How to Open a Stock Trading Account in Singapore

How to Open a Stock Trading account in Singapore-Updated 2012

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01-03-2012, 12:20 PM #1

SinkieHigh Supremacy Member

Join Date: Jan 2009Posts: 41,751

How to Open a Stock Trading account in Singapore-Updated 2012

Q1.How do I/we get started?Before you can start trading, you will need 2 accounts:

A) A securities account with The Central Depository (Pte) Ltd (CDP) which is only opened once The Central Depository (Pte) Ltd (CDP) account is for the settlement of trades. It maintains all the shares you’ll buy on SGX, It electronically records the movements of the shares in and out of your account as you buy and sell them. To open a CDP account, you will need to be 18 years of age and must not be an undischarged bankrupt. For Singaporean/Permanent Resident (“PR”) of Singapore, who wish to trade in SGX listed shares, you

need to open a corresponding CDP Individual/Joint Securities Account (commonly known as the CDP account) with the Central Depository Pte Ltd ("CDP").

For Non-Singapore Permanent Resident/Foreigner, you would need to open a CDP Sub-Account.

B) A brokerage account with a stockbroking member of SGX-ST. The brokerage account allows you to trade shares in the stock market.

Both these accounts have to be linked before you can start trading.

Q2. Do i really have to go SGX to open my CDP account? Can the stockbroking firm opens the CDP account for me too?Yes, the stockbroking firm can also open a CDP account for you and therefore it is not a must to go to sgx center first before going to a stockbroking firm to open your first trade brokerage account. You can open both accounts at a single location (stockbroking firm)

Q3.Do i have to open one CDP securities account with every stockbroking account that i want to have?No, you only need one CDP securities account, you are free to open trading accounts with multiple stockbroking houses. Each stockbroking houses will link up your trading account to your CDP securities account.

Linkage between your Cash Trading Account maintained with stockbroking firm and the CDP/CDP Sub-Account is necessary to facilitate book-entry transfer of scripless securities listed on the Singapore Exchange.

Q4. What do i need to bring if i want to open a CDP account or/and trading account with a securities firm?Required documents:1) Original identity card (for Singaporean/Singapore PR) - *Not car license*2) Original identity card (for Malaysian) / Passport (for Foreigner) + Original utility bill as proof of residential address (where applicable)

For opening of a CDP/CDP Sub-Account, account application must be done in person. If you are overseas, please arrange for the required documents to be notarised by a Notary Public registered with your country’s governmental institution.

Q5.What are the list of stockbroking firms in Singapore that you can open a cash trading account with?1) CIMB Securities www.itradecimb.com.sg/2) Fraser Securities www.amfraser.com.sg3) Lim & Tan Securities LIM & TAN Securities4) Phillip Securities Online Stock and Share Trading-POEMS5) Maybank Kimeng Securities Maybank Kim Eng6) OCBC Securities iOCBC - Your Personal e-Broker

http://forums.hardwarezone.com.sg/users/353089/

7) DMG and Partners Securities DMG & Partners Securities8) UOB Kay Hian UTRADE brought to you by UOB Kay Hian9) DBS Vicker DBS Vickers Online Trading

Q7. I have a dbs/posb/uob deposit saving account with atm card, can i avoid opening a brokerage account and start trading once i open a cdp account to start trading?No, owning a dbs bank deposit saving account only allow easy share payment and does not means you will automatically have a dbs-vicker brokerage trading account, likewise owning a ocbc bank saving account does not means you will have a ocbc securities trading account too. you still need to go to their office in person to open a brokerage account with them.

Q8. I have a posb saving account, i do not want to open another bank account, so do i have to open a new cimb bank saving account just because i want to open a cimb securities brokerage account?If your saving account is with posb, you can still use the posb saving account to pay for shares that are bought with a cimb securities brokerage account so it is not necessary to open a new cimb bank account just to open a cimb securities brokerage account.

if you decided to open any bank-backed brokerage firm, it is not a must to have it's banking saving account. All brokerages firms will allow major bank saving accounts for eps linkage

For example, Cimb securities allows linkage for all major local banks like dbs, citi, ocbc or even uob saving accounts for eps payment mode.

This image has been resized.Click to view original image

So do not be restricted by the choice of your trading account by your personal Saving account

Q9. Can i use my DBS saving account to pay for my shares if i use standard chartered trading account to enjoy its no minimun commissionNo, it is exceptionally for standard chartered trading account, you MUST have a standard chartered saving accounts to make payment. You need to transfer money into the standchart saving bank account first before you can use Standard chartered trading account to buy any shares because it does not allowed EPS payment mode. Those who planning to open a standard chartered trading account, it is recommendable and advisable to also have a trading account + cdp account first.

Q10.Who can apply for a Trading Account?You must be at least 18 years old, not an undischarged bankrupt with no delinquent records with any stockbroking houses in Singapore. Foreigners may be required to open a Trust Account for settlement of shares transactions.

For investors who are between the age of 18 and 20, you will be classified as young investor.

Q11.Which brokerage firms in Singapore has special events or programs catered to Young Investors from age 18 to 29.

Spoiler!

Q13.When can I/we commence trading?Subject to completeness and approval of your account application, it will take 2 to 3 working days to activate your account application. You will be notified in writing of your Cash Trading Account number. You can start to transact in securities listed on the Singapore Exchange Ltd upon confirmation of linkage approval of your Cash Trading Account to your Securities Account maintained with the CDP. Any transactions executed via your Cash Trading Account prior to linkage approval may result in failed trade and losses.

Q14.Once I have a CDP Securities Account and a trading account with a broker, how do I buy shares?Tell your broker what shares you want to buy. Your broker will execute your order and handle all other details. Alternatively, you can carry out your transactions through the stockbroker’s online trading platform.

Q15. What is the payment mode for shares purchase or sales in Singapore

- Electronic Payment for Shares (EPS), Giro, Multi Trust, internet banking

Quote:Frequently-Asked Questions on Electronic Payment for Shares (EPS)What are the benefits of this service?

a)Faster access to funds You will be able to have faster access to your funds through EPS. For example, if a cheque is sent to you promptly after due date (i.e. Due Date + 1 market day), you will receive it the following day (i..e. Due Date + 2 market days) and deposit it the day after (i.e. Due Date + 3 market days). As cheques takes a day to clear, your funds will be available on the four days after due date (i.e. Due Date + 4 market days). Under EPS, you have access to your funds on the morning of the second day after due date (i.e. Due Date + 2 market days).

b)Safer Money settlement is specific. Payment will be credited into your designated bank account for your sales of shares or specifically from you to us from your designated bank account for shares bought. You need not worry about your shares bought being force sold due to misplaced cheques or cheques lost in the mail. With EPS (Purchase), we will receive your payment on the market day after you initiated payment.

c)Convenience With EPS, you no longer need to deposit cheques. Also, payment may be made through the ATM (with EPS facility) after office hours.

