It’s been over 10 years now since we founded The Fifth Person. In that period, we’ve shared our investment insights and analysis, published hundreds of articles, and written about how anyone can achieve financial independence through prudent and long-term investing.
Along the way, we’ve received several emails from readers who wanted a practical guide on how to start investing in Singapore. This was when we realised that while a blog is a great way to share our research and insights in a timely manner, it’s not the best way to organise information about a topic in a practical, step-by-step sequence.
So we decided to compile a list of our best articles that will guide you step-by-step on what you need to do to start investing today. We hope this practical guide will help you get the ball rolling — especially if you’re a beginner – and ultimately help you make better, more profitable investment decisions. 😊
How to start investing in Singapore
1. Before you start investing, it’s important to set your personal financial goals and how much you need to save (and invest) to reach your target. These articles will show you how to plan ahead and get your personal finances in order before you put first dollar in the stock market.
- How saving just $11 a day can make you a millionaire
- Do you have these 2 financial parachutes ready before you invest?
- The rule of 300: How much you need for retirement
2. Once you have your finances in order, it’s time to open a brokerage account. We’ll show you how to open a brokerage account in Singapore and the minimum sum you to get started (it’s not much, really).
- How to open a brokerage account in Singapore (and how to choose the right broker)
- How much money do you need to start investing in the stock market?
3. The next step is to choose you investment style that works best for you — based on your own risk profile, investment goals, and financial needs. Remember, any particular strategy can give you great returns as long as you do it right, and you’re also free to combine different styles to suit your individual needs.
Knowing that, these articles will give you a deeper introduction into each investment style:
Value-growth investing
- The Alpha Quadrant: The 4-step formula to picking the best stock investments
- The many models of investing: Predictable value investing
- 7 quick steps to pick the best value-growth stocks
Income investing
- 5 reasons why you should invest in dividend stocks
- 5 easy steps to pick the best dividend-growth stocks
- 10% and beyond – how to earn a double-digit dividend yield from your investments
Singapore REITs (Income investing)
- 5 reasons why you should invest in S-REITs
- 5 important factors you need to consider before you invest in any REIT
- Top 10 Singapore REITs that made you money if you invested from their IPOs
Deep value investing
- Deep value investing vs. value investing
- Deep value investing: 4 core tenets to finding bargain stocks with big upside
- 6 things you need to know about deep value investing before jumping into it…
- How to construct a deep value stock portfolio
4. Once you understand the types of companies you should be looking out for, you need to manage a watchlist and portfolio of stocks. We’ll show you some quick ways of finding investment ideas to add to your watchlist, and what you need to do manage and monitor your stock portfolio along the way.
- 3 easy ways I find new investment ideas fast
- 5 best must-read sources to find new investment ideas in Singapore
- When to buy a stock: The 3 best times to buy stocks at a discount
- When to sell a stock: 3 best times to sell a stock to lock in profits and protect your downside
- 3 ways to maximize your investment returns during a market crash
- 3 things you need to do when your stock’s price falls 30%-50% (or more…)
- 3 signs your stock portfolio could lose you a lot of money
- 5 things you need to do if you keep losing money in the stock market
- 5 reasons why you should attend annual general meetings if you’re an investor
- 4 free investment apps to track your stock portfolio performance
5. You can invest in foreign stocks to gain exposure to more growth opportunities as Singapore is a small market. Here are some reasons why investing overseas is a great idea and what you need to look out for.
- 4 reasons why Singaporeans should invest in stock markets overseas
- 3 ways to handle forex volatility when investing overseas
6. Your CPF is an important part of your financial planning and retirement. Here are some articles which show you how to make full use of your CPF and the important things you need to consider if you plan on investing your CPF.
- 4 simple ways to maximise and grow your CPF savings for retirement
- How to earn 6% returns “risk-free” from your CPF
- How to choose which CPF LIFE retirement plan is best for you
- How to invest your CPF: 5 things you need to know
The fifth perspective
We hope you find this guide on how to start investing in Singapore useful. This list is by no means final and we’ll add/update the guide as we write more articles and share new information that’s relevant to investing in Singapore.
At the same time, check our favourite investment books, read our analysis section, and our coverage on annual general meetings on how we apply these concepts when we do our research on companies in Singapore and beyond – I believe you’ll find a treasure trove of insights that will help you become a better, more profitable investor.
