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How to invest in stocks

You can buy and own a portion of the brands you value when you open an IG One account. Learn how to invest in stocks with us, without paying commission.¹

Key takeaways

  • To begin investing in stocks, you need to open an account with a stockbroker, fund your account, and use the platform to buy and sell shares.

  • Stockbrokers act as intermediaries, providing access to exchange-listed shares and handling the buying and selling of stocks on your behalf.

  • Investing in stocks can come with various risks, such as market, investment, and business risks, so it's important to manage your risk effectively.

Steps to start investing in shares

To start investing in stocks, you’ll need an account with a stockbroker – like us. Our IG One app will enable you to invest in stocks and ETFs across 6 global markets, including Singapore, US, Hong Kong, China (A-Shares), UK and Japan. 

When the app is available, you’ll be able to:

  1. Open and manage your investment account

  2. Fund your account in minutes

  3. Buy and sell shares and ETFs instantly

Join our waitlist and we’ll let you know when the app is available.

How to invest in stocks

After opening an account with a stockbroker, you can use their trading platform to buy and sell shares and funds.

When investing, you have two main options: you can choose to purchase a specific number of shares in a company or fund, or you can decide on a fixed amount of money to invest.

For example, if a stock is trading at S$0.50 per share, you could buy 100 shares for S$50, or you could invest S$250 to receive 500 shares. Keep in mind that these calculations don't include any associated fees, which vary by broker and should be factored into your investment decisions.

Why do you need a stockbroker?

The main reason why you need a stockbroker is to access shares listed on an exchange (eg the London Stock Exchange, or LSE). That’s because only registered brokers can access the exchange, place orders and execute deals.

A stockbroker can be seen as the middleman between buyers and sellers of shares. Brokers often have high-performing technologies available to them that enable investors to get exposure to a variety of stocks; charging a fee for their service.

three icons illustrating that an investor places an order with a broker, which then places the order with the exchange. The exchange grants shares to the broker, who sells them to the investor.

IG One rates and fees

IG One offers competitive pricing on thousands of stocks and ETFs with no commission and no platform fees. Here’s what you’ll pay once the app is available:

All international shares (US, UK, China (A-Shares), Hong Kong, Japan)  
Platform fee $0
Commission $0
$0

 

Singapore Shares  
Platform fee $0
Commission $0

How do you open a stockbrokerage account?

How you open a stockbrokerage account will depend on the broker you choose.  Once available, the IG One app will enable you to:

  1. Set up your profile. We’ll usually verify your identity immediately

  2. Once open, you can deposit funds into your account

  3. You will then be ready to trade shares and ETFs with ease

How does a brokerage account work?

Not all stockbrokerage accounts work the same. With us, it will work as follows:

When you invest using our IG One app you’ll be able to explore global markets with ease. You’ll get access to thousands of stocks and ETFs across Singapore, US, Hong Kong, China (A-Shares), UK and Japan without paying commission. 

Your shares – and their value – will be stored in your account. You’ll be able to see the number of shares you own, as well as what they’re worth when you sign in to your account. If the value goes up or down in the stock market, this will reflect in your account, too.

Any dividends  owing to you will also be paid into your IG One app account. So, any profits and losses, as well as earnings from dividends, will be kept here. You can reinvest these dividends – ie use the money to buy more shares, or you can withdraw it whenever you want, for free.

a few icons showing that an accountholder has an open IG One account, and both   shares and dividends are stored in that account for them to access.

How do I fund my account?

You’ll be able to fund your account—and withdraw these funds—quickly and easily, using a variety of methods such as PayNow, a debit or credit card, or by making a bank transfer. We have a minimum deposit of S$20, but no maximum limits on deposits or withdrawals. You’ll be able to deposit money whenever you’re ready.

All payment methods are secure and there's no fee from us for most deposits. However, card deposits incur a 2% fee.  Funds are typically available immediately with PayNow and card payments, while bank transfers may take 1-2 business days to process.

When you want to withdraw money from your IG One account, you’ll be able to do so at any time, for free. We will withdraw your funds into the same account in which you used to add funds. Processing times may vary depending on the withdrawal method used.

How to invest using our IG One app?

Once the IG One app launches, you’ll be able to create and sign into your account. From there, you can invest in thousands of popular shares, from exchanges across the world. 

You’ll simply search for your preferred stock or ETF on our platform. Then you’ll open its chart and place your deal in the deal ticket.

How much should I invest?

How much you should invest is completely up to you. You should only ever invest an amount that you’re willing to risk, as the markets could move against you. Our IG One app will enable you buy US shares (fractional shares) with any amount, starting from S$1. This will enable you to build a diversified portfolio, even with a small budget.

Find out  how to manage your risk  before investing in any shares.

Why invest in shares with us?

A new way to invest is coming soon with our IG One app. The app will enable you to:

  •  Get started within minutes: you’ll be able to open your IG One account quickly and easily, and use a funding method that suits you
  • One of the lowest fees in Singapore: no commissions and no platform fees – what you see is what you pay

  • Access 6 global markets: trade thousands of stocks across Singapore, US, Hong Kong, China (A-Shares), UK and Japan without paying commission

    Join the IG One waitlist and we’ll let you know when the app is available.

