How to Invest Your Money Wisely in Singapore?

Singapore has become a hub for individual investors seeking to grow their wealth through various financial instruments. With a stable economy, a well-regulated financial sector, and access to global markets, investors can choose from stocks, ETFs, real estate, bonds, and alternative assets like cryptocurrencies.

Each investment avenue comes with its own opportunities and risks, making it essential to align choices with financial goals and risk tolerance. In this guide, we will help both new and experienced investors navigate the Singaporean investment landscape and select the best strategies to maximize returns.

Investment: Definition

Investment is the process of allocating money into different assets with the aim of generating returns over time. In Singapore, individuals invest to grow wealth, achieve financial security, and create passive income. The return on investment (ROI) varies depending on the asset class, investment strategy, and market conditions. Low-risk investments like government bonds and fixed deposits provide stable but lower returns, while high-risk investments like stocks, derivatives, and cryptocurrencies offer higher growth potential but come with increased volatility. A well-balanced investment strategy ensures capital growth while managing risk effectively.

How to Invest in the Stock Market?

The Singapore Exchange (SGX) provides a variety of investment options, including stocks, ETFs, REITs, derivatives, and bonds. Investors can also access global markets through foreign exchanges, brokers, and mutual funds. Depending on the investment strategy, individuals can choose between direct equity purchases, managed funds, or derivatives trading.

Investing in Stocks (Equities)

Investing in stocks means buying shares in publicly listed companies to benefit from capital appreciation and dividend income. In Singapore, investors can trade stocks on the Singapore Exchange (SGX) or access international markets via brokerage accounts.

How to Invest in Stocks in Singapore?

• Open a Central Depository (CDP) account (for long-term stock ownership).
• Choose a brokerage account (custodian accounts have lower fees but do not hold shares in the investor’s name).
• Buy stocks on the SGX or international exchanges.
• Diversify across industries to manage risk.

Investing in ETFs & Index Funds

Exchange-Traded Funds (ETFs) allow investors to gain exposure to a basket of stocks, bonds, or commodities. They are low-cost and diversified, making them ideal for long-term wealth accumulation.

Popular ETFs in Singapore

• SPDR STI ETF – Tracks the Straits Times Index (STI).
• Lion-OCBC Hang Seng Tech ETF – Focuses on Chinese technology stocks.
• Nikko AM SGD Investment Grade Bond ETF – Provides exposure to Singaporean bonds.

How to Invest in ETFs?

• Buy ETFs via a CDP or brokerage account.
• Invest regularly using a Dollar-Cost Averaging (DCA) strategy.
• Hold ETFs long-term for stable growth.

Investing in REITs (Real Estate Investment Trusts)

REITs allow investors to own shares in commercial and residential properties without needing to buy physical real estate. Singapore is a leading global REIT market, with many high-quality options.

Popular REITs in Singapore

• CapitaLand Integrated Commercial Trust (CICT) – Invests in retail and office spaces.
• Mapletree Logistics Trust (MLT) – Focuses on industrial and logistics properties.
• Ascendas REIT – Specializes in business parks and IT parks.

Investing in CFDs & Derivatives

Contracts for Difference (CFDs) allow investors to speculate on price movements without owning the underlying asset. This is a high-risk option that involves leverage, meaning both profits and losses can be amplified.

How to Trade CFDs in Singapore?

• Open a CFD trading account with brokers like IG, Saxo Markets, or CMC Markets.
• Trade stocks, indices, commodities, or forex pairs.
• Use stop-loss orders to manage risk.

📌 Warning: CFD trading is speculative and not recommended for beginners.

Investing in Forex (Foreign Exchange)

Forex trading involves buying and selling currency pairs to profit from exchange rate fluctuations.

How to Trade Forex in Singapore?

• Trade through MAS-regulated brokers like OANDA, IG, or Saxo Markets.
• Use leverage cautiously (common ratios: 1:10 to 1:50).
• Focus on major currency pairs (USD/SGD, EUR/SGD, USD/JPY).

Investing in Cryptocurrencies

Cryptocurrencies like Bitcoin and Ethereum have gained popularity as alternative investments. While volatile, they offer high potential returns.

How to Invest in Crypto in Singapore?

• Use MAS-regulated exchanges like Coinhako, Binance SG, or Gemini.
• Store assets in secure wallets to protect against cyber threats.
• Consider staking and yield farming for passive income.

Where to Invest in 2025?

