How to Buy Stocks in Singapore 2026: Step-by-Step

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Quick answer

To buy stocks in Singapore, open a CDP account and a brokerage account with an MAS-licensed broker, link them, fund your account, and place an order on the SGX — your trade settles in two business days. Singapore has no capital gains tax and company dividends are tax-exempt in your hands, making it one of the more investor-friendly markets in Asia.

The numbers at a glance

Step-by-step: how to buy your first SGX stock

Buying SGX-listed shares involves five steps. Each is straightforward; the only part that trips up first-timers is understanding that a CDP account and a brokerage account are two separate things that must be linked before you can start.

Step 1 — Open a CDP account. Visit the CDP website (cdp.sgx.com) and apply online using SingPass. CDP is operated by SGX and holds your shares electronically in your own name. There is no annual fee. Processing takes one to three business days.

Step 2 — Open a brokerage account. Choose a broker licensed by the MAS (verify at mas.gov.sg). If you want your shares held at CDP, pick a CDP-linked broker such as DBS Vickers, Phillip Securities (POEMS), OCBC Securities, or UOB Kay Hian. If you are comfortable with custodian ownership and want lower fees, Moomoo, Tiger Brokers, Syfe Trade, or Interactive Brokers are popular options. Apply online; most approvals are same-day.

Step 3 — Link your accounts. For CDP-linked brokers, you provide your CDP account number during the brokerage application. The linkage is confirmed once the broker activates your trading access.

Step 4 — Fund your account. Transfer cash from your Singapore bank account via internet banking or FAST. Most brokers require funds to clear before you can place an order.

Step 5 — Place your order. Log into the broker's platform and search for the stock by name or ticker. Decide whether to use a limit order (you specify the price) or a market order (executes at the best available price). Remember that most SGX counters trade in board lots of 100 shares — you cannot buy 50 shares of a standard-lot counter in a single transaction on the main board. Your trade settles on T+2, meaning the cash leaves your account and the shares are credited two business days after the trade date.

CDP account vs custodian broker: which is right for you

The choice between a CDP-linked broker and a custodian broker comes down to ownership structure and cost.

With a CDP account, your shares are registered in your own name at the Central Depository. This means you are a direct shareholder on record: you receive AGM invitations and proxy voting rights, corporate action notices (rights issues, bonus shares, dividends), and your shares are not exposed to broker insolvency risk. The practical advantage of portability is often overlooked — you can switch CDP-linked brokers without moving your shares, because the shares live at CDP, not at the broker.

The trade-off is cost. CDP-linked brokers typically charge 0.08% to 0.28% with a minimum of $10 to $25 per transaction. On a $1,000 trade, a $10 minimum means you are paying at least 1% in commission — a high hurdle for small positions.

With a custodian broker, your shares are held in the broker's pooled account on your behalf. You do not appear on the company's shareholder register and you do not receive direct AGM communications. If the broker were to fail, your shares are protected by regulatory requirements but recovery could involve delay and complexity. In exchange, fees are substantially lower — often 0.03% to 0.06% with minimal or no per-trade minimums — which matters a great deal when you are building a portfolio with regular small purchases.

Choose CDP if you plan to hold shares long term, want voting rights, or are likely to switch brokers. Choose custodian if you are cost-sensitive, trade frequently, or are primarily interested in price returns rather than shareholder participation.

Comparing broker costs: what you actually pay

The commission rate you see advertised is not the full cost. On SGX trades you also pay a CDP clearing fee and an SGX trading access fee on top of the broker's commission. GST is then charged on all three components. There is no stamp duty on SGX share transactions.

A concrete example helps. Assume you buy $5,000 worth of shares through a CDP-linked broker charging 0.25% commission with a $25 minimum:

• Broker commission: $5,000 × 0.25% = $12.50 — but the minimum applies, so you pay $25.00
• CDP clearing fee: $5,000 × 0.0325% = $1.63
• SGX trading access fee: $5,000 × 0.0075% = $0.38
• GST (9%) on all fees: ($25.00 + $1.63 + $0.38) × 9% = $2.43
• Total transaction cost: approximately $29.44, or 0.59% of the trade

Now compare the same $5,000 trade on a custodian discount broker charging 0.06%:

• Broker commission: $5,000 × 0.06% = $3.00
• Exchange fees and GST: similar, roughly $4.50
• Total: approximately $7.50, or 0.15% of the trade

The saving is meaningful. It narrows as trade size grows, but for investors making regular small purchases, custodian brokers offer a clear cost advantage. Always check the broker's current fee schedule directly — rates and minimums change.

Taxes on Singapore stocks: the good news

Singapore's tax treatment of equity investing is exceptionally light, and understanding it clearly will save you from misplaced concern.

Capital gains. There is no capital gains tax in Singapore. If you buy a stock at $2.00 and sell it at $5.00, the $3.00 profit is not taxed. This applies regardless of how often you trade or how large the gain, with the narrow exception of individuals whose sole or principal business is trading securities — the IRAS can in such cases treat gains as income. For the typical retail investor, gains are not taxable.

Dividends from Singapore companies. Singapore uses a one-tier corporate tax system: the company pays corporate income tax on its profits, and dividends paid to shareholders are fully exempt from further tax in the shareholder's hands. You receive the dividend gross and declare nothing.

Dividends from foreign stocks. Dividends from foreign-listed companies are generally not taxed when remitted to Singapore. However, the country of the company's listing or incorporation may deduct withholding tax at source before the dividend reaches you — for example, US stocks attract a 30% withholding tax for non-US investors (reducible to 15% under tax treaty in some circumstances).

Stamp duty. There is no stamp duty on the purchase or sale of shares listed on the SGX.

GST. GST at 9% applies to brokerage commissions and exchange fees. It does not apply to the value of the shares themselves.

