How to choose a brokerage account in Singapore comes down to one structural decision and a few costs. First decide whether you want SGX shares in your own Central Depository (CDP) account or held by the broker as custodian. Then compare the fees on the order size you actually place, whether you need CPF or SRS access, and the charges for holding, converting and transferring. As at November 2026, a small SGX order costs about S$10 through a CDP-linked account and $1 to $3 through a custodian account.
Investing can lose money. A brokerage account is only the route to the market; it does not protect you from losses. This guide explains how accounts are set up and what they cost. It does not recommend a broker or a share.
What Is a Brokerage Account?
A brokerage account is the account you use to buy and sell listed investments such as shares, ETFs and REITs. MoneySense describes the broker as the firm that submits your orders and charges commission when a trade is executed. The broker either delivers the securities to your own CDP account or holds them for you. In Singapore, brokers must be licensed by the Monetary Authority of Singapore (MAS) to deal in securities.
Through one you can typically buy SGX-listed shares, ETFs and REITs, buy on overseas exchanges if the broker offers them, receive dividends, take part in corporate actions such as rights issues, and hold cash waiting to be invested.
| Account type | Where SGX shares are held | Paid for from | Main point to know |
|---|---|---|---|
| Cash account, CDP-linked | Your own CDP account | Your bank or trading account | Shares in your name; usually higher commission |
| Cash account, custody | With the broker (nominee) | Cash held with the broker | Cheaper trading; you sell through that broker |
| Margin account | With the broker | Partly borrowed from the broker | Losses are magnified; you may face margin calls |
| CPF Investment Account | Through a CPF agent bank | Your CPF Ordinary Account | CPF Board’s limits apply |
| SRS account | Through your SRS operator | Your SRS balance | Withdrawal rules and tax apply on the way out |
A margin account lets you borrow from the broker to buy more than your cash allows. MoneySense warns that leveraged trading can be risky and can lead to large losses: if prices fall, the broker can ask for more money or sell your holdings. You do not need one to invest for the long term.
CDP vs Custodian: The Decision That Matters Most
MoneySense describes the two set-ups.
CDP-linked. SGX shares, ETFs and REITs you buy settle into a CDP account in your name. CDP handles clearing, settlement and safekeeping, and pays dividends to your linked bank account. You can sell through any broker linked to your CDP account.
Custodian (nominee). The broker holds the shares for you. Every transaction goes through that broker. Commission is usually much lower.
| CDP-linked account | Custodian account | |
|---|---|---|
| Who holds SGX shares | CDP, in your name | The broker, on your behalf |
| Typical SGX cost on a small order | About $10 before GST | About $1 to $3 before GST |
| Switching brokers | Shares stay in CDP | Transfer needed, often with a fee per counter |
| Dividends | Paid by CDP to your bank | Paid to your broker account; some brokers charge a handling fee |
| Shareholder communications | Sent to you directly | Usually through the broker |
| CPF and SRS trades | The usual route | Generally not available |
Foreign shares are always held in custody, whichever account you use. CDP is for SGX-listed securities.
Which Brokers Offer Which, as at November 2026
From each broker’s own fee page, as summarised in our reviews. Figures are commission and platform fee on a $2,000 SGX order, before SGX fees and GST.
| Broker | Custodian SGX order | CDP-linked option and cost |
|---|---|---|
| Webull | $0.80 | None found |
| Longbridge | $0.99 (commission waived, terms apply) | None found |
| POEMS | $1.60 (Cash Plus) | Cash Management, $10 |
| moomoo | $1.98 | CDP account, $9.98 |
| Tiger Brokers | $1.99 | Cash Boost, $9.99 |
| Interactive Brokers | $2.50 | None |
| Saxo | From $3 | None found |
“None found” means we found no CDP-linked option on the broker’s site; ask the broker if it matters to you. Fees change, so check the provider’s page before you open an account. Our platform comparison has the full method.
