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Buying Stocks in Singapore: A Foreigner&#;s Guide
Last updated February 21st,
On most maps, Singapore is so small that it only shows up as a red dot. But despite its small size, it has gone against all odds &#; from being exceedingly poor a few decades ago, stock investment singapore guide, it is now among the richest territories on Earth.
SinceSingapore’s economy has averaged an annualized % growth rate, stock investment singapore guide, which may well be the fastest development and industrialization rate in human history. Unsurprisingly, Singapore’s stock market is Southeast Asia&#;s largest stock exchange in terms of market cap.
However, stock investment singapore guide, its success and investment desirability depend almost entirely on its global outlook.
Its markets are connected stock investment singapore guide every major economy in the world. And because of this, stock investment singapore guide Singapore brokerage account allows you to invest in stocks across the globe, including Europe, Japan, and China.
A founding member of ASEAN (Association of Southeast Asian Nations &#; an regional organization that works as a proto EU if it conferred more freedom to its member states),
Singaporean banks and brokerages have the ability to invest in difficult-to-access frontier markets like the Philippines, which will show vast development over the next few decades.
Given that Singapore ranks among Asia&#;s top financial hubs, it makes sense that its Singapore Dollar is one of the world’s most stable currencies as well. Any assets denominated in it may well be able to defend against present market volatility.
Here&#;s our full guide on how to invest in Singapore and buy stocks here &#; in particular from the perspective of a foreign trader.
Step 1: Find a Stock Brokerage in Singapore
Chances are that if you&#;re dealing with a good brokerage firm in a developed nation, you already have the ability to trade stocks in Singapore through them.
That said, what they will likely omit over the phone is that they will slap a hefty fee onto any transaction involving these stocks. A foreign brokerage house tacking on a S$50 transaction fee to trade stocks in Singapore isn&#;t unheard of.
If you&#;re making stock trades worth hundreds of thousands of dollars, a transaction fee makes little difference. You can easily bypass the fees stock investment singapore guide diversify your offshore assets) if you set up a local broker based in Singapore though.
Each of the top banks in Singapore (UOB, DBS, and OCBC) have their own brokerage accounts, stock investment singapore guide, and if you can secure one, it’s probably the best option.
It is worth noting that while many Singaporean brokerage firms will let non-residents open an account, there is a restriction on US citizens doing so, with the exception of Saxo Bank and OCBC.
Furthermore, even non-US citizens and non-residents should also take note of these banks, as they are of the few that can open broker accounts remotely, without needing their customers to personally visit Singapore (assuming that you already have a Singaporean bank account).
Investment in Singapore () &#; Read This First Before You Invest Your First $10,
You have finally saved up your first $10, after all the Cafe skipping and serious budgeting you have done over the years.
It is not easy, I understand. But please do not rush your first investment in Singapore as you certainly do not want to lose your hard-earned, hard-saved money on a whim.
Today you will learn how to invest, what you can invest in, and why you should invest.
We also cover the various investment options you can invest in as well as the investment strategies you can use.
Let's begin!
(this article was first published in and have been updated for )
Why Should We Invest Our Money?
Let's start with the why - knowing our "why" gives us direction. Our why is always crucial to keep in mind, so that we are always aligned to our objectives.
For instance, if we were investing today to ensure we could retire in 10 year's time. We would be far more conservative and defensive with our portfolio instead of being too aggressive and risk-taking - sexy as the latter might seem.
Keeping your "why" in mind is important precisely because of the variety of distracting options available in the market.
Always know your why.
If you're still unsure, here are four common investors' "whys" you should know and consider if you don't already have a why:
#1 Achieve Financial Independence — This isn’t about quitting your job or retiring early but having the option to do so. It’s about achieving financial self-sustainability without relying on job. Such an option allows you to live your life at your own terms and isn’t that what most people dreams of? Fortunately, our personal finance & investment community is a big fan of this concept and there are many blogs you can follow.
#2 Put your money to work (harder) — Your money has to be parked somewhere whether it is in your wallet, bank accounts, or share investment. But the problem is, parking it in your wallet or bank accounts are not offering the returns that can potentially impact your wealth.
We believe that you should utilise your financial capital just as how you use your human capital for salary. Human capital de-values with age but financial capital accumulates and increases over time, thanks to compound interest. That's why it's so important to put your money to work.
#3 Beat Inflation Rate — Inflation is the general increase in prices of goods and services, stock investment singapore guide. In other words, you buy less than you can with the same amount as the value of your money fall over time.
It's like dropping coins whenever you work, eat and sleep. The average inflation rate in Singapore is % and the average savings account rate is less than 1%.
That means you're losing % every year! By the time you're 60, you will have lost over 60% of your wealth, if you don't invest. That's a pretty good reason to invest if you ask me.
#4 Retirement — Investing for retirement is one of the main reasons our students decide to start investing when they attend our courses. Many are worried that their savings (including CPF) are not able to provide them with the life they want when they retire.
Check out our Dr Wealth App.: Discover
The Truth About Investment Returns & Getting Rich Through Investing.
You can’t imagine how many times we have students walked up to us and asked:
“Do you have any investment strategy that can beat the market, earn monthly passive income, low capital outlay and have little to no risks?”
You can probably guess how we feel about that question.
First off, here’s the truth:
Investing will not make you rich or replace your salary unless you have a sizeable capital to compound investimentos bitcoins vale a pena is not hard to visualise, given that we know the average returns of stock market is roughly 6 - 8% from the STI ETF.
Presuming you have a capital of $, and it compounds at 8% per year; the annual shark tank tv show investors will make you $8, per year or $ per month. The sum is good as a side income but will certainly fall short in replacing your salary.
And if you are looking for $4, per month (average Singaporean salary), you'll need an investment capital of $,!
Investment Capital | Returns 8% | $ Per Month |
|---|---|---|
$10, | $ | $67 |
$50, | $4, | $ |
$, | $16, | $1, |
$, | $40, | $3, |
$, | $45, | $3, |
That said, we think you should still invest your money because:
#1 — Compounding effect takes time to do its magic and the earlier you start the more time it compounds with. (see guide)
#2 — You get better returns than what you would otherwise earn by putting your money in banks.
