Procedures for opening an account and investing in securities in Singapore (2025)

Opening an account and investing in securities in Singapore is no longer difficult and is an option that many investors are interested in because of the inherent advantages of a leading market in Asia as well as investment attraction policies from the Government. 

Singapore is known as the regional and world financial economic center, where world companies and corporations invest and have their headquarters. Therefore, the investment opportunities in the financial market are huge, opening up profit potential based on the business situation and development of companies/corporations in Singapore. 

In this article, GLA will provide information:

• Financial market and stock investment potential in Singapore.
• Procedure for opening a securities investment account in Singapore for foreigners.

1. Overview of Singapore financial market

According to the report "Doing Business 2019"According to the World Bank, Singapore is one of the countries with the easiest business conditions for foreigners and is also one of the most attractive investment destinations in the region. For many consecutive years, Singapore has ranked second in the world in terms of capital and information flows, second in the world and first in Asia in terms of liquidity, along with stable politics and transparent government.

As the world's fourth largest financial center, Singapore has attracted strong investor interest in recent years. This busiest market in Asia has attracted about 7.000 multinational companies from the US, EU, Japan and about 3.000 companies from India and China. Singapore is the largest international trading market in Asia with more than 40% of companies listed on the SGX (Singapore Exchange) being foreign companies.

2. Why should you invest in stocks in Singapore?

Saving money in a bank account is just the beginning of your investment journey in Singapore. With low interest rates of less than 0,5% per annum, a smart foreign investor will have to find ways to generate higher returns than the inflation rate of 2-6% per annum in Singapore.

Opening an account and investing in stocks is one of the most popular investment options that allows individual investors to generate higher returns than savings deposits and has many advantages:

2.1 Capital increase

Shares are assets that can increase in value over time. When you buy shares in a company in Singapore, you are investing money in the business and owning a part of the business.

Investing in stocks in Singapore promises to bring great profits to investors when the company generates a lot of profits, because companies in Singapore enjoy many tax incentives from the government such as attractive tax rates, single-level (no double taxation) and shareholders do not have to pay tax on capital gains (Capital Gains Tax). 

2.2 Dividend yield

Stocks can generate profits for investors in another way, through dividend payments. Stocks legally confirm the investor's ownership of a part of the business, so when companies make profits, the investor's share (dividends) will also increase.

Along with the incentives of the Singapore government for businesses, dividends paid to shareholders will be tax-free. This means that investors' profits when investing in Singapore will be higher than in other markets, because a significant amount of tax is exempted.

2.3 Diversify investment fields 

Among the 800 companies listed on the Singapore Stock Exchange, each company operates in a different sector with a different growth cycle. Therefore, investors can easily invest in many sectors they want, with a minimum number of shares in each company of 100. By "not putting all eggs in one basket", investors will be able to diversify risks when there are uncertainties in a certain industry in the market.

Another way to diversify that the Singapore stock market opens up for investors is through Exchange Traded Funds (ETFs). These are a portfolio of companies that are traded on the Singapore Stock Exchange.
For example, the Straits Time Index (STI) ETF includes the stocks of the 30 largest companies on the Singapore Stock Exchange. By simply purchasing the STI ETF, investors can own the stocks of these 30 companies.

2.4 Liquidity

One advantage of investing in stocks is that we can quickly buy or sell, with flexible quantities. Investors only need to buy (or sell) a minimum of 100 shares at any company or ETF (Exchange Traded Fund), and do it quite quickly through online brokerage services. Unlike real estate investments, investors do not need to sell or divest all their capital, just sell the right number of shares worth the amount of money we need.

That is, from the investment source, we can turn it into cash at any time.

2.5 Buy stocks without money

If in Vietnam, investors want to buy securities on the listed market, the mandatory condition is to have enough margin money, but in Singapore, investors are not strictly controlled in terms of payment responsibility, this responsibility belongs to the securities brokerage company.

After the settlement period (T+3), if the investor does not have money to pay for the purchased shares, the securities company has the right to sell those shares to recover capital. If there is a profit, the investor will receive the profit, but if there is a loss, the investor must be responsible for compensating the money.

2.6 Unlimited number of accounts

In Singapore, there is no limit on the number of accounts that investors can open. An average investor can have 5-7 accounts.

However, the law only allows brokers to open one account at their own company and before trading, they must report to the control department to ensure that the broker's transactions are completely transparent.

3. Documents to prepare before opening a securities investment account in Singapore

Before opening a securities investment account (Central Depositor ("CDP")) in Singapore, you need to prepare the following information:

1. Personal information:

• Passport.
• Employment Pass (if).

2. Documents verifying the account registrant's residential address

Supporting documentation must be dated within the last 3 months and must include the applicant's name and current residential address. It may be one of the following:

• Bank statement from any bank licensed by the Monetary Authority of Singapore (MAS); or
• Report from the Central Provident Fund (CPF); or
• Tax notice from the Inland Revenue Authority of Singapore (IRAS).

4. Singapore bank account 

If you do not have a Singapore bank account, GLA will assist you. open bank account online in singapore. 

5. Photocopy/scan copy of signature

6. Tax Identification Number (TIN)

If you have tax residency status outside Singapore, you will need to provide:

• Country/Region of tax residence.
• Tax Identification Number (TIN).
• Completed Form W-9 (for US citizens).
• Valid government-issued identification (e.g. Driver's License, Work Permit/Visa, Student Card); or Documents from government agencies (e.g. Tax Assessment, Work Visa).

4. Procedure for opening a securities investment account in Singapore for foreigners 

If you are a foreigner who wants to open a securities account in Singapore, you need to choose a Singapore company to support you in submitting your Central Depository (“CDP”) application through Singapore Government Securities (“SGX”) website. Here is the detailed process of opening a securities investment account in Singapore.

5. How does GLA support Individuals/Businesses to open securities investment accounts in Singapore?

GLA with more than 10 years of experience in establishing foreign companies, opening bank accounts and supporting the opening of securities investment accounts in Singapore will support:

• Prepare information file to open securities account (CDP).
• Open a Singapore bank account linked to securities account (CDP). 
• Instructions for using securities account (CDP) after successfully opening an account. 
• Support opening securities accounts (CDP) suitable for the needs of Individuals/Businesses.

6. Frequently asked questions when opening a securities investment account in Singapore

Highlights

• Foreigners can open a securities depository (CDP) account in Singapore 100% online.
• Foreigners need to open a bank account in Singapore to successfully open a securities account (CDP).
• Foreigners need to find stock brokerage companies in Singapore to easily link brokerage accounts, trade quickly and conveniently.