Worked Example: Monthly Buyer vs Occasional Buyer
Illustration with our own numbers. Two investors put $6,000 a year into SGX shares. Assume $2 a trade at a custodian broker and $10 at a CDP-linked one, before SGX fees and GST.
| 12 orders of $500 | 2 orders of $3,000 | |
|---|---|---|
| Custodian, $2 a trade | $24 a year (0.4%) | $4 a year (0.07%) |
| CDP-linked, $10 a trade | $120 a year (2.0%) | $20 a year (0.33%) |
For the monthly buyer, CDP costs an extra $96 a year, or 1.6% of the money invested. For the occasional buyer, the gap is $16. Whether direct ownership is worth that is your call; the maths shows what you are paying for it.
The short version: small, frequent SGX purchases favour a custodian account on cost. Large, infrequent purchases, CPF or SRS money, and a wish to hold shares in your own name point towards CDP.
What Else to Compare When You Choose a Brokerage Account
Commission is the obvious cost. MoneySense notes that SGX fees and GST are added on top. These are the ones that catch people out:
- Minimum commission. A percentage rate means little if the minimum applies to every order. A $10 minimum is 2% of a $500 order and 0.05% of a $20,000 order.
- Dividend handling fees. POEMS charges 1% of SGX dividends ($1 to $50) in custody accounts, per its fee page. Other brokers list none.
- Inactivity or maintenance fees. POEMS charges $15 a quarter on inactive Cash Plus accounts.
- Transfer-out fees. Moving shares out of custody can cost tens of dollars a counter.
- Currency conversion on US and other foreign shares. Some brokers publish a rate; others do not.
- CPF and SRS support. CPF Board lets you invest Ordinary Account savings above $20,000, with up to 35% of investible savings in shares, through a CPF Investment Account with an agent bank. moomoo and Tiger Brokers publish CPF and SRS rates for SGX shares. Our CPF Investment Scheme explainer covers the rules, and the SRS guide covers SRS.
- Markets offered, if you want US or Hong Kong shares as well. See our US stock broker comparison.
Is a Brokerage Account Safe?
There are two separate questions.
Is the firm legitimate? Look it up in the MAS Financial Institutions Directory and confirm it holds a capital markets services licence for dealing in securities. MoneySense notes that dealing with unregulated firms, including those overseas, means giving up the protections of MAS rules. The MAS Investor Alert List names persons who may have been wrongly perceived as MAS-regulated.
Is my money protected? Not against losses. SDIC deposit insurance covers Singapore-dollar bank deposits and does not cover shares or cash held with a broker. Ask a custody broker how it keeps customer assets apart from its own.
Most of these apps also sell options, margin, CFDs and leveraged products. A cash account with no margin keeps them out of reach. Our explainer on what CFDs are shows why they carry far higher risk.
How to Open One
Most Singapore brokers let you apply online with Singpass. Expect to provide identification and proof of address, and to answer questions about your income and investment experience.
For products classed as complex (Specified Investment Products), the broker must check your knowledge first. MoneySense describes a Customer Account Review for listed products and a Customer Knowledge Assessment for unlisted ones.
If you want SGX shares in your own name, open a CDP account too and link it. Our step-by-step guide to buying stocks in Singapore covers this, and our guide on how to start investing in Singapore covers what to sort out first.
Who Each Set-Up Does Not Suit
A custodian account suits small, regular buyers less well if they later want CPF or SRS access, or if they plan to move brokers often, because transfers cost money.
A CDP-linked account suits small, regular buyers poorly on cost. On a $500 order, a $10 fee is 2% before the investment has moved.
If you would rather not choose shares at all, a broker may be the wrong tool. Our guides on ETF investing and robo-advisers cover other routes.
What To Do Next
- Write down your usual order size, how often you buy, and whether CPF or SRS is involved.
- Cost a year of your own orders on two or three brokers’ fee pages, including GST.
- Do your own due diligence: check each shortlisted broker in the MAS Financial Institutions Directory and the Investor Alert List, and read its terms on custody, transfers and fees.
- Test whether lower costs change your long-run result in our compound interest calculator.
