Stock Trading for Expats in Singapore: What You Need to Know About Local Brokers

Imagine growing your wealth in one of the world’s most vibrant financial hubs while living abroad. For expats in Singapore, investing in the stock market isn’t just an opportunity—it’s a gateway to financial freedom and security. But where do you start? How do you choose the best SG stock broker, avoid unnecessary fees, and navigate local regulations with ease?

Whether you’re a first-time investor eager to dip your toes into trading or an experienced trader seeking better options, this guide is here to empower you. We’ll walk you through every step, from understanding brokers and setting up accounts to mastering tools and strategies for success. By the end, you’ll be ready to confidently take charge of your financial future in Singapore’s dynamic stock market—a market full of possibilities waiting to be unlocked.

Let’s make your journey into trading exciting, accessible, and rewarding. Ready to start?

How Expats Can Secure Financial Freedom in Singapore’s Stock Market

Relying solely on savings may not be enough to grow your wealth due to inflation. Prices for goods and services rise annually, reducing the value of your money. Investing in equities and other financial products offers the potential to beat inflation and grow your wealth over time. Singapore’s investment environment is particularly attractive for expats due to its tax advantages and access to international markets.

Understanding How Local Brokers Work in Singapore

Local brokers play an essential role in connecting investors with global markets, including the Singapore Exchange (SGX), as well as the US and HK stock markets. When you buy stocks, they may be held in your Central Depository (CDP) account for SG trades or in custodian accounts managed by brokers for other markets, such as the US and HK.

Key Types of Brokers:

Traditional Brokers:

Traditional brokers offer personalized services, including trading advice, research reports, and offline support. They are ideal for investors who value hands-on guidance but are willing to pay higher brokerage fees.

Online Brokers:

Online brokers provide fast, self-directed trading through advanced platforms and mobile apps. These brokers offer lower fees, real-time data, and innovative tools, making them ideal for expats seeking convenience and cost savings.

Understanding these two types of brokers helps you make an informed decision based on your investment style and goals.

Understanding the Singapore Exchange (SGX)

As an expat investing in Singapore, it’s essential to understand the foundation of the country’s financial market—the Singapore Exchange (SGX). SGX serves as a trusted marketplace connecting investors to local and international financial instruments. Known for its stringent regulatory framework, SGX provides a transparent and secure environment that protects investors while fostering financial growth. It stands out as a hub for Southeast Asian investments, giving traders access to a dynamic market filled with opportunities.

What Makes SGX Unique?

The Singapore Exchange is renowned for its diverse range of offerings, from equities and bonds to derivatives and real estate investment trusts (REITs). It is particularly appealing to international investors due to its high liquidity and robust regulatory oversight, making it one of the safest markets in Asia to trade. Furthermore, SGX simplifies access to regional economies, allowing expats to tap into growth sectors in countries like Malaysia, Indonesia, and Thailand. Its reputation for transparency and efficiency makes it a preferred exchange for traders worldwide.

Popular SGX Stocks for Expats

Expats trading on SGX often gravitate toward blue-chip stocks like DBS Bank, Singtel, and CapitaLand. These companies offer financial stability, consistent dividend payouts, and resilience during economic downturns. Beyond blue-chip stocks, Singapore’s REITs are also a popular choice, offering exposure to income-generating real estate like commercial properties, malls, and industrial spaces. With attractive yields and steady performance, these options are ideal for expats seeking long-term growth and passive income.

Trading Platforms: Features to Look For

The quality of your trading platform can significantly impact your experience. Leading brokers, such as Longbridge, provide features that enhance accessibility and decision-making. Here’s a detailed look at what to prioritize:

Real-Time Data and Analytics:

Access to live market prices, detailed performance metrics, and stock movements in real-time ensures you’re always up-to-date with market trends. Advanced analytics can help you evaluate historical data, price fluctuations, and potential investment opportunities with precision.

Mobile Trading Apps:

A user-friendly mobile app lets you trade anytime, anywhere. Look for apps with seamless interfaces, quick navigation, and customizable alerts for price changes or market news. The ability to execute trades on-the-go can be especially beneficial for expats with busy schedules.

Research Tools:

High-quality research tools, such as expert reports, technical analysis charts, and financial news, can help you make informed decisions to identify investment opportunities tailored to your preferences.. Some platforms even offer AI-powered insights, like Longbridge, offer advanced AI tools such as PortAI. With features like:

Industry Insights: Get real-time updates on key trends and events affecting your stocks.

Event Analysis: Understand complex market developments with tailored insights.

Instant Messaging for Quick Answers: Get immediate responses to your investment queries, ensuring you’re always equipped to make timely decisions.

