Are you a Singapore citizen looking to invest in securities and trading? Then you need a CDP account! A CDP account is a Central Depository account that allows you to hold and manage your shares and securities in Singapore. In this article, we will guide you through the process of applying for a CDP account in Singapore.
Before we dive into the application process, it’s important to note that not everyone is eligible for a CDP account. To be eligible, you must be at least 18 years old and not an undischarged bankrupt. You must also have a Singapore bank account with one of the following banks: Citibank, DBS/POSB, HSBC, Maybank, OCBC, SCB, or UOB. Once you meet these criteria, you can proceed with the application process.
Key Takeaways
- To apply for a CDP account, you must meet certain eligibility criteria.
- You can register for a CDP account online or via mail.
- Once you have a CDP account, you can link it to your trading and bank accounts to start trading and managing your securities.
Eligibility and Account Types
If you’re looking to invest in the Singapore stock market, you’ll need a CDP account. Before you can apply for one, you’ll need to determine your eligibility and the type of account that suits your needs.
Determine Your Eligibility
To be eligible for a CDP account, you must be at least 18 years old and not an undischarged bankrupt. You must also have an existing Singapore bank account with one of the following banks: Citibank, DBS/POSB, HSBC, Maybank, OCBC, SCB or UOB.
Types of CDP Accounts
There are three types of CDP accounts to choose from: individual account, joint-alternate account, and joint-and account.
Individual Account
As the name suggests, an individual account is for a single person. This account is suitable for those who want to invest in the stock market on their own and manage their own investments.
Joint-Alternate Account
A joint-alternate account is a joint account where each account holder has equal rights to the account, but only one account holder can give instructions to CDP. This account is suitable for couples or business partners who want to invest together but want to limit the number of people who can give instructions to CDP.
Joint-And Account
A joint-and account is a joint account where all account holders have equal rights to the account and can give instructions to CDP. This account is suitable for couples or business partners who want to invest together and want equal control over the account.
Corporate Account
A corporate account is for companies that want to invest in the stock market. To apply for a corporate account, the company must be registered in Singapore and have a valid UEN. The account can be opened in the name of the company or in the name of an authorized officer of the company.
In summary, to apply for a CDP account in Singapore, you need to determine your eligibility and choose the type of account that suits your needs. Make sure you have an existing Singapore bank account with one of the approved banks, and choose between an individual account, joint-alternate account, joint-and account, or corporate account. With a CDP account, you can start investing in the Singapore stock market and grow your wealth.
Registering Online
If you prefer to register for a CDP account online, you have two options: using MyInfo or filling out the online form manually with supporting documents.
Using MyInfo
If you are a Singaporean or PR, you can create a CDP account online through the SGX website using MyInfo. MyInfo is a government digital service that allows you to use your SingPass to automatically fill in your personal details. This makes the registration process faster and more convenient.
To use MyInfo, simply select the “Sign up using MyInfo” option on the SGX website and follow the prompts to log in with your SingPass. Once you have logged in, your personal details will be automatically filled in for you. You will then need to verify your details and submit your application.
Manual Application
If you are not a Singaporean or PR, or if you prefer not to use MyInfo, you can still fill out the CDP application form manually with supporting documents.
To do this, follow these steps:
- Download and complete the CDP application form on the SGX website.
- Print a photocopy of your Singapore NRIC, Malaysia Identification Card, or Passport.
- Fill in your personal details on the application form and attach the photocopy of your identification document.
- Submit your completed application form and supporting documents to the CDP office.
Please note that you will need to provide accurate and up-to-date personal details, including your full name, date of birth, and contact information. You will also need to provide supporting documents to verify your identity.
Registering for a CDP account online is a convenient and efficient way to open an account. Whether you choose to use MyInfo or fill out the online form manually, make sure you provide accurate and complete information to avoid delays in the registration process.
Linking Trading and Bank Accounts
One of the most important steps in opening a CDP account is linking your trading account to your bank account. This is crucial for seamless transactions and management of securities. Here’s what you need to know about linking your trading and bank accounts.
Selecting a Brokerage Firm
Before you can link your trading and bank accounts, you need to select a brokerage firm. Some popular options in Singapore include DBS Vickers, OCBC Securities, and UOB Kay Hian. Each brokerage firm has its own set of fees, services, and requirements, so it’s important to do your research and choose the one that best fits your needs.
Setting Up Direct Crediting Service (DCS)
Once you have selected a brokerage firm, you will need to set up Direct Crediting Service (DCS) with your bank. DCS allows your brokerage firm to automatically debit your bank account for trades and other transactions. To set up DCS, you will need to provide your bank details to your brokerage firm.
It’s important to note that not all banks offer DCS, so make sure to check with your bank before selecting a brokerage firm. Additionally, some brokerage firms may require additional documentation or verification before setting up DCS.
