How can you invest in Singapore?

Singapore is one of the major economic centres in Asia. Despite its limited size, there is a lot of money involved in this small city state. Do you want to invest in Singapore's economy yourself? Then it can be interesting to buy well-known shares from Singapore. In this article you can read how and where you can do this best.

How can you invest in Singapore?

One way to actively invest in Singapore shares is to use CFDs. CFDs are good investment instruments for speculation in rising and falling stock prices. A good party to invest in this way is PIus500. Use the button below to open a free demo account with this broker:

PLUS500 SIGN-UP

invest singapore

Where can I buy & sell Singaporean stocks?

You can invest in Singapore by buying stocks or ETFs on the index. It is important that you choose a reliable party so that you do not face any nasty surprises. A good party to buy stocks from Singapore is eToro, since at this broker you do not pay commissions on shares. Use the button below to open an account:

REGISTER ETORO

Exchange rate

The exchange rate is an important factor when investing in Singapore. If your currency performs relatively less well, you can make a loss even when the prices of Singapore stocks rise. It is therefore important to always keep a close eye on the situation in the world when investing.

Why should you invest in Singapore shares?

There are several reasons why it can be interesting to invest in Singapore stocks.

Growth of capital

When you buy stocks, your assets may increase in value in the long term. Stock prices are determined by the game of supply and demand. When the demand for shares increases, you see that the price rises. In the long run, stocks increase in value: by buying shares periodically, you increase the chance that your capital will increase.

Dividend

Another advantage of investing in Singapore shares, is the fact that you often receive dividends. When a company makes a profit, it may decide to pay out part of that profit in the form of a dividend. So, by buying shares you can build up a fixed and stable income.

Diversification

It is advisable to spread your risks as much as possible. This will prevent you from investing in a sector or region that is performing less well. By also buying stocks of companies from Singapore you can spread your risks further and you will be able to achieve a better investment result.

Liquidity

Singapore is a financial hub with a lot of international attention. The shares on the Singapore Stock Exchange are therefore liquid so you can easily trade them.

Transparency

Singapore's stock exchange is reliable. Because of this you can always check the results of the shares listed on the stock exchange.

How to buy your first stock from Singapore?

You can make an investment in Singapore from anywhere in the world! In this short guide we will discuss how to buy shares on the Singapore Stock Exchange.

Opening an account with a broker

An important first step is to open an account with a broker. Fortunately, you do not necessarily have to open a broker account with a party in Singapore. You can buy the stocks listed on the country's stock market index anywhere in the world.

It is therefore wise to buy an account with an international broker. To help you we have listed the best brokers for you;

COMPARE BROKERS

Composing a strategy

It is not wise to buy and sell stocks blindly. Before you start investing in Singapore, it is important to make a good investment. Start by setting a clear goal: what do you want to achieve and what risks are you willing to take? Without a clear vision you can’t really start investing well.

A good way to invest is to apply the strategy of dollar cost averaging. You don't get in at once. Instead, you periodically invest a fixed amount in Singapore's stock market. This way you avoid investing at the wrong time and losing a lot of money.

In any case, it is important to remember that investing costs money. In the short term, you can certainly make considerable losses with your investments. Therefore, invest only with money you can spare and be patient. Avoid listening too much to emotions: there is a good chance that you will achieve bad results with your investment.

Determine what you invest in

It is a misunderstanding that it is only possible to trade in shares with a broker. Many investors prefer to invest in ETFs over individual stocks. With an ETF, you can invest in a collection of Singapore stocks in one go. This allows you to immediately apply a good spread of risks and often lowers transaction fees.

Evaluate your strategy

It is important to constantly evaluate your investment strategy. Does your current strategy and objective still match what you want to achieve? Are you still satisfied with buying and holding Singapore shares? By asking yourself important questions you will discover if you are on the right track.