If you have settled into work and life here and are starting to think about growing your savings, opening a CDP and brokerage account is usually the first practical step. It is how ordinary people in Singapore buy shares, bonds and funds listed on the local exchange. The setup can feel unfamiliar at first, especially if you invested through a mainland brokerage app back home, but the pieces are simple once you see how they fit together. This guide walks through what each account does and how to open them, without telling you what to buy.
What the CDP Account Actually Is
CDP stands for the Central Depository, run by the Singapore Exchange (SGX). Think of it as an official register that holds Singapore listed shares directly in your own name. When shares sit in your CDP account, you are the legal owner on record, dividends are paid to you, and you receive company notices and voting rights yourself.
This is quite different from the mainland experience, where your holdings sit with your broker and are recorded centrally through the China Securities Depository and Clearing system. In Singapore the CDP model means your ownership does not depend on any single broker staying in business. If you ever change brokers, the shares in your CDP account stay put.
You generally need to be at least 18, hold a bank account with a bank that CDP recognises, and have a tax reference such as an NRIC or FIN. Newcomers who are permanent residents, or foreigners living here on a valid pass, can usually open a CDP account, though the exact documents required can differ, so check the current list on the SGX website before you start.
How a Brokerage Account Fits In
A CDP account holds your shares, but it does not let you trade. For that you need a brokerage account with a firm that is a member of SGX. The broker is the middleman that places your buy and sell orders on the exchange and handles settlement of the money.
When choosing a broker, make sure it is licensed by the Monetary Authority of Singapore (MAS) and is a recognised SGX trading member. Local banks all run their own brokerage arms, and there are several independent and online brokers as well. Beyond that, people usually compare the trading platform, the range of markets offered, research tools, customer service in the languages they are comfortable with, and of course the fees. Do not rely on figures you read in old articles, as commissions and minimum charges change; confirm the current rates directly with each broker.
Opening a brokerage account is a separate step from opening a CDP account, and many brokers will help you apply for both at the same time using Singpass and Myinfo, which pull your verified details across so you do not fill in everything by hand.
CDP-Linked Versus Custodian Accounts
One decision trips up many newcomers: whether your shares are held in your own CDP account or in the broker’s custodian (nominee) account. Both are normal and legal in Singapore, but they behave differently. A CDP-linked account settles trades into your personal CDP holding, so you are the direct owner. A custodian account means the broker holds the shares on your behalf under its own nominee name, and its internal records show your slice.
Custodian accounts are common with online brokers and often carry lower trading costs, but you do not appear on the company register yourself, and you may pay separate custody or corporate action fees. CDP-linked accounts give direct ownership and simpler dividend handling, though the headline trading fees can be higher. Neither is right or wrong; it depends on what you value.
| What to compare | CDP-linked account | Custodian (nominee) account |
|---|---|---|
| Who is the registered owner | You, directly in CDP | The broker’s nominee, on your behalf |
| Dividends and notices | Sent to you by CDP | Passed on by the broker |
| Typical trading cost | Often higher | Often lower |
| Extra custody fees | Usually none | Sometimes charged |
| If the broker closes | Shares stay in your CDP | Handled through the nominee arrangement |
Read each broker’s own terms before deciding, because the details vary from firm to firm.
Steps to Open Your Accounts
The process is mostly online and can often be done in an evening, though approval may take a few working days. A typical path looks like this:
- Get your Singpass set up and working, as most brokers and CDP verify your identity through it.
- Open a CDP account through SGX, or ask your chosen broker to help you open one alongside the brokerage account if you want direct ownership.
- Apply for a brokerage account with an MAS-licensed, SGX-member broker, choosing between a CDP-linked or custodian setup.
- Link a bank account for funding and for receiving sale proceeds and dividends, using PayNow or a direct bank link rather than the WeChat Pay or Alipay flows you may be used to.
- Wait for approval, then fund the account and place a small first trade once you understand the platform.
Take your time on each step. There is no rush, and getting the basics right matters more than moving quickly.
Costs, Tax and Staying Safe
Every trade carries costs, and they add up if you buy and sell often. Expect brokerage commissions, a clearing fee and a small trading access charge on SGX trades, plus possible custody or dividend handling fees on nominee accounts. Because the exact numbers change, check the current schedule with your broker and on the SGX website rather than assuming.
Singapore does not tax capital gains for individual investors in the way many countries do, and dividends from Singapore companies are generally received without further personal tax, but your own situation, including any obligations back in China, can differ. For anything tax related, confirm the current position with IRAS or a qualified adviser rather than relying on a rule of thumb.
Finally, protect yourself. Only deal with firms regulated by MAS, and be wary of messages promising guaranteed returns or urging you to move money quickly, which are classic scam signals. This guide is general information to help you navigate the system, not financial advice. What you invest in, and how much risk suits you, is a personal decision best made calmly and, if helpful, with a licensed professional.
Explore More
Once your accounts are open, you may want to read about investing in REITs and ETFs as a newcomer for lower effort ways to start, or explore safer government options in our guide to Singapore Savings Bonds and T-bills for newcomers. If you are still finding your feet financially, budgeting for your first year in Singapore is a good place to steady the foundations before you invest.