How to Open a CDP Account in Singapore 2024: Your Step-by-Step Guide to Easy Setup

Last updated: February 2024

Key Takeaways

Opening a CDP account is essential for trading securities in Singapore.
Eligibility includes being 18+, having valid ID, and a Singapore bank account.
Documents required are NRIC/passport and proof of address.
The application can be completed online, with verification following.

Introduction

Embark on your investment journey in Singapore with ease: Learn how to open a CDP account, the gateway to trading securities on the SGX.

Question: What is the process for opening a CDP account in Singapore?
Answer: To open a CDP account in Singapore, you must be at least 18 years old and provide a valid ID (NRIC for locals or passport for foreigners) and proof of address. The application can be done online through the SGX website, where you’ll fill out personal and financial details and submit the necessary documents for verification. Once verified, your application will be processed, and upon approval, you’ll receive your CDP account details for access to trade on the SGX.

Opening a Central Depository (CDP) account is a fundamental step for anyone looking to trade securities on the Singapore Exchange (SGX). This account is akin to a safe where all the shares and other securities that I purchase in the local stock market are held. Having one allows me to trade freely, ensuring that all my transactions are safely recorded and centralised in one place.

Before I can start trading, I need to understand the process of setting up a CDP account. This involves eligibility criteria, documents required, and the various platforms through which I can apply. It’s essential to have all my details in order, including a valid identification document such as my Singapore National Registration Identity Card (NRIC) for citizens or passport for foreigners, and proof of address.

The good news is that the process of opening a CDP account is relatively straightforward if I follow the steps diligently. While it may seem daunting at first, by breaking down the procedure into clear, manageable steps, I can ensure a smooth experience. Moreover, being familiar with the requirements and the sequence of actions I must take will help expedite the entire process.

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Understanding Central Depository (CDP) Accounts

A Central Depository (CDP) account is a vital component for investors in the Singaporean securities market. It is akin to a safe where my investment holdings in stocks, bonds, and other securities are kept securely. The primary purpose of a CDP account, which is operated by the Singapore Exchange (SGX), is to facilitate the clearance and settlement of transactions.

In setting up my CDP account, I’m essentially registering for a personal ledger that reflects all my securities transactions. This account ensures the securities I purchase are credited to, and those sold are debited from, my account. It operates similarly to how a bank records my cash deposits and withdrawals.

The benefits of having a CDP account include:

Consolidated View: I can monitor all my investments in one place.
Direct Ownership: Securities are held in my name, providing me with direct ownership.
Dividend Credits: Dividends from my shares are automatically credited to my bank account linked to the CDP.

For transactional security and efficient processing, the details of my trades and my securities position are maintained accurately and updated promptly in my CDP account.

It’s important to note that the CDP account is distinct from trading accounts set up with brokerage firms. While a trading account allows me to buy and sell securities, the CDP account is where those securities are held once transactions are completed.

Eligibility Criteria for Opening a CDP Account

To open a CDP (Central Depository) account in Singapore, I must meet certain eligibility requirements. These are mandated by the Singapore Exchange (SGX) to ensure proper management and regulation of securities trading.

Firstly, I need to be at least 18 years old. At this age, I’m considered legally capable of entering into binding contracts, including the agreement required to open a CDP account. However, minors may have an account opened on their behalf by a legal guardian.

Secondly, I must possess a valid National Registration Identity Card (NRIC) for Singaporeans or Permanent Residents. For foreigners, a valid passport and proof of residence in Singapore, such as a utility bill or bank statement with my residential address, are required.

In terms of account operation, I need to have a bank account with one of the designated banks in Singapore. This allows for linkage to my CDP account for seamless transactions.

Here’s a summary of the main eligibility criteria:

Requirement	Details
Age	Minimum of 18 years old
Citizenship Status	Singaporeans/PR: NRIC Foreigners: Passport
Residency	Proof of residence in Singapore for foreigners
Bank Account	With one of the designated banks in Singapore

I must ensure that all information provided during the application process is accurate and up-to-date. This is crucial for the verification process and to comply with regulatory requirements.

