Start here
I'm new to investing in Singapore. What's the first step?
- 1
Set aside the emergency fund
The MoneySense Basic Financial Planning Guide suggests keeping three to six months of expenses where you can reach it at once, before any investing. The point is what it protects: with the fund in place, a bad year in the market never forces a sale. Singapore-dollar deposits are insured up to S$100,000 per depositor per bank by SDIC.
- 2
Know what CPF is already doing
Before buying anything, know the return you already earn by default. For Oct to Dec 2026, the Ordinary Account pays 2.5% a year and the Special, MediSave and Retirement Accounts pay 4.0%, with an extra 1% on the first S$60,000 of combined balances for members under 55. That is a benchmark to compare any product against, after its fees.
- 3
Open a brokerage account
On SGX, shares can sit in your own CDP account or in the broker's custody; US shares always sit with a custodian. When comparing brokers, read the commission, the platform fee and the currency conversion spread as separate lines — the headline fee isn't the whole cost, and conversion often costs more than the commission.
- 4
Start simple and regular
A broad index fund holds hundreds of companies in one purchase, which is why many first plans are a fixed monthly amount into one. A regular plan also removes the hardest question — when to buy — by answering it the same way every month. The savings rate and the fees decide most of the end result; the MoneySense guide's benchmark is investing at least 10% of take-home pay.
The mistakes that cost beginners the most
- Investing the emergency fund
- Money needed this year gets sold in the worst week to need cash.
- Ignoring fees
- S$10,000 at 6% a year for 20 years grows to S$32,071.35; a 1.5% annual fee cuts that to S$24,117.14.
- Chasing last year's winner
- Past returns don't predict future returns, and the crowd arriving is often what made them past.
- Confusing investing with trading
- “1% a day” compounds to about 12.3x a year, which is why it reads as a red flag, not a plan.
How to read the result
Technical
The guide orders decisions by how much they move the end result: savings rate, then costs, then product choice. The benchmarks come from the MoneySense Basic Financial Planning Guide.
Plain English
What you save and what you pay in fees matter more than picking the right stock on day one.
Technical
The emergency fund target is monthly expenses times three to six months, kept instantly reachable. Singapore-dollar deposits are insured up to S$100,000 per depositor per bank.
Plain English
Money you might need this year doesn't belong in the market. The fund is what lets you leave investments alone in a bad year.
Technical
CPF pays 2.5% on the Ordinary Account and 4% on Special, MediSave and Retirement Account savings for Oct to Dec 2026, plus an extra 1% on the first S$60,000 of combined balances for members under 55.
Plain English
Before buying anything, know the return you already earn by default. That's the benchmark to hold any product against, after its fees.
A worked example
Esther spends S$2,500 a month, so six months of cover is S$15,000 in an instant-access account — the guide's sliders take your own numbers. Only once that's in place does she start a monthly plan into a broad index fund.
What it can't tell you
- It's a starting order, not a plan for your circumstances.
- Products and fees change. Check the provider's current pricing.
- CPF rates are set quarterly. The figures here are the rates for 1 Oct to 31 Dec 2026.
Source: MoneySense Basic Financial Planning Guide (MAS and the financial industry, October 2023): three to six months of expenses set aside, at most 15% of take-home pay on insurance protection, at least 10% invested. Checked 29 Oct 2026.
Source: CPF Board: interest rates for 1 Oct to 31 Dec 2026 and extra interest on the first S$60,000. Checked 29 Oct 2026.
Source: Singapore Deposit Insurance Corporation: Singapore-dollar deposits insured up to S$100,000 per depositor per Scheme member. Checked 29 Oct 2026.
For education only. Not financial advice.