In summary, linking your trading and bank accounts is a crucial step in opening a CDP account. By selecting a brokerage firm and setting up DCS, you can ensure seamless transactions and management of your securities.
Understanding Securities and Trading
If you are interested in investing in companies and other listed securities on the Singapore Exchange (SGX), it is essential to have a good understanding of securities and trading. In this section, we will provide an overview of stocks and bonds, as well as how to use the SGX website to access market updates and stock screeners.
Stocks and Bonds Overview
Stocks and bonds are two of the most common types of securities available for trading. Stocks represent ownership in a company and provide investors with a share of the company’s profits. Bonds, on the other hand, are a form of debt that companies and governments issue to raise capital. When you purchase a bond, you are essentially lending money to the issuer, and in return, you receive interest payments.
Corporate bonds and Singapore Savings Bonds are two examples of bonds that are available for trading on the SGX. Corporate bonds are issued by companies, while Singapore Savings Bonds are issued by the Singapore government. Both types of bonds can be purchased through a CDP Securities Account.
Using the SGX Website
The SGX website is an excellent resource for investors who want to stay up-to-date on market updates and stock screeners. The website provides real-time information on stock prices, market trends, and company news.
To use the SGX website, you can create a CDP account online through the SGX website. If you are a Singaporean or PR, choose the “Sign up using Myinfo” option. For non-Singaporeans and non-PRs, select the alternative option “Sign up using the online form, with supporting documents.” Once you have created an account, you can access the SGX website and start exploring the different features.
One of the most useful features of the SGX website is the stock screener. This tool allows you to filter stocks based on various criteria, such as market capitalisation, price-to-earnings ratio, and dividend yield. Using the stock screener can help you identify stocks that meet your investment criteria.
In conclusion, understanding securities and trading is essential if you want to invest in companies and other listed securities on the SGX. By creating a CDP Securities Account and using the SGX website, you can access market updates, stock screeners, and other useful resources that can help you make informed investment decisions.
Managing Your CDP Account
Once you have successfully applied for a CDP Securities Account in Singapore, you can start managing your portfolio and corporate actions through the CDP website. Here are some useful tips on how to manage your account:
Portfolio and Corporate Actions
The CDP website allows you to view your portfolio and all the securities that you own. You can also view corporate actions such as dividend payouts and bonus issues. The website is easy to navigate and provides you with all the information you need to make informed investment decisions.
To view your portfolio, simply log in to your CDP account and click on the “Portfolio” tab. You will be able to see all the securities that you own, including their current market value and any unrealised gains or losses. You can also view your transaction history and track the performance of your investments over time.
To view corporate actions, click on the “Corporate Actions” tab. Here, you can view upcoming dividend payouts and bonus issues for the securities that you own. You can also view historical corporate actions and their impact on the value of your investments.
Monthly Statements and Transactions
The CDP website also provides you with monthly statements and transaction history. You can view your monthly statements by clicking on the “Statements” tab. Your monthly statement will provide you with a summary of all the securities that you own, any transactions that you have made during the month, and your current account balance.
To view your transaction history, click on the “Transactions” tab. Here, you can view all the transactions that you have made, including the date, security, and transaction amount. You can also filter your transaction history by date range and security.
In conclusion, managing your CDP account is easy and straightforward. The CDP website provides you with all the tools you need to manage your portfolio and make informed investment decisions. By regularly monitoring your portfolio and transaction history, you can ensure that your investments are performing well and make any necessary adjustments to your investment strategy.
Frequently Asked Questions
What’s the process for opening a CDP account online?
The process of opening a CDP account online is straightforward. You can visit the SGX website and fill in your personal details. You will also need to provide your bank and tax residence details. After that, you will need to upload the necessary documents and submit your application. The approval process generally takes around 7-10 business days.
Can I open a CDP account through DBS, and how?
Yes, you can open a CDP account through DBS. To do so, you will need to have an existing DBS bank account. You can then apply for a CDP account through the SGX website and link it with your DBS bank account.
How soon can I expect my CDP account to be ready after applying?
After you submit your application, it typically takes around 7-10 business days for your CDP account to be ready. However, this timeline may vary depending on the volume of applications received by SGX.
Is there any charge associated with setting up a CDP account?
Yes, there is a one-time fee of $10 for setting up a CDP account. However, this fee may be waived for new investors who apply for a CDP account through a brokerage firm.
What steps should I follow to check my CDP account details?
To check your CDP account details, you can log in to your account via the SGX website. Once you have logged in, you can view your portfolio, access CDP forms, and perform other account-related activities.
How can I log in to my CDP account via SGX?
To log in to your CDP account via SGX, you will need to visit the SGX website and click on the “CDP” tab. From there, you can enter your login credentials and access your account.