If you’re looking to invest in the Singapore stock market, opening a CDP account is a must. The Central Depository (CDP) is a subsidiary of the Singapore Exchange (SGX) that provides depository, clearing, and settlement services for securities traded on the SGX. Opening a CDP account allows you to own Singapore-listed stocks, bonds, and other securities in your own name, and enjoy the benefits of ownership, such as receiving dividends and exercising voting rights.
Fortunately, opening a CDP account in Singapore is now easier than ever with the online application process. You can complete the entire process from the comfort of your own home, without the need to visit a physical office or submit hard copies of supporting documents. In this article, we’ll guide you through the step-by-step process of opening a CDP account online, including the documents you need to prepare, and how to link your CDP account with a brokerage account.
Key Takeaways
- A CDP account is necessary to invest in Singapore-listed securities and enjoy the benefits of ownership.
- Opening a CDP account in Singapore is now easier than ever with the online application process.
- You can link your CDP account with a brokerage account to start trading securities on the Singapore stock market.
Understanding CDP and Its Importance in Singapore
If you’re new to investing in Singapore, you may have heard about the Central Depository (CDP) account. But what exactly is it, and why is it important? In this section, we’ll explore the basics of CDP and its role in your investment journey.
Differences Between CDP and Trading Accounts
Before we dive into CDP, let’s first understand the difference between a CDP account and a trading account. A trading account is where you buy and sell stocks, while a CDP account is where your stocks are held and stored. Think of it like a safe deposit box for your shares.
When you buy shares through a trading account, the shares are automatically deposited into your CDP account. This means that you can keep track of all your shares in one place, instead of having them spread out across multiple trading accounts.
Role of SGX in Your Investment Journey
The Singapore Exchange (SGX) is the main stock exchange in Singapore. It operates the CDP and provides a platform for investors to buy and sell shares. In other words, SGX is the place where you go to invest in Singaporean stocks.
CDP is important because it provides a centralised system for the settlement of securities transactions. This means that all transactions are cleared and settled through CDP, which helps to ensure that the process is efficient and secure.
In addition, CDP provides a range of services to investors, including:
- The ability to view your shareholdings online
- The ability to transfer shares to and from your CDP account
- The ability to pledge your shares as collateral for loans
Overall, CDP is an essential part of the investing process in Singapore. By opening a CDP account, you can ensure that your shares are held securely and that you have access to a range of useful services. So if you’re planning to invest in Singaporean stocks, be sure to open a CDP account today!
Step-by-Step Guide to Opening a CDP Account Online
If you’re an investor looking to open a CDP account in Singapore, you’re in luck! It’s now possible to apply and open a CDP account online, without having to submit hard copies of supporting documents. Here’s a step-by-step guide to help you navigate the process:
Eligibility Criteria for New Investors
Before you start your application, you’ll need to make sure you meet the eligibility criteria. To open a CDP account, you must be at least 18 years old and cannot be an undischarged bankrupt. Additionally, you must have an existing Singapore bank account with one of the following banks: Citibank, DBS/POSB, HSBC, Maybank, OCBC, SCB, or UOB.
Navigating the SGX Website and Online Form
To apply for your CDP account, you’ll need to download and complete the CDP application form on the SGX website. The form is easy to navigate and can be completed in just a few minutes. You’ll need to provide some basic personal information, such as your name, address, and contact details. You’ll also need to select the type of account you want to open – an individual account, a joint account, or a corporate account.
When filling out the form, be sure to double-check all your information for accuracy. Any errors or discrepancies could delay the processing of your application.
Verifying Your Identity with MyInfo or SingPass
Once you’ve completed the online form, you’ll need to verify your identity using either MyInfo or SingPass. MyInfo is a secure online service that allows you to easily and securely verify your identity using your personal data. SingPass is a similar service that allows you to access a range of government services online.
To verify your identity, simply follow the prompts on the screen and provide the required information. Once your identity has been verified, your application will be processed, and you’ll be notified via email when your CDP account has been opened.
Opening a CDP account online is a quick and easy process that can be completed in just a few minutes. With the convenience of online applications, you can start investing in the Singapore stock market and take advantage of the many opportunities available to investors.
Linking Your CDP Account with a Brokerage Account
When you have successfully created your CDP account, you will need to link it to a brokerage account to start trading. Here are some things to keep in mind when linking your CDP account to a brokerage account.