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Investing in stocks is one of the most productive financial decisions you can make. And the sooner you start, the more likely you are to make a profit.
I randomly looked at five stocks and here are their gains over the past five years:
Action
% of profit in the last five years
(April 26, 2019 – April 25, 2024)
Amazon (AMZN)
81,06%
Google (GOOG)
153,26%
Microsoft (MSFT)
214,93%
Apple (AAPL)
230,89%
Tesla (TSLA)
933,99%
In light of these results, I wouldn’t wait five years to start investing. It’s best to go straight there.
Here’s how to buy stocks in Singapore in five steps.
Stocks can’t be bought in a store and taken home in a plastic bag. To buy and sell your stocks, you need to open an account with an investment brokerage. A brokerage is a company that acts as an intermediary between you and the exchange.
Brokerage accounts charge fees such as commissions (usually a percentage of each trade), platform fees, custodian fees, and even inactivity fees. Fees can’t be completely avoided, as that’s how brokerage houses make money. But it’s imperative to compare other brokers to locate the one that offers the lowest rates for the markets you need to invest in.
If you are trading SG shares, I suggest using Webull. Lately they are offering a promotion where you can get 0 commission on SG shares for 3 years. I don’t know how long they will be able to continue to offer this. So enjoy it while you can.
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Type of action
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0 platform fees for U. S. trades U. S. and Hong Kong*
Regular Savings Plan: Average the charge of your favorite U. S. stocks, ETFs, and mutual budget. The U. S. economy at its own pace.
Earn up to 5. 4%* in USD (P. A. ) over 7 days with Moneybull
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When it comes to U. S. stocks, your go-to, in my opinion, is Saxo Markets. They offer the most productive combination of low fees and a professional, easy-to-use platform.
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Type of action
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A word of advice: don’t just decide on the cheapest broker you can find. Price is indeed one of the most sensible priorities, but the user interface of the trading platform and the reliability of the broker are also crucial. Remember, you’re going to employ the platform to position and monitor your positions, and you’ll most likely end up having a giant portion of your savings with that specific broker.
Brokers like Webull, Saxo, Interactive Brokers, and Moomoo have very low fees, but keep in mind that they hold the shares you buy in custodial accounts. This means that you are not the official owner of the shares. To be an official shareholder, you want to open a central custodial account (CDP) and use a broker like DBS Vickers. The fees are much higher, but you will enjoy certain privileges, such as attending AGMs (Annual General Meetings). Personally, I have enough meetings to attend and I don’t want any more. I simply stick with custodial agents to take advantage of low rates.
Read more: How to Decide Which Investment Brokerage Company in Singapore Is Right for You
Before you start trading, you want to transfer cash to your account. Your brokerage possibly has a minimum investment requirement, so you need to make sure you have the required amount.
Brokerage firms settle for multiple investment methods, such as the following:
FAST-Moving Internet Banking
PayNow Transfer
Remittances from abroad, e. g. with TransferWise as
Well done. You now have a fully funded brokerage account – that’s the simple part.
What are you investing in now? If you don’t have a plan yet, here are some attractive options.
Blue-chip companies such as Singtel, DBS, and Keppel are giants of Singapore’s economy. They may not be experiencing insane expansion like some foreign corporations (think Tesla), but overall they are incredibly stable. Many investors hold those stocks for long periods of time and earn dividends.
If your purpose is to collect dividend-paying stocks, be sure to do your studies first, as all stocks offer dividends.
Read more: The MoneySmart Guide to Buying SGX Stock
Want to know what’s even safer than blue-chip stocks?Welcome to ETFs. The most popular ETFs, such as the S
As a person who isn’t interested in inventory selection, ETFs are my favorite form of investing.
Read more: The Complete Beginner’s Guide to How to Invest in ETFs
Have you ever dreamed of owning a home?REITs such as Mapletree, CapitaLand, and Ascendas allow you to partially own various advertising properties, such as purchasing grocery malls and office buildings. Big names are considered to be pretty foolproof in the long run (COVID-19 notwithstanding) and tend to pay big dividends.
Read more: MoneySmart’s Guide to Investing in REITs
Once you’ve liquidated your budget, you’ll be able to buy stocks on your broker’s mobile or desktop platform.
I’m not here to tell you which strategy to use, but if you’ve never invested before and don’t have a lot of money, you may need to keep things undeniable by spending a consistent amount a month on a generic ETF like the S
Read more: The step-by-step guide to STI ETF: what it is and how to start investing
One of the main benefits of the periodic buying method is that you don’t have to worry about the timing of the market. The idea is that, in the long run, ETFs will go up and down, but they deserve to end up being better than when you first bought them. He started investing. By buying a small, consistent amount each month, you spread your risk across many ups and downs. All you need to do is be disciplined enough to set aside the money to invest each month.
If you’re more into risk and need to bet on a specific stock, I’m not going to bother you. Just make sure you’ve done your studies and don’t buy simply for the hype.
The Singapore stock market tends to favor passive investors who just want to sit back and collect regular dividends rather than looking for stocks with high growth potential.
On the other hand, if you’re looking for “growth” stocks like Tesla, you’ll want to buy them in foreign exchange. Which, in fact, is also very simple. Consult our advisor for the purchase of shares in the US market. Visit the U. S. Department of Homeland Security for more information.
Most dividend stocks pay dividends once a year, i. e. , quarterly. However, there are some exceptions, and some stocks pay dividends between 1 and 12 times a year.
Some brokerages offer you the option to automatically reinvest dividends in cash. If you don’t choose this option, you’ll get the cash dividends. You can then temporarily reinvest the cash according to the dollar-cost average approach or hold it until you locate smart deals in the market.
And that’s it! For the average citizen who only needs to buy and own quality stocks, making a long-term passive investment is rarely very complicated.
Of course, depending on how rigorously you need to manage your portfolio, there may be more to learn. But by now, you know enough to get started. Good luck!
Do you know who needs to invest in stocks for the first time?Share this article with them.
The article How To Buy Stocks In Singapore In Five Easy Steps (2024) Tips appeared first on the MoneySmart blog.
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The article How To Buy Stocks In Singapore In Five Easy Steps (2024) Tips appeared first on the MoneySmart blog.
Original article: How to Buy Singapore Stocks in Five Easy Steps (2024).
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