Five Steps for Investing | Know How to Invest in Stocks in Singapore

Bank Accounts | Investment | Singapore
by Priyadarshini 29 August 2023

So you’ve made it your New Year’s goal to start investing! Don’t worry, that’s a lot more realistic than weight loss goals. You’ll hear about a variety of stock investing tactics from investment experts. We think that any regular Joe can get started investing thanks to a plethora of low-cost investment brokerages and a wide selection of assets to fit any risk appetite. In this blog, we tell you about five steps for investing in Singapore.

Five Steps for Investing in Singapore

Open a Brokerage Account for your Investments 

Stocks cannot be purchased in a store and then transported home in a plastic bag. To purchase and sell stocks, you’ll need to open an account with an investing firm. A brokerage is a firm that works as a go-between for you and the stock exchange. Trading costs are charged as a percentage of each trade, and certain brokerage accounts may also levy a minimum fee, which is the minimum trading fee you must pay on each trade. These will influence your earnings, so compare them. We recommend SAXO Markets or Phillip Securities if you’re just getting started (POEMS). If you buy equities on the Singapore Exchange, these offer very cheap costs and no minimum commission.

Make a Deposit into your Brokerage Account

You must first deposit funds into your account before you can begin trading. You should check with your brokerage to see if there is a minimum financing need, so make sure you have it. Brokerages often offer a variety of payment options, including the following:

Fast Online Transfers
Transfer using PayNow
Remittances from abroad, using services such as TransferWise

Choose the Stocks to Invest In

The first two steps were the most straightforward. The next step is to move from navel-gazing to real investment. Here are some popular buys for novices that are considered reliable and generally secure investments.

Stocks with a blue-chip rating

Singapore’s economy is dominated by “blue chips” such as Singtel, DBS, and Keppel. They may not expand as quickly as other foreign firms (think Tesla), but they are usually considered extremely solid. Many investors hold these stocks for a long time and get the benefits of dividends.

REITs (Real Estate Investment Trusts)

Want to be a landlord without the headaches? REITs such as Mapletree, CapitaLand, and Ascendas allow you to own a portion of a commercial property, such as a shopping mall or an office building. Long-term, the big brands are seen to be pretty failsafe (except for COVID-19), and they tend to give out large dividends.

Purchase your First Stock

You can buy shares via your broker’s desktop or mobile interface after your funds have cleared. We’re not here to advise you what approach to use, but if you’ve never invested before and don’t have a lot of money, you might start by investing a certain amount per month in a generic ETF like the STI ETF. Dollar-cost averaging is a technique that helps you develop a habit of investing regularly.

Sit Back and Enjoy your Profits

Rather than looking for firms with significant growth potential, the Singapore stock market favours passive investors who wish to sit back and collect monthly dividends. The majority of dividend-paying companies payout four times a year, or once per quarter. There are notable outliers, with certain equities paying dividends anywhere from once a year to twelve times a year. Some brokerages allow you to reinvest cash dividends automatically. If you do not select this option, the dividends will be paid in cash. You may then either reinvest the money right away using the dollar-cost averaging approach or keep it until you discover attractive offers on the market. So, follow these five steps for investing in Singapore & become financially secure.

Personal Loan Singapore

stocks in Singapore
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