Do investments always have to happen via a bank? I'm really new to investing and read that one can at the very least start out with ETFs - but does that happen via a bank or just via CDP?

Hi there!

You don't necessarily need to go through a bank to start investing. It's a common misconception, especially when you're completely new to ETFs and the stock market.

In Singapore, banks are just one option. You can also invest through independent brokerage platforms.

The main thing to understand is the difference between a brokerage account and a CDP account.

A brokerage account allows you to buy and sell investments, including ETFs. CDP, on the other hand, holds eligible securities listed on the Singapore Exchange (SGX). If you're using a CDP-linked brokerage account, your eligible investments can be held directly in your CDP account. Some brokers instead hold investments in custody on your behalf.

For beginners, I think understanding what you're investing in is more important than choosing a platform immediately.

ETFs can be a reasonable starting point because a single diversified fund can provide exposure to many companies. However, not every ETF offers the same level of diversification, and investment values can still fall.

One thing worth learning early is how to build a diversified portfolio without needing a large amount of money. Finance Nest Blog has a beginner-friendly article covering this:

https://financenestblog.com/investing/diversifi...

I contribute to Finance Nest Blog, so mentioning that for transparency. The article focuses on general diversification principles rather than Singapore-specific brokerage arrangements.

Before investing, I'd suggest comparing brokerage fees, understanding whether your investments will be held through CDP or a custodian, and checking the ETF's underlying holdings and expense ratio.

Also, keep some emergency savings separate from your investments. Starting small and learning along the way is perfectly reasonable.

Hope this helps clear things up a little. Everyone has to start somewhere!

Hey there, well not really. It just happens that banks also have brokerages services like DBS Vickers, Maybank Kim Eng, UOB Kay Hian. There are other brokerages such as Philips POEMs that offer the same service.

CDP is like your stock savings account - whatever stock you purchase via your brokerage will be stored in your CDP account.

On where to start, the super basics, I literally started from Hardwarezone Money Mind. There are quite a few sticky threads on investing for beginners. But HWZ do have some trolls sometimes.. Alternatively, you are exactly where you are right now - Seedly! They have very comprehensive guides in just about anything related to personal finance! In addition, you can pick up some finance books such as 100 Baggers by Christopher Mayer, just to build up that knowledge first :)