How a novice investor starts investing with DBS VICKERS

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Introduction

Hi, this is Temasekun.

In this article, titled “How a novice investor starts investing with DBS VICKERS”, I would like to report on the steps taken by a novice investor, Temase-kun, from opening a securities account to purchasing stocks in Singapore.

Since other blogs have already described the same thing, I will only describe my own experience.

What do you get out of this article?

Three pieces of information you will gain from this article
  1. How to open a Cash upfront Account with DBS VICKERS SECURITIES
  2. How to open a CDP Account with SGX
  3. How to buy shares in DBS VICKERS SECURITIES

Why did I decide to start investing?

I am going to tell you about this in a separate article, but to put it simply, I wanted to live a comfortable life like successful Singaporeans.

I have been living in Singapore for about three years now, and during that time, I have been stimulated by the large number of wealthy people in this country, which I have experienced firsthand and am very familiar with.

Why did I decide on a Cash upfront Account with DBS VICKERS SECURITIES?

As some of you may know, Singapore is a country with a very good investment environment.

However, when it comes to commissions for buying and selling stocks, it is cheaper in Japan.

Naturally, I referred to various blogs and summary articles before opening a securities account.

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As you can see in the linked article, trading commissions for Singapore stocks vary widely from brokerage firm to brokerage firm.

Since I am a beginner investor and expect to gradually build up my assets while learning, I assumed that minimal commission trading would be the basic approach.

I do not expect to buy or sell stocks in the short term, and I may sell some stocks in the next few years when I review my portfolio.

As we had assumed that our main investments would be in Singapore stocks and Singapore REITs, we excluded trading fees for U.S. stocks from our consideration this time.

As for the management of Singapore stocks after purchase, either CDP Account or Custodian Account varies from brokerage firm to brokerage firm.

The differences between a CDP Account and a Custodian Account are roughly as follows.

ProsCons
CDP – The ability to purchase shares in your own name.
– You can buy and sell shares in other brokerage accounts using CDPs, without relying on a brokerage firm.
– High trading commissions compared to Custodian
Custodian – Lower trading commissions than CDP – The shares will be purchased in the name of the brokerage firm.
– If you do not meet certain conditions, you will be required to pay additional account management fees.
– Fees are incurred when transferring shares to a CDP.

While it is fundamental to try to keep fees low, we found CDP Account to be more attractive in terms of flexibility.

Based on the above conditions, a brokerage account with a minimum trading fee (10 SGD) for Singapore stocks at a brokerage firm that uses a CDP Account was selected as a candidate.

  • DBS VICKERS SECURITIES (Cash upfront Account)
  • FSMOne

DBS VICKERS SECURITIES (Cash upfront Account) has a minimal commission of 10 SGD for the purchase of shares only.

FSMOne has a minimal commission of 10 SGD for selling shares only.

As mentioned above, my basic policy is to invest in Singapore stocks as a long-term holding.

Also, since my main bank account is a DBS Multiplier Account, I met the requirements to use a Cash upfront Account with DBS VICKERS SECURITIES.

Furthermore, considering that I would eventually return to Japan, I wanted to keep management as simple as possible, so the ability to unify my bank and securities accounts with DBS was a good point.

Due to the above, I have decided to open an account with DBS VICKERS SECURITIES Cash upfront Account.

Why I decided on a Cash upfront Account with DBS VICKERS SECURITIES
  1. Because of the high affinity with the investment stance (investment stance to hold Singapore stocks for the long term)
  2. Since the minimum trading fee was 10 SGD
  3. Because I can manage my shares in my CDP Account
  4. For simple management of bank and securities accounts

Order to open a Cash upfront Account with DBS VICKERS SECURITIES

Since DBS VICKERS SECURITIES’ Cash upfront account manages shares in a CDP Account, you must open a separate CDP Account from your DBS VICKERS SECURITIES’ Cash upfront account.

Strictly speaking, it does not matter which account is opened first, as long as the final linkage between the DBS Vickers Cash Upfront and CDP accounts is established, but I opened each account in the following order.

When opening a Cash upfront Account with DBS VICKERS SECURITIES, there is a field to enter the account number of the CDP Account, so I think this order will make the process smoother.

  1. Open a CDP Account
  2. Open a Cash upfront Account with DBS VICKERS SECURITIES

Steps to open a CDP Account

The procedure for opening a CDP Account is as follows

  1. Access SGX CDP Account Opening
  2. Fill in the required fields and complete the web-based procedure.
  3. Receive a letter in the mail confirming that your account has been successfully created (account information will be sent to you via email).
  4. Receive a document in the mail containing your password for your first login.
  5. Log in for the first time and complete the initial setup of your account.

