What are some ways that we can earn passive income? If you did not know, investing is a great way to earn some really good passive income, if done properly! Becoming familiar with how to invest is a crucial step towards financial independence. Doing this on your own involves opening a brokerage stock account. It requires you to be aware of what you should look out for and know about opening this type of financial account in Singapore. The most important thing and that you should know first is that you need separate accounts, which is a brokerage account and a Central Depository Account (CDP). What Is A Brokerage Account? A brokerage account provides access to securities exchange through a brokerage firm for you to be able to sell and buy stocks along with other securities that are listed. You are not limited to opening a brokerage account with one stock brokerage firm. What Is A Central Depository Account (CDP)? The SGX operates a Central Depository Account, and this is where the stocks, as well as other listed securities that you purchase on the Singapore Exchange, are deposited automatically and stored on your behalf. Unlike a brokerage account, you can only hold a single personal account directly with CDP. Knowing the difference between a brokerage account and Central Depository Account is essential for getting started in the world of investing. You can apply for a CDP account and submit your applications conveniently here. Simply apply for an account online and receive it within 15 minutes! Finding a Stock Brokerage Firm You need to find the right brokerage firm. There are several stock brokerage firms within Singapore. They mainly perform the primary function of enabling investors to buy and sell stock and other exchanges in the world on the Singapore Exchange. However, there are several distinct factors that you should take into consideration when choosing a brokerage firm. When buying and selling stocks, a commission gets paid for every transaction. Most investors often consider commission fees when picking brokerage firms because these fees can reduce their returns. Various brokerage firms within
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