And on to the next point, which is going to sound counter-intuitive.
In fact, you may be better off starting with a small capital during the learning phrase as making mistakes is part of the investing journey. It's way better to make mistakes when your capital is small, and not when your capital is huge.
Starting early allows you to gain the opportunity to learn the necessary knowledge, understanding and mindset about investing, stock investment singapore guide. So that when your capital starts to turn into a sizeable amount, you have the skills (and confidence) to continue investing it.
Singapore CDP & Stock Brokerage Accounts
Before you can even start investing in Singapore, what you need to do is set up a Central Depository (CDP) account. For this, you have to be above 18 years old and financially well, or simply, not bankrupt. The CDP account is where all the stocks you buy on the Singapore stock market are kept.
To set-up your CDP, you can either:
- Go to CDP and open an account directly with them, stock investment singapore guide. You can sign up for an account on SGX website or download the application form, fill it up, and submit it to the SGX CDP Customer Service, stock investment singapore guide. (Click here for a step by step guide to setting up a CDP account) Once your CDP account has been created through this, you can link it to your choice of brokerage easy ways to make money business via a licensed brokerage firm. Go to your chosen brokerage firm and get them to create your CDP account, stock investment singapore guide. They will hand out to you the same CDP form for you to fill out while you are opening a brokerage account with them.
In short:
- CDP is where your stocks are kept. They are like your bank accounts.
- Brokerage firm is what you need to purchase stocks from SGX. You can still call the broker to make trade like the good old days but it will not be cheap as they charge a min, stock investment singapore guide. of $40 per transaction and it’s far higher than the typical online trading fee of $
They are certain brokerages that can act as a custodian and hence CDP is not needed. But it is rare as most people prefer CDP to be their custodian.
In a nutshell, here's:
How to buy stocks in Singapore
How to buy stocks in Singapore in 6 steps:
- Know why you want to invest - is it for dividend income or to grow your money faster?
- Open a CDP account to keep your stocks
- Open an investment brokerage account (here's a Singapore brokerage comparison if you need help choosing)
- Decide on the stocks you want to invest in
- Buy your first shares
- Reap the rewards
What's the minimum number of shares you need to buy in Singapore?
Singapore Exchange (SGX)'s minimum lot size is shares.
It had reduced its standard board lot size of securities from 1, to units in
This move was welcomed by retail investors because it lowers the barrier of entry to higher priced blue chip stocks in Singapore. Instead of having to fork up with over crypto invest mco, to invest in blue chip stocks like DBS, investors could start owning some of the best listed stocks on SGX for less.
Sowhat should you invest in?
Let's explore that next:
Investment Options in Singapore
There are countless of investment options you can invest in some are common like stocks, stock investment singapore guide, REITs and ETFs whereas some are less familiar like bonds. Over here we will walk you through with each of the investment options; its risks, pros & cons, expected returns and capital requirement.
Stocks
The first one on the list is stock and there is a reason for that, because stock is the most proven long term asset class investors can ever hope for.
What is stock?
A stock is a share in the ownership of a company. The person who owns share is called stockholder and he is entitled to the company’s assets and earnings in the form of dividends in accordance to the percentage of stake he holds.
How do you make money with stocks?
Well, there are two ways:
- Dividend income — Companies pay a portion of their corporate earnings to investors in the form of dividends. Dividend stock investment singapore guide can be annually, bi-annually or quarterly depending on the their dividend policy.
- Capital gain — You can stock investment singapore guide profit by selling the stocks at a higher price than what you originally bought. Capital gain usually make up most of the gain you get from stocks.
Your actual investment returns will be the sum of dividend income and capital gain.
Blue Chip Stocks
In short, blue chip stocks are simply shares of well-established, well-recognised, profitable, and financially sound companies.
Blue chip stocks typically have a market capitalization in the billions. They are usually up there in the market leader or among the top companies in its sector.
Even if a person does not engage within the financial industry, they are more often than not familiar with these companies, stock investment singapore guide. In Singapore, some common blue chips include: DBS, SingTel, and BreadTalk.
When it comes to investing in these, blue chip stocks are generally perceived as low-risk, stock investment singapore guide. The returns could vary according to the company you choose to invest your money in.
Check out our free dividend stock screeners: Dividend Blue Chips and Dividend Aristocrats
Value stocks
These are stocks that are priced below its fundamental value. Value stocks tend to be but not always small market capitalisation companies. They are what value investors called the unloved stocks; stocks that have sound fundamental but neglected by the market because of unglamorous characteristics like in sunset industry and boring business model.
Different investors classify value stocks differently and the thing that makes it highly debatable is: what constitutes value?
In short, we think value can be based on:
- Assets — Price to Book,
- Earnings — Price to Earnings
- Cash flow — Price to Discounted Cash Flow
Over here we use asset-based valuation because it is easier to execute for most investors and proven fun making money ideas produce reasonable returns over the long term, stock investment singapore guide. You can find out more about value investing over our guide here.
Check out these screeners: Net Stock investment singapore guide Magic Formula.
Exchange-Traded Fund (ETF)
ETF in short is a type of fund that is traded in the stock exchange like stocks that owns a basket of assets (bonds, stocks and commodities). The group of assets that an ETF owns is based on the index it tracks.
We purchase ETF to own a basket of stocks to be cost-effective which would otherwise be expensive or difficult to buy them individually.
For example: Buying one unit of STI ETF means we are getting the top 30 blue chip stocks listed in SGX based on market capitalization. What so good about it is that the STI ETF automatically substitutes constituents stock investment singapore guide are no longer fulfil the index criteria, hence only the strongest occupies the rank.
This is the reason why passive investors love ETF so much.
In fact did you know that if you purchased STI ETF inheld it and did nothing over all the financial crisis occurred during the period including crisis, you would have gained an average returns of % over the past 15 years. That’s the beauty of investing in STI ETF.