Q16. I dont have a CDP account, but i have a standard chartered trading account, how do i apply for IPO from ATM? No, you are not able to apply for any IPO from atm because you do not have a CDP account. You need a CDP account to apply for IPO. Go to any brokerage firm to open a trading account and CDP account too. Once you are allocated shares from the IPO, transfer from CDP to your standchart trading account once it is recorded into your CDP to sell if you can wait for 1 to 2 weeks upon request for transfer.excalibur324, noobishyang, nuar777 and 1 others like this.

Last edited by Sinkie; 06-04-2013 at 09:50 AM.. Reason: added some queries i received in my pm

01-03-2012, 09:56 PM #2


Before you walk into any brokerage firm, check that you brought along the following documents and details1) Singapore IC or Singapore PR card2) name card (optional) or student card3) bank account number

Walk into a brokerage firm customer service counter etc Cimb securities, a typical conversation will be

Customer service : "welcome, how can I help you?"

You : I would like to open a trading account

http://forums.hardwarezone.com.sg/newreply.php?do=newreply&p=64541749


Front desk Customer service : "can I have your ic?"

*pass her your ic*

Front desk Customer service : "thank you sir, can I ask do you have any broker or Remiser that you would like to open under?"

You: yes, I would like to open under the dealer by the name of xxxxOrYou : no, I don't have any dealer in mind.

Front desk Customer service : "please take a seat"

*front desk customer service officer will prepare the form and lead you to another place when another officer will go through all the form with you*

2nd Customer service : "good afternoon sir, can I ask is this your first trading account"

You: yes, I do not have any trading account previously and this is my first trading account

2nd customer service : "in this case I would help you open a Cdp account also"

*2nd customer service proceed to fill in and go through the form with you*

2nd customer service: "sir, how do you want to make payment for any shares purchase? We have giro, eps and also multi currency trust."

You: I would like to pay my shares via eps/giro etc (choose one)

2nd customer service: "in this case, which bank account do you intend to pay with? We accept eps via banks like POSB, DBS, Ocbc UOB, Cimb. Can I also have your bank account number too"

*2nd customer service proceed to fill in the bank account number*

*2nd customer service will then explain the term and condition and also the risk disclosure carefully and will tell you which page to sign*

2nd customer service : "your form will be processed immediately and your account will be ready within 5 days. Once your account is opened, the dealer assigned to you will contact you"

You: thank you very much

Q1.What is the addresses of the various stockbroking firms in Singapore?

CIMB Securities www.itradecimb.com.sg/50 Raffles Place #01-01 Singapore Land Tower Singapore 048623

Lim & Tan Securities LIM & TAN Securities20 CECIL STREET #09-00 EQUITY PLAZA SINGAPORE 049705

Phillip Securities Online Stock and Share Trading-POEMS250 North Bridge Road,#06-00, Raffles City Tower Singapore 179101


http://www.cimbsecurities.com/images/CIMB-Securities_master_red-.png

http://www.eq.com.sg/page/site/public/images/limtanlogo.gif

Maybank Kimeng Securities Maybank Kim Eng63 Market Street #13-01 Bank of Singapore CentreSingapore 048942

9 Temasek Boulevard #12-00 Suntec Tower Two Singapore 038989(We are currently closed for renovation. Business will resume on May 2012)Location

OCBC Securities iOCBC - Your Personal e-Broker18 Church Street#01-00 OCBC Centre SouthSingapore 049479 8.30am to 5.30pm, Mondays to Fridays, excluding Public HolidaysClosed on Saturdays and Sundays

DMG and Partners Securities www.dmg.com.sg/10 Collyer Quay, #09-08, Ocean Financial Centre Singapore 049315

UOB Kay Hian UTRADE brought to you by UOB Kay HianHead Office 8 Anthony Road, #01-01, Singapore 229957(Next to Newton MRT Station Exit B)

DBS Vicker http://www.dbsvonline.com/English/index.aspPWC Building8 Cross Street, #02-01 PWC Building, Singapore 048424Tel: (65) 6327 2288Mon - Fri: 8.30am to 6.00pm (except public holidays)

DBS Bank, Shenton Way Branch6 Shenton Way, DBS Building Tower 2, Singapore 068809Tel: (65) 6327 2288Mon - Fri: 10.00am to 3.30pm (except public holidays)

Fraser Securities www.amfraser.com.sgAmFraser Securities Pte Ltd4 Shenton Way#13-01 SGX Centre 2Singapore (068807)

Last edited by Sinkie; 06-04-2013 at 09:11 AM..

http://i.imgur.com/zZQCt.jpg

http://www3.dmg.com.sg/page/site/public/english/images/dmg_online.jpg

http://www.utrade.com.sg/page/site/public/english/images/sgu_logoUTRADE2.gif

http://www.dbsvonline.com/English/images/DBSlogo_black2.jpg

01-03-2012, 09:57 PM #3



teddymouse wrote:

so if a person has 2 trading acc wif 2 brokerages, then can buy share A frm example cimb and sell through ocbc? or is the shares tat u buy frm a specific brokerage tied to it?meaning only can buy and sell frm the same brokerage in which u first used to buy tat stock frm.because my initial tot was tt doesnt matter which brokerage u buy the stock frm, all will b placed in CDP and cn sell using other brokerage oso since the stock in CDP and not in the brokerage acc. However, i noticed that there's some charges for shares transfers between brokerages. Hence nt v sure if my initial assumption is true.

if you buy and sell local sgx shares in local brokerages like cimb or kimeng, the local sgx shares will be kept in cdp under sgx, so as long u paid up in cimb and is inside your cdp, you can sell it at kimeng as long it is linked to your cdp, there is no transfer or any sort of fee involved doing cross brokerage selling but normal sales charges from sgx will apply

but for foreign shares, it will be kept in the respective brokerage custodian account so if you wan to sell a US/HK shares u bought in cimb at kimeng, you need to transfer the US shares from cimb to kimeng first before u can sell at kimeng which is at a fee around $5x.00

but for standchart, there is no linkage to cdp, so local or foreign shares will be kept in their custodian account. If you want to sell your shares that are kept in the cdp, you MUST transfer your local sgx shares from cdp at a fee of $10.80 (cant remember?) into your scb custodian account FIRST before you can sell in scb

hope the diagram clarify everyone confusion__________________

SGX Contra Stock Trading Investing Day TradingHow to Open a Stock Trading account in Singapore-Updated 2012 My Price/Volume Analysis on SGX Counters upon requestPaging for Dividends warrior



http://forums.hardwarezone.com.sg/stocks-shares-indices-92/how-open-stock-trading-account-singapore-1196144-post63969057.html#post63969057

http://i.imgur.com/nyMgB.jpg

https://lh4.googleusercontent.com/-0RtGEJuq00s/Tu08iYaRUjI/AAAAAAAAAFg/HPH6WyUPiw8/s280/Torres.gif

http://i.imgur.com/gvyr1.jpg


01-03-2012, 09:57 PM #4



Different stockbrokering firm will have different commission structure, but all brokering firm will have a minimun $25 for online trades..

