Market Watch

Understanding the Stock Market in Singapore

After being independent from Malaysia, Singapore grew economically at a skyrocketed pace only in only a few decades. Today, Singapore boasts of being the second-highest per-capita GDP in the world and Singapore’s economy has been ranked as the most open in the world by the World Economic Forum.

This prosperous economy is backed by the stock market of Singapore which is controlled by Singapore Exchange (SGX) formed in 1999. SGX was established as an investment holding company when the share capital of some former exchange companies was cancelled.

These former stock companies include Stock Exchange of Singapore (SES),Securities Clearing and Computer Services Pte Ltd (SCCS) and Singapore International Monetary Exchange (SIMEX).

When new shares were issued after cancellation, these companies were fully paid up by SGX. This way, all assets owned by the previous companies were transferred to Singapore Exchange (SGX). Now, it owns the capital market worth of $733.27 Billion as of 2021.

So, before you jump into the stock market of Singapore, you need to be aware of some important stuff including the purpose of investment, the area of investment, Singapore bonds, and some strategies and formalities. You should also keep in mind to find stockbroker in Singapore

The first step for you is to create Singapore CDP and stock brokerage accounts. Make sure that you have got a verified CDP account and the brokerage account created via a licensed brokerage firm.

If you’re a beginner and don’t know much about the stockbroker in Singapore, you can easily find the online broker Singapore and here is the list of some best online brokers in Singapore in 2021.

Futu – It is one of the best brokers available in Singapore. It helps create and operate free stock trading. It is also good for trading US stock in singapore. Creating an account and investing is easy and fast as the broker provides a mobile trading platform.

TD Ameritrade – It includes low trading fees and provides free stock and ETF trading. The Superb desktop trading platform makes it more elite and upgraded. With great customer support, the broker is highly in demand.

Passfolio – It executes free US stock and ETF trading. Featuring a great mobile platform, the company has been fast and fully digital.

Saxo Bank – It offers a great trading platform and outstanding research. Besides, it executes a broad product portfolio.

Questrade- The broker has low stock and ETF fees. It provides solid research tools and superb customer service.

After finishing common configurations, if you think of trading US stock in Singapore, you need to follow the three steps mentioned below:

1. Create an investment brokerage account on MoneySmart

There are several online brokerages to help you create an investment brokerage account and invest in US stocks. The recommended brokerages you can go with include OSaxo Markets,Tiger Brokers, moomoo (by FUTU) and others.

2. Fund your investment brokerage account

Some brokers need a minimum funding so you can start with for eg. $3000. You should transfer the least amount on the instructions of the broker. You can transfer the fund through PayNow and FAST transfers.

3. Start investing in US stocks or ETFs

Once the fund is deposited in your investment account, you can begin investing officially in the US stocks.