How to start investing in Singapore: CDP accounts, brokers and ETFs
Investing in Singapore starts with choosing how your shares are held and which broker to use. CDP vs custodian accounts, ETFs and regular savings plans.
Once you have an emergency fund and understand your CPF, investing is how most Singaporeans grow their wealth beyond savings. The Singapore Exchange (SGX) lists hundreds of companies, real estate investment trusts (REITs) and exchange-traded funds (ETFs), and you can start with modest amounts. This guide explains how to start investing in Singapore, including CDP and custodian accounts, how to choose a broker, why ETFs are a simple starting point, and the risks to keep in mind.
Get your foundations in place
Before investing, make sure you have an emergency fund covering a few months of expenses, no expensive credit card debt, and adequate insurance. Investing money you may need soon can force you to sell at a bad time. Your CPF already provides a solid base of safe, guaranteed savings; see our guide to CPF accounts explained.
CDP or custodian account?
Your first decision is where your shares are held. With a CDP account at the Central Depository, SGX shares are registered directly in your name. You receive dividends straight into your bank account, get company reports and voting rights, and can move between brokers that support CDP easily. With a custodian account, a broker holds the shares on your behalf. Custodian brokers often charge lower fees and offer access to overseas markets, but you rely on the broker's processes, and dividends and corporate actions are handled through them.
Many investors use both: a CDP-linked broker for long-term SGX holdings and a custodian broker for overseas investments.
Choosing a broker
Compare commissions, minimum fees, platform fees, foreign exchange charges for overseas trades, and whether the broker is licensed by the Monetary Authority of Singapore (MAS). Low headline commissions matter less than a reliable, regulated provider if you plan to hold investments for decades. Check how easy the platform is to use and how it handles dividends and corporate actions.
A simple place to start: ETFs
Rather than picking individual companies, many beginners start with an ETF that tracks a broad index. In Singapore, ETFs tracking the Straits Times Index (STI) hold the largest companies listed on SGX in a single investment. Global index ETFs spread your money across thousands of companies worldwide. ETFs have low ongoing fees and give instant diversification.
If you prefer to invest a fixed sum every month, several banks and brokers offer regular savings plans, letting you invest in selected ETFs and shares from a small monthly amount. Investing the same amount regularly smooths out the effect of market ups and downs, a strategy known as dollar-cost averaging.
Using SRS and CPF to invest
Money in your Supplementary Retirement Scheme account can be invested in shares, ETFs and other approved products, and contributions earn tax relief; see our guide to the SRS. Under the CPF Investment Scheme, you can also invest part of your Ordinary Account savings, but only invest if you expect to beat the guaranteed 2.5% OA rate after fees.
Risks and costs
Share prices rise and fall, sometimes sharply, so only invest money you will not need for at least five years. REITs and dividend stocks can provide income, but their prices can still drop. Keep fees low, diversify across companies and regions, and be sceptical of anyone promising high guaranteed returns. MAS publishes an Investor Alert List of unregulated entities to avoid.
Safer alternatives for part of your money
For safer options that keep your capital protected, compare Singapore Savings Bonds and Treasury bills. Many investors hold a mix: safe government securities for short-term needs and stability, and diversified ETFs for long-term growth. Our savings calculator shows how regular investing can grow.
Frequently asked questions
What is a CDP account?
An account at the Central Depository that holds SGX shares directly in your name.
What is a good first investment in Singapore?
Many beginners start with a low-cost ETF tracking a broad index, such as the STI or a global index.
How much do I need to start investing?
Regular savings plans let you start with a small monthly amount.
Sources
This article is general information, not financial advice.