Singapore offers a wide range of investment opportunities, catering to different risk appetites and financial goals. Whether you prefer traditional investments like stocks, ETFs, and real estate or more speculative assets such as cryptocurrencies and CFDs, each option has its own risk-return characteristics. Understanding these options can help investors make informed decisions and maximize their returns.

Investing in Stocks (Equities)

Investing in stocks means owning a portion of a company and benefiting from capital appreciation and dividend income. The Singapore Exchange (SGX) hosts many blue-chip companies that provide steady returns over time.

How to Invest in Stocks in Singapore?

• Open a Central Depository (CDP) account for long-term stock ownership.
• Choose a brokerage account (custodian or direct CDP-linked).
• Buy shares of SGX-listed companies or international stocks via global brokers.

Popular Stocks in Singapore

• DBS Group – Largest Singaporean bank with strong dividend payouts.
• Singtel – Leading telecommunications company.
• CapitaLand Investment – Focuses on real estate and property development.

Example of a Stock Investment

An investor buys 1,000 shares of DBS Bank at SGD 30 per share.

• If the stock price rises to SGD 35, the investor earns SGD 5,000 in capital gains.
• If DBS pays a 4% dividend yield, the investor receives SGD 1,200 annually.

Investing in ETFs & Index Funds

ETFs (Exchange-Traded Funds) are a great way to gain diversified exposure to the stock market or specific sectors. These funds track indices like the Straits Times Index (STI) or major global markets.

Best ETFs in Singapore

• SPDR STI ETF – Tracks the top 30 companies on SGX.
• Lion-OCBC Hang Seng Tech ETF – Invests in leading Chinese tech companies.
• Nikko AM SGD Investment Grade Bond ETF – Provides exposure to Singaporean government and corporate bonds.

How to Invest in ETFs?

• Buy through a CDP or custodian brokerage account.
• Invest regularly using Dollar-Cost Averaging (DCA).
• Hold ETFs long-term for steady and compounded growth.

Example of an ETF Investment

An investor puts SGD 5,000 in the STI ETF, which has an average 7% annual return.

• In 5 years, the investment grows to SGD 7,012.
• In 10 years, it could reach SGD 9,835, assuming steady market growth.

Investing with CFDs (Contracts for Difference)

CFDs allow traders to speculate on stock price movements without owning the actual asset. CFDs are high-risk, leveraged products that can amplify both gains and losses.

How to Trade CFDs in Singapore?

• Open a CFD trading account with brokers like IG, Saxo Markets, or CMC Markets.
• Trade stocks, indices, commodities, or forex pairs.
• Use risk management tools like stop-loss orders to protect against losses.

Example CFD Trade

A trader buys SGD 5,000 worth of DBS CFDs with 1:10 leverage.

• If DBS stock rises 2%, the trader earns SGD 1,000.
• If the stock falls 2%, the trader loses SGD 1,000.

Investing in Forex (Foreign Exchange)

Forex trading involves buying and selling currency pairs based on economic and political factors.

How to Trade Forex in Singapore?

• Trade through MAS-regulated brokers like OANDA, IG, Saxo Markets.
• Use leverage (1:10 to 1:50) cautiously.
• Focus on major currency pairs (USD/SGD, EUR/SGD, USD/JPY).

Example Forex Trade

A trader enters a USD/SGD position at 1.35.

• If SGD weakens to 1.38, the trader earns a profit.
• If SGD strengthens, the trader incurs a loss.

Investing in Cryptocurrencies

Cryptocurrencies offer high volatility but significant growth potential.

How to Invest in Crypto in Singapore?

• Use MAS-regulated exchanges like Coinhako, Binance SG, or Gemini.
• Store assets in secure wallets to protect against cyber threats.
• Consider staking and lending for passive income.

Example of a Crypto Investment

An investor buys 0.1 BTC at SGD 50,000 per Bitcoin (SGD 5,000 investment).

• If Bitcoin rises to SGD 70,000, the investment grows to SGD 7,000.
• If staked at 4% annual yield, the investor earns SGD 200 extra in passive income.

Investing in Commodities (Gold, Oil, etc.)

Investing in commodities like gold and crude oil is an effective way to hedge against inflation and economic downturns.

Ways to Invest in Commodities

• Gold ETFs (e.g., SPDR Gold Shares ETF).
• Futures trading for oil and precious metals.
• Physical gold purchases via banks or bullion dealers.

Example Gold Investment

An investor buys SGD 10,000 worth of gold ETFs.

