Investing enables you to build wealth that helps you reach your key personal financial milestones, whether it’s funding a family vacation, supporting your children’s education, or preparing for retirement.
That power of compounding will help growth over time, meaning the earlier one starts, the more one’s money can be accumulated.
If you’re just beginning to invest in Singapore, start with this guide.
Investing Through Brokerage Firms Vs. Stock Trading Apps
Investing through stock trading apps and traditional brokerage firms both offer access to the stock market but come with different advantages. Trading applications like moomoo and Longbridge are accessible anytime on mobile and hence good for beginners desiring ease with low or no commissions.
The only thing is that traditional brokerage agencies often charge higher fees but, on the other hand, give personalized services, in-depth research, and professional advice, and for that reason might be ideal for experienced investors.
While these research tools exist, they are very rudimental in trading apps, and brokerage firms provide a lot more resources, such as financial planning suites and tailored recommendations. Trading apps top out at the most popular asset classes: stocks and ETFs. With brokerage firms, this means a broader ability to invest in mutual funds and bonds. As for Security, reputable trading apps offer strong encryption and multi-factor authentication, but traditional firms simply have more years of history and therefore stronger security measures in place.
The minimum deposit that is often required with a trading app does not usually have an equivalent when speaking about traditional firms, which might be higher and would surely represent a kind of barrier for some investors. It depends on your needs: if you are looking for convenience and low costs with self-directed investing, then this will be the suitable option for you. On the other hand, if comprehensive services and personal advice are called for, perhaps there would be nothing better than a brokerage firm.
Choosing the Right Brokerage Firm in Singapore
First, you need to open a trading account with any brokerage firm in Singapore. The opened trading account will provide direct access to financial markets to trade securities from stocks, bonds, and leveraged products. Note that different brokerages have different accounts; hence, you are encouraged to do some research on your own into the various options and select an account best suited to your investment needs. Commission charges are very similar among most brokers in Singapore, ranging from 0.12% to 0.275% of the trade value, while minimum fees charged range from SGD 10 to SGD 25 per transaction.
There are also a few important factors to consider when choosing the right brokerage for you:
- Overseas Market Access: If you plan to trade in overseas markets, choose a broker that allows access to major international exchanges, enabling you to manage all your investments from one platform.
- Fund Transfer Options: Select brokers with a simple and efficient settlement process for smooth payments.
- Extra Features: Some brokerage firms provide in-house research, personalized client support, and more to help you make informed investment decisions.
List of Brokerage Firms in Singapore
Here is a list of 10 brokerage firms in Singapore that are members of the Singapore Stock Exchange
CGS-CIMB Securities International Pte. Ltd.
Being a subsidiary of China Galaxy Securities, one of the largest securities firms in China, CGS-CIMB Securities draws major thrust from the capacity and presence of its parent firm in the Asian markets, focusing on Chinese and other regional stocks. It offers equities, derivatives, and margin financing under its suite of investment products. That again makes it one of the hot spots for investors to diversify in Asia, especially focusing on the Chinese markets.
iFAST Financial Pte. Ltd.
As an independent financial advisory firm, iFAST Financial Pte Ltd. provides a full range of investment products that include mutual funds and unit trusts, among others, besides insurance. The company’s deals can be extended to both individual and institutional clients in both advisory and discretionary portfolio management. Therefore, iFAST would be a good fit for investors who embrace customized approaches towards their wealth management, as the platform integrates a vast selection of investment options with professional advisory support in the delivery of holistic investment services.
https://www.ifastcorp.com/ifastcorp/home/index.tpl
DBS Vickers Securities (Singapore) Pte. Ltd.
DBS Vickers is a subsidiary of DBS Bank, a leading financial institution in Southeast Asia. Known for its robust range of investment products, DBS Vickers offers services in equities, derivatives, and structured products. With a strong focus on Singaporean and Southeast Asian stocks, it is a go-to platform for investors interested in local and regional markets. DBS Vickers combines the stability and resources of DBS Bank with specialized investment services, attracting both individual and institutional clients.
https://www.dbsvickers.com/vickers/default.page
KGI Securities (Singapore) Pte. Ltd.
A subsidiary of KGI Securities, a major brokerage firm in Taiwan, KGI Securities Singapore specializes in equities, derivatives, and structured products with a focus on Taiwanese and other Asian stocks. KGI provides investors with access to a unique niche within the Asian markets, particularly Taiwanese equities, and is popular with those seeking exposure to the region’s dynamic industries.
Maybank Kim Eng Holdings Limited
Backed by Maybank, one of Southeast Asia’s largest banks, Maybank Kim Eng offers a full spectrum of investment services, including equities, derivatives, and structured products. The firm focuses heavily on Southeast Asian markets, benefiting from Maybank’s regional expertise. Maybank Kim Eng is ideal for investors looking to explore opportunities across Southeast Asia, with services supported by one of the region’s financial powerhouses.
OCBC Securities Pte. Ltd.
