Opening an Investment account

Hi Folks! I will be sharing with you today on the procedures of opening an investment account. I will try to make it idiot proof so that you can literally go on your own to get started.

Before you start investing, you must be mentally and financially prepared for the risk that you will be taking. Generally, I use it to keep up with the inflation. I would recommend that new investors to start off with blue chip companies before you progress to more highly volatile investment products.

As addressed in my previous post, you need to open an account from any of the local banks securities or private securities companies. It is strongly advisable to open in person at their store as they can assist you to fill up the long and exhaustive list on the form. I will list the available securities companies for you to open an account.

1) DBS Vickers
2) OCBC securities
3) UOB Kay Hian
4) Lim and Tan
5) POEMS

Each of them has its own perks and promotion when you open an account and you are not limit to open only one account. For me, i would open two account that suits me best. Please note that it is free of charge when opening an account. They would help you to open an account with them as well as CDP account. CDP account is just to safeguard all your investment that you are currently holding. It is acting like a bank that you store your assets. Once you open an account, you will receive a letter from them within 2-3 weeks. The letter will guide you in your registration to their platform and you can start trading! They will give you a capping limit in the amount that you can invest and it varies for each individual according to the declaration of your monthly income.

CPF & SRS investment account

I will add this portion as well just in case you may prefer to use your intangible money from cpf to trade or SRS money for retirement. You can only open the account in the local bank and you can only open one account. Unlike the securities account which you can open multiple account from different companies. Once your account is open, you can only purchase certain stocks and unit trust. You cannot trade on your first $20,000 in your ordinary account. Please note that if the investment that you have purchased issued dividend payment, it maybe reinvested or credit back to your account.

I hope it helps you to have some understanding!

See you again!