For many in Singapore, the idea of investing in the stock market can feel overwhelming. Maybe you’ve heard terms like “dividends,” “CDP account,” or “market order” and thought it all sounded too complicated. Or perhaps you believe that investing is only for the wealthy or financially savvy. But the truth is, stock investing has become more accessible than ever—even for complete beginners with limited capital.
Whether you’re looking to grow your wealth, beat inflation, or build a future nest egg, the Singapore Exchange (SGX) offers a regulated and trustworthy environment for new investors to start their journey. With the right tools, mindset, and knowledge, you can confidently take your first step into the world of investing.
In this guide, we’ll walk you through the process of buying your first stock in Singapore—from defining your goals to clicking “buy” on your chosen platform.
Laying the Groundwork – Before You Buy
Define Your Investment Goals
Before you dive in, pause and ask: Why do I want to invest?
Common goals include:
- Retirement planning
- Saving for a child’s education
- Building wealth for future purchases (e.g., home, car)
- Passive income through dividends
Short-term goals (e.g., saving for a trip next year) may not suit stock investing due to market volatility. On the other hand, long-term goals allow you to ride out market fluctuations and benefit from compounding growth.
Assess Your Risk Tolerance
Risk tolerance is how much market ups and downs you can handle without panicking.
- High-risk approach: Growth stocks, tech companies, emerging markets. Potential for high returns but also high volatility.
- Low-risk approach: Dividend-paying stocks, blue-chip companies, or ETFs. These tend to offer more stability.
Start with what you’re comfortable losing. Investing should not replace your emergency savings or short-term needs.
Determine Your Investment Capital
You don’t need thousands to get started. In Singapore, some Regular Savings Plans (RSPs) allow you to begin investing from just S$100/month.
Make sure you:
- Set aside emergency savings (typically 3–6 months of expenses)
- Decide on a comfortable amount to invest regularly
Mini Glossary – Stock Market Terms You’ll See Often
- Stock/Share: A portion of ownership in a company
- Brokerage Account: Where you buy/sell stocks
- CDP Account: Holds SGX stocks under your name
- SGX: Singapore Exchange – our local stock market
- Dividends: Profits shared with shareholders
- Bid/Ask Price: What buyers are willing to pay / sellers want to receive
- ETF: Exchange Traded Fund – a basket of stocks in one trade
The Essential Accounts You Need
Opening a CDP Account (Central Depository Account)
Your CDP account is where your SGX-listed stocks are stored in your name—it’s like a safe deposit box for your investments. The Central Depository is a subsidiary of SGX.
Why it matters:
With a CDP-linked account, you get direct ownership of stocks and receive shareholder rights—like attending AGMs and voting on key decisions.
How to open (for Singaporeans/PRs):
- Go to the SGX CDP website
- Use Singpass/MyInfo to apply
- Must be 18+, not an undischarged bankrupt, and have a Singapore bank account
Processing time: Around 3–7 working days.
Choosing and Opening a Brokerage Account
Your brokerage account is where the buying and selling happens.
You can choose:
- CDP-linked account (shares go to your CDP)
- Custodian account (broker holds shares on your behalf)
Pros and cons:
| Type | Pros | Cons |
|---|---|---|
| CDP-linked | Direct ownership, AGMs, dividends straight to your bank | Higher fees |
| Custodian | Lower fees, access to global markets | Shares not held directly in your name |
What to look for in a beginner-friendly broker:
- Low fees: SGX clearing fee (0.0325%), SGX access fee (0.0075%), broker commissions
- Easy-to-use platform: Mobile app and desktop access
- Market access: SGX, US, HK, etc.
- Educational content: For self-learning
- Regulated by MAS: Always verify!
Popular brokers in Singapore:
- Moomoo: Commission-free trades, advanced tools
- Syfe Trade: $0 commission on first 5 trades/month
- Webull: Real-time US market data
- DBS Vickers: Great for existing DBS customers
- Saxo: Access to global markets
- Interactive Brokers: Low fees, advanced features
- Longbridge: Clean app interface, beginner-focused
How to open:
- Visit broker website/app
- Use Singpass MyInfo or fill in manually
- Provide identification and income documents
- Fund your account
Funding Your Trading Account
You’ll need to deposit money before buying stocks.
Methods:
- PayNow: Fast and free
- Bank transfer: Via FAST
- Credit/debit card: May incur additional fees
Minimum deposits vary. Some brokers have no minimum, while others may require S$100–S$2,000.
Your First Purchase – Research & Execution
Researching Your First Stock
Don’t guess or follow hype—do your homework.
Good starting points:
- Blue-chip stocks: Companies like DBS, Singtel, CapitaLand
- ETFs: Like Nikko AM STI ETF or Lion-OCBC Hang Seng Tech ETF
Where to research:
- Company reports (via SGX website)
- Broker research tools
- Financial news sites like The Business Times or MoneySense
Beginner-friendly metrics:
- What does the company do?
- Is it profitable?
- Is its industry growing?
- Dividend yield?
Placing Your Order
Your broker’s platform will guide you through the steps.
Order types:
- Market order: Buys at current price. Fast, but price may change quickly.
- Limit order: Buys only at your set price. Safer for beginners.
Example:
- You want to buy 10 shares of DBS at $30.50
- Use a limit order at $30.50 to control cost
Double-check before confirming: Quantity, price, stock name
What Comes Next – Post-Purchase & Beyond
Monitoring Your Investments
Once you’ve made your purchase, don’t panic over daily price changes. Stocks go up and down. Long-term success comes from patience.
- Review your portfolio monthly or quarterly
- Track performance, read company updates
- Consider reinvesting dividends
Understanding Dividends & Corporate Actions
- Dividends: Many Singapore stocks pay quarterly or semi-annual dividends directly to your bank (CDP-linked) or broker account (custodian)
- Corporate actions: Stock splits, rights issues—your broker or CDP will notify you
Diversification is Key
Avoid putting all your money into one stock. Spread your risk across:
- Different sectors (e.g., banks, REITs, tech)
- Instruments (e.g., stocks and ETFs)
ETFs are a great way to diversify with one click.
Continuous Learning
The best investors never stop learning. Explore:
- MoneySense’s Beginner Investing Guide
- Your broker’s educational webinars, tutorials, and blogs
Conclusion
Buying your first stock in Singapore might seem like a big step—but it’s one of the most empowering things you can do for your financial future. From defining your goals to funding your account and executing your first trade, every step builds your confidence.
Remember: You don’t need to be rich, a finance whiz, or lucky to start investing. All you need is the willingness to learn, start small, and stay consistent.
Your journey to financial growth starts today—one stock at a time.