• If gold prices increase 15%, the investment grows to SGD 11,500.

How to Choose the Best Investment?

Choosing the right investment depends on your financial goals, risk tolerance, and investment horizon. Before investing, individuals should consider their budget, market knowledge, and time commitment.

Key Questions to Ask Before Investing

• What is my investment goal? (Wealth creation, passive income, retirement, short-term gains)
• What is my risk tolerance? (Low, medium, high)
• What is my investment horizon? (Short-term: 1–3 years, medium-term: 3–5 years, long-term: 5+ years)
• How much can I invest without affecting my financial stability?
• Do I want a passive investment (ETFs, mutual funds) or an active one (stocks, crypto, trading)?

Investing as a Beginner

Beginners should focus on low-risk, diversified investments that offer stable growth while minimizing risk.

Key Tips for Beginner Investors

✔ Start with ETFs & mutual funds – they offer diversification and steady returns.
✔ Avoid speculative assets like CFDs and cryptocurrencies initially.
✔ Use educational resources such as YouTube finance channels, books, and online courses.
✔ Practice with a demo account before trading real money.
✔ Invest regularly using Dollar-Cost Averaging (DCA) for consistency.

Recommended Tools for Beginners

• Beginner-friendly brokers: Tiger Brokers, Moomoo, Saxo Markets.
• Demo accounts: IG Markets, OANDA, Forex.com.
• Investment courses: Udemy, Coursera, SGX Academy.
• Copy trading platforms: eToro, FXTM (allows following expert traders).

Example of a Beginner Portfolio (SGD 10,000 Investment)

• SGD 4,000 in ETFs (STI ETF, S&P 500 ETF).
• SGD 3,000 in blue-chip stocks (DBS, UOB, Singtel).
• SGD 2,000 in a REIT (Mapletree Logistics Trust).
• SGD 1,000 in Bitcoin or Ethereum for long-term exposure.

This diversified approach minimizes risk while allowing for steady returns over time.

Investing as an Experienced Investor

Advanced investors can explore higher-risk investments that require active market analysis, trading strategies, and technical expertise.

Best Investment Options for Experienced Investors

• Growth stocks & mid-cap stocks – investing in fast-growing companies.
• CFDs & Forex trading – speculative trading using leverage.
• Cryptocurrency & DeFi – passive income through staking, lending, and yield farming.
• Private Equity & Venture Capital – investing in startups or private companies.

Advanced Trading & Investment Tools

✔ Advanced trading platforms: MetaTrader 4/5, TradingView, Interactive Brokers.
✔ Technical & fundamental analysis: Stock screeners, moving averages, RSI indicators.
✔ Algorithmic trading: Automated trading bots via Binance, Alpaca, or Python scripts.
✔ Hedging & diversification: Options trading, commodity investments, inverse ETFs.

Example Portfolio for an Experienced Investor (SGD 50,000 Investment)

• SGD 20,000 in high-growth stocks (Tesla, Nvidia, Indian mid-cap stocks).
• SGD 15,000 in sector ETFs (tech, renewable energy, emerging markets).
• SGD 7,500 in crypto (Bitcoin, Ethereum, Solana).
• SGD 5,000 in active trading (CFDs & Forex positions).
• SGD 2,500 in alternative assets (gold, commodities, private equity).

Experienced investors should actively manage risk and use advanced market strategies to maximize returns.

How Much Money is Needed for a Profitable Investment?

The amount required for profitable investing depends on financial goals, risk tolerance, and available capital. In Singapore, investors can start with as little as SGD 1,000 and scale up over time. The key is to allocate funds wisely, diversify investments, and minimize risk while optimizing returns.

Factors to Consider Before Investing

✔ Investment Goals – Short-term vs. long-term wealth accumulation.
✔ Risk Tolerance – Low-risk (bonds, ETFs), medium-risk (stocks, REITs), high-risk (crypto, CFDs).
✔ Investment Horizon – Short-term (1–3 years), medium-term (3–5 years), long-term (5+ years).
✔ Liquidity Needs – Stocks and crypto offer liquidity, while real estate and bonds require long-term holding.

Investing SGD 1,000 in Singapore

With SGD 1,000, the focus should be on low-cost, diversified assets to generate stable returns over time.

Best Investment Options

• ETFs (60%) → Low-cost index funds for stable growth.
• Blue-chip stocks (20%) → Shares that provide passive income.
• Crypto (10%) → Small exposure to Bitcoin or Ethereum for high-growth potential.
• Government bonds (10%) → Safe investment for fixed returns.