These features, combined with traditional research tools, create a well-rounded foundation for making your investment journey both meaningful and successful

Customizable Dashboards:

A customizable interface that allows you to set up widgets for preferred stocks, watchlists, or performance trackers can make your trading experience more efficient and tailored to your needs.

Security Features:

Ensure the platform prioritizes security with two-factor authentication (2FA), encrypted transactions, and secure account recovery options. This is crucial to protect your investments and personal data.

Integration with Banking Options:

A platform that integrates seamlessly with your preferred payment methods or bank accounts for easy deposits and withdrawals adds to the convenience.

A reliable and intuitive platform ensures you stay connected, trade efficiently and stay updated on market trends.

Why Online Brokers Are the Go-To Choice for Expats

Navigating the financial landscape as an expat can feel overwhelming, especially when faced with unfamiliar regulations, cross-border challenges, and hidden fees. Online brokers have revolutionized the investment experience, offering solutions tailored to these unique challenges. Here's how online brokers help expats trade with confidence:

Complex Documentation Requirements

Setting up financial accounts as an expat often involves extensive paperwork, including proof of residency, employment passes, and other legal documents. This can be a lengthy and frustrating process.

How Online Brokers Help: Online brokers streamline the process with fully digital onboarding. Expats can often submit documents electronically, such as a scanned passport and utility bill, and complete the application within 24 to 48 hours. Many platforms offer guided application steps that make compliance easier and faster. Some even offer multilingual support to assist with complex legal terms.

Limited Access to Global Markets

Expats often aim to diversify their portfolios by trading in international markets, but traditional brokers may limit access to local exchanges or require additional setups for cross-border trading.

How Online Brokers Help: Online platforms provide seamless access to global markets, including U.S., Hong Kong, and European exchanges. Expats can trade foreign stocks with a single account, eliminating the need for multiple brokers or intermediaries.

High Costs and Hidden Fees

Trading internationally or across borders often comes with hidden fees, such as currency conversion charges, high brokerage fees, or custodial account maintenance fees.

How Online Brokers Help: Online brokers like Longbridge are built for cost-conscious investors. Offering $0 commission trading on select markets, and multi-currency wallets help expats avoid unnecessary conversion fees by trading directly in USD, HKD, or EUR.

Time Zone Differences and Accessibility

Expats often juggle busy schedules and reside in different time zones, making it hard to monitor markets or trade during conventional hours.

How Online Brokers Help: Online platforms provide 24/7 access via mobile apps and desktop portals. Features like customizable alerts, real-time data, and automated trading tools allow expats to stay updated and act on opportunities, regardless of location or time zone.

Navigating Language Barriers

For non-native English speakers, understanding financial jargon or navigating local markets in Singapore can be challenging.

How Online Brokers Help: Many online brokers cater to expats by offering multi-language support, simplified interfaces, and educational resources. These resources often include beginner-friendly guides, tutorials, and even demo accounts for practice.

Lack of Financial Guidance

Without local knowledge, expats might feel uncertain about where to start or how to align investments with their goals.

How Online Brokers Help: Online platforms are equipped with AI-powered insights, research tools, and expert analysis, helping expats make informed decisions. Some platforms even offer financial planning tools to match investments with individual goals and risk profiles.

With these features, online brokers empower expats to invest with confidence, offering the tools and accessibility needed to efficiently grow their wealth in a dynamic financial environment.

How Longbridge Delivers Unmatched Value for Expats Trading in Singapore

Investing as an expat in Singapore often comes down to finding the right brokerage that combines low fees with a great platform. Longbridge stands out as the clear leader in affordability and innovation, offering unparalleled benefits for investors:

$0 commission on HK & US stocks/ETFs: Opening a Longbridge account now, you gain lifetime commission-free trading for these markets, eliminating the fees that typically eat on your returns.

Exclusive Welcome Rewards: New investors can enjoy additional perks, including free real-time market quotes for HK and SG markets and other exciting benefits. Learn more here.

Advanced tools and seamless experience: Whether you're a beginner or a seasoned trader, Longbridge's innovative platform and mobile tools provide everything you need to succeed in local and international markets.

Choosing Longbridge, you’re unlocking unmatched value with $0 commission trading and exclusive rewards, empowering you to invest smarter and achieve your financial goals with ease.

Tailored Financial Planning for Expats

Financial planning for expats comes with its own set of challenges and opportunities. Whether you’re saving for retirement in a new country or juggling income in multiple currencies, having a plan that’s tailored to your unique situation can make all the difference. Singapore offers plenty of investment options, but the key to long-term success is aligning your portfolio with your personal goals and financial needs.