A part of OCBC Bank, one of Singapore’s largest banks, OCBC Securities offers an extensive range of services, including equities, derivatives, and structured products. With a strong emphasis on Singapore and Southeast Asian stocks, OCBC Securities is a popular choice for local investors. The firm’s backing by OCBC Bank provides a level of security and regional insight that appeals to both retail and institutional clients looking to invest locally and within neighboring markets.
Phillip Securities Pte. Ltd.
Phillip Securities is a leading brokerage in Singapore, providing a variety of investment services that cover equities, derivatives, and structured products. Known for its focus on Singapore and other Asian stocks, it attracts investors interested in tapping into the local market and beyond. With a well-established presence in Singapore, Phillip Securities is widely regarded for its industry expertise and regional reach.
RHB Securities Singapore Pte. Ltd.
As a subsidiary of Malaysia’s RHB Bank, one of the largest banks in the country, RHB Securities offers a wide array of services, including equities, derivatives, and structured products. RHB Securities focuses particularly on Southeast Asian markets, providing investors with access to Malaysia, Singapore, and other regional exchanges. Its strong connection with RHB Bank adds depth and reliability to its offerings, making it a suitable choice for investors focused on regional growth.
UOB Kay Hian Holdings Limited
Affiliated with United Overseas Bank (UOB), a major bank in Singapore, UOB Kay Hian provides a comprehensive suite of investment services, from equities to derivatives and structured products. The firm has a strong focus on Singapore and Southeast Asian stocks, benefiting from UOB’s local expertise and financial stability. UOB Kay Hian is an attractive option for investors who value a trusted local institution with substantial reach across the region.
Lim & Tan Securities Pte. Ltd.
Lim & Tan Securities, a prominent brokerage in Singapore, provides a range of investment options, including equities, derivatives, and structured products. Known for its focus on Singapore and other Asian stocks, Lim & Tan offers local investors a familiar and reputable platform for their trading needs. It is popular with those looking for an established firm with strong insights into the Singaporean market and broader Asian region.
Getting Started with a Brokerage Firm in Singapore
Step 1: Open a CDP Account
In Singapore, your investments are housed in a Central Depository or CDP account, courtesy of the Singapore Exchange or SGX. You need only one CDP account, and it serves as a safe haven to hold your investments under your name. Not all brokers will automatically deposit the stocks into your CDP account and may use a custodian account to house their assets. An applicant must be at least 18 years old to open a CDP account and maintain an existing bank account in Singapore.
Step 2: Develop an Investment Strategy
Successful investing is never an accident; it is always a well-considered strategy. Rather than climb aboard the latest investment bandwagon, you will want to design a plan that best fits your financial goals and personal style. Consider an investment strategy much like selecting clothing: something that fits your needs and endures, not just a passing fashion.
Define your goals: are you after steady income, or are you focused on the growth of your capital? It is your goals that determine which strategy to use-value investing, growth investing, or a mix of both.
Ask yourself:
- What’s your investment horizon?
- What kind of returns are you aiming for?
- How much risk can you tolerate?
Your strategy should align with your goals and comfort level, allowing you to build a personalized approach that’s adaptable over time.
Step 3: Choose Your Asset Classes
This will enable you to gauge your risk tolerance, which will most definitely play an enormous role in the types of assets you choose to invest in. Conservative investors would prefer mutual funds or blue-chip stocks, which are usually the more stable classes of investments, while growth-oriented investors who could tolerate higher risks would be attracted by the Stock Market or Leveraged Products. Each asset class has its own risk profile, and it makes sense to diversify by including several asset types in your portfolio to balance your risk.
As a rule of thumb, never invest in an asset you do not truly fully understand. Take for example, don’t put all your funds into cryptocurrencies if you are unfamiliar with how it works. Always do your homework and practice due diligence to minimize risk.
Step 4: Regularly Review and Adjust Your Strategy
Investment strategies aren’t one-size-fits-all, and they should evolve over time. A 30-year-old accumulating wealth might have a different strategy from a 65-year-old aiming for wealth preservation. Regularly reviewing your portfolio can help identify weak points and keep your strategy in line with your life stage and goals. Periodic rebalancing also allows you to manage risk effectively and maximize returns as markets shift.
Approach Investing with an Open Mind
Investing is a lifetime learning process, and to mess up sometimes is part of it. Take each single experience as a lesson learned and keep on learning further as you go on. The more you acquire the knowledge about it, the more comfortable and secure you will be as an investor. And with these tips, you’re going in the right direction toward reaching your goals.
Investing through brokerage firms remain essential amongst affluent Singaporeans despite the rise of trading apps due to their professional advice, diverse investment options, tailored services for high-net-worth clients, and trusted reliability. They offer expertise in complex strategies, portfolio diversification, tax optimization, and regulatory compliance, which apps often lack, ensuring security and personalized support for investors. This combination of professional guidance, diverse offerings, and personalized care ensures their continued relevance in the evolving investment landscape.
Disclaimer
Every effort has been made to ensure the accuracy of the information provided, but no liability will be accepted for any loss or inconvenience caused by errors or omissions. The information and opinions presented are offered in good faith and based on sources considered reliable; however, no guarantees are made regarding their accuracy, completeness, or correctness. The author and publisher bear no responsibility for any losses or expenses arising from investment decisions made by the reader.
