Do you want to get on with share trading in Singapore and you don’t know where to initiate? Today is your lucky day. The following is a step-by-step procedure on how to trade shares in a plain and easy manner.
Step 1: Gain Knowledge of Your Market
There is a wide assortment of stock markets available all around the globe. The most popular among these include the London Stock Exchange, the Tokyo Stock Exchange and, of course, the New York Stock Exchange. Based on your trading inclination, your selected interests and risk preference, you may opt for remarkable and appealing companies you want to buy shares in the list of the stock exchange market of your choice.
Step 2: Open a CDP account and an account for stock trading
Before you can embark on trading, you will have to open two accounts:
- Open a CDP securities account with The Central Depository (Pte) Ltd: a securities account is for the settlement of trades and it maintains all the shares you will buy in the Singapore Exchange Securities Trading Limited (SGX-ST). Furthermore, it keeps an electronic records of all the movement of your shares. You will have to be of legal age in order to open a CDP securities account.
- Open a Trading Account with your selected stock broking firm: Remember to verify that your chosen stockbroking firm is a member of SGX-ST. This trading account will permit you to trade shares in the stock market.
Both the CDP account and the Trading account with your stock broking firm should be associated to you before you embark on share trading. Take note that while you can have only one CDP securities account, you are always free to open a trading account with several stock broking firms.
Step 3: Choose a Reliable Broker
As soon as you’ve opened the two accounts, you will necessitate a reliable broker to guide you in carrying out your trade transactions. A wide array of brokerage services and financial companies is available in Singapore. Evaluate what type of shares you wish to deal with and select a stock broking firm that provides such services.
One more thing, expect that brokerage rates, fees and trading options will vary from one stock broking firm to the other. For instance, a stock broker firm that provides reasonable rates may not offer the service you wish to undertake. So delve on it, examine and evaluate every aspect involved in share trading before you opt for one. For a comparison of share trading services in Singapore, consult our Share Trading Comparison Table.
Step 4: Be Informed
Needless to say, it takes a lot of time and effort to make money from share investment and trading. You will have to be continuously informed on market trends and innovations. Furthermore, you have to do a lot of research on all the companies you wish to invest, taking time to see the company’s management system and performance, business strategies and goals, its rapport with providers and customers and its position in relation to its market competitors. In due course, as you get accustomed to the ins and outs of share trading, you will likely to generate (and why not?) some consistent profits.
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