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Online share trading makes it easy and affordable for anyone to begin investing in shares through the Singapore Exchange (SGX) and other markets. Learn how to compare online share trading platforms, how to make money from stocks, what kinds of fees you’ll pay and what all that confusing terminology means in this guide.
What's in this guide?
- Compare online brokers to trade stocks, ETFs and CFDs
- How does share trading work in Singapore?
- Where do I trade shares in Singapore?
- How do I buy shares in a company?
- Compare brokerage fees on Singaporean share trading accounts
- How can I make money from shares?
- What is a blue-chip share?
- How can I choose the best share trading platform for me?
- Tips for online share trading in Singapore
- Share trading glossary - learn the key share trading terms and what they mean
Compare online brokers to trade stocks, ETFs and CFDs
- SAXO Markets. A custodian account that offers a share trading fee of up to 0.08% of transactions (minimum fee of $10).
- Maybank Kim Eng (prepaid). A CDP account that offers a share trading fee of up to 0.12% of transactions (minimum fee of $10).
- Maybank Kim Eng. A CDP account that offers a share trading fee of up to 0.275% of transactions (minimum fee of $25).
- UOB KayHian (prepaid). A custodian account that offers a share trading fee of up to 0.12% of transactions (minimum fee of $10).
- UOB KayHian. A CDP account that offers a share trading fee of up to 0.275% of transactions (minimum fee of $25).
- CGS-CIMB Securities (prepaid). A custodian account that offers a share trading fee of up to 0.18% of transactions (minimum fee of $18).
- CGS-CIMB Securities. A CDP account that offers a share trading fee of up to 0.275% of transactions (minimum fee of $25).
- Standard Chartered. A custodian account that offers a share trading fee of up to 0.2% of transactions (minimum fee of $10).
- Citibank. A CDP account that offers a share trading fee of up to 0.25% of transactions (minimum fee of $28).
- Philip Securities (prepaid). A custodian account that offers a share trading fee of up to 0.12% of transactions (minimum fee of $10).
- Philip Securities. A CDP account that offers a share trading fee of up to 0.275% of transactions (minimum fee of $25).
- DBS Vickers Cash Upfront. A CDP account that offers a share trading fee of up to 0.12% of transactions (minimum fee of $10).
- DBS Vickers. A CDP account that offers a share trading fee of up to 0.28% of transactions (minimum fee of $25).
- OCBC Securities. A CDP account that offers a share trading fee of up to 0.275% of transactions (minimum fee of $25).
- RHB Securities. A CDP account that offers a share trading fee of up to 0.275% of transactions (minimum fee of $25).
Shares or stocks represent partial ownership of a company and they’re sold in order to raise funds for that company’s expansion. Shareholders buy and sell shares through stock markets, such as the Singapore Exchange (the SGX).
A company’s share price changes several times throughout the day as people buy and sell the shares, so most shareholders aim to buy shares when they’re low in cost and sell when the price of the share increases to make a profit.
Where do I trade shares in Singapore?
For Singapore-listed companies, all trading is done through the SGX, which lists hundreds of companies. Overseas shares are traded on a variety of exchanges, including the New York Stock Exchange (NYSE), the NASDAQ and the London Stock Exchange (LSE).
How do I buy shares in a company?
In the pre-Internet era, the only way to buy or sell shares was by hiring a full-service stockbroker, which could be expensive and time-consuming. Today, investors can buy and sell shares themselves through online trading platforms with the click of a button.
Using an online platform is far cheaper for individual investors than using full-service brokers. When you buy shares online, you’ll pay a trading fee for each transaction, which typically ranges from 0.08% to 0.28% of the transaction amount.
The standard SGX trading hours are 9 am to 12 pm, and 1 pm to 5 pm SGT Monday to Friday. The exchange is not open for trading on public holidays and occasional half-day sessions. Along with shares, you can trade in index funds such as exchange traded funds (which track the performance of a range of stocks) and other products.
Keep in mind that some online brokers require minimum order amounts when buying shares in a company on the SGX. However, some trading apps get around this by offering fractional investing, just as others choose to impose a higher minimum limit. To buy shares online, simply open an account with an online share trading platform.
Compare brokerage fees on Singaporean share trading accounts
Brokerage fees are an important factor when comparing trading platforms, but there are other things to consider too. While share trading accounts tend to highlight their lowest available brokerage fee, this is usually impacted by how often you trade and how much you trade. Some accounts also have monthly inactivity fees if you don’t place any trades for a specific period of time.
