3 things to know about investing in the Singapore market

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If investment is something you’ve thought about but never got around to, now might be the right time to start. While the global financial markets may seem volatile at the moment, starting in your own backyard might be the perfect solution. Why? With Singapore being a stable market — clinching top spot as the world’s most competitive economy for two years in a row — even during these times of uncertainty, it is a relatively secure way for retail investors to begin their investment journeys. Coupled with market familiarity, living and breathing the economic landscape also creates an environment that allows both new, casual and seasoned investors to make sound decisions that will suit their goals.

Understanding the market for better decisions

To understand investments and the market, one generally has to have a good understanding of economic outlooks, political situations and business insights in order to make sound decisions. All of these fluctuating factors have repercussions to a country’s stock exchanges. One big advantage to starting your investment journey in Singapore is that we live, work and play here, which ultimately makes us more consciously and subconsciously attuned to the day-to-day sentiments and fluctuations of the Singapore Exchange (SGX). This in turn, fosters a mindset marked by informed decisions and thus, better investments, whether it is in stocks, ETFs or futures.

Ultimately, investing your hard-earned money is also investing in a product or brand that you believe in — whether it be due to similar values, mindset, or simply because it is a good product. Some popular brands listed on the SGX that are heavily invested in include bank stocks from the likes of DBS, OCBC or UOB; telecommunications companies like Singtel, Starhub and M1; and diversified companies, such as Keppel Corp, CapitaLand and Genting, all of which has stakes in various industries. One thing to always keep in mind is that there is no shame in starting small when you’re trying to learn the ropes and find your rhythm. Whether you’re investing $1,000 or $10,000, always start with a figure you are comfortable with, especially during times of volatility.

Understanding your options, especially in the SGX

With over 700 listed companies in the Singapore Exchange, it might feel overwhelming to even know where to start. The essence of the SGX lies in a few key factors: industry, business model, management, growth indicators like share price, stability like EBITDA ratio and valuation. While there’s no way to know which stocks are best due to the ever-changing nature of the stock exchange, taking a look at these key factors would help determine what would best suit your investments. Many of the most popular stock and share options in the SGX are blue chip stocks, which best serve long-term passive investors.

In the wake of the recently announced Fortitude Budget, one of the focal points was financial support to promising startups. Not only does this encourage homegrown Singapore brands to step up, it is also a huge incentive for promising startups to mark their presence here in Singapore, a country known for its political and financial stability, transparency and ease of conducting business. While many of these companies have yet to go public, this allows new investors to keep an eye out for promising companies, market sentiments and movements.

After all, the age-old adage of “the early bird gets the worm” also rings true for investments. Such initiatives also bolster positivity over SGX stocks and the power of the Singapore market, where optimism over the economic stimulus drove 73 per cent increases in market turnover for exchange-traded funds (ETFs) and securities in the last month. Most notably, the SGX has just announced the launch of 10 Singapore Single Stock Futures (SSFs) in response to a growing demand for a broader suite of Singapore-linked equities products, for companies including DBS, UOB, OCBC Bank, ComfortDelGro, Genting Singapore and Keppel Corp, amongst others.

So, what does this all mean?

At the end of the day, investments are also a personal journey. Understanding how tools can work for you is a big part of the process to making sound investment decisions. Some questions you must ask are: what is your end goal? What kind of investor are you? And, what is your investment style?

It helps to understand what you want to get out of your investments, which in turn, will inform what types of investments to make to best suit your goals. If passive income is the name of the game, then perhaps dividend-yielding stocks may be best. However, if you are looking to grow your money quickly, then investing in young companies could be the best route.

Additionally, it is equally important to know your own risk appetite. Sometimes, the potential for quick growth also comes with a higher risk of losing money. Your investment style also determines what to do with your portfolio. Are you hands-on and quick or slow and steady? Knowing such factors would help in what tools can work for you and aid your own personal journey.

Ultimately, while it may be tempting to dive headfirst and invest in big markets outside Singapore, not keeping tabs on your investments can hurt you in the long run. A big part of investing is also understanding your market and knowing on-ground sentiments, making investing in Singapore a big draw, especially for new investors. Living and breathing the economy we are in may result in stronger portfolios and higher dividends in the future.