Create a Comprehensive Financial Plan

Building a solid financial plan as an expat means balancing your short-term trading goals with long-term priorities like saving for retirement or investing in property. To reduce risk and boost returns, consider spreading your investments across options like REITs, ETFs, and Singapore Savings Bonds. If you’re planning to relocate in the future, prioritize investments that are easy to liquidate or transfer internationally for added flexibility.

Seek Professional Advice

Financial planning as an expat can feel overwhelming, especially with the added complexities of taxes and currency risks. Seeking guidance from financial advisors who specialize in expat needs can make a big difference. They can help you tailor your investments to fit your unique circumstances while staying compliant with both local and international tax laws. Many brokers and platforms in Singapore also offer tools and advisory services to simplify the process and ensure your plan is aligned with your goals.

Steps to Open a Trading Account as an Expat

Getting started with a trading account in Singapore is simpler than you might think. Follow these steps to set up your account:

Choose the Right Broker: Decide whether you want a CDP-linked account (for long-term investors) or a custodian account (for frequent trading).

Prepare Required Documents:

• Passport
• Proof of Address (e.g., utility bill, bank statement)
• Employment Pass or Residency Documentation

Complete the Application:

Sign up online or visit the broker’s branch. Most online brokers offer quick and hassle-free application processes.

Fund Your Account: Deposit funds via bank transfer or e-wallets, depending on the broker’s options.

Start Trading: Once approved, you can access the platform, analyze market trends, and start investing.

Many brokers also offer demo accounts, which allow you to practice trading with virtual funds before committing real money.

Investment Strategies and Tips for Expats

Start Small: Begin with modest trades to get a feel for market behavior and explore local trends and brokerage tools.

Diversify Your Portfolio: Expand beyond local stocks by choosing brokers that offer access to international markets.

Compare Fees: Look out for hidden costs like custodian or currency conversion fees when trading foreign stocks.

Leverage Research Tools: Use analytics and insights provided by your broker to make informed decisions.

Consider Risk and Goals: Align your investments with your financial goals and risk tolerance to ensure long-term success.

Regulations and Taxes Expats Need to Know

Singapore’s regulatory framework ensures a transparent and secure trading environment. Here are key regulations and tax considerations expats should know:

Capital Gains Tax:

Good news for investors—Singapore does not impose capital gains tax on profits earned from stock trading, making it highly attractive for investors.

Dividend Withholding Tax:

For non-residents, dividends from Singapore-listed stocks are tax-exempt. However, dividends from international stocks may incur withholding taxes based on the issuing country’s policies.

Compliance and Licensing:

Brokers in Singapore are regulated by the Monetary Authority of Singapore (MAS). Always ensure your broker is MAS-licensed for protection and reliability.

Understanding these regulations helps you optimize your returns and avoid unexpected tax issues.

Currency Management Strategies for Expats

Managing currencies effectively is one of the most significant challenges expats face when trading in Singapore’s stock market. With investments often spread across different countries and currencies, exchange rate fluctuations can have a considerable impact on overall returns. Implementing sound currency management strategies can help expats protect their profits and optimize cross-border transactions.

Multi-Currency Accounts

A multi-currency account is a valuable tool for expats trading internationally. These accounts allow investors to hold, trade, and convert multiple currencies seamlessly within a single platform, minimizing the need for frequent conversions that incur fees. For instance, brokers offering multi-currency wallets enable expats to trade U.S. stocks in USD or Hong Kong stocks in HKD without converting funds back to SGD. This feature helps reduce transaction costs and simplifies the trading process for investors managing portfolios across different markets.

Hedging Currency Risks

Currency risks arise when exchange rate fluctuations affect the value of foreign investments, especially when converting profits back into your home currency. To mitigate these risks, expats can leverage tools like currency ETFs, which track the performance of specific currencies, or forward contracts, which lock in exchange rates for future transactions. These strategies provide stability and ensure that sudden market changes do not erode your returns. A sound understanding of currency hedging can go a long way in protecting your portfolio’s value over time.

What Investment Products are Popular in Singapore?

Singapore is a global financial hub offering stability, strong returns, and diverse investment options, making it highly appealing to both locals and expats. Certain investment products have gained significant traction for their ability to cater to various financial goals, from generating passive income to achieving long-term growth. Here’s why these products stand out:

Singapore REITs (Real Estate Investment Trusts)

Singapore REITs are a favorite among expats due to their consistent dividend payouts and exposure to high-quality real estate assets. They allow you to invest in income-generating properties like malls, offices, and warehouses without directly owning physical real estate. With yields of up to 6% or more, REITs provide a reliable source of passive income and are particularly attractive in Singapore’s thriving property market.

