Anonymous

05 Sep 2020

∙

Hi complete investment newbie here, I'm (more than) a bit confused. How do I start investing with my CDP account?

For example, if I wanna invest in a certain ETF/stock, I have to choose and sign up with an online broker that allows for investment in this particular ETF/stock, then... Do I put money in my CDP account? Or do I put it with the broker? How does this work...

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Elijah Lee

05 Sep 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

It depends on whether the trading account with your broker is a cash-upfront type of account or not. Naturally, the broker must also offer the market you are looking at first.

If it is cash upfront, you need to deposit money into the trading account first before you are allowed to trade, and if the amount is not sufficient you won't be able to buy.

If it is not, then you may trade first and transfer money in to pay before the due date.

CDP is merely a custodian to hold your SG shares and you can't transfer money to them.

Foreign shares will be held by broker as the custodian.

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