If you’ve been hearing about STI ETFs, Singapore stocks, or Singapore Savings Bonds — and you’re thinking about investing for the first time — there’s one thing you need to set up first: a CDP account.
It’s free, takes about 10–15 minutes to apply via SingPass, and it’s the foundation for owning Singapore-listed investments under your own name.
Here’s everything you need to know — what CDP is, whether you actually need one, how to open it step by step, and what to do once it’s ready.
📌 In this guide:
- What Is a CDP Account?
- How CDP Works
- Do You Actually Need a CDP Account?
- Key Features of CDP
- CDP vs Custodian Accounts
- How to Open a CDP Account (Step by Step)
- What to Do After Opening Your CDP Account
- Common Beginner Mistakes
- Final Thoughts
What Is a CDP Account?
The Central Depository (CDP) is Singapore’s securities depository, operated by the Singapore Exchange (SGX).
In simple terms, a CDP account is a safe-keeping account where your shares, ETFs, bonds, and other securities are stored electronically — under your own name — when you buy investments listed on the SGX.
Think of it like a bank account — but instead of holding cash, it holds your stocks and securities.
Your CDP account can hold:
- Stocks listed on SGX (like DBS, OCBC, UOB)
- ETFs (like the Straits Times Index ETFs)
- Singapore Savings Bonds (SSBs)
- Treasury Bills (T-Bills)
- Corporate bonds listed on SGX
How CDP Works
When you invest in SGX-listed securities:
- You place a trade through a brokerage (e.g., DBS Vickers, Phillip Securities, FSMOne).
- Once the trade is settled (usually after 2 business days),
- The shares are deposited into your CDP account.
This means:
- You are the legal owner of the shares
- Your holdings are recorded directly under your name
- If you switch brokers, your shares stay put — they live in CDP, not with the broker
Do You Actually Need a CDP Account?
⚡ TL;DR: If you want to invest in SGX-listed stocks, SSBs, or T-Bills under your own name — yes. If you only plan to invest in US or global stocks, you don’t need one.
This is probably the first question on your mind — especially if your friends are already investing through apps like Tiger Brokers or moomoo.
Short answer: It depends on what you’re investing in, how much and how you want to hold your investments.
You need a CDP account if you want to:
- Own SGX-listed shares directly under your name
- Buy Singapore Savings Bonds (SSBs) or T-Bills
- Have the flexibility to switch brokers without transferring shares
- Receive dividends directly into your bank account
- Receive AGM invites and exercise voting rights directly — no need to go through your broker’s proxy process
You might NOT need one (yet) if you:
- Only invest in US or global stocks (these go through custodian accounts anyway)
- Prefer an all-in-one app experience with lower fees for all markets
- Are doing small, frequent trades of stocks where convenience and trading fees matters more than ownership structure
👉 For most Singaporeans who plan to invest locally — even just SSBs or STI ETFs — a CDP account is worth setting up. It’s free, and once it’s open, it’s there for life.
Key Features of CDP
1. Direct Ownership
With CDP, your stocks are registered under your name — not held by a broker.
This reduces counterparty risk if your brokerage platform ever runs into issues. Your shares are yours, held separately.
2. Dividend Crediting
When companies pay dividends, they are credited directly to your linked bank account.
No need to manually withdraw from a broker platform.
3. Corporate Actions Access
You’ll receive notifications for:
- Rights issues
- Bonus shares
- Annual General Meetings (AGMs)
This gives you full control and visibility as a shareholder.
4. Centralised Holdings
All SGX investments bought via CDP-linked brokers are stored in one account, making it easy to track your entire Singapore portfolio in one place.
When choosing a platform, keep these in mind:
- Low minimum investment — start with what you can afford.
- Access to the types of investments you want — for example stocks, ETFs, or UCITS ETFs depending on your preferred market exposure.
- Low fees — avoid high commissions or hidden charges.
- User-friendly interface — beginner-friendly apps make investing less intimidating. Some platforms like Interactive Brokers offer more advanced features but may take time to learn.
- Recurring/auto-invest features — perfect for building consistent habits.
🚨 Remember: Early and consistent investing teaches discipline and confidence more than chasing high returns. Start small, stay consistent, and learn along the way.
CDP vs Custodian Accounts
⚡ TL;DR: CDP = your shares under your name, direct ownership, easy to switch brokers. Custodian = shares under broker’s name, simpler onboarding, often lower fees, better for global investing.
Before you open a CDP account, it helps to know the alternative.
A custodian account (also called a broker custody or nominee account) is what you get when you buy shares through platforms like Tiger Brokers, moomoo, or Syfe. The shares are held under the broker’s name on your behalf — you’re still the beneficial owner, but the broker is on record, not you.
Think of it this way: with CDP, your name is on the deed. With a custodian account, the broker’s name is on the deed, but they’re holding it in trust for you.
