Should i choose a broker with CDP linked? - Dividend Machines by The Fifth Person

Q&A › Category: Miscellaneous › Should i choose a broker with CDP linked?

Xu Chao asked 4 months ago

Hi Trainers, Should i choose a broker with CDP linked? Also, for brokerage FSOne, under the CDP-linked column, it says only for sell trades, may i know what does it mean? thank you very much

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1 Answers

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Rusmin Ang Staff answered 4 months ago

Hi Xu Chao I think for local stocks, it is better to own it under CDP. You can sell it with any other brokers in the future. FSMOne only allows you to sell for any shares you owned in your CDP account. When you buy using FSMOne, the shares will be kept under custodian.

Xu Chao replied 4 months ago

i see thank you Rusmin! if im looking to buy hong kong and singapore stocks? should i still consider the CDP linked portion?

Rusmin Ang Staff replied 4 months ago

If you want everything in one place, then stick to one broker since you get to see everything there.

We can’t own overseas share in CDP, so foreign stocks usually held under custodian of the broker of your choice.

Andrew Sim replied 4 months ago

@Rusmin I have the same question too which you have answered. But can you further explain why it is better to use a broker with CDP linked for SG stocks. I am currently using MooMoo to invest for USA and HKG stocks, if I also use Moomoo to invest in SG stocks, does that mean that if I change a broker app, I have to transfer the stocks to the new one?

Rusmin Ang Staff replied 4 months ago

The good thing about CDP is that, you can sell with any broker once you linked the brokers to your CDP. But if you buy shares under custodian, then you have to sell with the same broker in the future. You can still do the transfer but I think the cost doesn’t make sense since most broker will charge you admin fees for that.