Over the years we have created a few investment strategies
Factor-based what makes the price of bitcoin go down (guide & course) — we discovered that stocks' outperformance can be explained and broken down into simple financial metrics stock investment singapore guide as factors i.e size, value, quality, momentum & volatility.
And investors who have stocks which follow those factors tend to outperform the market in the run long. The best part is, there is even study done to break down Warren Buffett investing success and it’s called Buffett’s Alpha. Read: 2 Stock Picking Criteria That Made Warren Buffett a Billionaire.
Singapore Permanent portfolio — We realised that not every investors want outsized returns from their investment. Some investors invest to conserve wealth rather than grow wealth. As such, low risks and volatility are their main objectives, stock investment singapore guide. To achieve that, the permanent portfolio strategy was created. The portfolio is makes up by a combination of stocks, bonds, gold and cash. See performance: Singapore Permanent Portfolio Performance.
Monthly Investment Plans
A Monthly Investment Plan or share builder plan is a type of financial product that allows investors to invest in a particular investment periodically (monthly) at a predetermined sum.
It follows an investment strategy known as dollar cost averaging: invest a fixed amount each month; you will buy more shares/units when the prices are going down and less when the prices moving up. Your average prices are based on the period where you accumulate the shares/units. And your returns are measured based on your average accumulated prices against the current price.
In Singapore, we have 4 companies that provides monthly investment plans:
- OCBC Blue Chip Investment Plan (BCIP)
- Maybank Kim Eng Monthly Investment Plan
- POSB Invest Saver
- Phillip Share Builder Plan
Such plans are great for individuals who:
- Just started working and have little capital to invest
- Do not want to spend time analysing and picking stocks
- Dislike market volatility and prefer dollar cost averaging to hedge risks
Singapore Bonds
Bonds are low-risk, stable and predictable investment. When investors invest in bonds, the investors are lending money to an entity i.e corporate companies or government and are expected for full capital repayment at a future date known as maturity.
During the holding period investors will receive interest payment called coupon payment for lending out the money.
Over here, we have:
#1 Singapore Government Securities — They are government bonds issued by Monetary Authority of Singapore (MAS) on behalf of the Singapore Government. Their typical interest rate for a year bond is around 2% to 3%.
#2 Singapore Savings Bonds — Launched in late to help Singaporean to save and invest to meet their long-term financial needs. Their interest rate is based on the average of Singapore Government Securities and investors will earn a ‘step-up’ interest rate every year, stock investment singapore guide. Read the guide to find out more.
#3 Singapore Corporate & Retail Bonds — Are not as safe as the government bonds as it is backed up by corporation. To compensate for the higher risks, investors can expect far higher returns of around 3% - 6%.
Bonds are suitable to investors who:
- Seek predictable interest payment
- Are risk averse and are good with low returns
- Want principal repayment
Properties
As you may have picked up somewhere, properties can be a great investment option, stock investment singapore guide. This is especially true for those properties that are located in a good place, wherein the value is most likely to appreciate over time.
Furthermore Singapore land scarcity problem and raising population make property investment even more attractive.
Property is unique compared to the likes of shares trading in the stock market as it contains utility value such as one can enjoy using the asset while capturing gains in rising property prices. However, they are not hassle-free as owners have to maintain, manage and lease out to earn rental income.
Of course, managing the property to keep it at its top shape can lead you to incur further costs, stock investment singapore guide. This may sound costly right in the moment. However, you may find that this pays off well in its returns as the value of the property stock investment singapore guide with it.
Singapore REITs (Guide & Course)
For the young and new investors, investing in properties may seem far-fetched given your current position. To make up for that, the next best option for you is the Singapore REITs.
REITs, which translate to Real Estate Investment Trusts, are corporate entities that invest primarily in real estate and have various tax benefits.
Often, it is described as instruments that offer investors the opportunity to invest in a professionally managed portfolio of real estate to a stream of passive income.
The returns investors get from REITs are usually provided from the regular dividend income, which comes from rental payments/income of the REIT’s properties, and capital gains if the space’s value goes up.
A thing you need to know about REITs is that there are actually different types of properties that you can invest. The classes of properties include:
- Office
- Retail
- Hybrids
- Industrial
- Healthcare
- Hospitality
- Residential
REITs ETFs
There are three REITs ETFs listed on the SGX, they are:
Phillip SGX APAC Dividend Leaders REIT ETF | NikkoAM-StraitsTrading Asia ex Japan REIT ETF | Lion-Phillip S-REIT ETF | |
|---|---|---|---|
Index that ETF Tracks | SGX APAC Ex-Japan Dividend Leaders REIT Index | FTSE EPRA/NAREIT Asia Ex Japan Net Total Return REIT Index | Morningstar Singapore Reit Yield Focus IndexSM |
Ticket Quote | BYI | CFA | CLR |
No. of REITs | 30 | 23 | 23 |
Management Fees | % | % | % |
Top 3 constituents | Link REIT (%), Scentre Group (%) & Westfield Corp (%) | LINK REIT (%), ASCENDAS REIT (%) & SUNTEC REIT (%) | CapitaLand Mall Trust (%), CapitaLand Commercial Trust (%) & Suntec REIT (%) |
Countries | Australia, Hong Kong, Singapore | Hong Kong, Malaysia, Singapore | Singapore |
Dividend Yield Range | 4% to 5% | 4% to 5% | 4% to 5% |
CPF Investments
Some investors prefer to invest their CPF monies as they believe they can do better than the interest rate CPF is offering.
Central Provident Fund is a mandatory and comprehensive social how to begin investing in cryptocurrency system that enables working Singapore Citizens and Permanent Residents to set aside funds for retirement.
It comes with 4 types of accounts:
- Ordinary Account (OA) - for housing, insurance, investment, stock investment singapore guide, and education
- Special Account (SA) – for old age and investment in retirement-related 042 bitcoin value products
- Medisave Account (MA) – For hospitalization expenses and other approved healthcare
- Retirement Account (RA) – This is made available on your 55th birthday
These accounts also gain varying interest rates, stock investment singapore guide, which are as follows:
- Ordinary Account (OA) – %
- Special Account (SA) – 4%
- Medisave Account (MA) – 4%
- Retirement Account (RA) – 4%
Moreover, you are able to gain one extra percent for the first $60, CPF balances, of which limited to $20, in your O.A.