Documents Required for CDP Account Application

To apply for a Central Depository (CDP) account in Singapore, I need to prepare specific documents that verify my identity and address. These documents are mandatory for the application process.

Proof of Identity

For verification of my identity, I must present a valid, government-issued photo identification document. The following are acceptable:

Passport: Must be current and include my signature.
National ID Card (Singaporeans & PRs): Should include both front and back, with my photograph and NRIC number.

Proof of Address

To establish proof of address, I must submit a document that indicates my current residential address. This document should be dated within the last three months. Acceptable documents include:

Utility bill: For example, an electricity or water bill.
Bank statement: Must be an official statement from a recognised bank.
Government correspondence: Any official letter from a government body.

Registering for a CDP Account Online

To open a Central Depository (CDP) account in Singapore, I need to go through an online registration process. The first step is to visit the official Singapore Exchange (SGX) website. Here’s a breakdown of the steps I follow to create an online account:

Eligibility Check: I ensure that I meet the criteria for opening an account, such as being at least 18 years old and not an undischarged bankrupt.
Document Preparation: I prepare the necessary documents:
- Singaporean/PR: NRIC (front and back)
- Foreigner: Passport and proof of residential address (e.g., utility bill).
Accessing the Form:
- I navigate to the SGX CDP account opening page.
- I select the ‘Individual Account’ option.
Filling in Personal Information: I provide my personal details, including my full name, NRIC/passport number, and contact information.
Employment and Financial Details: I fill in my employment status and financial information, such as income range and investment experience.
Declaration and Consent: I read the terms and conditions, then give consent to the data privacy policy, disclosures, and declarations.
Review and Submit: Before submitting, I double-check all the information for accuracy to ensure that all the details are correct.

Upon completion, I receive a confirmation email. The approval process may take a few days, after which I can access my CDP account online and start trading on the SGX.

Completing the Application Form

In this section, I’ll guide you through accurately filling out the Central Depository (CDP) account application form in Singapore, ensuring your application is submitted correctly.

Personal Information

I need to provide my full name as stated on my National Registration Identity Card (NRIC) or passport. This is crucial for identity verification purposes. I will also supply my date of birth, nationality, and residential address, which must correspond with the official documents for successful application processing.

Full Name: As per NRIC or Passport
Date of Birth: DD/MM/YYYY
Nationality: As per Passport
Residential Address: Must match official documents

Account Preferences

For account preferences, I select the type of CDP account that best suits my investment strategy and needs. I choose between a Direct CDP account and a Trust CDP account if I’m below 18. Next, I specify my preferred statement option: e-Statement via email (for faster access) or physical mail.

Account Type:
- Direct CDP Account
- Trust CDP Account (for applicants below 18)
Statement Option:
- e-Statement (Email)
- Physical Mail Statement

Verification Process

After submitting my application to open a Central Depository (CDP) account in Singapore, I must complete the necessary verification process. This is a crucial step to ensure security and compliance with local regulations.

Required Documents:

Proof of Identity: I’ll need my NRIC or passport for Singapore citizens and PRs, or my passport and employment pass/dependent pass for foreigners.
Proof of Address: I can provide a recent utility bill, bank statement, or any official correspondence with my residential address, not more than three months old.

Steps for Verification:

Online Verification: If I am an existing bank customer with DBS/POSB, OCBC, or UOB, my identity can be verified online using my bank’s credentials.
Face-to-Face Verification: If online verification is not possible, I’ll make an appointment for in-person verification at a CDP Customer Service Centre.

Photograph Requirement:

I must also provide a recent photograph of myself. This must be:

In colour
Passport-sized
Taken within the last three months

Submission:

I can submit my documents and photograph through the following methods:

Upload via the online application portal
Mail to the CDP’s official address
In-person during my face-to-face verification appointment

I should ensure all copies are clear and legible to prevent any delays in my verification process. It’s important to follow these steps precisely, as any discrepancies may result in a longer processing time or the need for additional information.

Awaiting Account Activation

After I have completed the application process for my Central Depository (CDP) account in Singapore, I must patiently wait for the activation of my account. This period is for the necessary checks and verifications to be carried out by the relevant authorities.