To your investing success,
The Fifth Person
iam construction worker.I am bangladeshi.can I strat stock exchange business in Singapore? if I can,how to I start? please tell me details.
Hi Sujan,
It will be extremely hard to start a stock exchange ‘business’ in Singapore since we already have the SGX and it is unlikely the government will see the need for another.
But if you’re asking about how to start trading stocks through a Singapore brokerage, you can read this article: https://fifthperson.com/how-to-open-a-brokerage-account-in-singapore/
Hey! I’m a 19 y/o student with a keen interest in investing and was wondering if you have any book recommendations/tips on how I can get started!
Hi Randall,
Sure! You can check out these 3 books:
1. The Little Book of Value Investing by Christopher H Browne
2. Bull: A History of the Boom and Bust by Maggie Mahar
3. Common Stocks and Uncommon Profits by Phillip Fisher
Hi, I’m a 19 y/o tertiary student who’s keen to learn investing. I’ve a sum of $2000 which I would like to get started with. I’m someone who wants to see returns within a short while (say 2-3 months) and not wait for 10-20 years before seeing results.
Hope I could get some advice.
Hi Jorge,
Thanks for asking! Investing is a long-term game. If you prefer short-term returns, you may want to consider trading:
https://www.investopedia.com/university/how-start-trading/
We are moving to Singapore. We want to start a business there and these article is totally giving us clue on how we can invest or start a business. Thanks for sharing these.
You’re welcome!
Very well written as well as very informative.. good job fifthperson…
Thanks Parul! You’re most welcome 🙂
Hi, i’m planning to open a small shop selling some natural herbs,so how much do I need to invest over
Hi Esa,
Thanks for asking! This resource is about how to invest in Singapore stocks.
If you’re interested in opening your own business in Singapore, this may help: https://www.mom.gov.sg/working-in-singapore/starting-a-business
Hi guys. I would like to know which is the best trading platform in Singapore which is secure and reliable.
Hi Kelvin,
You can check out this article: https://fifthperson.com/how-to-open-a-brokerage-account-in-singapore/
All the Singapore brokerages are pretty similar and reliable. Which is ‘best’ boils down to your personal choice and preference.
Can Singaporean invest in Vanguard ETF? Will our dividend and capital gain be taxed?
Hi Michelle,
Yes, you can invest in the Vanguard ETF. The most cost-effective way is through a U.S. brokerage firm. And if you buy it through a Vanguard brokerage account, you pay zero commissions.
As a foreigner, you’re not taxed on capital gains, but you have a 30% withholding tax on dividends.
I have $2000 in my account.. How and where I should invest so that i can see my fund growth every year.. I will add up some money if the growth is good.. Kindly help me on this.. Im malaysian working in Singapore.. Thanks in advance..
Hi Tiagoo,
There are inherent risks to investing and there is NO guarantee that your investments will grow every year. We suggest reading more about investing, its risks, and how stock markets work before you invest.
https://en.wikipedia.org/wiki/Stock_market_crash
https://www.investopedia.com/university/risk/risk2.asp
https://fifthperson.com/here-are-the-top-5-stock-investment-styles-find-out-which-one-works-best-for-you/
I read a lot of good stuff in these articles. Thank you for sharing!
You’re most welcome, Aldo!
Hi I am from Bangladesh. And I am a regular trader in Dhaka Stock Exchange market.
Now a days I feel a big interest to start my investment/trading in Singapore stock market.
So How can I do that as a Bangladeshi/foreigner?
Hi Kayser,
You need to check if your local brokerage allows you to trade in Singapore stocks and what their charges are.
To open a Singapore brokerage account, you need a Singapore bank account which requires you to be a local resident (i.e. you’re either a citizen/permanent resident or have an employment/study pass.)
https://fifthperson.com/how-to-open-a-brokerage-account-in-singapore/
hi , do you have training classes of the investment quadrant upcoming soon?
Hi Junjie,
Thanks for asking! Yes, we’re currently accepting applications for Investment Quadrant right now.
You can find out more here: https://investmentquadrant.com/
Hi may i know will our investments be taxed? Because we singaporeans have to pay income tax. For example if i were to engaged in stocks or shares .. thank you & what if we were to buy shares from foreign stock exchange?