On the other hand, the CPF Investment Scheme (CPFIS) is an option given to you to invest your Ordinary Account and Special Account savings in a variety of investments to enhance your retirement nest egg.
In order to avail in this, you must first have to qualify the following requirements:
- Be 18 years old and above
- Not an undischarged bankrupt
- Have more than $20, stock investment singapore guide, in your OA
- Have more than $40, in your SA
However, if you dislike risk taking and don’t have the skill to invest on your own, then all is well to leave your money in your CPF accounts should i buy bitcoin now august 2022 let the government manage for you.
Unit Trusts (Mutual Funds)
Unit trusts, also known as mutual funds, are a popular investment options among investors. This is due the fact that many financial advisers are promoting it though investment-linked policies and the public perception that it’s a profitable and effortless way to invest their money.
Moreover, it makes sense to leave your money to professional fund managers to manage since you are not an expert.
However, we don’t think unit trusts is a good idea.
Here’s why:
- High fund management fees eats into your earnings
- Most actively managed funds cannot beat the benchmark or the index over the long run
- Restrictions of fund managers
- Sales charges
In short, if you want effortless investment and gain reasonable returns you should be looking at STI ETF instead.
Cryptocurrencies
Cryptocurrency is known as a virtual currency or digital currency. It is a form of payment that can be used to exchange online for goods and services, however it is not widely accepted yet.
The growth of cryptocurrency has amassed a number of companies that create their own thorough Initial Coin Offering (ICO). Often times, these are called tokens, which can be traded specifically for the good or service that the company provides.
As of January, there have been about 1, cryptocurrencies that were trading hands and has since continued to increase.
Cryptocurrencies work using a technology called blockchain. This blockchain is a decentralized technology that manages and records transactions for the entire crypto network to see. This makes cryptocurrencies appealing since it has no centralized system.
Probably the most popular of all cryptocurrencies out there is Bitcoin. Just recently, its value shot up at an all-time high. For this reason, more and more people are joining in on this bandwagon.
And if you stock investment singapore guide to invest, then it may be a good thing to try out this nontraditional option so long you keep the amount small and aware of the associating risks. It may come handy someday due to its value. But you must remember to read up about it first before jumping in.
Crowdfunding (Debt-based)
Another alternative that you can gain outsized returns is through crowdfunding.
Crowdfunding is a platform allows retail investors to invest in SME companies in return for high interest coupon and capital repayment at predetermined date.
Small companies, on the other hands, can tap into public capital without needing to comply with expensive administrative fees to fund their business operation or expansion.
Here’s are 2 local crowdfunding companies:
- Funding Societies
- MoolahSense
Others
Aside from those two mentioned, there are actually a lot of alternative investment options you available like Angel Investing (investing in startup), Gold, and Robo-Advisor (similar to monthly investment plans).
Where to Learn About Investing?
Some of the ways you can learn investing is by books, blogs, video, course and of course nothing beats actual hands-on experience.
Over the years, we have written thousand over articles for readers who are interested to learn and improve their investment skill.
Soshameless plug here: check out our investment courses where we collaborate with trusted professional experts.
Blogs
Useful resources are also provided through financial blogs. These blogs contain notes and summary points from bloggers about the things they learned along their investment journey. It also gives different perspectives about different financial issues.
And if you start stepping up on your investment skills and knowledge, then you might even find those in-depth analyses particularly fascinating.
Case Studies
A great way to improve your investment skill is by reading case studies. These case studies layout our thought processes and investing methodology. And hopefully you get a sense of how analysing stocks is like and whether you are doing stock investment singapore guide correctly. Below are some stock case studies we have written applying our investment strategies.
Expert Interviews
Believe them when they say trust the experts. And when it comes to learning, there is nothing you could rely on more than advices and inputs from experienced professionals.
Through various interviews that are conducted, you can read, listen and watch various financial experts tackling a number of issues that greatly concerned a particular field you are looking into.
However, this doesn’t mean that you should just ACCEPT everything they say. You should also keep in mind to engage your independent thinking skills and try to understand and create your own theories and analysis.
These interviews could only serve as a guide for you to improve.
Community Groups
And finally, you can always turn to community groups for a more direct and personal learning.
With these groups, you can engage in discussion while sharing your own experiences and ideas. And it also helps to gain some new connections to add to your expanding list of people in the financial industry.
You can easily find them through various online platforms such as Facebook groups and other easy ways to make money 2022. Just simply look them up and join in on the conversation. Check out the links below:
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Comparing the Best Brokerages and Trading Platforms in Singapore
When comparing trading platforms, consumers are faced with many different factors to consider (i.e. UI/UX, market access, product offering, etc.). It can be overwhelming, but a great place to start is by looking at the fees associated with each trade. Some platforms offer free or promotion periods where fees are waived along with other perks and benefits. Below is a graph showing the minimum commission fees for Singapore markets by brokerage or trading platform.
Minimum commission fees in Singapore
Best Overall in Singapore: Saxo Markets
PROMO: Claim up to SGD in commission credit
Promotions:
|
|---|
Market | Bronze | Silver | Gold | Platinum | Diamond | Industry Average |
|---|---|---|---|---|---|---|
| Singapore | stock investment singapore guide rowspan="">% | % | % | % | % | % |
| US | % | % | % | % | % | % |
| Japan | % | % | % | % | % | % |
| HK | % | % | % | stock investment singapore guide colspan="" rowspan="">% | % | |
| EU | %% | %% | %% | % | % | % |
| * Saxo min. SG: S$5; US:$3-$4; JPY1,; HKD; EUR | ||||||
Market | Bronze | Silver | Gold | Platinum | Diamond | Industry Average |
|---|---|---|---|---|---|---|
| US 30 | ||||||
| US | ||||||
| Japan | 10 | 10 | 10 | 8 | 6 | |
| HK 50 | 7 | 7 | 7 | 6 | 5 | |
| GER 30 |
Market | Bronze | Silver | Gold | Platinum | Diamond | Industry Average |
|---|---|---|---|---|---|---|
| EUR USD | ||||||
| USD JPY | ||||||
| GBP USD | ||||||
| stock investment singapore guide USD | ||||||
| EUR JPY | ||||||
| * figures based on min. advertised spreads | ||||||
Saxo Markets is the best online brokerage in Singapore because it combines low cost, great market access, and an easy user interface into one platform.
