Guide & How-to: SGX Central Depository (CDP) Account In Singapore
Sat, 25 June 2016
You heard you need a SGX CDP account before you can start buying stocks or selling in Singapore stock exchange.
If you are wondering:
"What is a CDP securities account?"
"How do I open one and apply for online CDP?"
"What is the cost and fees for stocks transaction and shares transfer?"
"I have forgotten my CDP account no. how do I retrieve it?"
"How do I sell my stocks in CDP when my broker has left the firm?"
Then you have come to the right article because this will answer all of that.
So without further ado let's jump right in!
What is A SGX CDP Account?
The SCX CDP is an organization that enhances smooth operation and settlement of transactions in the securities market.
The body is composed of two integrated parts; the Singapore Stock Exchange(SGX) and the Central Depository(CDP) which is the wholly subsidiary of SGX.
The corporation facilitates the payments and depository services both in the shares market and of fixed income assets i.e bonds.
The body primarily caters for the SGX stocks market but it also has other branches overseas to facilitate the settlement of multinational clearances in countries such the US and those found in Asia.
It's A Depository For Shares & Bonds
The Central Depository is the centralised nominee (you can have 1 CDP a/c with multiple brokerage a/c) which it holds shares on behalf of investors in the form of CDP securities accounts. In Singapore unless you have a custodian account with a brokerage house like Standard Chartered Bank (or specifically requested sub-a/c) , nearly all stocks are being stored in a CDP accounts.
Remember this in Singapore you need two accounts to buy and sell stocks
1. Central Depository (SGX CDP) - it is responsible in holding the stocks your purchased stocks.
2. Dealings account (brokerage account) - Nowadays usually it is an online trading platform where you can buy or sell stocks by you own without the assistance of a broker.
How To Open A CDP Account
To apply directly with CDP you need a bank account with one of the following banks in Singapore:
- Standard Chartered Bank
- 18 years old or above
- You are not charged as bankrupt
- Complete the application form on your computer and sign on the printout copy.
- Photocopy your Singapore NRIC, Malaysia Identification Card, or Passport.
- Include one of the three following original documents or e-statements (dated within last 3 months):
A. Bank statement from any Monetary Authority of Singapore (MAS) licensed banks; or
B. Central Provident Fund (CPF) statement (available on CPF website); or
C. Latest Notice of Assessment for Income tax (available on IRAS website).
4. Mail the signed application form and supporting documents to:
The Central Depository (Pte) Limited
11 North Buona Vista Drive
The Metropolis Tower 2
Alternatively, you can apply through a brokerage firm which the agent will assist in both the application of brokerage account and CDP account. All you need is to head over to their one of office. There is no charges or fees in both applications.
How To Check Your CDP Account Number (Even If You Misplaced And Forgot Your Password)
After the application or whenever there is a transaction made in SGX. It will send you a CDP statement as it occurs. Your CDP account number is stated in the letter.
However in case you have lost the CDP statement, you can:
1. Go to SGX CDP.
2. Login with your NIRC (Click ‘Forgot your password?’ If you do)
3. Your CDP account number is at the top right corner of the page:
Another way is to call CDP at 6535 7511. After the usual identity verification, they will provide you your CDP accounts number.
How Much Is SGX Clearing Fee
The SGX market fees charge per transaction is 0.04%.
SGX Clearing Fee of 0.0325%
SGX Trading Access Fee of 0.0075%
How To Sell Shares In CDP Account
You can’t sell shares directly in CDP as it only holds your shares. You need a brokerage account and link it with it with CDP.
Once you have a brokerage account or applying in person:
1. Go to your brokerage firm and tell them you want to open a brokerage account and link it to your existing CDP account which it holds your shares.
2. You will complete this linkage form.
The process of the linkage of your securities and trading accounts will take within 1 business day. Once successful you will be informed in letter.
How To Perform CDP Share Transfer
To transfer your shares from your CDP account to your immediate family member’s CDP account.
(CDP only allows shares transfer to immediate family member and it does not allow transfer to non-immediate member.)
Step #1: Head over to CDP office, in this case you need to bring down:
1. the ID or passport of both yourself and the person whom you want to transfer to. 2. Certificates to establish the relationship between yourself and your transferee, such as marriage or birth certificates
Step #2: Mail to CDP, complete this transfer form and attach the required documents (same as the above).
The transfer will take 3 working days if your documents are in order. You will be informed via confirmation letter.
The cost is $10.70 per counter for each transfer request.
For transfer for estate of the deceased
Please refer to here for more information.
From SCB account holder if you wish to transfer your shares from SCB custodian account to SGX CDP, you may refer to below:
Singapore Savings Bonds Q&A on CDP - In case you wonder, you need CDP account to subscribe for Singapore Savings Bonds.
Understand CDP statement - This pdf will help you understand CDP statement.