Example of a manual Calculation for commission base on a commission rate of 0.275% when contract value is less than $50,000 online trade:

For buy transactionsYou buy 10,000 shares of Genting @ $1.45

Commission= $39.88($14,500x0.275%) Clearing Fee= $5.80(14,500x0.04%) Trading Fee =$1.09 (14,500x0.0075%)------------------------------------------------Total Commission = $49.53 ($39.875 0+$1.09+$5.80)Gst paid = $3.46Total payable = $14553 ($14,500+($3.46+$49.53))

or

You buy 1,000 shares of Genting @ $1.45

Commission= $25 ($1450x0.275%=$1.02<$25) Clearing Fee= $0.58(1450x0.04%) Trading Fee = $0.11(1450x0.0075%)------------------------------------------------Total Commission = $25.69 ($25+$0.58+$0.11)Gst paid = $1.80 ($25.69x7%)Total payable = $1476.80 ($1450+($1.80+$25.69))

For Sell transactionsYou sell 10,000 shares of Genting @ $1.45

Commission= $39.88($14,500x0.275%) Clearing Fee= $5.80(14,500x0.04%) Trading Fee =$1.09 (14,500x0.0075%)------------------------------------------------Total Commission = $49.53 ($39.875 0+$1.09+$5.80)Gst paid = $3.46Total payable = $14447 ($14,500- ($3.46+$49.53))

or

You sell 1,000 shares of Genting @ $1.45

Commission= $25 ($1450x0.275%=$1.02<$25) Clearing Fee= $0.58(1450x0.04%) Trading Fee =$0.11(1450x0.0075%)------------------------------------------------Total Commission = $25.69 ($25+$0.58+$0.11)Gst paid = $1.80 ($25.69x7%)Total payable = $1423.20 ($1450-($1.80+$25.69))

So to summarise

Rate of 0.275% for a contract less than $50,000https://www.itradecimb.com.sg/app/he...subcat=01_05#1

http://www3.dmg.com.sg/page/site/pub...me.html#BRACC1



http://www.maybank-ke.com.sg/pricing/stocks.htm


http://www.utrade.com.sg/page/site/p...adeSG_FAQ.html


Rate of 0.275% for a contract less than $100,000 http://portal.iocbc.com/html/market_info/singapore.shtm

Rate of 0.28% or $25 for a contract less than $50,000http://www.dbsvonline.com/English/Pf...ubMenuLink=5#2

http://www.poems.com.sg/index.php?op...id=342&lang=en

http://www.eq.com.sg/page/site/publi...general.htm#q2

noobishyang likes this.


01-03-2012, 11:46 PM #5



What is contra ?Contra is the buying or selling of stocks without having to pay for the cost of the stocks. Once you buy the stocks on contra, you will have to sell the stocks after a period of time.Before the end of that period, you will have to either pay for the contract value or sell your shares and settle the difference between your initial buying price and selling price.

Currently, the period of time offered by the local brokerages to settle your payment and pay for the difference between the initial buying and selling price is 3 days although the period of time can be extended depending on your relationship with your broker, credit record and the frequencies of trades that you carried on with the brokerage.

For example, you bought 2 lots of SGX at a price of $5.00 on Monday which is also known as T+0. 3 days later which is on Thursday, also known at T+3, you will have to sell those 2 lots of SGX which you bought on Monday. Assuming you sold those 2 lots of SGX at a price of $5.20 on T+3, your profit before brokerage fees would be ($5.20 - $5.00) * 2 lots * 1000 shares =$400 since 1 lot is equal to 1000 shares and you will not have to pay for the cost of buying the 2 lots of SGX which before brokerage fees is $5.00 * 2 lots * 1000 shares = $10,000.

However, if you sold those 2 lots of SGX at a price of $4.80, you will have to pay for the losses since your selling price is lower than your purchase price. Thus your loss before brokerage fees in this case is ($5.00-$4.80) * 2 lots * 1000 shares = -$400.

Contra can be dangerous when there is a sudden unexpected market movement and you do not have enough funds to pay for it. Let us consider the following case with reference to the previous examples. For example, on T+3, the price of SGX suddenly plunge to $3.50 and you have no choice but to sell it at this price. Thus your loss before brokerage fees in this case is ($5.00-$3.50) * 2 lots * 1000 shares = -$3000 and that will be disastrous if you do not have the funds to pay for it.

Source: Moneytalk: What is contra ?


01-03-2012, 11:47 PM #6



What is cash upfront trading?1) You need to have the cash before you can purchase any shares2) Cash upfront purchases through DBS iBanking are charged at a lower rate than standard trades through DBS Vickers, but you cannot sell through this service (unless you sell within the T+3 settlement cycle). Once settlement is complete and the stock is deposited in your CDP account, you sell via DBS Vickers or another linked brokerage account at normal trading trades.3) Contra trading is not possible through Citibank, Standard Chartered and DBS iBanking cash upfront trades.4) Most Singapore stock brokers will expect you to open an account with the central securities depository (CDP) and hold SGX listed shares in that.However, two firms – Saxo Bank and Standard Chartered – hold your shares in a nominee account on your behalf. This means that the shares are legally in the name of their nominee company, although you are the beneficial owner of them.

Whether nominee accounts are any less safe than holding shares in your name, as some investors believe, is debatable. Using nominee accounts is standard practice for almost all traders in most countries, but rare for local stocks in Singapore (foreign stocks bought through a Singapore broker are always held in nominee).





