Online trading platforms allow you to invest in stocks, bonds, foreign currencies, and other assets from anywhere at any time. Most provide multiple trading options, expanding your earning potential and allowing you to diversify your portfolio. However, because trading can be complex, make sure you understand how it works before getting started.
Choosing which is the best online broker can be difficult since there are so many trading platforms online. When it comes to comparing the best brokerages and trading platforms, in Singapore for instance, there are numerous variables to consider (user experience, market access, product offering, and so on). It can be intimidating, but looking at the fees involved with each trade is a good place to start.
How shares are traded
The majority of Singaporean company stocks are traded on the Singapore Exchange (SGX), a place buyers and sellers meet to negotiate a price. You can buy or sell stocks on the Singapore Exchange from Monday through Friday, from 9.00 a.m. to 12.30 p.m. and 2.00 p.m. to 5.00 p.m.
Shares are mostly traded in board lots of 1,000 shares on the Singapore Exchange. For those who wish to continue trading in the designated board lot sizes, board lot trading on the existing Ready Market will be maintained.
Why trade shares
Shares are one of the most popular investment options for individuals seeking higher returns on their savings. Every day, shares are bought and sold for a variety of reasons, including:
- Capital growth. Shares have the potential to grow in value over time.
- Dividend yield. Shares can generate income for you if you hold them.
- Diversification. With shares, you can invest in a variety of companies with small amounts of money.
- Liquidity. When you want, you can buy and sell shares quickly and easily.
- Transparency. The price of the shares you want to buy or sell is visible.
Capital gains tax
There is no capital gains tax in Singapore. Sales of shares, fixed assets, intangible assets, profits on foreign exchange on capital transactions, and other similar transactions are not taxed in Singapore. Capital gains are only taxable if you are a dealer or trader, which means that profits are taxable when someone buys and sells property for a profit.