Access SGX CDP Account Opening

First, access the following page.

https://investors.sgx.com/cdp-account-opening/#/form-selection

There are two ways to use SingPass or to enter information in all fields from scratch.

Since applications using SingPass are only available to Singaporeans or PR holders, most people will need to enter their information in all the fields from scratch.

Naturally, I also applied in a way that did not use SingPass.

Complete the web-based procedure

The following documents are required to apply for a CDP Account and should be prepared in advance.

  1. Bank Accounts
  2. Tax-related information
  3. Copy of passport (PDF file)
  4. Proof of bank account status (PDF file)

For tax-related information, I entered my taxpayer identification number in Singapore.

In addition, proof of bank account status can be issued on iBanking for DBS Bank.

Receive mailings

Once you have successfully completed the web-based application, you will need to wait a few days.

Mail is received in two separate shipments.

  • Email
    • Account Information
  • Mailing
    • Documentation of the contents of the account being created
    • Document containing password for initial login

As for the first, there is nothing special to do upon receipt. At any rate, you can be relieved.

After receiving the second one, log in and complete the initial setup as soon as possible.

I think it was about 5 business days during this time.

You will then receive your account number and other information by email during this period.

Complete the initial setup of your CDP Account

Once you have obtained a password for your first login, you can log in from the following page.

Welcome to SGX Investor Sign-in page

I think I had to enter the OTP via SMS several times for the initial setup, but please be patient.

Once you have successfully logged in with your new password, your CDP Account setup is complete!

Steps to open a Cash upfront Account with DBS VICKERS SECURITIES

To open a Cash upfront Account with DBS VICKERS SECURITIES, follow the steps below.

  1. Log in to DBS iBanking
  2. Apply for a Cash upfront Account in DBS VICKERS SECURITIES using the Cash upfront Account application form
  3. Receive an email with your account information and CDP Account link status
  4. Receive a document containing your password for the first login by mail.
  5. Log in for the first time and complete the initial account setup.

Login to DBS iBanking

Go to the following to log in.

https://internet-banking.dbs.com.sg/IB/Welcome

Apply through DBS VICKERS SECURITIES’ Cash upfront Account application form.

Once logged in, go to the application form in the following order.

Apply tab → DBS Vickers Online Trading Account

You must enter your CDP Account number on the application form!

Receive account information

After applying, you will receive the following information by email and mail

  • Email
    • Account No.
    • Status of connection to CDP Account
  • Mailings
    • Password for initial login
    • Device for OTP (One Time Password) generation

Complete the initial setup of a Cash upfront Account for DBS VICKERS SECURITIES

Update the password for the initial login and the initial setup is complete.

You can log in to your DBS VICKERS SECURITIES Cash upfront Account in the following ways

  1. Log in via DBS iBanking
  2. Log in using the DBS Vickers login form.

I log in via iBanking. Because I need to log in this way to buy shares as Cash upfront.

Buy shares with a Cash upfront Account at DBS VICKERS SECURITIES

Once the CDP Account and DBS VICKERS SECURITIES Cash upfront Account have been successfully opened and linked, it is time to purchase shares.

This section includes the following information

  1. How to login to DBS Vickers via DBS iBanking
  2. How to buy shares after logging in to DBS Vickers

How to login to DBS Vickers via DBS iBanking

After logging into DBS iBanking, you can log into DBS Vickers by following the steps below.

Invest tab → App authentication → Consent to be redirected to DBS Vickers page → DBS Vickers

How to buy shares after logging in to DBS Vickers

After logging in, you can move to the screen for purchasing shares by following the steps below.

Trade tab → Place Order

On the purchase screen, please note the following

  • Stock Search
    • Search by brand name or symbol
  • Settlement Mode
    • Don’t forget to select Cash Upfront!
  • Quantity
    • Enter the number of shares
  • Price
    • Enter the amount per share

The purchase of shares will be made at a limit price.

As for buying on the market, I didn’t know how to set it up in DBS Vickers, so I will add it when I figure it out.

I have just started investing, so there may be some things I don’t understand or mistakes I may have made, but I would appreciate it if you could gently point them out to me.

Conclusion

This article summarizes the steps a novice investor should take from opening a Singapore brokerage account to the actual purchase of stocks.

I purchased Frasers Logistics with my first purchase.

Since the purchase, the stock price has been performing well.

I will continue to invest a certain amount each month in Singapore REITs and Singapore stocks to build my portfolio.

I am also planning to gradually get my hands on U.S. stocks and bonds.

I hope that this article will be helpful to those who are looking to start investing.

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