However there are a few points to remember with a nominee account:1) Since your name is not on the shareholder register, you will not automatically be entitled to receive annual reports and attend and vote at the annual general meeting.Whether these rights are passed on to you depends on the stock broker – Standard Chartered will apparently do so.2) You will not be directly credited with dividends or be notified of corporate actions, but the stock broker will process these on your behalf. Neither Standard Chartered nor Saxo Bank charge for this service.3) Saxo Bank’s nominee account is classified as a non-individual foreign investor and so income distributions from S-Reits are subject to a 10% tax. This does not affect the Standard Chartered nominee account.4) Shares held in your own CDP account can be sold through any stock broker account linked to it. Shares held in a nominee account can only be sold through that stock broker, unless first transferred out to your own CDP account.

Singapore Online and Telephone Brokerage Account Comparison Tablebenjamen likes this.

__________________



01-03-2012, 11:57 PM #7



Stockbroking firms in Singapore that offer Contra facilitiesCIMB Securities www.itradecimb.com.sg/Fraser Securities www.amfraser.com.sgLim & Tan Securities LIM & TAN SecuritiesPhillip Securities Online Stock and Share Trading-POEMSMaybank Kimeng Securities Maybank Kim EngOCBC Securities iOCBC - Your Personal e-BrokerDMG and Partners Securities www.dmg.com.sg/UOB Kay Hian UTRADE brought to you by UOB Kay Hian

Banks that offers cash upfront trading only but no CONTRA allowed

http://www.ipb.citibank.com.sg/engli...ebrokerage.htm





http://www.ipb.citibank.com.sg/english/images/citibank_logo.gif

Standard Chartered Bank Singapore

FAQ can be found hereStandard Chartered Bank Singapore : Important Notice

DBS Singapore | Personal Banking | investments | Services | Trading Services

http://i.imgur.com/ZxdNC.jpg

http://www.standardchartered.com.sg/promotion/online-trading/images/logo.gif

http://www.standardchartered.com.sg/promotion/online-trading/images/box01.jpg

http://www.dbs.com/_layouts/images/DBS/DBSlogo.gif

Main Difference between Standard Chartered Trading Account and DBS iBanking cash upfront trades.is1) Shares purchases via Standard Chartered Trading Account will go to Standchart Nominee Account2) Shares purchases via DBS iBanking cash upfront trades will go to your CDP3) Shares purchases via Citibank brokerage Cash upfront trades will go to your CDP

Standard Chartered Bank safe-keeps securities purchased via our Online Security Trading platform as a nominee (not in CDP).What rights/ claims does Standard Chartered Bank have over the Securities placed under the Bank's custody?The bank acts as a custodian to the Securities. While you remain the beneficial owner of the securities, please bear in mind the bank has certain rights over the Securities. For more information, please refer to Part E of the Investment Product Terms available HERE.__________________



http://i.imgur.com/uxPk9.jpg



02-03-2012, 12:17 AM #8



if anyone still have doubts regarding how to open your first trading account, feel free to ask any questions here or pm me also can

battledome64 wrote:

Agreed with you completely. If the broker doesn't like you he can do this.

One time he freeze my account limit so I couldn't sell.

I get punished when he actually made a wrong sell order. Nothing is fair in this world

Don't mess around with brokers cause they can be more powerful than the Lay person. This isn't America it is Asia

That's why it's always important to have at least 2 brokers. Always try to keep in touch with your broker. Constant communication is important even if you don't trade much.

If you haven't or never receive anything from him except forwarded email, then it's time to change broker la.

Brokers are like your chauffeur, some drivers like to be fetched, some like to drive themselves, but when there's time your car needs petrol top up or maintenance checkup, then it's time your chauffeur comes into play and support you all

No point paying your chauffeur to sit at home while u do your own driving. When u r drunk, call chauffeur, when you are oversea, call your chauffeur, when the car run out of petrol, call your chauffeur, when your car break down, call your chauffeur even if u like to drive yourself

Every clients will have their own brokers, even if its not an individual broker, there's also a team of brokers supporting you.

Get your broker msn, Skype, whatsapp, email and whatever mode of communication la

When the platform goes down, u have to call them to sell for uWhen u need special arrangement to pay or receive money, call them.When u need help on the platform, call them.When u need receive funny looking letters from sgx or your shares, call them

----

Quote:u were saying end of the day is the broker plays an important part. meaning to say with the cimb platform, a broker would still be needed.

yes, you are correct.

Not only cimb,but it's the same when u open an accounts with any of the local brokerages firms(except Standchart).

Alot of retailers thought they are independent and have never heard from his broker before and assumes that he doesn't have a broker but in fact maybe because they are smaller fishes and so some brokers usually don't pay any attention to them or maybe because their brokers are lazy and bochup but still he will get a cut of the commission transacted when you does any buy or sell.

Quote:I want to trade on my own and so i don't need any broker and so can I pay a faction of the commission?

You will still be paying the same commission when u key the trades yourself on the Internet. This is industry practice. Even if you say you won't be assigned a specific broker, there will still be a team of brokers serving you to key trade when u call in + chase payment from you and commission will still be charged the same too

When u call in to get a broker to place trades, the commission fee will twice as much as when u key trades by yourself

Quote:I don't want a broker, can't I just key the trade myself?

Yes, you are still able to key the trades yourself via the online platform even if u have a broker.

Under exceptional case like when the web platform goes down, you can call the broker to give n still charge the online rate.

Or else it's always offline rate when a broker key trades for you



http://forums.hardwarezone.com.sg/stocks-shares-indices-92/issues-kay-hian-broker-need-advice-4135533-post74661467.html#post74661467

-----------i have received many pm asking me how to begin trading or investing in sgx.

to those who likes and prefer to research on their own.http://deluxeforums.hardwarezone.com...52-post85.html

Sinkie wrote:

For beginners to sgx investment, for a start or first stage of learning, research the following;

-What are the various sectors or industry?-What are the listed stocks in each sectors?-From the listed stocks, identify the bluechips that are in each sectors?-Identify and split the other listed stocks that have daily liquidity and without liquidity into 2 groups-now you have these 2 groups of stocks, identify which board are they listed on, mainboard or catalist, -then read about their fundemental, their owner, their track record, their nationality, where most of their business are located-use yahoo or google or sgx announcement read their historical news and how it influence the price.

by then you should be familiarised with a handful of companies and also the interface of sgx.com.

