Investing 101: from zero to your first ETF

Go from never having invested to owning a first ETF in your own name, with a monthly plan and written rules for when prices fall.

Most first-time investors in Singapore get stuck before they buy anything. There are too many brokers, apps and opinions, and the fear of doing it wrong keeps the money in a savings account for another year. Others jump in through a friend's tip and learn the costs the hard way. This course takes you from zero to one ETF bought in your own name, step by step. You learn who holds your shares, how to compare brokers, what an ETF is, how to choose one for a written goal, how to place an order without paying more than you need, and how to keep investing each month when prices fall.

What you'll be able to do

• Explain the difference between a CDP account and a custodian account and choose one knowingly
• Compare two brokers on fees, account type and licensing using one sheet
• Open, fund and verify a brokerage account and record the details
• Read an ETF factsheet and find the index, cost, size, listing and distribution policy
• Choose one starter ETF against a written goal and horizon
• Place a limit order and check it settled in your account
• Write a monthly investing plan and three rules for what you will do in a market fall

Syllabus

Module 1: Choose who holds your shares and where you trade

Learn how shares are held in Singapore, the kinds of broker you can use and what each charges, and how to check a broker is licensed, then compare two brokers on one sheet.

• 1.1 CDP or custodian: who actually holds your shares
• 1.2 Kinds of broker for SGX trades and what each charges
• 1.3 Check a broker is licensed and what happens if it fails
• 1.4 Compare two brokers on one sheet

Module 2: Check the money is ready before it goes in

Make sure the money you invest can stay invested through a fall, understand what owning a fund means, and write down what this money is for and when you will need it.

• 2.1 Money you need soon does not belong in shares
• 2.2 Buffer and expensive debt first, then investing
• 2.3 What you own when you invest in a fund
• 2.4 Write down what this money is for and when

Module 3: Open your account and get it ready to trade

Open a CDP account and a brokerage account, link your bank for funding and dividends, and confirm the account is funded and ready before you place an order.

• 3.1 Opening a CDP account and a broker account with Singpass
• 3.2 Link your bank for funding and dividends
• 3.3 Open, fund and verify your account

Module 4: Know what an ETF is before you buy one

Understand how an ETF follows an index, how its price is set on the exchange and what can go wrong, then read a real factsheet and pull out the facts that matter.

• 4.1 An ETF is a basket that follows an index
• 4.2 How an ETF price is set on the exchange
• 4.3 What can go wrong with an ETF
• 4.4 Read one ETF factsheet and find six facts

Module 5: Pick one starter ETF for a written goal

Match one ETF to the goal you wrote in module 2, using a simple set of checks on index, cost, size and listing, and leave building a full portfolio for later.

• 5.1 Start from the goal, not from the fund
• 5.2 World, single country or local index for a first fund
• 5.3 Three checks before you choose: cost, size and listing
• 5.4 Shortlist three ETFs and choose one

Module 6: Place your first order without costly mistakes

Learn board lots, order types and the bid-ask spread, place your first order with a limit price, and check it settled and shows in your account.

• 6.1 Board lots, odd lots and the minimum you can buy
• 6.2 Limit orders, market orders and the bid-ask spread
• 6.3 After you click buy: settlement, contract notes and your CDP statement
• 6.4 Place your first order and keep the records

Module 7: Invest every month and stay put when prices fall

Set up regular investing, understand what dollar-cost averaging does and does not do, see what a fall looks like in dollars, and write rules for the first one.

• 7.1 Dollar-cost averaging: what it does and does not do
• 7.2 Regular savings plans: how they work and what you own
• 7.3 What a market fall looks like in your own account
• 7.4 First-timer mistakes that cost Singapore investors money
• 7.5 Write your monthly plan and your three rules for a fall

Frequently asked questions

How much money do I need to start?

Enough to cover one board lot of your chosen ETF plus fees, or the minimum monthly amount of a regular savings plan. The course shows you how to work out what fees cost on a small order, so you can choose a starting amount that makes sense.

How is this different from Build and run an ETF portfolio?

This course gets you to your first account and your first ETF. Build and run an ETF portfolio takes over from there: asset allocation, choosing several funds, comparing ETFs in detail, rebalancing and investing through SRS and CPF.

Will the course tell me which ETF to buy?

No. It teaches you how to choose against your own goal, and examples refer to types of fund rather than recommendations. You make the choice with the checks the course gives you.

Is this financial advice?

No. The course is education and does not replace financial advice. Fees, rules and requirements change, so check current details with SGX, MAS and your broker, and speak to a licensed financial adviser about your own situation.

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