If you are looking for an opportunity to invest in stocks in a fast-growing market in Southeast Asia, you should choose Singapore, for it offers wonderful prospects for investors. By investing in exchange-traded funds (ETFs), you can start your stock investment Singapore journey. If you are a beginner, you should have some knowledge about common securities like shares and stocks and different stock analysis methods.
Both stocks and shares are the same though they are often called equities. Buying stocks gives you a share or legal ownership in the company that issued the stocks. Prospective investors can buy or sell shares or stocks listed on the stock exchange, which is Singapore Exchange (SGX). You need to buy or sell at least 100 shares to trade on the SGX. You come across various benefits and risks of investing in stocks.
Get to know some benefits of stock investment in Singapore
Most investors find investing in stocks favourable for the positive returns stock markets give over time. Here are some benefits of investing in stocks in Singapore.
1. Easy to buy or sell
With stocks listed on the Singapore Exchange, you can buy or sell shares by starting a Central Depository (CDP) and a Stock Trading account. A CDP account, controlled by the Singapore Exchange, helps keep the stocks you bought safely. On the other hand, you can open a Stock Trading account with your desired broker. You can buy or sell shares through multiple trading accounts with different brokers in the security market in Singapore. Just open any debit card Singapore banks offer.
You can choose to trade in different types of stocks like exchange-traded funds and closed-end mutual funds online. Other than a broker, you can engage a financial planner to assist you in stock investments.
2. High returns
Trading in stocks will enable you to earn more in a short period. Buying shares of companies, which are fast growing stocks, will help you to sell the shares at high prices earning high returns. You can always hold the shares you bought if you find their prices increasing in the future. Selling them at the right time will help maximize your returns on investments.
3. Share ownership
When you buy equities of companies, you become a shareholder and one of the several owners of a company. The ownership stays until you sell off the stocks, for they don’t have any maturity period. Being a shareholder helps you enjoy dividends when the company grows and earns profits
4. High liquidity
Stock investments offer high liquidity, for you can sell your stock anytime if you are in urgent need of money. Unlike fixed deposit schemes, you don’t have to wait for the completion of the maturity period to withdraw your money.
5. Long-term benefits
Buying, holding, and selling equities are at your discretion. If you want to gain long-term benefits, you have to hold your stocks until there is a substantial increase in the price or make periodic investments to earn more profit.
6. Highly diversified
If you have enough money to invest, you can buy as many stocks as you want from different companies and in different countries. All you need is a trading account in Singapore for which you don’t have any limit to investing in stocks.
If you want to start investing, it is the right time to find a broker for advice and resources. You can open your CDP and Trading account and start your stock investment in Singapore right away.