What is the difference between linking my CDP account to a savings account vs trading account? - Seedly
 

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Asked on 23 Oct 2018

What is the difference between linking my CDP account to a savings account vs trading account?

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Yong Kah Hwee
Yong Kah Hwee
Level 8. Wizard
Updated on 07 Jun 2019

If you intend to invest in Singapore stocks, you will need a CDP account. A CDP account is needed to store your shares. If a brokerage lets you invest and does not require you to open a CDP account, it probably means that the brokerage is holding your shares for you (ie: they are the custodian of your shares). Not that is bad, but some people do not like someone else holding their shares for them.

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Yong Kah Hwee
Yong Kah Hwee

24 Oct 2018

the risk is that if the custodian (in this case the brokerage) defaults/goes bankrupt, your shares will be affected.
Yong Kah Hwee
Yong Kah Hwee

24 Oct 2018

this link might help: https://blog.seedly.sg/step-step-guide-opening-stock-trading-brokerage-cdp-account-singapore/?fbclid=IwAR0bRyFCyrvdohXdm6u7Vwx_F51c9kvmm7sjtHFRq3V_8Hm7C8dfE6YLWTQ
Kenneth Chan
Kenneth Chan
Level 5. Genius
Answered on 25 Jul 2019

CDP have to be linked to both.

Trading account to transfer your shares when you purchase/sell SGX stocks.

Savings/Current account to pay you dividend or your "cash-out" when you sell shares.

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