at this stage, off the hand you must be able to identify and name some of the listed company when discussing with your friend, you should be able to travel around singapore and see some of these listed companies business everywhere like for example, you should be able to identify comfortdelgo taxi, sbs buses, smrt mrt, dbs atm, uob bank, plaza sing shopping center in reits, your telco bill etc

once you have these informations, you will proceed to the 2nd stage of learning, that will be to go into the market and start to test water but before you go into the market. knows what is the 1) operating hours of various global markets especially singapore market.2) the different order types that you can use to send in orders3) understand what does bid/ask price means, what do open, day high, day low, and close price means4) understand about market depth and how it influence the bid/ask spread you see. 5) learn about times&sales, trade summary6) learn basic charting to time entry and exit.7) learn how to navigate your broker platform interface8) understand what is t+5, how to make payment, how to read your cdp statement etc9) choose a company from your own virgin research and buy small small to have a feel of owning a listed company and monitor it, losing money or making a profit from it is not the primary motive at this stage now.10) by now you should be very motivated to wake up early to see the market, read about other companies news and

start reading the business time and money section

3rd stage of learning will be more abit advanced which will require alot of intensive reading. you need to learn how other global or local news will affect a stock market etc singapore market, and each of their sector and industry. know who is the big brothers, how these big brother fiscal or monetary policy will affect the global fund movement across all different asset classes, and how these asset classes will in turn affect each global market and how asset classes movement will in turn affect each market sectors/industry and its companies etc

4rd stage of learning will be to understand and appreciate the conspiracy theory and the dark side of the market but

this is not applicable to everyone

it is an ongoing and lifelong process lah.

i always tell my virgin newbies clients, you spend 6 years in primary school to prepare for your secondary school education, after which you spend 4 years in your secondary school to prepare for 3 years poly or 2 years in jc to prepare for 3 years of university (total of more of than 10 years of learning) before you really step out to the working world to earn your first month salary.

so dont expect to just pick up a couple of book, invest for a few weeks and then start to believe you can become the next warren buffett or george soros and start making a living out of it.

enjoy your journey

i have also summarise the most basic things that one should know before stepping into sgx below----------------------------------------------------------------------------------------

In sgx, it is made up of 2 boards; mainboard and catalist. the mainboard usually made up of majority of the stocks while catalist are mostly the smaller companies

The stocks that usually has alot of liquidity are refered to as the bluechips components which make up the sti known as the strait time index.

Stocks are categories into different sectors like properties or commodities etc.

There are around 800+ stocks in sgx, these shares companies can be located in china, indonesia, hongkong, malaysia

http://forums.hardwarezone.com.sg/stocks-shares-indices-92/info-beginners-4003368-post72361052.html#post72361052

but most of them operates in singapore.

Then within so many of the stocks, there are stocks which are reits and trusts, dividend stocks, defensive stocks, bluechips, pennies and even micropennies.

Orders in sgx are only limit orders or the less commonly used type like fak or fok.

The spread of a stocks is defined by the market price too for example stock price below 20c, is $0.001, between 20c and $2 is $0.005, then stock price above $2 is $0.01.

and shares must be bought based on lots size. 1 lot = 1000 shares or 1 lot = 500 shares depending on the stock information.

For investors, you must know about how stocks are affected by dividend, cd, xd, right issue or placements or the earnings announcement and also know the basic fundemental like p/e, eps, nav etc.

For contra traders, you must know about the different type of market particpants that are involved in the market like the bb, the propetiary traders, the retailer, the aunty/uncle, and most importantly the funds and understand how prices because of their involvement and actions etc

then trader must also know how to interpret the bid.ask queue, the times&sales, trade summary and most importantly the market depth and how the movement of singapore market are affected and influenced by the global markets and also the trading hours of market such as nikkei, hsi, sse and europe market like dax, ftse, cac etc.

beside shares, you can also buy preference shares or retail bond in sgx too.

most of the information about singapore exchange can also be found under SGX - Singapore Exchange Ltd

happy trading

feel free to pm me for more queries about the singapore stock market too.

Before starting, perhap you can go to another thread i written below to beginhttp://deluxeforums.hardwarezone.com...r-3121989.html

Last edited by Sinkie; 31-03-2013 at 07:34 PM..

02-03-2012, 09:50 AM #9

th4ishaMember

Join Date: May 2011Posts: 335

Q5 and 2nd post: Why no DBS Vickers? or is it there under another name or something?

02-03-2012, 10:05 AM #10



Reserved for update






02-03-2012, 10:12 AM #11

codexboyArch-Supremacy Member

Join Date: Mar 2008Posts: 15,618

thanks for useful sticky!! so am i right to say that it would be cheaper for me to buy thru dbs cash upfront then sell through any other platform i prefer?__________________YAWNZZZZ

IHERB Discount code -VAT294 $5 off for first time users

02-03-2012, 10:21 AM #12



codexboy wrote:

thanks for useful sticky!! so am i right to say that it would be cheaper for me to buy thru dbs cash upfront then sell through any other platform i prefer?

from what i read and understand, yes you are right, buy is 0.18%, after T+3 sell is 0.28% with dbsv or other brokerages.

but i read somewhere that as long u sell withint T+3, it is still 0.18% but it is not 'contra-able'

03-03-2012, 07:59 AM #13

SausageArch-Supremacy Member

Join Date: Dec 2000Posts: 16,653

Quote:Q8.Do I/we need to place an initial deposit for opening a Cash Trading Account?You may be asked to place an initial deposit and this deposit will save as collateral for assignment of trading limits. For young investors, you are required to place an initial deposit.

Does anyone know what is the initial deposit required for Philips?

Is there any cost involved at all in opening a CDP, Philips Cash Management account and Poems account at the same time?__________________Singapore Anime News at www.singaporeanimenews.net

03-03-2012, 09:05 AM #14


Sausage wrote:

Does anyone know what is the initial deposit required for Philips?

Is there any cost involved at all in opening a CDP, Philips Cash Management account and Poems account at the same time?

It is free to open a Cdp and a trading account and for your case poems account

No fee involved until you buy or sell a shares




http://forums.hardwarezone.com.sg/stocks-shares-indices-92/how-open-stock-trading-account-singapore-updated-2012-a-3628498.html#post64567443




http://forums.hardwarezone.com.sg/stocks-shares-indices-92/how-open-stock-trading-account-singapore-updated-2012-a-3628498.html#post64592884


Poems initial deposit I heard is $2000 for young investor, and $1000 for above 21 which I heard during promotion will be waived

03-03-2012, 10:08 AM #15



you mean all those above 21 have to pay $1000 to open a poems account? The poems website doesn't explicitly say anything about fees for general users who are not under 18 or nsfs, so I'm a bit unsure.__________________Singapore Anime News at www.singaporeanimenews.net

Page break by AutoPager. Page( 2 ). LoadPages

03-03-2012, 10:15 AM #16



Sausage wrote:

you mean all those above 21 have to pay $1000 to open a poems account? The poems website doesn't explicitly say anything about fees for general users who are not under 18 or nsfs, so I'm a bit unsure.