Blue-Chip Stocks

Blue-chip stocks, such as DBS, Singtel, and CapitaLand, are well-established companies listed on the Singapore Exchange (SGX). Known for their financial stability and regular dividend payouts, they are ideal for conservative investors seeking steady, long-term growth. These stocks are also resilient during market volatility, making them a safe choice for expats building their portfolios.

Exchange-Traded Funds (ETFs)

ETFs offer a simple way to invest in a diversified basket of stocks or bonds. Popular ETFs in Singapore include those tracking the Straits Times Index (STI), which provides exposure to the top 30 companies on the SGX. ETFs are a cost-effective option for passive investors, allowing you to spread risk while benefiting from market growth.

Singapore Savings Bonds (SSBs)

SSBs are government-backed bonds that offer low-risk returns, making them a secure investment choice. They provide regular interest payouts and can be held for up to 10 years with the flexibility of early redemption. SSBs are particularly appealing for expats looking for a stable and predictable income stream.

Unit Trusts

Unit trusts pool money from multiple investors to invest in a diverse portfolio of stocks, bonds, or other securities. Managed by professional fund managers, they are ideal for investors who prefer an expert’s guidance. Unit trusts are a great option for expats who want access to a diversified portfolio without actively managing individual investments.

Investing in Singapore: Risks and Tips to Manage Them

Of course, investing always comes with risks, but being aware of them can make a big difference. Here are some key risks to look out for while investing in Singapore stocks, along with tips to navigate them effectively:

Market Volatility

Stock prices can fluctuate significantly due to local and global economic events, impacting your investment returns. For instance, geopolitical tensions or changes in monetary policies can trigger sudden market reactions.

Currency Risks

Expats trading international stocks or dealing with foreign currencies face the risk of exchange rate fluctuations, which can erode profits when converting back to their home currency.

Hidden Costs

While some brokers advertise low fees, additional charges like custodian fees, currency conversion fees, or inactivity fees may apply, impacting your overall returns.

Regulatory Risks

Although Singapore’s Monetary Authority of Singapore (MAS) ensures strict regulations, investing in unfamiliar products or unlicensed brokers can expose you to fraud or compliance issues.

Over-Leveraging

Using margin accounts or high leverage can amplify losses during market downturns, making it crucial to approach leveraged investments cautiously.

Understanding these risks and implementing strategies like diversification, research, and risk management can help mitigate potential downsides and lead to a more secure investment journey.

Final Thoughts: Start Trading with Confidence

Trading in Singapore as an expat opens up opportunities to grow your wealth in a well-regulated, dynamic market. Start by choosing a reliable broker, understanding the account setup process, and learning the local trading landscape. Whether you’re investing for long-term goals or seeking short-term returns, having the right tools and knowledge is key.

If you’re ready to get started, sign up with Longbridge, which combines user-friendly technology, competitive fees, and support tailored to your needs today! Plus, you’ll be able to start trading commission-free!

Still have questions? We’ve got you covered. Check out these frequently asked questions to ensure you have all the information you need to get started.

Frequently Asked Questions (FAQ)

1.Can expats open a brokerage account in Singapore?

Yes, expats can easily open a brokerage account by providing necessary documents like their passport, proof of address, and residency documentation.

2.Are there capital gains taxes on stock trading in Singapore?

No, Singapore does not impose capital gains taxes on stock trading profits.

3.What’s the difference between a CDP-linked account and a custodian account?

A CDP-linked account is suitable for long-term investors who want their shares held directly in their name. Custodian accounts, managed by brokers, are ideal for frequent trading and often come with lower fees.

4.How do brokerage fees differ between traditional and online brokers?

Traditional brokers usually charge higher fees but offer personalized services, while online brokers are more affordable and designed for self-directed trading.

5.Which is the best brokerage platform for expats in Singapore?

The best brokerage platform depends on your specific needs, such as cost, features, and accessibility. Platforms like Longbridge are popular among expats for their $0 commission trading and user-friendly tools. However, traditional brokers and other online platforms may also offer features tailored to different investment styles, so it’s worth comparing multiple options to find the one that fits you best.

6.Can I trade US and HK stocks from Singapore?

Yes, most brokers in Singapore provide access to international markets, including the US and Hong Kong.

7.Are dividends from Singapore-listed stocks taxable for expats?

No, dividends from Singapore-listed stocks are tax-exempt for non-residents.

8.What documents do I need to open a brokerage account?

You’ll need your passport, proof of address, and residency documentation (e.g., employment pass).

9.Do brokers offer demo accounts for practice?

Yes, many online brokers offer demo accounts to help beginners practice trading with virtual funds.

10.What should I consider when choosing a broker?

Evaluate factors like fees, platform features, accessibility, and regulatory compliance to select the best broker for your needs.