How can I make money from shares?
There are two main ways to make money from share trading:
- Capital growth. If you can sell your shares for a higher price than what you paid for them you’ll make a profit. This is known as capital growth, given that your initial capital (your shares) has increased in value. This is possible both with short-term investments (where you sell the shares after a brief period of time) and over longer periods.
- Dividends. Some (but not all) companies pay regular dividends to their shareholders, based on the amount of profit they make, which can provide an ongoing income stream for certain investors. Dividend payments are a great form of passive income and it means investors may never need to sell their shares in order to make a profit.
What is a blue-chip share?
Blue-chip shares are large companies that are financially strong and have a solid track record of producing good earnings to shareholders. Typically, they are industry leaders and household brands. Investing in blue-chip shares could be a good strategy for beginners, as they are usually considered to be very stable and have been in the market for a long time. For example, big names like Singtel, Comfort Delgro and OCBC Bank are considered blue-chip shares.
How can I choose the best share trading platform for me?
When choosing an online share trading platform, consider the following factors:
- Broker fees. This is the fee that is charged every time you buy and sell shares. Brokers charge different fees depending on the product you’re trading (e.g. international shares, local shares, options), how often you trade in a month and the size of the trade.
- Monthly fees. Some broker’s charge ongoing subscription fees or additional inactivity fees if you don’t make any trades within a certain period of time. This may or may not suit you depending on your trading requirements.
- Availability of advice and research options. Online brokers sometimes offer market news and updates, as well as other research tools that will let you investigate the trading history of individual stocks.
- Integration with bank accounts. Some services let you transfer money easily from your trading account to a transaction or savings account. Others offer linked debit cards to use with your accounts.
- Access to global markets. If you want to invest in offshore exchanges, such as the New York Stock Exchange (NYSE), check what options are available with each service.
- Foreign exchange fees. If you’re interested in trading global stocks, you’ll want to check what the foreign exchange (FX) fee is for converting your SGD to the foreign currency of choice.
- Other trading options. Other products offered by some online brokers include forex, CFDs, managed funds and options trading.
- Customer support. Check what level of customer support is available, what hours it’s available and if the support team is based locally in Singapore. This is particularly important for new traders.
Tips for online share trading in Singapore
Here are some tips to help get you started:
- Read the news. It’s important to stay up-to-date with the broader economy, and learn how major events such as elections or government schemes could impact the share price of various companies.
- Research companies before buying. If you want to buy shares in a company, research as much as you can about the company before making your final decision. It’s a good idea to read the company’s annual reports and meeting minutes to learn what’s in the pipeline, and what changes will be made that could affect their share price.
- Consider blue-chip companies. This is a good strategy for people new to the share market, as blue-chip often have more stable returns, are less volatile and often pay dividends.
- Diversify. Say you had $5,000 to invest in the share market. Rather than invest it all in one company, consider spreading it out across a few companies from different industries. Diversification will help lower your risk, and ensure you don’t have all your eggs in the one basket.
Share trading glossary – learn the key share trading terms and what they mean
- SGX: The abbreviation for the Singapore Exchange Limited, Singapore’s primary stock exchange
- Bear market: This term refers to when prices on the market are falling and further falls are expected to occur
- Blue-chip stock: A blue-chip stock is a large company with a steady history of turning a profit
- Brokerage fee: This is the fee you must pay to a share trading platform when you use the platform to buy or sell shares
- Bull market: Opposite to a bear market. This term applies when share market prices are rising and expected to continue to rise
- Dividend: Companies can distribute their profits or earnings to shareholders in the form of dividends. A dividend is calculated as a number of cents for each share you own
- Float: The initial raising of capital through public subscription to a security
- Fundamental analysis: This involves analysing the financial statements of a business to determine its overall financial standing
- Futures: Futures are contracts to buy or sell an asset at a specified future date
- Limit order: A limit order specifies the maximum (when buying) or minimum (when selling) price you are willing to accept for a share transaction
- Listed company: Listed companies have shares that are purchased and sold through the SGX
- Live price: This is the price of a share at a precise moment in time
- Market order: A market order is an order to buy or sell a share at its current market price
- Short selling: This is when you borrow a security and subsequently sell it, with the obligation to buy it back in future at a much lower price
- Volatility: This reflects the amount of fluctuation in share prices
- Yield: This is your return on an investment and is expressed as a percentage
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