Hi Greh,
There is no capital gains or dividend tax in Singapore. However, if your gains are of an “income nature” like a stock trader, then it is taxable.
https://www.iras.gov.sg/IRASHome/Individuals/Locals/Working-Out-Your-Taxes/What-is-Taxable-What-is-Not/Gains-from-Sale-of-Property–Shares-and-Financial-Instruments/
Hi guys. Many thanks for this wonderful guide, presented in an easy to understand and objective manner. I am a retiree and a new investor. I am interested in Index-based ETFs as they are diversified and low cost. You mentioned that the best way to invest in Vanguard ETFs are through US or Vanguard brokerages. I know Vanguard has presence in HK and Australia. Do you mean the brokerages in these countries? Further, which of these have the lowest expense rates in Total – iFast(in SG), the HK/Australia brokerages, IB, TDAmeritrade, Schwab, when it comes to US/Vanguard ETFs? Many thanks for your pointers!
Hi Sazali,
Thanks and you’re most welcome! We suggest directly opening a U.S. brokerage account to trade U.S. securities; the fees are usually much lower compared to Singapore brokerages.
Interactive Brokers is the cheapest but it charges you a US$10 monthly fee unless you make 10 trades per month or have US$100K in funds. If not, something like Charles Schwab is a good, solid option (US$4.95 per trade).
Hi there, I’m a foreigner living in Singapore and interested in investing in foreign stocks. According to your previous comments I assume the best beneficial way to invest in e.g. U.S. stocks is only by choosing those companies without paying a dividend due to the 30% withholding tax?
Do you also have any knowledge in terms of tax payments in Singapore regarding the European stock market (Capital gains and dividends), e.g. UK and Germany stocks.
Many thanks in advance.
Hi Cloud,
Yes, I’d invest for growth instead of dividends in the U.S. markets due to the dividend withholding tax.
There is no capital gains tax in Singapore for stock investments: https://www.iras.gov.sg/IRASHome/Individuals/Locals/Working-Out-Your-Taxes/What-is-Taxable-What-is-Not/Gains-from-Sale-of-Property–Shares-and-Financial-Instruments/
Hi! Im 20yr old and currently in ns. I’ve been growing interest in investing and may i know what’s the minimum amount that i need to start investing?
Hi Sky,
You can refer to this article: https://fifthperson.com/how-much-money-do-you-need-to-start-investing/
I really liked the post and I have been reading this blog for a long time, congratulations on the quality of the content, but can you ask me how long it takes for me to see results in my investments made recently?
That would depend on how you invested…?
Hi,
I would like to trade Singapore and US stocks. Do I need to have both CDP (for SG) and nominee accounts (for US trade). What is the recommended way.
Hi Kay,
The CDP account is only for SGX stocks. For U.S. stocks, we recommend using an international broker as their fees are a lot cheaper. You can read more about them here: https://fifthperson.com/how-to-buy-us-shares-in-singapore/
I have shortlisted interactive brokers and SAXO. In your opinion, which of these will you choose?
Hi Kay,
We assume that you shortlisted these two as you want access to more markets besides the U.S.
Over the long term, Interactive Brokers is the better, cheaper option. But if you want to avoid the US$10/- monthly fee because you don’t plan to fund US$100K to your account, then Saxo would be more suitable for you right now.
Hi, just wanted a consolidated answer based on prior replies.
I am a Malaysian living in Malaysia. I would like to invest in Singapore stocks. I am a retail investor.
1. Can I know if I will be taxed for capital gains / dividends?
2. If I use IBKR, will they automatically do this?
3. Is there any tax rebate / double tax treaty that can reduce an individual’s tax bill?
Thank you for your time.
Hi Christopher,
There is no capital or dividend tax on Singapore-listed stocks for Malaysians.
https://www.guidemesingapore.com/business-guides/taxation-and-accounting/double-tax-treaties/singapore-malaysia-double-tax-treaty-guide
Im Singaporean Nursing here, Im interested in learning cryto,share ,trade something like but no knowledge at all. Just wanna make money cannot tahan Covid leg pain ,pls assist me if there any course for beginner with no knowledge.
Reading all the articles listed on this page is a good start. Let us know if you have any questions along the way!
Very good stuff! Keep up the good work!
Thanks Jean!
Hi there,
I just came across StocksCafe to track investments. Do you have any experience in using this tool and would you recommend it? Thanks for your feedback.
Hi Tascha, we’ve not used StocksCafe ourselves, so we can’t give you an opinion on it.