First, Saxo charges just % commission on trades in Singapore, with a minimum cost of S$5. And if you were to sign up to their higher-tier plans for a monthly fee which can be waived off, you’ll be able to enjoy rates as low as % per trade (minimum S$1). Saxo is currently holding a promotion where new users will be given a free upgrade to a Gold Plan where they enjoy monthly commission credits, stock investment singapore guide, lower rates for trading both in Singapore stock investment singapore guide international markets, have access to live market data and more.
Not only that, Saxo doesn't charge any hidden fees, i.e., no inactivity fee, no platform fee, no maintenance fee, etc. Saxo can be effective not just for long-term investors, but also for frequent traders who invest S$, or less.
On top of its low fees, Saxo offers online trading in 60 exchanges worldwide, and market-leading commission rates for the major international markets such as the U.S., Hong Kong, and Japan.
Additionally, stock investment singapore guide, Saxo is one of the best platforms for trading foreign currencies, since its FX spreads are consistently among the lowest available, beating competitors by a significant margin. Finally, our analysts found Saxo Markets's trading platform to have the most intuitive user interface.
Read our full review
Cheapest Online Trading in SG, US, and HK: moomoo powered by FUTU
PROMO: Get a free Sea Limited share and days unlimited commission-free trading when you sign up with moomoo today
Promotions:
|
|---|
Market | moomoo Brokers Fee | Min Commission | Platform Fee | Industry Average Commission Fee | Industry Average Min. Commission |
|---|---|---|---|---|---|
| Singapore | % | SGD | %(min. SGD ) | % | SGD 25 |
| US | USD | USD | USD (min. USD 1) | % | USD |
| HK | % | HKD 3 | HKD 15 | % | HKD |
| China A | % | CHN 3 | CHN 15 | ||
Market/Type | The U.S. | Hong Kong | Singapore |
|---|---|---|---|
| Products | Stocks, ETFs, Stock Options, ADR | Stocks, ETFs | Stocks, ETFs, REITs |
moomoo (investment products offered by FUTU) has the lowest commission fees on the market, an intuitive trading platform, and access to US, HK, China A and SG markets—making moomoo an excellent choice for new investors. With their special welcome promotion, new accounts can receive real-time level 2 market data, 1 Apple (AAPL) share (and more) for free.
As one of the cheapest online trading platforms in SG, the commission charged for every trade in SG and HK markets is only %, which is much lower than other online trading platforms which range between %%. Similarly, moomoo only charges USD per order for US stocks, ETFs, and American depositary receipts (ADRs). Furthermore, with their current promotion, you can enjoy commission-free trading for days in all SG, HK and US markets. Even after the promotional period ends, new investors will still enjoy the lowest commissions in the market.
If you are looking for a simple UI/UX mobile application, moomoo's intuitive app offers tools like community chat functions, technical indicators, ratings, and insights. So, those looking to trade SG, HK, stock investment singapore guide, and US stocks can quickly download the app, set up an account, and begin trading. Unfortunately, moomoo's product offering and market access are currently not as broad as some of its competitors. However, they are relatively new and are expecting to broaden their product offering soon.
Similar to moomoo But With More Market Access: Tiger Brokers
PROMO: Get 60 Commission-Free Trades and more rewards today.
Promotions:
|
|---|
Market | Tiger Brokers Fee | Min Commission | Industry Average Fee | Industry Average Commission |
|---|---|---|---|---|
| Singapore | % | SGD | % | S$25 |
| US | $ per share | USD per order | % | USD |
| HK | % | HKD 15 | % | HKD |
| China | % | RMB 15 | N/A | N/A |
| Australia | % | AUD 8 | N/A | N/A |
| Futures | USD$USD$ |
Market/Type | The U.S. | Hong Kong | Singapore | Australia | China |
|---|---|---|---|---|---|
| Products | Stocks, ETFs, Stock Options, Futures | Stocks, Warrants, CBBCs, Futures | Stocks, ETFs, Rights Issue, Futures, REITs | Stocks | A-shares (in HKEX Northbound Trading) |
Tiger Brokers has one of the lowest commission fees on the market, an easy-to-use platform, and live prices for the US and Singapore, making it a great option for new and seasoned investors. The commission charged for every trade is just %, which is much lower than other online brokers who charge around %%.
This is still impressively lower than the average in Singapore, which is %. Additionally, new customers can also enjoy Tiger Coins, 60 commission-free trades (within days) and 1 share of Apple (AAPL) once the account is funded with an initial deposit of S$2, or more. Moreover, Tiger Brokers charges neither a custodian nor a currency conversion fee, and it's fairly quick to open an account ( days).
For stock investment singapore guide looking to invest abroad, Tiger Brokers' platform gives customers real-time access to markets in the United States, Hong Kong, China, and Australia. For trading in the US, you can invest for as little as USD $ commission with a minimum fee of USD $ per trade. For those who prefer to trade in Hong Kong, Tiger Brokers' minimum fee is only HKD $ This is one of the most attractive rates in Singapore, as most firms charge around HKD $HKD $ Trading futures stock investment singapore guide also simple, as there are built-in features on their platform to give customers support with these deals. With low trading fees, a user-friendly platform, stock investment singapore guide, and access to current market data, Tiger Brokers is a great platform.