Other investment products

If you don’t want to invest in individual stocks, we also offer exchange trade funds (ETFs) and bonds.

Invest in a basket of assets and themes from a single position.

Buy and sell bonds to diversify your portfolio and earn interest over the term.

What are the risks of investing in shares?

There are different types of risks when investing in shares. Some shares are riskier or more volatile than others. But one thing is certain – no matter the type of investment – there will always be a degree of risk involved.

Investment risk

This is the most general type of risk when you own shares. The price of the underlying asset can fluctuate based on supply and demand. This means the value of your investment can go down, and you could get back less than you put in. If you want to invest in stocks, consider how much you’re willing to risk before you place your deal.

Market risk

As the name suggests, this type of risk affects the entire market, and not specific stocks. So, even if you have a diverse portfolio of shares, you could be exposed to market risk. It can be linked to general economic turmoil, natural disasters, interest rate changes, etc.

Other risks

Some of the other risks to be aware of when investing include currency risk, liquidity risk and business risk. With currency risk, you’re at the mercy of the exchange rate between countries. Liquidity risk comes into play when there is low demand for (or supply of) a certain asset. Lastly, business risk is the risk that a company won’t generate a profit or stay afloat.

Note that this isn’t an exhaustive list– make sure you conduct thorough research on all possible risks before investing.

How to manage your risk when investing

Here are a few ways you can manage your risk when investing in stocks:

  • Learn as much as you can about investing

  • Hedge  your positions

Remember, while buying and owning shares can be risky, there are also possible rewards if the market moves in your favour.

 

Learn more about the basics of stock investing

  1. What is a stock?
  2. Why do companies issue shares?
  3. What is a stock exchange?
  4. What is the stock market?
  5. What are dividends?
  6. Why invest in shares?

1. What is a stock?

It’s important to note that ‘stocks’ and ‘shares’ are related, but not entirely the same. A stock is a security that represents a collection of shares listed on an exchange. A share is a single unit of ownership.

Think about it this way – if Vodafone lists all its available shares on the LSE, it has listed its ‘stock’. Post-listing, the public can then invest in Vodafone shares.

2. Why do companies issue shares?

Companies will issue shares for different reasons. Some may simply want to raise their public profile. Others might want to raise money to fund business expansion, pay debts, attract talent or monetise its assets.

3. What is a stock exchange?

A stock exchange is a marketplace where financial instruments, like shares, are bought and sold. The LSE is a popular example of a stock exchange. For a company’s shares to be listed on a stock exchange, it has to go through an initial public offering (IPO). A  stock exchange’s opening hours  will depend on where in the world it’s located. 

4. What is the stock market?

The stock market is a slightly more abstract concept than a stock exchange, as it’s not a specific place. Rather, it represents every exchange, and the space where all buyers and sellers participate in the financial markets.

So, as an example, if you hear news terms like ‘stock market crash’, it means that practically all financial assets and markets are facing a serious downturn.

5. What are dividends?

Dividends are payments made to shareholders by the companies in which they’re invested. If a company makes a profit, and they choose to pay dividends, shareholders will receive a portion of the profit. Not all companies pay dividends.

You can reinvest your dividends – ie use the money to buy more shares in the company – or withdraw it as cash. With us, dividends received from your investments will be paid directly into your IG One account.

6. Why invest in stocks?

Many people choose to invest in stocks because it’s a way to own a portion of the brands you value. If you invest in shares, you can make a profit if you sell them for a higher price. You can also earn a passive income from dividends (if paid) and receive voting rights, enabling you to have a say in company matters.

FAQs

How can I start investing in stocks?

To start investing in stocks, you’ll need to open an account with a stockbroker. When our IG One app launches, you’ll be able to create an investment account with us within minutes. You’ll have access to thousands of stocks and ETFs, including big names such as Apple, Netflix and Tesla. You have no obligation to fund the account until you’re ready to invest. 

Can anyone invest in stocks?

Yes, anyone with a funded stockbrokerage account can invest in stocks. The main reason why you need a stockbroker to access listed shares is because only registered brokers can access an exchange, place orders and execute deals.

How much is the minimum I can invest in stocks?

There is no minimum – you can invest however much you can afford. Just remember that investments are risky and past performance is no guarantee of future results, so you could get back less than what you put in.

Do I need a stockbroker to buy shares?

Yes, you need a stockbroker to buy shares. You can’t buy or sell shares directly on an exchange – you’ll do so ‘over the counter’, using a broker. Only registered stockbrokers will have access to an exchange where shares are listed.

Is it expensive to invest in stockss?

Whether or not it’s expensive to invest in stocks is completely subjective. All shares have different values, and all investors have different amounts of capital on hand. You should only ever invest what you can afford to lose.

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1 When investing with us you’ll do so via an IG One account, which has no platform fees and no commission.