If you notice everytime if you walk past a poems roadshow or cart, there will always be a sign hanging there say "$1000 deposit waived for account opening". Maybe it is just marketing girmick or something. I'm not from poems nor have poems account.

Details can be found here http://www.poems.com.sg/account/ac_open.asp

But I know many years back when I opened I don't need any deposit


03-03-2012, 10:33 AM #17


thank you, I see.. I guess I'll go later to open a cdp and philips account first and ask about any poems cost.__________________Singapore Anime News at www.singaporeanimenews.net






http://forums.hardwarezone.com.sg/stocks-shares-indices-92/how-open-stock-trading-account-singapore-updated-2012-a-3628498-post64594344.html#post64594344



05-03-2012, 02:45 PM #18



hmm, think i'll open a poems account too...provided no deposit, use to see see look look, dunno when i'll actually buy in thou...

sinkie ask u noob qn ar, any software or phone app u guys use to track ur portfolio avg buy in price etc? or poems interface has this fn?__________________YAWNZZZZ


06-03-2012, 03:15 PM #19



interested in knowing if there is a good app too. many apps only seem to track the initial buy price and don't let you add new prices for items bought after the initial purchase.__________________Singapore Anime News at www.singaporeanimenews.net

06-03-2012, 03:30 PM #20



Sausage wrote:

interested in knowing if there is a good app too. many apps only seem to track the initial buy price and don't let you add new prices for items bought after the initial purchase.

use excel??

i know cimb securities's portfolio is able to do manual edit but not sure about other.









http://forums.hardwarezone.com.sg/stocks-shares-indices-92/how-open-stock-trading-account-singapore-updated-2012-a-3628498-2.html#post64683421

07-03-2012, 12:08 PM #21

power789Senior Member


Hi sinkie, do u have a guide for opening a usd account? Coz quite confusing with regards to those tax, witholding fees? Costs, transfer sgd to usd fees......

Will be great if u can advise om this. If u can also suggest a good firm for opening us trade acc. Thanks

07-03-2012, 12:18 PM #22



power789 wrote:

Hi sinkie, do u have a guide for opening a usd account? Coz quite confusing with regards to those tax, witholding fees? Costs, transfer sgd to usd fees......

Will be great if u can advise om this. If u can also suggest a good firm for opening us trade acc. Thanks

you refering to US market account? ok when i have the time i will try to do a guide on foreign market.

but usually if you want trade us market, you just sign a w3b form with any stock brokerages, then you will have access to foreign market but the fee is usually much higher and also it dont provide live feed too.

07-03-2012, 04:33 PM #23



Sinkie wrote:

use excel??

i know cimb securities's portfolio is able to do manual edit but not sure about other.

I ytd just signed up with Cimb youth package, intro by a bro here who's a broker..__________________YAWNZZZZ


07-03-2012, 07:06 PM #24


codexboy wrote:

I ytd just signed up with Cimb youth package, intro by a bro here who's a broker..

Enjoy the 30% off all sgx trades promotion. anyone need more information also can pm me too..













07-03-2012, 08:53 PM #25



Sinkie wrote:

Enjoy the 30% off all sgx trades promotion. anyone need more information also can pm me too..

sinkie u also from cimb ar, got qn to ask__________________YAWNZZZZ


08-03-2012, 07:39 AM #26



codexboy wrote:

sinkie u also from cimb ar, got qn to ask

Can ask here or pm me lor

08-03-2012, 11:18 AM #27



Sinkie wrote:

Can ask here or pm me lor

o...nvm, i ask broker gorgor liao __________________YAWNZZZZ












30-03-2012, 05:22 PM #28

kazaf99Senior Member

Join Date: Jan 2004Posts: 703

looking to start the scb trading accountbut the comm seems too low to be true...

any advice?

30-03-2012, 05:54 PM #29



kazaf99 wrote:

looking to start the scb trading accountbut the comm seems too low to be true...

any advice?

i dont know is this allowed but check up the standchart trading thread below

http://deluxeforums.hardwarezone.com...n-3265890.html

Do also take note that some dividend payout will be missing or delayed and so make sure that u keep track everything everyday

http://deluxeforums.hardwarezone.com...l#post74375353

NetSurfing wrote:

hi, I would like to share my 1 year plus experience using SCB online trading platform. Now I am using another platform.

Advantages:1) low commissions (main benefit)2) some news feed/analyst reports

Disadvantages:1) online platform very lumbersome, hard to trade relative to other platforms2) hard to get real time quotes in one screen. have to go into each stock and click on ‘refresh’ to get real time quote.3) this is the very painful part – very slow in informing about rights issues. and don’t send the full rights prospectus, unlike when your stocks are in CDP. Only send one sms or letter and it’s usually later than the mails I receive from CDP on rights issue.4) Does not reflect my warrant value and info on my online account. e.g. for Olam warrants. Said online platfom does not support warrant trading. Said that I have to call trading desk if i want to ask about my values and trade. And I only know my trade results end of the trading day if it is done by trading desk.5) Sometimes trade execution is super slow. For eg., I submit a price that is at the current market price (as checked from another trading platform) and with sufficient volume, but the SCB trade just gets acknowledged but not executed for very long.


06-04-2012, 06:09 PM #30

SiaoAhBengArch-Supremacy Member

do all internet trading acc have 'limit order' ?

other than PoemsProTrader that offered 'stop limit order', which other brokerage it?





http://forums.hardwarezone.com.sg/stocks-shares-indices-92/standard-chartered-only-online-trading-town-no-minimum-commission-3265890-post73661196.html#post73661196





06-04-2012, 06:14 PM #31



SiaoAhBeng wrote:

do all internet trading acc have 'limit order' ?

other than PoemsProTrader that offered 'stop limit order', which other brokerage it?

All accounts has limit order, and also fak and fok orders

10-04-2012, 02:10 PM #32

leogeoMaster Member


i have a stand chart online trading account which i have actually not used yet.

i don't remember opening a CDP account when i opened that trading account. Can i still trade?

For buying of retail bonds via Internet or ATMs, for instance the recent perpetual bond by DBS, i would require a DBS Vickers account to buy that right?

10-04-2012, 02:28 PM #33



leogeo wrote:

i have a stand chart online trading account which i have actually not used yet.

i don't remember opening a CDP account when i opened that trading account. Can i still trade?

For buying of retail bonds via Internet or ATMs, for instance the recent perpetual bond by DBS, i would require a DBS Vickers account to buy that right?

Standchart does not required a cdp since stocks bought from standchart is not deposited into your cdp but into scb's custodian account.

you need a cdp account to 'store' your retails bonds or ipo that you bought via internet or atm, but you will need a clearing member which we refer as brokerage firms in this thread to sell, so it is not necessary a dbs vickers but as long it is a clearing member like cimb, kimeng, or poems etc, you will be able to sell.



http://forums.hardwarezone.com.sg/stocks-shares-indices-92/how-open-stock-trading-account-singapore-updated-2012-a-3628498-post65546011.html#post65546011







10-04-2012, 03:16 PM #34

equal_34Member

Join Date: Aug 2010Posts: 459

Guys, which firm has the lowest brokerage fees currently?__________________(\__/)(O.o )(> < ) Copy Bunny into your signature to help him on his way to world domination

10-04-2012, 04:40 PM #35

leogeoMaster Member


Sinkie wrote:

Standchart does not required a cdp since stocks bought from standchart is not deposited into your cdp but into scb's custodian account.

you need a cdp account to 'store' your retails bonds or ipo that you bought via internet or atm, but you will need a clearing member which we refer as brokerage firms in this thread to sell, so it is not necessary a dbs vickers but as long it is a clearing member like cimb, kimeng, or poems etc, you will be able to sell.

thank you. so SCB only allow normal trading of stocks. But to subscribe to IPOs and retail bond offerings, I have to go through other brokerages which will require a CDP account?

10-04-2012, 04:46 PM #36



leogeo wrote:

thank you. so SCB only allow normal trading of stocks. But to subscribe to IPOs and retail bond offerings, I have to go through other brokerages which will require a CDP account?

to subscribe (buy) to ipo and retail bond offering via atm, you only need a cdp. You don't need a brokerage account if u hv no intention to sell or if you have intention to transfer it to scb.

But in order to sell the ipo and retail bonds after successfully bidding it from ATM, you need a brokerage account to do so..

hope im clear here..


10-04-2012, 04:52 PM #37

staedtler_07Master Member

Join Date: Feb 2007Posts: 2,543

Very informative!

12-04-2012, 08:38 PM #38

leogeoMaster Member

Sinkie wrote:

to subscribe (buy) to ipo and retail bond offering via atm, you need a cdp but not a brokerage account if u hv no intention to sell or have intention to transfer it to scbto sell the ipo and retail bonds, you need a brokerage firm account which will require cdp account as well or else u can also transfer it into scb to sell.












yup, ok will set up a CDP account soon!

18-04-2012, 10:42 PM #39

DeSondMember

Join Date: Nov 2007Posts: 229

Hi gurus! Newbie qn here, am I right to say that I can open an account with any brokerage firm and don't have to pay any fees until I start buying/selling?

18-04-2012, 10:47 PM #40



DeSond wrote:

Hi gurus! Newbie qn here, am I right to say that I can open an account with any brokerage firm and don't have to pay any fees until I start buying/selling?

There is no maintenance or whatsoever fee until you buy any stock, and you are only charged when buying or selling. Even if there is a period of inactivity after you bought any shares, there is also no charges


26-05-2012, 02:36 PM #41

raonrayenSenior Member

Join Date: Nov 2009Posts: 1,096

bookmarked.__________________会有那么一天吗...?










09-06-2012, 04:18 PM #42

rainbowlovesyaMember

Join Date: May 2012Posts: 145

Sinkie wrote:

to subscribe (buy) to ipo and retail bond offering via atm, you need a cdp but not a brokerage account if u hv no intention to sell or have intention to transfer it to scbto sell the ipo and retail bonds, you need a brokerage firm account which will require cdp account as well or else u can also transfer it into scb to sell.


hi dat means if i wan to buy reit dividend shares i hav to open a brokerage ac ?n wat if e utility bill is nt under my name ?

TIA

09-06-2012, 04:33 PM #43



rainbowlovesya wrote:

hi dat means if i wan to buy reit dividend shares i hav to open a brokerage ac ?n wat if e utility bill is nt under my name ?

TIA

Yes, you need to have a brokerage account (cimb, kimeng, scb etc) in order to buy a reit dividend shares from the stock exchange.

It doesn't matter whether the utility bill name is under your name or not, you just need an IC to open provided you are not a foreigner without pr


14-06-2012, 01:44 AM #44

[SG]RevolutionSupremacy Member


Hello, newbie xdd that just turned 18 not so long ago here.Sinkie can help me answers some of my questions?1. Thinking of signing up either OCBC or CIMB youth programme, which would be better in terms of benefits?2. For long term investment, would ETF or REITS or dividend stocks like Starhub provide better returns?3. As i am planning to hold onto my investment for the long term, i will be making only a few or a single transaction, will there be fees if i dun trade much?__________________A great source of calamity lies in regret and anticipation

Last edited by [SG]Revolution; 14-06-2012 at 01:46 AM..

14-06-2012, 04:07 AM #45


[SG]Revolution wrote:

Hello, newbie xdd that just turned 18 not so long ago here.Sinkie can help me answers some of my questions?1. Thinking of signing up either OCBC or CIMB youth programme, which would be better in terms of benefits?2. For long term investment, would ETF or REITS or dividend stocks like Starhub provide better returns?3. As i am planning to hold onto my investment for the long term, i will be making only a few or a single transaction, will there be fees if i dun trade much?

1) I would say Cimb because of the 30% rebate for all commission and also for its low deposit for limit requirement











for 21 and below. And soon Cimb will have *i heard* cash upfront of 0.18% trading and also oddlot trading (cant confirmed)

2) not necessary because of market and business cycle

3) there is no fee for inactivity, fee will only be incurred when u buy or when u sell.. Sending in order is free till the order is filled too..


17-06-2012, 01:52 AM #46

KhuulzJunior Member


Hi Sinkie can i toruble you with a few questions of mine? Im eligible for the youth programs some of the brokerage firms are offering. But i understand that people classified as youth investors aren't allow to trade stocks from another country right? Is there a way to avoid this, like maybe i request not to be included in the youth investor program or something like that? Reason is because I'm interested in buying shares from US markets and also US stock market indexed and intl indexes.