Read our full review
Best Online Trading Platform in Singapore for US Stocks & ETFs: Syfe Trade
PROMO: Earn more than SGD cash credits to buy the US stock or ETF of your choice
Promotions:
|
|---|
Syfe Trade | Commission-Free Trades a month | Commission rate |
|---|---|---|
| Five free trades a month^ | USD flat fee^ | |
| After Introductory Offer | ||
| Two free trades a month | stock investment singapore guide fee | |
Syfe Trade has the lowest commission fees on the market for trading US stocks and ETFs.
For a start, the Singapore online brokerage is giving every investor five free trades per month, and thereafter a flat fee of USD per trade, during its introductory offer which will end at the first quarter of Even after its introductory offer comes to an end, Syfe Trade remains extremely competitive by giving its investors two free trades per month, and a flat fee of USD per trade.
Brokerage | Commission Rate | Minimum Commission | ||||
|---|---|---|---|---|---|---|
| Syfe Trade | USD flat fee | - | ||||
| Saxo Markets (Bronze Plan) | % | USD 4 | ||||
| Tiger Broker | per share | USD | ||||
| moo moo | per share | USD | ||||
| *moo moo & Tiger Brokers rate consists of commission and platform fees | ||||||
Syfe Trade also allows investors to engage in fractional trading for US stocks and ETFs, allowing retail investors with smaller capitals to get the US stock or ETF of their choice from just USD 1.
The only drawback to Syfe Trade, for now at least, is that it only offers access to the US market. While there are plans to expand into more markets, including Singapore, users who are looking to invest in the short run would be better off looking at other choices.
If you are willing to wait, however, you’ll be happy with Syfe Trade’s simple and intuitive interface and the protection for up to K against brokerage failure.
Similar to other online brokerage offerings in Singapore, Syfe Trade gives its users live US market data as well to maximise your investment gains.
Read our full review
Honorable Mention For Best Market Access: Interactive Brokers
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| Interactive Brokers | Saxo Markets | |
|---|---|---|
| SG Stocks Commission Fee (Min. Fee) | % (S$) | % (S$5) |
| U.S. Stocks Commission Fee (Min. Fee) | $ per share (USD ) | % (USD 4) |
| Hong Kong Stocks Commission Fee (Min. Fee) | % (HKD 18) | % (HKD ) |
| Japan Stocks Commission Fee (Min. Fee) | % (JPY 80) | % (JPY ) |
In terms of trading securities in non-Singapore markets, Interactive Brokers' commission levels are hard to beat. This is attractive to investors that may feel limited by the number of stocks on the Straits Times Index and feel inclined to consider other options. As you can see in the table below, Interactive Brokers has the lowest commission costs for any region outside of Singapore. Still, stock investment singapore guide, Saxo is the best option for those who want access to every market including Singapore.
Read our full review
Best Online Trading Platform for Stock investment singapore guide colspan="" rowspan="">Promotions:- Claim up to SGD in commission credit. Valid til 30 Apr T&Cs apply.
- Claim up to SGD in commission credit. Valid til 30 Apr T&Cs apply.
Market | Bronze | Silver | Gold | Platinum | Diamond | Industry Average |
|---|---|---|---|---|---|---|
| Singapore | % | % | % | % | % | % |
| US | % | % | stock investment singapore guide rowspan="">% | % | % | % |
| Japan | % | % | % | % | % | % |
| HK | % | % | % | % | % | % |
| EU | %% | %% | %% | % | % | % |
| * Saxo min. SG: S$5; US:$3-$4; JPY1,; HKD; EUR | ||||||
Saxo Markets offers the best online trading platform for those who are looking to invest online. With SaxoTraderGO, their platform designed stock investment singapore guide less-experienced traders, customers gain access to a variety of tools to help them research the best products for the trade. For example, their Fundamental Analysis Tool analyses company indicators to help you determine whether or not you want to invest. Interactive learners can also benefit from annotation features to save and take note of listings, graphs, and more. Furthermore, the platform synthesizes both in-house and third-party research to constantly feed you up-to-date information, whether you are on your mobile or desktop.
Saxo Markets also delivers some of the lowest fees in the market (for, among others, Singapore, the US, Hong Kong and Japan), has the largest international market scope, and allows you to trade a variety of products like stocks, bonds, ETFs, mutual funds, foreign exchange, futures, etc. Finally, prior to stock investment singapore guide an account you can both preview the platform on their website and try a day demo trial to practice using the platform. Although beginning to trade online can seem daunting, Saxo Market will supply you with all the tools you need to get started at low rates.
Read our full review
Best Platforms for CFD Trading
Contracts for difference (CFDs) allow individuals to speculate on the future price of an underlying asset, without actually owning the asset. CFDs are also traded on leverage, giving traders additional buying power. For these reasons, they are popular among experienced traders in Singapore. Below we highlight two platforms that stand out for CFD trading.
Honorable Mention for Trading CFDs: IG
| IG | Saxo Markets (Bronze Plan) | ||
|---|---|---|---|
| CFD Commission for Stocks & ETFs: | |||
| Singapore | % | % | |
| U.S. | $/share | % | |
| UK | % | % | |
| Euro | % | % | |
| Japan | % | % | |
| Index CFD Spread: | |||
| US SP | |||
| US Tech | 1 | 1 | |
| Singapore | |||
| Hong Kong 50 | 5 | 5 | |
| Japan | 8 | 7 | |
| China A50 | 10 | 12 | |
| Australia | 1 | 1 | |
| Germany 30 | 1 | 1 | |
| Monthly Aggregated Contract Value (USD) | Monthly Bonus KrisFlyer Miles Payable | Total KrisFlyer miles after 1 year for each tier |
|---|---|---|
| $5,+ | 6, | |
| $10,+ | 1, | 13, |
| $15,+ | 1, | 21, |
| $20,+ | 2, | 30, |
| $25,+ | 3, | 45, |
IG is another leading brokerage with CFD offerings. While its commission fees are generally higher than those of City Index, it offers a few features that make it worth considering.
