Central Depository (CDP) Account: Who Qualifies and What You Get
Learn how a CDP account works for storing your Singaporean stocks and receiving dividend payouts.
A Central Depository (CDP) account is a digital way for people to hold their shares in Singaporean companies electronically rather than using physical paper certificates.
Who it's for
This account is specifically designed for investors who wish to trade and hold stocks listed on the Singapore exchange. If you are looking to participate in the local stock market, you will need this account to facilitate your investments.
What you get
The primary benefit of this account is the safe custody of your shares. Instead of managing physical documents, your ownership is recorded electronically. Additionally, the account ensures that you receive your dividend payouts. These are the regular payments that companies distribute to their shareholders from their profits.
What it costs you
Setting up and maintaining this account is designed to be accessible. You will encounter minimal account opening fees to get your registration started and keep the account active.
The catch to know
The most important thing to manage is your personal information, specifically your bank details. Many investors miss out on their money because they fail to update their bank details for direct dividend crediting. If your banking information is not kept current with the provider, your dividend payments may be delayed or difficult to collect.
How to apply
- Confirm you meet the requirements for investing in Singaporean stocks.
- Access the official Singapore Exchange (SGX) portal to begin your application.
- Prepare your identification and necessary banking information to ensure your dividends can be paid out.
- Submit your details and wait for the account to be activated so you can begin trading.