Example Investment Plan for SGD 1,000

• SGD 600 in STI ETF (historical return: ~7% per year).
• SGD 200 in DBS Bank shares (dividend yield + capital appreciation).
• SGD 100 in Bitcoin or Ethereum.
• SGD 100 in a government bond or REIT.

Potential Returns

Investing SGD 5,000 in Singapore

With SGD 5,000, an investor can diversify effectively while balancing risk and reward.

Best Investment Options

• ETFs (40%) → Low-cost diversified index funds.
• Growth stocks (30%) → Stocks with strong performance potential.
• Real estate investment funds (15%) → Exposure to the property market.
• Crypto (10%) → Small allocation to Bitcoin or Ethereum.
• CFD trading (5%) → Speculative trades for those with market experience.

Example Investment Plan for SGD 5,000

• SGD 2,000 in STI ETF.
• SGD 1,500 in DBS or Singtel shares.
• SGD 750 in a real estate investment fund (CapitaLand REIT).
• SGD 500 in Bitcoin or Ethereum.
• SGD 250 in CFD trading (e.g., STI 30 CFD).

Potential Returns

Investing SGD 10,000 in Singapore

A SGD 10,000 investment allows for greater diversification and higher potential returns.

Best Investment Options

• ETFs & stocks (50%) → Core holdings for stability.
• Cryptocurrency (20%) → Increased exposure to high-growth assets.
• Real estate or bonds (15%) → Stability and passive income.
• CFDs or Forex (15%) → Trading opportunities with leveraged instruments.

Example Investment Plan for SGD 10,000

• SGD 3,000 in STI ETF.
• SGD 2,500 in DBS and OCBC shares.
• SGD 2,000 in Bitcoin and Ethereum.
• SGD 1,500 in a gold ETF or REIT.
• SGD 1,000 in Forex trading (e.g., USD/SGD).

Potential Returns

Investing SGD 20,000 in Singapore

A SGD 20,000 investment provides access to more advanced investment opportunities and a higher potential return.

Best Investment Options

• Stocks & ETFs (50%) → Balanced portfolio of local and global equities.
• Cryptocurrency (20%) → Larger exposure to digital assets.
• Real estate & commodities (15%) → Inflation hedge and passive income.
• Forex & CFD trading (15%) → Active trading opportunities.

Example Investment Plan for SGD 20,000

• SGD 6,000 in ETFs (STI ETF, Global ETF).
• SGD 5,000 in stocks (DBS, UOB, US stocks via international brokers).
• SGD 4,000 in Bitcoin, Ethereum, and Solana.
• SGD 3,000 in a real estate or gold ETF.
• SGD 2,000 in Forex or CFD trading.

Potential Returns

How to Invest in the Stock Market with a Small Budget?

Investing in the stock market does not require a large sum of money. Even with a small budget, Singaporean investors can start building a portfolio using low-cost investment options and smart financial strategies.

Tips for Investing in Stocks with Limited Capital

✔ Start with ETFs – ETFs offer diversification at a low cost.
✔ Use tax-free savings accounts (SRS, CPF-IS) – Helps save on taxes.
✔ Choose fractional shares – Some brokers allow buying small portions of expensive stocks.
✔ Reinvest dividends – Dividend-paying stocks provide passive income.
✔ Invest consistently – Even SGD 500–SGD 1,000 per month can accumulate significant wealth over time.

Is Investing in Real Estate Profitable in Singapore?

Real estate has long been one of Singapore’s most attractive investment options, offering capital appreciation, rental income, and tax advantages. The city-state’s strong property market, high demand for housing, and limited land availability make real estate a reliable long-term investment. However, rising property prices and government regulations require investors to strategically plan their investments.

Profitability of Real Estate Investment in Singapore

✔ Rental yields of 2–4% per year, depending on location and property type.
✔ Historical capital appreciation of 5–12% per year for prime properties.
✔ Tax benefits for homeowners and rental property investors.
✔ High demand for residential, commercial, and industrial properties.

Advantages of Investing in Singapore’s Real Estate Market

✔ Stable and well-regulated market with strong government oversight.
✔ Strong rental demand due to Singapore’s growing expat population.
✔ Diversification benefits – property investment balances stock market exposure.
✔ Leverage opportunities – investors can use home loans to acquire properties with a lower upfront investment.

