Investors primarily use a brokerage account for buying and selling securities such as mutual funds, bonds, and stocks. It is also widely known as an investment account. The ones who are new to investing always wonder how they can open a brokerage account.
So, in this particular blog post, we will learn how one can open a brokerage account, particularly in Singapore. Without any further delay, let’s dive in!
Some important points one must take into consideration when opening a brokerage account are as follows :
- First and foremost, it is absolutely necessary first to open a CDP Account, i.e., a central depository account, before opening a brokerage account with any brokerage firm in Singapore. Let’s understand the difference between the two types of accounts – Brokerage and CDP account. A brokerage account is essentially used for trading shares with the aid of a brokerage firm. However, the purpose of the CDP Account is to store the shares purchased.
- The brokerage fees are more or less the same among the brokerages in Singapore.
- Apart from stocks, the kinds of investment products offered by brokerages in Singapore include bonds, ETFs, Unit Trusts, etc.
Now let’s talk about the steps involved in opening a brokerage account in Singapore –
- As stated earlier, the first step is to Open a CDP Account.
For doing so, one must be of 18 years or above, and one must have an account in either one of the mentioned accounts – Citibank, DBS, HSBC, Standard Chartered, Maybank, and UOB. One can certainly apply online on SGX Website for opening a CDP Account.
- The next step is to Select a brokerage and then open a brokerage account. There are two ways of opening a brokerage account.
– One can open an account Online by downloading and filling up the application form and then attaching the required documents. This form can then be mailed to the brokerage’s address.
– The other way to open the account is by visiting the brokerage office, where you can complete the process.
To conclude, before getting started with an investment, a brokerage account is a must-have for any investor. It is like a first step to become an investor. One cannot begin investing and buying stocks without a brokerage account in Singapore. You can certainly open a brokerage account by following the steps mentioned above in the blog. So, open your brokerage account now and start investing!