CPFIS and SRS. You may invest CPF Investment Scheme (CPFIS) funds or Supplementary Retirement Scheme (SRS) funds in approved SGX-listed stocks through approved brokers. These schemes provide their own tax advantages on top of the general equity tax treatment.

When to use the Investment Returns Calculator

Reading about how to buy stocks answers the procedural question. The next question — whether a particular investment makes financial sense for you — is where the Investment Returns Calculator becomes useful.

Use it once you have identified a stock or have a lump sum to invest. Enter the amount, an expected annual return rate, and a time horizon, and the calculator shows you the compounded end value alongside total gain. You can model different scenarios: a conservative 4% annual return versus an optimistic 8%, or a 10-year versus 20-year holding period. This turns abstract percentage returns into concrete dollar figures.

It is also useful for comparing the cost drag of broker fees. If commissions eat 0.5% of each trade and you turn over your portfolio twice a year, that is 1% per year in friction — the calculator lets you see exactly how that compounds against your projected returns over time.

Common mistakes for first-time investors

Not verifying the broker is MAS-licensed. Before depositing any money, check the MAS Financial Institutions Directory at mas.gov.sg to confirm your broker holds a Capital Markets Services licence. Unlicensed platforms have no regulatory protections.

Confusing the CDP account with the brokerage account. They are separate. A CDP account holds your shares; a brokerage account is where you place orders and hold cash. You need both if you want CDP ownership, and both must be linked before trading. Many beginners assume opening a brokerage account automatically creates a CDP account — it does not.

Trading in odd lots without understanding the liquidity. SGX's unit share market allows purchases of fewer than 100 shares, but spreads can be wide and volume thin. For most retail investors, trading only in standard board lots of 100 shares is simpler and more practical.

Not accounting for T+2 settlement timing. Your cash is not debited immediately — it leaves your account two business days after the trade. If you are managing your bank balance closely, be aware that the debit lands on T+2, not T+0. Similarly, if you sell, your cash arrives on T+2.

Buying on margin without understanding the risk. Some brokers offer margin facilities that let you borrow to buy more shares than you could with cash alone. This amplifies both gains and losses. A stock falling 20% can result in a margin call requiring you to top up cash immediately or have positions force-sold at a loss. Beginners should stick to cash accounts until they have a clear understanding of margin mechanics.

Bottom line

Buying stocks in Singapore is straightforward once you understand the two-account system: a CDP account holds your shares, a brokerage account handles your orders. Singapore's tax environment is friendly — no capital gains tax, no stamp duty, and dividends from local companies land in your pocket untouched. Choose your broker based on the trade-off between CDP ownership and lower fees, verify the licence on mas.gov.sg, and keep enough cash settled in your account before placing orders to cover T+2 settlement. Use the Investment Returns Calculator to model whether the expected returns on a stock justify the capital you plan to commit.

FAQ

How do I open a brokerage account to buy stocks in Singapore?

Choose a broker that is licensed by the Monetary Authority of Singapore — you can verify this on the MAS Financial Institutions Directory at mas.gov.sg. For a CDP-linked broker such as DBS Vickers or Phillip Securities (POEMS), you will apply online or in person, complete identity verification using SingPass, and link your new brokerage account to a CDP account. For a custodian broker such as Moomoo or Tiger Brokers, the process is entirely online and takes as little as a day. Either way you will need a Singapore bank account to fund the trading account before placing any orders.

What is a CDP account and do I need one to buy SGX stocks?

A CDP (Central Depository Pte Ltd) account is an electronic securities account operated by SGX. When you buy shares through a CDP-linked broker, those shares are held in your own name at CDP — you receive direct shareholder status, AGM voting rights, and corporate action notices. If you use a custodian broker instead, the shares are held in the broker's pooled account on your behalf and you do not get these rights. You do not strictly need a CDP account to trade SGX stocks — custodian brokers are a valid alternative — but CDP ownership gives you portability and legal title that custodian accounts do not.

Do I pay tax on profits from selling stocks in Singapore?

No. Singapore does not impose capital gains tax, so any profit you make from selling shares is not taxable regardless of how frequently you trade or how large the gain. Singapore company dividends are also tax-exempt in shareholders' hands under the one-tier tax system — the company pays corporate tax, and dividends are passed to shareholders free of further tax. Foreign dividends remitted to Singapore are generally not taxed either, though the foreign country may deduct withholding tax at source. The only tax that applies to trading activity is GST, which is charged on brokerage commissions and exchange fees.

What is the minimum amount needed to buy stocks on the SGX?

Most SGX-listed securities trade in board lots of 100 shares. This means the practical minimum purchase is the current share price multiplied by 100, plus brokerage commission. For example, a stock priced at $3.00 would cost a minimum of $300 before fees. Some counters also trade in smaller odd-lot sizes through SGX's unit share market, but liquidity there is thinner. Budget-conscious investors often start with $1,000 to $2,000 to ensure commissions do not represent an outsized proportion of the trade, particularly when using CDP-linked brokers that charge a minimum commission of $10 to $25 per transaction.

Which broker is cheapest for buying Singapore stocks in 2026?

For small and frequent trades, custodian brokers tend to be cheapest. Moomoo, Tiger Brokers, Syfe Trade, and Interactive Brokers typically charge 0.03% to 0.06% with low or no per-trade minimums for SGX stocks. For larger, infrequent trades the difference narrows, because the CDP-linked brokers' minimum commissions of $10 to $25 become a smaller percentage of the total trade value. If you value direct CDP ownership, DBS Vickers and Phillip Securities (POEMS) are the most commonly used CDP-linked options. Always confirm the current fee schedule directly with the broker before opening an account, as fees are updated periodically.