Stock Trading for Expats in Singapore: What You Need to Know About Local Brokers
Singapore is a thriving financial hub with a well-regulated stock market that attracts both locals and expats. If you’re new to trading or considering investing in Singapore-listed stocks, understanding how local brokers operate and the steps to get started is crucial. This guide breaks down everything you need to know: brokerage services, account setup, regulations, fees, and tools to help you trade confidently as an expat.
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:
These brokers typically provide personalized services, including advisory support, research reports, and offline trading options. However, they may charge higher commission fees.
Online Brokers:
Online platforms offer faster, self-directed trading at lower fees. They provide access to advanced tools, real-time data, and mobile apps, making them ideal for expats who prefer convenience.
By understanding the distinction, you can pick a broker that aligns with your investment style.
Why Longbridge is the Most Cost-Effective Choice for Expats 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: By opening an LBSG 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.
By 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.
Steps to Open a Trading Account as an Expat
Opening a trading account in Singapore is straightforward, but there are specific requirements for expats. Follow these steps:
1. Choose a Broker: Decide whether you want a CDP-linked account (for long-term investors) or a custodian account (for frequent trading).
2. Prepare Your Documents:
- Passport
- Proof of Address (e.g., utility bill, bank statement)
- Employment Pass or Residency Documentation
3. Complete the Application:
Sign up online or visit the broker’s branch. Most online brokers offer a quick and seamless registration process.
4. Fund Your Account: Deposit funds via bank transfer or e-wallets, depending on the broker’s options.
5. 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.
Regulations and Taxes Expats Need to Know
Singapore’s regulatory framework ensures a transparent and secure trading environment. Here are key considerations:
Capital Gains Tax:
Good news for investors—Singapore does not impose capital gains tax on profits earned from stock trading.
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 country of origin.
Compliance:
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.
Trading Platforms and Accessibility
The trading experience largely depends on the quality of the platform. Most top brokers, like Longbridge, offer:
Real-Time Data and Analytics: Access to live market prices and stock performance.
Mobile Applications: Trade on-the-go with easy-to-use mobile platforms.
Research Tools: Detailed reports, technical analysis charts, and financial news to aid decision-making.
A reliable and intuitive platform ensures you stay connected and make informed trades at your convenience.
Practical Tips for Expats Trading in Singapore
Start Small: Begin with smaller trades while familiarizing yourself with local market trends and brokerage tools.
Diversify Your Portfolio: Don’t limit yourself to local stocks—consider brokers that offer access to international markets for a well-rounded portfolio.
Compare Fees: Pay attention to hidden charges like custodian fees or currency conversion fees when trading foreign stocks.
Leverage Research Tools: Use broker-provided market insights and tools to make smarter decisions.
Why Expats Prefer Online Brokers
Expats often choose online brokers for their convenience, affordability, and accessibility. Platforms like Longbridge stand out by offering competitive fees, advanced tools, and excellent customer support, making them ideal for both beginners and experienced traders.
Final Thoughts: Start Your Trading Journey
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, consider platforms like Longbridge that combine user-friendly technology, competitive fees, and support tailored to your needs.