Here’s what I expect during the activation period:

Application Processing Time: Typically, it takes 2 to 4 weeks for an application to be processed. However, this can vary depending on the volume of applications and the time of year.
Communication: The CDP will notify me through either email or post. It’s crucial that I check my email inbox and mailbox regularly for their correspondence.
Activation Details: Once my account is activated, I will receive my CDP account number and instructions on how to access my account online.
Set Up Online Access: I will need to set up my internet access by linking my CDP account to the depository agent’s online platform.
Check Account Status: If the wait seems longer than expected, I can contact the CDP Customer Service at 6535 7511 or email them at [email protected] to enquire about the status of my application.

During this time, I should ensure all my contact details are correct and up-to-date to prevent any delays in communication. It’s also a good opportunity for me to familiarise myself with the CDP services and trading processes by visiting the official SGX website or going through available educational resources. Patience is key, as the activation is a vital step in securing my investments in Singapore’s securities market.

Setting Up Electronic Securities Application Linkage

To open a Central Depository (CDP) account in Singapore, one must establish a connection between their bank account and securities account. This electronic linkage ensures seamless transactions and management of securities.

Linking Bank Account

To commence, I navigate to the CDP’s online portal. Here, I select my preferred bank from the list of participating institutions. I then provide my bank account details, ensuring the information is accurate to establish a Direct Debit Authorisation (DDA). This creates an automatic link between my bank account and CDP account for funding and receiving payments.

Linking to Brokerage Account

Next, I connect my CDP account to my brokerage account for trading activities. I log in to my brokerage platform and look for the option to link a securities account. I key in my CDP account number and follow the on-screen instructions to complete the linkage. This step is crucial for trade settlement as it enables the direct transfer of shares to and from my CDP account when I buy or sell securities.

Managing Your CDP Account

Effective management of my Central Depository (CDP) account is vital to ensure that my investments remain in good standing. I’ll provide clarity on the fee structure and the understanding of account statements to enable proper tracking of my investments.

Understanding Fees

Annual Fees: I am not charged an annual fee for maintaining my CDP account.

Transaction Fees:

Buy/Sell Transactions: No fee is charged by CDP for buy transactions. For sell transactions, a clear fee structure is outlined based on the value of the transaction, typically a small percentage.

Corporate Action Fees:

Rights Issues/Dividends: Charges may apply for processing corporate actions on my behalf.

Transfer Fees:

Outgoing: Transferring shares out of my CDP account to another depository incurs a fee.
Incoming: No charge for transferring shares into my CDP account from another depository.

Reviewing Account Statements

Monthly Statements: I receive a detailed statement each month, which lists:

Holdings: A summary of the securities in my CDP account.
Transactions: A record of all buy and sell transactions executed in the past month.

It’s my responsibility to review these statements to verify all transactions and holdings are accurate. Any discrepancies should be reported to the CDP immediately. Statements are accessible through my online account and can be received via post if requested.

Security Measures for Protecting Your CDP Account

When I create a Central Depository (CDP) account in Singapore, it’s crucial to ensure the safety of my investments. I prioritise the following security measures to safeguard my account:

Two-Factor Authentication (2FA) 2FA adds an additional layer of security. Whenever I access my account or perform transactions, I’m required to enter a one-time password (OTP) sent to my mobile phone or generated by a token.

Regular Password Updates I change my password regularly, at least once every three months. My password is complex, containing a mix of letters, numbers, and symbols to enhance security.

Email and Mobile Notifications I opt-in for email and SMS notifications. This way, I receive alerts for any transactions or changes made to my account, allowing me to promptly detect any unauthorised activity.

Monitoring Account Activity I make it a point to review my account statements and transaction history frequently. This practice helps me to quickly identify and report any discrepancies.

Secure Personal Computers and Devices Before accessing my CDP account, I ensure my personal devices have up-to-date antivirus software and a secure internet connection. Public Wi-Fi networks are avoided to reduce the risk of data interception.

Phishing Awareness I remain vigilant against phishing attempts. I don’t click on suspicious links in emails or messages claiming to be from CDP. All communications should be verified by contacting the CDP directly.

By following these steps, I maintain the security integrity of my CDP account, giving me peace of mind that my investments are protected.