Here’s how they compare:
Decision Factor | CDP (Direct Holding) | Custodian Account |
Ownership | Shares registered under your name | Held under broker/nominee |
Shareholder rights | Direct access (AGMs, voting, corporate actions) | Broker-mediated; may be limited |
Dividends | Credited directly to your linked bank account | Credited to your broker account (withdraw to bank later) |
Broker flexibility | Switch brokers easily — shares stay in CDP | Tied to one broker; transfers can be slow |
Market access | Mainly SGX-focused | Easier for multi-market (SGX + global) |
Minimum investment | Typically 100 shares (standard board lot), though some securities can be bought from 1 unit; odd lots (<100) are tradable via SGX’s Unit Share Market. | Fractional shares available — invest from as little as $1, often $0 commission |
Trading fees | Generally higher commissions | Often lower or zero commission |
Setup | Open 2 accounts (CDP + broker) — auto-linked once done | Open 1 broker account — that’s it |
Quick rule of thumb (based on how you actually invest):
- Investing small amounts regularly (e.g., $100–500/month via dollar-cost averaging) → Custodian. Lower commissions make it more cost-efficient for frequent small purchases.
- Investing larger amounts per trade (e.g., ~$1,000+ at a go, especially for long-term holding) → CDP. With low-cost brokers like FSMOne, fees become reasonable, while you gain direct ownership benefits through The Central Depository (Pte) Limited.
- Investing globally (US, HK stocks, ETFs) → Custodian (CDP only covers SGX).
- Want both? Many investors use CDP for core SG holdings (SSBs, T-Bills, blue chips they buy in bulk) + custodian for global stocks and small regular buys.
The “best” choice depends on your capital, frequency, and what you’re buying — not on CDP being universally better or worse.
How to Open a CDP Account (Step by Step):
Opening a CDP account is completely free — no opening fees, no maintenance fees. Here’s how to do it:
Eligibility
- You must be 18 years old or above
- You must not be an undischarged bankrupt
- You need a Singapore bank account
Method 1: Via SingPass MyInfo (Fastest — Recommended)
This is the easiest way for Singapore Citizens and PRs:
- Go to the SGX CDP account opening page at investors.sgx.com/cdp-account-opening
- Click “Open a CDP Account”
- Log in with your SingPass
- Your personal details will be auto-filled via MyInfo — verify and confirm
- Link your Singapore bank account (DBS/POSB, OCBC, UOB, Standard Chartered, Citibank, or HSBC)
- Submit the application
Processing time: About 5 business days. No documents usually required since your identity is verified through SingPass.
Method 2: Online Form (For Non-Citizens/Non-PRs)
- Go to the same SGX CDP page
- Choose the online form option (without MyInfo)
- Fill in your personal details manually
- Upload supporting documents (proof of identity, proof of address)
- Link your bank account
- Submit the application
Processing time: About 10 business days
After You Apply
- CDP will send your account number by post or email within 1–3 business days after approval
- Once you have your CDP account number, you can link it to a brokerage to start trading
- Your CDP account is yours for life — you only need to open it once
What to Do After Opening Your CDP Account:
Once your CDP account is set up, you’ll need a brokerage account linked to it before you can start buying. Popular CDP-linked brokers include Phillip Securities (POEMS), and FSMOne.
I wrote a separate article comparing CDP-linked brokerages to help you decide which platform fits you best.
From there, most beginners in Singapore start with:
STI ETFs (Straits Times Index Funds)
The Straits Times Index (STI) tracks the top 30 companies in Singapore. Instead of picking individual stocks, you can invest in the entire index through ETFs:
- Nikko AM STI ETF (ES3) — managed by Nikko Asset Management, one of the most popular ETFs in SG
- SPDR STI ETF (S27) — managed by State Street Global Advisors, tracks the same index
Why beginners like STI ETFs: instant diversification, lower risk than picking individual stocks, and a solid starting point for long-term investing.
Blue-Chip Singapore Stocks
The three major banks — DBS (D05), OCBC (O39), and UOB (U11) — make up a large portion of the STI and are popular with investors who want exposure to Singapore’s financial sector with regular dividend payouts.
A common beginner combination: STI ETFs for broad diversification + a bank stock like DBS for dividends and stability. This gives you exposure to the core of Singapore’s economy without overcomplicating your portfolio.
Common Beginner Mistakes:
- Thinking CDP is a brokerage → CDP holds your shares, but you still need a broker to execute trades. They’re two separate things.
- Avoiding CDP because of higher brokerage fees → Custodian brokers are cheaper per trade, which matters a lot for small or frequent purchases. But for long-term, lump-sum holds, the fee difference becomes minimal over time.
- Not linking a bank account → If you skip this step, you’ll miss out on seamless dividend payouts directly to your bank.
- Not knowing CDP holds more than stocks → Your CDP account also holds SSBs, T-Bills, and corporate bonds. If you’re buying Singapore Savings Bonds, you need CDP.
Final Thoughts:
A CDP account is a unique feature of Singapore’s market that gives investors direct ownership and control over their investments.
It’s free to open, takes minutes to apply, and once it’s set up, it’s yours for life.
While newer platforms offer cheaper and faster trading through custodian accounts, CDP remains the foundation for anyone who wants to invest in Singapore seriously — whether that’s blue-chip stocks, STI ETFs, SSBs, or T-Bills.
If you’re building wealth steadily in Singapore, opening a CDP account is the first step worth taking.
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