Challenges of Real Estate Investment in Singapore

✘ High entry cost – Buying property requires a significant down payment.
✘ Additional Buyer’s Stamp Duty (ABSD) – Higher taxes for non-residents and second-property buyers.
✘ Property cooling measures – Government regulations control speculative property investment.
✘ Liquidity issues – Real estate is a long-term investment that takes time to sell.

Ways to Invest in Real Estate in Singapore

How to Invest in the Stock Market According to Islamic Principles?

Islamic finance follows Shariah law, which prohibits interest (riba), excessive uncertainty (gharar), and investment in haram industries (such as alcohol, gambling, and conventional banking). Singaporean investors who wish to invest in accordance with Islamic principles must choose halal (Shariah-compliant) financial instruments.

Key Principles of Islamic Investing

✔ No Interest (Riba) – Investments must not generate profits from interest payments.
✔ No Speculation (Gharar) – High-risk speculative assets like CFDs and options are prohibited.
✔ No Investment in Haram Sectors – Avoiding companies involved in alcohol, tobacco, gambling, weapons, and conventional banking.
✔ Profit and Loss Sharing (Mudarabah & Musharakah) – Ethical investment in businesses that generate revenue through real economic activity.

Shariah-Compliant Investment Options in Singapore

How to Invest Islamically in Singapore?

• Open an Islamic trading account with brokers that offer Shariah-compliant investments (e.g., Phillip Securities, CGS-CIMB).
• Invest in Shariah-compliant stocks and ETFs – Singapore has several halal-friendly investment funds.
• Consider Sukuk instead of conventional bonds – Sukuk operates through asset-backed financing instead of interest-based lending.
• Use Islamic home financing (Musharakah & Ijarah) – Avoid interest-based home loans by using Islamic banking structures.

Tips: How to Invest Your Money Wisely

Investing successfully requires strategic planning, risk management, and financial discipline. Whether investing in stocks, real estate, ETFs, or cryptocurrencies, following fundamental principles helps maximize returns while minimizing risks.

1. Define Your Investment Goals

• Are you investing for long-term wealth, passive income, or retirement?
• Define your risk tolerance and investment horizon.
• Choose investments based on your short-term vs. long-term objectives.

2. Diversify Your Portfolio

✔ Don’t put all your money in one asset class (e.g., only stocks or crypto).
✔ Combine stocks, ETFs, bonds, commodities, and real estate for balanced risk.
✔ Consider international investments to hedge against local market downturns.

3. Manage Investment Risks

✔ Use Stop-Loss Orders – Protect investments from significant downturns.
✔ Avoid Emotional Trading – Invest based on data, not short-term market hype.
✔ Use Tax-Advantaged Accounts – Maximize tax benefits where applicable.

4. Minimize Costs & Taxes

✔ Choose brokers with low transaction fees.
✔ Avoid frequent buying/selling to reduce capital gains tax.
✔ Invest in tax-free or tax-deferred instruments when available.

5. Invest Consistently & Long-Term

✔ Regular investments (e.g., SGD 500–SGD 1,000 monthly) compound over time.
✔ Reinvest dividends for exponential growth.
✔ Time in the market beats timing the market – stay invested through market fluctuations.

📌 Final Advice: Smart investing requires discipline, diversification, and patience. Following a structured approach leads to long-term financial success.

Investment Taxation in Singapore

Understanding tax obligations on investments is crucial for maximizing net returns. Singapore is known for its investor-friendly tax system, with no capital gains tax on stocks, real estate, or crypto. However, other investment incomes may be taxable.

1. Capital Gains Tax (CGT)

✅ No capital gains tax on stocks, ETFs, and cryptocurrencies in Singapore.
✅ Profits from trading stocks and crypto are tax-free unless considered a business activity.

2. Dividend Taxation

• Dividends from Singapore-listed stocks and REITs are tax-free for individual investors.
• Dividends from foreign stocks may be subject to withholding tax based on the country’s tax laws (e.g., 30% on US stocks).

3. Tax on Rental Income & Real Estate Investments

• Rental income is taxable at progressive income tax rates (up to 22%).
• Property taxes apply, varying based on property type and owner-occupancy.
• Additional Buyer’s Stamp Duty (ABSD) applies for second property purchases and foreigners.

4. Cryptocurrency Taxation

✅ No tax on crypto capital gains.
✅ Crypto staking, lending, and trading profits are tax-free, unless classified as a business activity.

5. How to Reduce Investment Taxes?

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.