Step By Step To Set Up Your Central Depository (CDP) Account
What is a Central Depository (CDP) Account?
The CDP is a subsidiary of the Singapore Stock Exchange, an organization which settles all the transactions in the securities market. Besides facilitating payments, the corporation also offers depository services in the fixed income assets (e.g. bonds) and shares market. Although it primarily caters for stocks listed on the SGX, there are also services which offers the settlement of multinational clearances in other countries. A CDP account is a depository account for your shares and bonds. Besides Standard Chartered brokerage account which is a custodian one, all the other brokerage firms would have your stocks transferred to your CDP accounts after you transact on their platform.
So before you buy and sell stocks, you will need 2 accounts:
- Brokerage account – to buy and sell stocks without a broker.
- Central Depository (CDP) Account – to hold the stocks you have purchased
How To Open A CDP Account?
To apply and open an account from CDP, you need a bank account with one of the following:
- Standard Chartered Bank
Requirements / Criteria:
- 18 years old or above
– Not legally charged as bankrupt
Step By Step
- You are required to complete the application form and sign on it. (Tax Identification Number is your NRIC.)
- Attach a photocopy of your Singapore NRIC, Malaysia Identification Card, or Passport AND one of the following original documents or e-statements (dated within last 3 months)
- Bank statement from any Monetary Authority of Singapore (MAS) licensed banks; or
- Central Provident Fund (CPF) statement (available on CPF website); or
- Latest Notice of Assessment for Income tax (available on IRAS website).
3. Mail the signed application form and the 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 and the agent will help you set up both your brokerage account and CDP account. Without any charges or fees in the application, simply head over to one of their offices.
Now you know how to set up a CDP account, compare the various brokerage account and set up one too.