Opening a CDP account in Singapore is a crucial step for investors who wish to trade in Singapore’s stock market. The Central Depository (CDP) is a subsidiary of the Singapore Exchange (SGX), which provides depository, clearing, and settlement services for securities traded on the SGX. As such, a CDP account is necessary for investors who wish to buy or sell securities listed on the SGX.
To open a CDP account, you must meet several requirements, including being at least 18 years old, not being an undischarged bankrupt, and having an existing Singapore bank account with one of the participating banks. The account opening process can be completed online, and you’ll need to provide supporting documents to verify your identity, such as your NRIC or passport.
Once you’ve opened a CDP account, you can link it to your brokerage account, which allows you to buy and sell securities listed on the SGX. You can also manage your investments through your CDP account, such as transferring shares from one account to another or pledging your shares as collateral for loans. Understanding how to open and manage a CDP account is essential for investors who wish to trade in Singapore’s stock market.
Key Takeaways
- A CDP account is necessary for investors who wish to buy or sell securities listed on the SGX.
- To open a CDP account, you must meet several requirements, including having an existing Singapore bank account with one of the participating banks.
- Once you’ve opened a CDP account, you can link it to your brokerage account and manage your investments through your CDP account.
Understanding CDP Accounts
If you’re looking to invest in the Singapore securities market, you’ll need to open a Central Depository (CDP) account. This account provides integrated clearing, settlement, and depository facilities for equities, fixed income instruments, and other listed securities. Here’s what you need to know about CDP accounts.
The Role of the Central Depository
The CDP is a central depository that was established by the Singapore Exchange (SGX) in 1987. Its three main roles are:
- Being a Central Counterparty: The CDP acts as a buyer to every seller and a seller to every buyer, ensuring the completion of every trade.
- A Securities Settlement System: The CDP ensures that securities are delivered to the buyer and payment is made to the seller on the settlement date.
- A Central Securities Depository: The CDP holds securities in electronic form and provides a safe and secure environment for their custody.
Differences Between Individual, Joint, and Corporate Accounts
When opening a CDP account, you can choose between an individual, joint, or corporate account, depending on your needs. Here are the differences between these account types:
- Individual Account: This type of account is for individuals who want to invest in the securities market on their own. You’ll need to be at least 18 years old and have an existing Singapore bank account from one of the following banks: Citibank, DBS/POSB, HSBC, Maybank, OCBC, SCB, or UOB.
- Joint Account: This type of account is for two or more individuals who want to invest in the securities market together. All account holders must be at least 18 years old and have an existing Singapore bank account from one of the banks listed above.
- Corporate Account: This type of account is for companies that want to invest in the securities market. The company must be registered with the Accounting and Corporate Regulatory Authority (ACRA) and have a Singapore bank account from one of the banks listed above.
Opening a CDP account is a necessary step for anyone looking to invest in the Singapore securities market. With the information provided above, you should now have a better understanding of the role of the CDP and the differences between individual, joint, and corporate accounts.
The Account Opening Process
Eligibility Criteria and Required Documents
Before you can open a CDP account, you need to meet the eligibility criteria and provide the required documents. To be eligible, you must be at least 18 years old, not an undischarged bankrupt, and have an existing Singapore bank account from one of the following banks: Citibank, DBS/POSB, HSBC, Maybank, OCBC, SCB, or UOB.
You will also need to provide the following primary support documents:
- For Singaporeans and Permanent Residents (PRs): NRIC or passport
- For non-Singaporeans and non-PRs: Passport and Employment Pass or Dependent Pass
In addition, you will need to provide a secondary support document, such as a utility bill or bank statement, to verify your residential address. If you are using your passport as your primary support document, you will also need to provide your Tax Identification Number (TIN) or a self-declaration form.
Step-by-Step Guide to Opening Your CDP Account Online
Opening a CDP account online is quick and easy. Here is a step-by-step guide to help you get started:
- Visit the SGX website and select “Sign up using Myinfo” if you are a Singaporean or PR. If you are a non-Singaporean or non-PR, select “Sign up using the online form, with supporting documents.”
- Log in using your SingPass or provide the required personal details and upload your supporting documents.
- Review and confirm your details.
- Make payment for your CDP account opening fee of $10 via credit card or eNets.
- Wait for your CDP account to be activated. This usually takes one to two business days.
Once your CDP account is activated, you can start trading on the Singapore Exchange (SGX). Remember to keep your CDP account details and password secure and never share them with anyone.
Opening a CDP account is an important step if you want to invest in Singapore’s stock market. By following these simple steps, you can easily open your CDP account online and start trading on SGX.
Linking Bank and Brokerage Accounts
If you want to start trading stocks in Singapore, you’ll need to link your CDP account to a local bank account and a brokerage account. Here’s what you need to know: