So you’re ready to start investing and you’ve saved up some bit of money… what’s next?
To start investing in equities, or even buy Singapore Savings Bonds, you would need to open a Central Depository (CDP) account.
What’s a CDP account?
A CDP account, operated by SGX, provides integrated clearing, settlement and depository facilities for customers in the Singapore securities market, including both equities and fixed income instruments.
Simply put, just as you deposit cash into your savings account, whatever stocks or bonds you buy get deposited into your CDP account. These are exchanged for your cash, which is deducted from a bank account that you link to your CDP account.
Alright, so how do I open a CDP account ?
Step 1 : Ensure you have a bank account with one of the local banks
To open a CDP account, you will need to link it with a bank account at DBS/POSB, OCBC, UOB, HSBC, Citibank, Maybank or Standard Chartered. Thus, it is required for one to have a bank account.
You also need to be at least 18 years old
Step 2: Download, print and fill up the CDP Application form
Download the CDP application form . Fill in the required details and remember to sign !
Step 3: Prepare your supporting documents to be mailed with the application form
You would need:
- A photocopy of your NRIC or Passport
Then, you will also need to attach an original or e-statement of either
- Bank statement,
- CPF statement, or
- Latest Notice of Assessment for income tax.
Note that the statement needs to be dated within the last three months (from your submission date).
Step 4: Mail your form and supporting documents.
The Central Depository (Pte) Limited
11 North Buona Vista Drive, #06-07
The Metropolis Tower 2
Application through a brokerage firm
Most of the brokerage firms in Singapore should be able to help their customers with their CDP account application when they set up a brokerage account. They will also provide a step by step guide on how to apply through them
However, if you are buying only government securities such as Singapore Savings Bonds, you do not need a brokerage account. This is where this DIY post comes in useful !
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