First, IG allows investors to adjust their exposure by trading fractions of a contract (e.g. contracts of spot FX EUR/USD), stock investment singapore guide. Furthermore, IG offers Knockout CFDs, which is a unique feature that allows traders to determine their maximum losses before entering a position. This product automatically adjusts margin requirements based on the user's specific "knockout level", or maximum loss.
IG also offers a comprehensive CFD education platform through IG Academy, which helps new traders get up to speed and even practice risk-free with an account with simulated funds. Finally, IG's collaboration with Singapore Airlines allows users to earn KrisFlyer Miles on every trade. For more information, please refer to the toggles below.
Read Our Full Review
How to Choose an Online Brokerage Platform
Finding a trading platform that fits your needs is crucial to becoming a successful investor. You should consider the following features and requirements before picking an online brokerage.
1, stock investment singapore guide. Brokerage Fees and Minimum Funding
Brokerage fees are one of the most important factors when choosing a trading platform. Active traders should look for a firm with the lowest commission rates in markets they invest in most frequently. Investors who make fewer, larger investments should prioritise finding a platform with a low, stock investment singapore guide, flat fee per trade.
You should also consider the minimum funding requirements of different brokerage accounts to find one that fits your budget. Some trading platforms like Saxo Markets have different account tiers depending on the size of your total investment.
2. Market Access
Another crucial factor when selecting a brokerage account is market access. While amateur investors may be content with access to a few markets, experienced traders may seek access to stocks and ETFs in dozens of countries. If you are interested in trading CFDs, stock investment singapore guide, gold, crypto, or Forex, make sure you find a brokerage that offers these products. Trading platforms that offer advanced trading products and broad international access tend to have higher fees.
3. Usability and Quality of the Brokerage App
Make sure to explore the interface of different brokerage platforms and see which devices are supported. You want to use a platform that you can easily understand and have access to your finances from a desktop and mobile device.
4. Educational Materials and Customer Support
Many brokerage firms offer research materials, informative visuals, and live stock quotes that can be helpful for making informed investments, especially for beginner traders. You should also make sure the brokerage firm you select has a responsive customer support and security features to protect your account from fraudulent activity.
5, stock investment singapore guide. Automated Features and Advanced Tools
AI and technological advances are making it easier than ever to invest. Brokerage platforms like Interactive Brokers offer algorithmic trading which allows consumers to speed up execution, improve pricing, and time the market with ease. You can also leverage robo advisors to help you set goals and manage your trades.
Summary Table of Online Brokerage Commissions
Below, you'll find a summary table of SG trading platform fees. Being aware of these fees will help you determine which broker provides the cheapest rates for trading on their platform. For more information about a stock investment singapore guide broker, you can read our reviews or click "Learn More" to get connected with the platform.
The table below provides commission, minimum fee, and market access information for online brokerages that stock investment singapore guide let you trade in a variety of global markets, stock investment singapore guide. To help you compare brokerages across various markets easier, we laid out fees for US, HK and Japan markets.
| Online Brokerage | US Commission & Min. Fee | Japan Commission & Min. Fee | HK Commission & Min, stock investment singapore guide. Fee | # Intl. Markets |
|---|---|---|---|---|
| Tiger Brokers | $/trade; min. $ | N/A | %; min. HKD 15 | 4 |
| Saxo Markets | %; min. USD 4 | %; min JPY 1, | %; min. HKD 90 | 36 |
| IG (CFD only) | $/share | % | % | 30+ |
| Interactive Brokers | $/share; min. USD 1 | %; min. JPY 80 | %; min. HKD 18 | 24 |
| Standard Chartered | %; min. $10 | %; min. JPY 1, | %; min. HKD | 10 |
| U Trade | %; min. $19 | N/A | %; min. HKD | 4 |
| Poems | $ (flat) | best stocks for long term investment 2022 rowspan="">%; min. JPY 1, | %; min. HKD stock investment singapore guide colspan="" rowspan="">21 | |
| iOCBC | %; min. USD 20 | %; min. JPY 3, | %; min. HKD | 26 |
| KGIFraser | %; min. $20 | %; min. JPY 1, | %; min. HKD | 15 |
| i*Trade | %; min. $15 | N/A | %; min. HKD | 6 |
| Citibank Brokerage | %; min. USD 25 | N/A | %; min. HKD | 3 |
| DBS Vickers | %; min. USD 25 | %; min, stock investment singapore guide. JPY 3, | %; min. HKD | 7 |
| RHB Securities | %; min. $20 | N/A | %; min. HKD | 7 |
| Maybank Kim Eng | %; min. USD 20 | %; min. JPY 3, | %; min. HKD | 9 |
| Lim & Tan Securities | N/A | %; min. S$70 | %; min. HKD | 12 |
| TD Ameritrade (thinkorswim) | S$S$15(USD) for US stocks, USD + $ per contract for options | |||
| FSMOne | %; min, stock investment singapore guide. USD | N/A | %; min. HKD 50 | 12 |
Types of Fees and Costs
There will be a few types of fees associated with different trades that you will need to know. Once you begin trading on an online trading stock investing for dummies barnes and noble you may come across several different types of fees.
| Type | Description |
|---|---|
| Commission fees | This is the most common and upfront fee traders should expect to pay. Think of it as a service charge that the online brokerage charges every time you want to execute a trade. The more frequent you trade the more fees you will pay. If you are a long-term trader and you expect to have low trade volume, then commission fees may not be your highest concern when shopping for a brokerage. |
| Spread | This refers to the difference between the sell (bid) and buy (offer) prices when trading certain assets. It is common to see a spread when trading forex or commodities and you will incur either gains or losses from espn chris moneymaker story difference in the buy/sell prices. |
| Clearing & Trading Fees | If using a Central Depository account (CDP), stock investment singapore guide, you will pay clearing fees per completed transaction. You will also need to pay a trading fee of the contract value mandated by the Singapore Exchange (SGX). |
Types of Products You Can Invest With Online Brokerages
Online Brokerages are constantly updating their investment product offering for Singaporeans to grow their wealth. Here is a quick guide to some standard products you can invest using trading platforms in Singapore.
