A CDP account, or Central Depository account, is an account that holds all the shares you purchased on the open market safely. It is operated by the Singapore Exchange (SGX) and provides an integrated clearing, settlement, and depository facilities for customers in the Singapore securities market, including both equities and fixed income instruments. In other words, a CDP account is necessary for trading in the Singapore securities market, whether you are buying bonds or stocks.

To open a CDP account, you need to meet certain eligibility criteria, such as being 18 years old and above and not an undischarged bankrupt. You also need to have a savings or current account with a bank, such as DBS/POSB. Opening a CDP account is free, with no extra charges for account opening or maintenance. Once you have opened a CDP account, you can directly own stocks listed on the SGX, as well as Treasury bills (T-bills), Singapore Savings Bonds (SSBs), and corporate bonds listed on the SGX.

Having a CDP account allows you to enjoy shareholder entitlements, such as receiving AGM invitations and direct notifications about corporate actions such as rights issues. It also allows you to consolidate your investments, easily manage your portfolio, and make informed investment decisions. When you buy or sell securities, SGX will levy some trading and settlement fees.

There are three types of CDP accounts: individual account, joint account, and corporate account. An individual account is the most common type of CDP account and is necessary for retail investors to start trading. A joint account has two types: Joint-Alternate Account and Joint-And Account. A Joint-Alternate Account allows either one of the applicants to give instructions to CDP, while a Joint-And Account requires both applicants to jointly sign or give instructions to CDP. A corporate account is used strictly to hold shares owned by the corporation for its own benefit, and the applicant must be a duly incorporated body with limited liability.

In summary, a CDP account is a necessary account for trading in the Singapore securities market, whether you are buying bonds or stocks. It is operated by the Singapore Exchange (SGX) and provides an integrated clearing, settlement, and depository facilities for customers in the Singapore securities market. Opening a CDP account is free, and there are three types of CDP accounts: individual account, joint account, and corporate account.