23-06-2012, 12:38 AM #47



Khuulz wrote:

Hi Sinkie can i toruble you with a few questions of mine? Im eligible for the youth programs some of the brokerage firms are offering. But i understand that people classified as youth investors aren't allow to trade stocks from another country right? Is there a way to avoid this, like maybe i request not to be included in the youth investor program or something like that? Reason is because I'm interested in buying shares from US markets and also US stock market indexed and intl indexes.

how old are you? below 21? then bobian, have to wait for above 21, or else u can try to trade the adr in sgx, but no liquidity and wide bid/ask spread though__________________


26-06-2012, 02:50 PM #48

credo13Junior Member

Join Date: Aug 2009

help

hi









Posts: 11 what is the difference between cash trading acct, margin trading acct and securities borrowing acct? i'm new to this whole thing and i just want to start buying some shares but am not sure what is the difference between these options.

26-06-2012, 02:55 PM #49



credo13 wrote:

hiwhat is the difference between cash trading acct, margin trading acct and securities borrowing acct? i'm new to this whole thing and i just want to start buying some shares but am not sure what is the difference between these options.

cash trading account = normal shares account with contramargin trading account = a shares account using margin facilities or leveragedsecurities borrowing account = leverage shares account used for borrowing shares from sgx to short the market

05-07-2012, 07:47 PM #50

KhuulzJunior Member


Sinkie wrote:

how old are you? below 21? then bobian, have to wait for above 21, or else u can try to trade the adr in sgx, but no liquidity and wide bid/ask spread though

I see, im below 21. So currently no ways for me to trade US stocks? What bank/firm's youth account do you recommend? I intend to invest part of my army salary into the account, so must be one that provide dca. Thanks!

05-07-2012, 07:55 PM #51



Khuulz wrote:

I see, im below 21. So currently no ways for me to trade US stocks? What bank/firm's youth account do you recommend? I intend to invest part of my army salary into the account, so must be one that provide dca. Thanks!

I would recommend to open both Cimb and Ocbc..

Poem account doesn't really have any differentiation for youth segment

05-07-2012, 09:29 PM #52

KhuulzJunior Member


Sinkie wrote:

I would recommend to open both Cimb and Ocbc..

Poem account doesn't really have any differentiation for youth segment

I see, why do you suggest opening both?











edisontan88 likes this.

05-07-2012, 09:43 PM #53



Khuulz wrote:

I see, why do you suggest opening both?

Since both brokerages gives free guide books and also Cimb has 30% commission rebates for youth accounts. And also opening and maintenance of account is free too..

05-07-2012, 10:28 PM #54

KhuulzJunior Member


Oh i see.. thanks for the info! do you know if ocbc allows dca in small amounts? cos i think cimb youth doesnt.

05-07-2012, 10:33 PM #55



Khuulz wrote:

Oh i see.. thanks for the info! do you know if ocbc allows dca in small amounts? cos i think cimb youth doesnt.

if you are looking at DCA, i think so far only poems have it, not sure about ocbc, and yes cimb doesnt have dca.. __________________


05-07-2012, 10:44 PM #56

KhuulzJunior Member

oh, damn.. alright then. Thanks! I think I will go down to both OCBC and CIMB to apply as well. Btw, it's POEMs ordinary account with the sharebuilder feature added in right? Is it free as well? I didnt see them












mentioning any charges on their website.

05-07-2012, 10:58 PM #57



Khuulz wrote:

oh, damn.. alright then. Thanks! I think I will go down to both OCBC and CIMB to apply as well. Btw, it's POEMs ordinary account with the sharebuilder feature added in right? Is it free as well? I didnt see them mentioning any charges on their website.

http://www.poems.com.sg/FinancialSer...Inforsheet.pdf

WHAT IS SHARE BUILDERS PLAN?Share Builders Plan (SBP) is a regular fixed-dollaramount investment plan, which enables you to buyshares on a consistent and incremental basis so as tobuild up a portfolio of good securities for yourselveseventually. Therefore you do not need a huge amountof funds to invest in blue chip counters since SBPpresents a new opportunity for you to buy odd lots at areduced cost.

By investing a fixed amount of funds consistentlyevery month over a period of time, your average costof shares purchased will be lower than the averageprice of the shares over the same period of time. Thisis possible since with the same amount of funds, youwill buy more shares when prices are low and fewershares when prices are high. This investment methodis known as dollar-cost-averaging, and it is especiallyuseful in hedging against market volatility. With such adisciplined and consistent method, you will eventuallybuild up a portfolio of stocks at a lower average cost.

HOW TO PARTICIPATE?Applicants must be at least 21 years old to open anSBP account


05-07-2012, 11:04 PM #58



WHAT IS SHARE BUILDERS PLAN?






- There are charges for dividend recieved.- Shares (in unit shares) are bought on every 18th of the month in regardless whether dji drop -400 or dji rise 400 the previous night at their prefered timing in regardless when sti is at +50 or -50- only 19 shares available- shares are deposited in poems custodian account (please call and ask)

POEMS ODD LOT Market


so my views is as long your monthly investment is not more than $3500, you are better off investing in odd lot market yourself since (3500 x 0.28% = $10), at least you get to choose your own price and learn on your way + no dividend charges just that you need to be very discipline to invest every month- shares goes into cdp__________________

http://i.imgur.com/h1muM.jpg



05-07-2012, 11:21 PM #59

KhuulzJunior Member


Ohh, so you're saying I should just get a normal trading account and buy odd lots every month or whenever i like? I think the amount of money i will be able to spare per month would be around 300-500..

Last edited by Khuulz; 05-07-2012 at 11:26 PM..

05-07-2012, 11:35 PM #60

KhuulzJunior Member


Sinkie wrote:

http://www.poems.com.sg/financialser...PInfosheet.pdf

WHAT IS SHARE BUILDERS PLAN?Share Builders Plan (SBP) is a regular fixed-dollaramount investment plan, which enables you to buyshares on a consistent and incremental basis so as tobuild up a portfolio of good securities for yourselveseventually. Therefore you do not need a huge amountof funds to invest in blue chip counters since SBPpresents a new opportunity for you to buy odd lots at areduced cost.

By investing a fixed amount of funds consistentlyevery month over a period of time, your average costof shares purchased will be lower than the averageprice of the shares over the same period of time. Thisis possible since with the same amount of funds, youwill buy more shares when prices are low and fewershares when prices are high. This investment methodis known as dollar-cost-averaging, and it is especiallyuseful in hedging against market volatility. With such adisciplined and consistent method, you will eventuallybuild up a portfolio of stocks at a lower average cost.

HOW TO PARTICIPATE?Applicants must be at least 21 years old to open anSBP account

I went to check, i think they updated the age eligibility. Now its anyone above 18. Since they're only offering 19 shares.. don't think its a good idea already haha






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How to Open a Stock Trading Account in Singapore