CDP Account: Who Qualifies and What You Get
Learn how a CDP account provides centralized clearing for your SGX-listed stocks in Singapore.
A CDP account provides a centralized way to clear and hold your SGX-listed stocks. This system ensures that your ownership of local shares is recorded in one secure location.
Who it's for
To qualify for a CDP account, you must be an adult aged 18 or older. This makes it accessible to most individual investors looking to manage their local stock holdings.
What you get
The primary benefit of this account is centralized clearing for stocks listed on the SGX. Instead of your shares being held solely by a private entity, the CDP system provides a centralized mechanism to clear trades and manage your holdings. This ensures that your ownership of SGX-listed securities is officially recorded and managed through a unified system.
What it costs you
Opening and maintaining this account involves specific costs. You will need to pay an initial opening fee to set up the account. Additionally, because the account must work in tandem with your trading activities, you will need to go through the process of linking the account to your brokerage to ensure your trades are processed and settled correctly.
The catch to know
The most important thing to understand is the scope of what this account covers. A CDP account only holds stocks listed on the SGX. If you decide to invest in foreign stocks through your broker, those assets are not held in your CDP account; instead, they are held directly by your broker. You must keep this distinction in mind when managing a diverse portfolio that includes international markets.
How to apply
- Verify that you meet the age requirement of at least 18 years old.
- Determine which brokerage you will be using to facilitate your trades.
- Follow the steps to link your new account to your chosen brokerage.
- Visit the official portal for more information and to start your application.