At Tiger Brokers Singapore, take advantage of our sophisticated tools to make your money work harder for you. With everything within the reach of your palm, we aim to make your investment journey easy, whether you’re new or a seasoned investor. At Tiger Brokers Singapore, we treat all our clients as privileged clients, with no tiers to segregate you. For those of you who are looking for convenience and accessibility to the global financial markets, you have reached the right broker. From now until 31 December 2020, Tiger Brokers is offering Singapore stocks at 0.08% per trade with no minimum charges*.

*Terms and conditions apply

This article has not been reviewed by the Monetary Authority of Singapore.

Any views shared with Prospective Clients (“Prospects”) are suggestive in nature and on a sample basis only. The may also be predicated on assumptions that are made by Tiger Brokers (Singapore) Pte Ltd about the Prospects’ investment objectives and risk profile. Our suggestive and sample views extended to Prospects are not to be considered as recommendations made by the Company. Suggestions provided are also based on information that may be shared by the Prospects, the accuracy and comprehensiveness of which Tiger Brokers in not in a position to verify.

Tiger Brokers (Singapore) Pte Ltd (herein "Tiger Brokers") may, to the extent permitted by law, participate or invest in other transactions with the issuer of the products referred to herein, perform services or solicit business from such issuers, and/or have a position or effect transactions in the securities or options thereof. The information herein is for recipient’s information only and not an offer to sell or a solicitation to buy. Any date or price information is indicative only and may be changed without prior notice. All opinions expressed and facts referred to herein are subject to change without notice. The information herein was obtained and derived from sources that we believe are reliable, but while reasonable care has been taken to ensure that stated facts are accurate and opinions are fair and reasonable, Tiger Brokers does not represent that it is accurate or complete and it should not be relied upon as such. The information expressed herein is current and does not constitute an offer, recommendation or solicitation, nor does it constitute any prediction of likely future stock performance. Investment involves risk. The price of investment instruments can and do fluctuate, and any individual instrument may experience upward or downward movements, and under certain circumstances may even become valueless. Past performance is not a guarantee of future results. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any person or affiliated companies. Before making an investment decision, you should speak to a financial adviser to consider whether this information is appropriate to your needs, objectives and circumstances. Tiger Brokers assumes no fiduciary responsibility or liability for any consequences financial or otherwise arising from trading in securities if opinions and information in this document may be relied upon.

 

About Tiger Brokers (Singapore) Pte Ltd.

Tiger Brokers Singapore Pte Ltd (Tiger Brokers Singapore) is a brokerage firm operating with a Capital Markets Services (CMS) Licence from the Monetary Authority of Singapore (MAS). Its trading platform, Tiger Trade, offers complimentary real-time stock quotes, dedicated multilingual customer service during trading hours and 24/7 finance news updates. The company launched the mobile version of Tiger Trade in February 2020 — accessible on Google Play Store and the Apple App Store — offering mobile-savvy generation of retail investors similar trading opportunities as their online users, such as Equities, Exchange-Traded Funds (ETFs), Futures, Stock Options, Warrants, and Callable Bull/Bear Contract (CBBC) on their mobile phones. Both online and mobile app allow users to invest across multiple asset classes traded on the Singapore, U.S. and Hong Kong stock markets such as the New York Stock Exchange (NYSE), NASDAQ, Shanghai/Shenzhen-Hong Kong Stock Connect, the Hong Kong Stock Exchange (HKEX) and the Singapore Stock Exchange (SGX).

Tiger Brokers Singapore is the Singapore entity of UP Fintech Holding Limited, known as “Tiger Brokers” in Asia, a leading online brokerage firm focusing on global investors. Founded in 2014, Tiger Brokers became #1 in the U.S. equity trading by volume among trading platforms catered to Global Chinese investors in less than two years. Tiger Brokers was awarded "2017 Fintech 250" by CB Insights and shortlisted for "China Leading Fintech 50" for two years in a row by KPMG China. The company was listed on NASDAQ under “TIGR” in 2019 and has offices in China, United States, Australia, New Zealand and Singapore. Tiger Brokers has over 743,300 customers worldwide currently, with a total trading volume of more than US$44.1 billion in Q1 2020. The company is backed by well-known investors such as Xiaomi, as well as investment guru Jim Rogers.

For more information, please visit https://www.tigerbrokers.com.sg.

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