How to invest in stocks using my IRA in Singapore

Investing in stocks using an Individual Retirement Account (IRA) in Singapore may have certain limitations and specific requirements. In Singapore, IRAs are commonly known as Supplementary Retirement Scheme (SRS) accounts. While SRS accounts primarily focus on retirement savings, they can also be used to invest in stocks. Here’s a general outline of the process:

  1. Confirm SRS eligibility: Ensure that you meet the eligibility criteria to open an SRS account in Singapore. Typically, this includes being a Singaporean citizen, Permanent Resident (PR), or a foreigner holding an Employment Pass, Personalized Employment Pass, or EntrePass.
  2. Open an SRS account: Choose a local bank or financial institution that offers SRS accounts and open an account with them. Common providers include DBS, OCBC, and UOB. Follow the necessary procedures and provide the required documentation.
  3. Contribute to your SRS account: Make contributions to your SRS account. There is a contribution cap set by the government, which changes periodically, so be aware of the current limit. Contributions made to your SRS account are eligible for tax relief, which can help lower your taxable income.
  4. Select a brokerage: Identify a brokerage firm in Singapore that offers stock trading services and accepts SRS funds. Some popular brokerage options include DBS Vickers, OCBC Securities, and UOB Kay Hian. Compare their fees, services, and platform features to make an informed decision.
  5. Complete necessary paperwork: Contact your chosen brokerage and inquire about their specific requirements for trading stocks using SRS funds. They will guide you through the process and provide you with the necessary forms to complete.
  6. Transfer funds to the brokerage: Instruct your SRS account provider to transfer the desired amount of funds to your chosen brokerage. This process may involve some paperwork and communication between the brokerage and the SRS account provider.
  7. Start investing: Once the funds are transferred to your brokerage account, you can begin investing in stocks. Utilize the brokerage’s trading platform to research and select stocks to invest in. Ensure that you understand the risks associated with stock investing and consider diversifying your portfolio.
  8. Monitor and manage your investments: Regularly review your investments, track market trends, and stay informed about the companies you have invested in. Make adjustments to your portfolio if needed to align with your investment goals and risk tolerance.