Web Trader MT5 
Short Answer: In order to buy stocks in Singapore, you must first set up a regulated trading account, undertake KYC procedures, fund your account, find out about the stock you wish to purchase, make a market or limit buy order, and keep tabs on your positions moving forward. Singapore traders can access shares listed on the Singapore Exchange (SGX) and in other countries like the United States and Hong Kong, among others, through international trading platforms.
This article shows how one should go about investing in stocks in Singapore, accessing US and Chinese shares, and also dividend investing, among other things.
How to Invest in Stocks in Singapore
For Singapore traders, stocks may mean those that are traded on the Singapore Stock Exchange (SGX) and whose trading is supervised by the country’s regulator, the Monetary Authority of Singapore (MAS). Individuals looking to trade Singapore stocks can either hold their SGX stocks via CDP, which are registered under their names, or in custodian accounts maintained for them.
The method of investing in Singapore stocks:
- Set up a trading account and undertake know-your-customer (KYC) compliance checks. If you plan to keep the SGX-listed stock under your name, you may also have to set up a CDP securities account.
- Fund the trading account by transferring money from your Singapore bank account.
- Locate the stock based on its name or ticker code.
- Analyze the company’s financial statements and past price trends; do not base your decision on short-term price fluctuations.
- Determine whether you want a market order (which will be executed at the prevailing best price) or a limit order (which is executed at a pre-set price).
- Enter the number of stocks you wish to purchase and submit your order.
- Track your position and stay abreast of company news, dividend payments, and other market developments.
How to Invest in US Stocks From Singapore
Singapore investors are able to trade US stocks listed on the New York Stock Exchange (NYSE) and Nasdaq. They are able to do this via trading platforms that provide access to US markets. Investors are required to enter the stock ticker symbol in the search box and submit their order when the US market is open. The trade is settled in US dollars.
In case you want to find out how to invest in US stocks in Singapore, it should be noted that the dividend income received by non-US taxpayers is taxed based on the tax treaty in force.
Currency and Foreign Exchange Considerations
US share purchases are done after SGD are exchanged into USD. The FX spread can affect the profit made through buying and selling activities in the long term. Consider if you have the ability to trade in multi-currencies, at what FX rate will be converted, and whether FX charges are levied when exchanging currencies.
How to Invest in China Stocks From Singapore
For Singapore investors who wish to consider the avenues for investing in Chinese stocks via Singapore, there is a general practice of using Hong Kong-listed shares on the Hong Kong Stock Exchange (HKEX), US-listed American Depositary Receipts (ADRs), and other forms of China-based securities trading channels, provided that such a service is available through their brokerages.
There are other issues in investing in China-based stocks: currency conversion might include SGD to HKD or SGD to CNY transactions, each market segment allows different access for foreign investors, and companies listed in China are regulated by China’s laws. Know the exchange of trade and the governing laws before making an investment.
How to Invest in Dividend Stocks in Singapore
Dividend stocks refer to shares of a company that periodically pays out a portion of its profits to the investors. There are several companies and even REITs in Singapore that have a record of paying dividends and these stocks are often used by investors as part of their portfolio.
Some of the factors to consider in this case would be the dividend yield, which is the ratio of annual dividend to stock price, dividend payment history, sustainability, and diversification of sector. A high dividend yield does not always mean good news because it could mean that the stock price is going down or there are doubts as to the sustainability of the dividend payments. See our guide on dividend stocks.
What Are the Risks of Investing in Stocks in Singapore?
All stock investments come with a degree of risk, and there is no guarantee of capital protection. Stock prices may decline as well as increase. The performance of individual firms may influence stock prices regardless of the general market condition. Foreign exchange risk is applicable when one holds stocks listed on US, Hong Kong, or China stock exchanges, where an unfavorable foreign exchange movement may erode profits despite the gains in the value of the stock.
Frequently Asked Questions
Register for an authorized stock trading account, conduct KYC, fund your account, conduct stock research, execute buy order and track your investments.
Use a broker that allows you to trade in US stocks, search for the stock using NYSE/Nasdaq symbol, place your trade when US markets are open. Your trade will settle in USD.
Some ways to go about this are through listed HK stocks (H Shares), US listed ADRs or Cross-Border Connect programs.
Find out which companies and REITs offer dividends, assess the financial strength of the company/REIT and buy the stock in question.
No set amount required, it all depends on the cost per unit of stock and lot sizes.
This refers to the Singapore Stock Exchange, the primary securities market in Singapore that trades equities, REITs, ETFs and Bonds.
Tags
Open Live Account
Please enter a valid country
No results found
No results found
Please enter a valid email
Please enter a valid verification code
1. 8-16 characters + numbers (0-9) 2. blend of letters (A-Z, a-z) 3. special characters (e.g, !a#S%^&)
Please enter the correct format
Please tick the checkbox to proceed
Please tick the checkbox to proceed
Important Notice
STARTRADER does not accept any applications from Australian residents.
To comply with regulatory requirements, clicking the button will redirect you to the STARTRADER website operated by STARTRADER PRIME GLOBAL PTY LTD (ABN 65 156 005 668), an authorized Australian Financial Services Licence holder (AFSL no. 421210) regulated by the Australian Securities and Investments Commission.
CONTINUEImportant Notice for Residents of the United Arab Emirates
In alignment with local regulatory requirements, individuals residing in the United Arab Emirates are requested to proceed via our dedicated regional platform at startrader.ae, which is operated by STARTRADER Global Financial Consultation & Financial Analysis L.L.C.. This entity is licensed by the UAE Capital Market Authority (CMA) under License No. 20200000241, and is authorised to introduce financial services and promote financial products in the UAE.
Please click the "Continue" button below to be redirected.
CONTINUEError! Please try again.
