Brokerage Account to facilitate trading activities on the SGX. The CDP Account provides an additional layer of security and allows you to keep track of all your investments in one place. With a CDP Account, you can also receive dividends and other corporate actions from the companies you invest in as a legal owner of the purchased stock and also a shareholder in that invested company.

Singapore Exchange (SGX), Trading And Investing

The Singapore Exchange (SGX) is the main stock exchange in Singapore where you can trade and invest in securities. The SGX provides access to over 800 listed companies from around the world. You will need to open both a CDP Account and Brokerage Account with an approved broker or custodian in order to start trading on the SGX.

Trading and investing in Singapore can be a great way to grow your wealth and diversify your portfolio. Singapore is home to the Singapore Exchange (SGX), which provides access to over 800 listed companies from around the world. With this access, investors have the opportunity to explore a wide range of investment opportunities, including stocks, bonds, mutual funds, ETFs, futures, options, and more. Investing in Singapore also offers investors tax advantages such as no capital gains tax on profits made from trading securities.

It is also important to research potential brokerage firms before making any decisions about where to open an account. Different firms offer different levels of service and commission fees so it is important to compare them before making a decision. With this knowledge in hand, you can make informed decisions about which brokerage firm is best suited for your needs and start trading on the SGX with confidence.

Potential Stock Brokerage Firms For Your Business

To find a suitable brokerage firm according to your business needs, here is the list of potential brokerage firms in Singapore with fees in comparison.

Check out the below table for examples of fee types.

Custodian Vs Central Depository: Pros And Cons

You can also view in the above table for the detailed amounts required by each type.

When it comes to investing in Singapore, investors have the option of using either a custodian or a central depository (CDP) account. Both accounts offer different advantages and disadvantages, so it is important to understand the differences between them before making a decision.

A custodian account is an account held by a third-party financial institution that holds your securities and other assets on your behalf. This type of account offers convenience as you can access your investments quickly and easily without having to go through the process of opening a CDP account. Custodians also provide additional services such as portfolio management, tax filing, and more. However, custodians do not provide the same level of security as CDP accounts since they are not regulated by the Monetary Authority of Singapore (MAS).

On the other hand, a CDP account is an account held by the Central Depository (CDP) which is regulated by MAS. This type of account provides investors with greater security since all transactions are monitored and tracked by MAS. Additionally, CDP accounts allow investors to receive dividends and corporate actions from companies they invest in as legal owners of their purchased stock. However , CDP accounts require investors to open a separate account with the CDP and can take up to two weeks for the account to be activated.

Eligibility Criteria

Documents Needed For Application

For Corporate Brokeage Account

Which documents do I need to open a corporate account?

1. Certified true copy of Certificate of Incorporation
   
   
2. Certified true copy of Certificate of Incumbency showing the names of all directors and shareholders
   
   
3. Certified true copy of Signed Memorandum & Articles of Association
   
   
4. Certified true copies of the following from ALL directors, shareholders and authorized signatories
   • Singapore Citizens/PR - A copy of your NRIC (front & back) as both proof of identity and residency
     
     Alternatively:
   • Proof of Identity - Passport and signature pages
     
     
   • Proof of Residency – for example a bank statement or utility bill (for a landline phone, internet, electricity, water, gas or TV subscription) issued in the names of the directors, shareholders and authorised signatories
     
     
   • A copy of business card and/or link to the website of the party certifying that documents (1)-(4) above are certified true copies
     
     
   • Board Resolution.
     
     

For Individual Brokeage Account

Singaporean Citizens (SCs) or Singapore Permanent Residents (PRs): What You Need To Open A CDP Account

To open a CDP account as a SC or SPR via Myinfo on Singpass, here are the supporting documents you need:

• A Singapore Bank Account
• Image/Scan of Your Signature
• Your Identification Number for Tax Purposes (TIN) or NRIC number.
  
  

If you are a non-resident of Singapore, you need to submit:

• Tax Residency Country
• Tax Identification Number (TIN)
• Completed Form-W9
  
  

Other Additional Requirements

CDP Account Opening With Online Form

For Singapore Citizens/PRs:

• NRIC; or
• Singapore Armed Forces ID; or
• Singapore Police ID with Passport.
  
  

For Malaysia Citizens:

• Malaysia IC; or
• Passport
• Work Pass.
  
  

For Other Nationalities:

• Passport
• Work Pass
• One of the following Secondary Support Documents (the Support Document must be within the past there months and must contain the applicant’s name and residential address, which must match that in this application for verification.):
  • Bank statement from any Monetary Authority of Singapore (MAS) licensed banks; or
  • Statement from Central Provident Fund (CPF); or
  • Statement from Inland Revenue Authority of Singapore (IRAS).

• A Singapore Bank Account
• Image/Scan of Your Signature
• Your Identification Number for Tax Purposes (TIN) or NRIC number.
  
  

What's More In It For Your Business?

In conclusion, we have gathered useful information in one go for faster and smoother details you may need for your guidance in opening a brokerage account.

SGX Investor Portal

The SGX Investor Portal is a comprehensive online platform that provides investors with access to the Singapore Exchange (SGX). It allows users to easily open and manage brokerage accounts, view market data, research stocks, and track their investments. The portal also provides educational resources such as tutorials and webinars to help investors learn more about investing in the stock market. With its user-friendly interface and comprehensive features, the SGX Investor Portal is an ideal choice for those looking to get started with investing in Singapore.

For Easy Application Via Brokerage Firms

Most Singaporean brokerages should be able to assist you with your CDP account application.

Frequently Asked Questions

What is a brokerage account?

A brokerage account is an investment account that allows you to buy and sell stocks, bonds, mutual funds, and other investments. It is managed by a broker who will execute trades on your behalf.

Who can open a brokerage account in Singapore?

Any Singaporean citizen or permanent resident over the age of 18 can open a brokerage account in Singapore. Non-residents may also be eligible depending on their tax residency status.

What documents do I need to open a brokerage account?

To open a brokerage account in Singapore, you will need to provide your NRIC or passport, proof of address (e.g., bank statement or utility bill), and proof of income (e.g., payslips). You may also need to provide additional documents such as tax identification numbers for non-residents.

How long does it take to open a brokerage account?

The process of opening a brokerage account usually takes around two weeks from start to finish. This includes the time it takes for the broker to verify your identity and documents , and for the CDP to open your account.

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