| Investment Product | Description |
|---|---|
| Commodities | Trading commodities involves raw materials like gold/silver, agricultural products, and oil. Investors trading in commodities must keep up to date with political, economic, and weather changes. |
| Equities | Equities or stocks is the buying and selling of shares of a company. Most new investors think of equities when the topic of investment comes up among family and friends. Before purchasing any stock it is crucial to research and analyse the company and the fundamentals of its business. Read our basic guide to stocks to get started. |
| Mutual Funds | A mutual fund is a pool of money from many investors used to buy other securities. Usually a mutual fund will consist of stocks and bonds, but can include other types of investments. Each mutual fund is managed by professional money managers and are generally considered safe investments. |
| ETFs | ETFs, track an underlying index fund and will mimic the performance of that index. For example, some online brokerages offer ETFs that track the S&P or NASDAQ. Unlike an index fund, ETFs can be bought and sold like stocks throughout the day. If you are a passive investor, ETFs are a good way to begin your investing journey. |
| Forex (FX) | Forex trading involves the buying and selling of currency pairs. Most online brokerages in Singapore that offer forex accounts will have a menu of different major foreign currency options to choose—like SGD/USD or EUR/USD pairs to choose from. You will |
| Index Funds | Index funds is a type of mutual fund or ETF that matches the performance of a financial market index or specific portfolio of securities. For example the Straits Times Index (STI) tracks the performance of the top 30 companies in the SGX. These funds provide broad market exposure and like ETFs are safe options for passive investors. |
| Bonds | Bonds are fixed income units that represent corporate debt. It is like a company taking out a loan. Instead of getting one from a bank, corporations can issue out bonds and get funds from investors. The most common bonds are corporate and municipal bonds (issued by the government). |
| CFDs | A CFD (Contract For Difference) is an agreement between you and the brokerage firm to exchange the difference in the value of specific wie kann ich mit bitcoin geld verdienen from when you first opened a position to when you closed it. You can typically find brokerages offering CFDs for Forex, commodities, and equities. |
| Futures | Futures trading earn money displaying banners financial contracts that obligates involved parties to buy or sell an asset at a future date at an agreed upon price, stock investment singapore guide. That asset can range widely from commodities, equities, ETFs, and more. Futures trading is essentially wagering on the price movement of an asset. Peter leeds invest in penny stocks it is like borrowing money on a bet, futures trading can increase your risk but also magnify returns. |
Frequently Asked Questions
Want to learn more about investing? Here are some answers to commonly asked questions.
Online trading is safe as online brokerages have a high level of platform security and strive to create a safe trading environment, stock investment singapore guide. If you're investing online, you should check that your online brokerage is regulated and licensed by the Monetary Authority of Singapore.
That being said, there are risks you should be aware of before you start trading. For instance, every investment comes with a risk of losing all the money you put into the investment. Moreover, stock investment singapore guide, because it's very easy to top up your account and make a trade, those prone to gambling may be more at risk of losing money. Moreover, because online trading relies on the individual to make a trade and not a broker or professional investor, it's up to you to do proper due diligence and it may be difficult to get the financial advice you need.
Investment portfolios include aggressive, defensive, income, speculative, and hybrid portfolios. These portfolios usually contain a collection of stocks, bonds, and other financial instruments that help you diversify your investments. There are pros and cons to each, though generally speaking, you should choose a portfolio based on your risk tolerance. For example, those who can afford to play around with their money could invest in an aggressive portfolio, which includes financial products that have greater price fluctuations and the ability to have high gains. On the other hand, more risk-averse investors or those who are closer to retirement and are looking to secure more funds should consider a more defensive portfolio.
Put simply, stocks are a type of financial product stock investment singapore guide represents your partial ownership in a company. When stocks appreciate, you can sell the stock for a profit. Moreover, some stocks pay annual dividends (some of the company's annual profit) stock investment singapore guide shareholders. On the other hand, bonds are fixed-income securities that represent a loan made by an investor to a borrower. For example, when you buy a government bond, stock investment singapore guide, you are lending money to the government for a risk-free return.
When you buy a Contract for Difference (CFD), you are essentially buying a contract that allows you to predict a share's price movements. You make money on the difference in price between the opening and closing trades, stock investment singapore guide. These short-term investments are very popular for foreign exchange and commodities like grains, stock investment singapore guide, gold, oil, and natural gas.
Finally, an "option" gives investors the opportunity to purchase a share at a specific price in the future. A "future", however, requires the investor to purchase the shares in the future at the previously agreed-upon price. Because of the speculative nature of these products, they are popular with more experienced investors.
A mutual fund is a portfolio consisting of securities like stocks, bonds, and other financial assets. A primary benefit of mutual funds is that they offer professionally managed solutions for individual investors. Moreover, mutual funds are a good option for passive investors looking for longer-term investments.
Blue-chip stocks are shares of a large, stock investment singapore guide, publicly-traded company. These companies are usually worth billions of dollars stock investment singapore guide are considered safe investments. Many blue-chip companies pay annual dividends to shareholders, so they are common to have in income portfolios.
To trade financial products in the US stock market, check out whether or not your trading platform offers market access to places in the US like the New York Stock Exchange. Try and compare fees, as some international trading platforms could charge higher commission charges or currency conversion rates. In Singapore, there are several online trading platforms which offer low- or no-commission charges and expert market data on the US stock market.
While signing up to an online trading platform is easy, actually investing your money into the stock market might take some time. To get the best results and learn the most, you should consider a user-friendly platform with special tools for beginners. For instance, Saxo Markets offers analytical tools and market data to help inform investors' decisions on whether to invest in a product or not.
Before you invest any money, we recommend you weigh your priorities for a trading platform so you can choose the best one for you. If you would like to see the process and get accustomed to the way investments are made before you start trading yourself, you could invest in a managed portfolio like an ETF or unit trust.
Stephen Lee is a Senior Research Analyst at ValueChampion, stock investment singapore guide, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between ), where he continues to provide business development consulting services to HR companies in Asia Pacific.
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