CDP vs custodian account: how your SGX shares are held
Short answer: In Singapore, SGX shares are held in one of two ways. In a CDP account you are the registered holder, and cash dividends go straight to the bank account linked to CDP. In a broker's custodian (nominee) account, the broker holds the shares for you, and dividends and corporate actions route through the broker. Custodian accounts usually carry lower commissions.
When you buy a share on the Singapore Exchange, it has to be held somewhere, and there are two very different somewheres. Either it sits in a CDP account registered in your own name, or it sits in a custodian account where your broker holds it on your behalf. Most people never think about which one they are using until a dividend shows up in an unexpected place. The distinction is worth understanding, because it changes how your money reaches you and how easy it is to see everything you own.
CDP: your name on the register
The Central Depository, known as CDP, is Singapore's own depository for SGX-listed securities. When your shares are held with CDP, you are the registered holder. Your name is on the record, and that has a few concrete consequences:
- Dividends are paid straight to your bank. Cash distributions are credited directly to the bank account you have linked to CDP, without passing through a broker.
- Corporate actions come to you directly. Rights issues, scrip dividend elections, and annual meeting notices are sent to you as the owner, and you decide how to respond.
- The holding is not tied to one broker. Because CDP holds it, you can buy through one CDP-linked broker and sell through another.
The trade-off is usually cost. CDP-linked trades tend to carry higher commissions than the custodian route, and CDP only holds SGX-listed securities, not foreign shares.
Custodian: the broker holds it for you
Most of the newer and lower-cost platforms use a custodian, or nominee, model. Here the broker holds the shares in its own nominee name, and you are the beneficial owner behind that. You still own the shares in substance, but your name is not on the SGX register. This is the standard model for platforms that offer cheap SGX access and for anything holding foreign markets.
- Lower commissions, wider access. The custodian model is what makes low-cost SGX trades and one-account access to US, UK and other markets possible.
- Dividends route through the broker. A distribution is received by the custodian and then passed to your brokerage account, sometimes net of a small handling fee, rather than landing in your bank.
- The broker manages corporate actions. Rights and elections are handled through the platform, on the platform's timeline and terms.
- Watch for custody or inactivity fees. Some custodian accounts charge a periodic fee to hold your positions, which CDP does not.
Which do you have? If your SGX dividends appear in your bank account, those shares are with CDP. If they appear inside your brokerage app instead, that broker is holding them as a custodian. Many Singaporeans have both at once: some counters in CDP from years ago, others in a newer low-cost custodian account.
Why this matters for tracking
The split is the quiet reason so many people cannot see their real position in one place. Your CDP dividends land in your bank statement, disconnected from any portfolio view. Your custodian dividends sit inside a broker app. Your foreign holdings are in yet another account. Each one is correct on its own, but none of them shows the whole picture, and reconciling them by hand is exactly the chore that gets skipped.
It also affects how you read income. A dividend that arrives in your bank from CDP and a dividend that arrives in your brokerage from a custodian are both yours, but if you only look at the broker app you will undercount, and if you only look at the bank you will miss the rest. To know your true dividend income you have to bring both together.
One view across both. Merlio lets you record holdings wherever they sit, CDP or custodian, local or foreign, and rolls them into a single Singapore-dollar net worth and one dividend income total. See how to consolidate investments across platforms, or start a free 60-day trial.
Common questions
What is a CDP account in Singapore?
CDP, the Central Depository, is Singapore's depository for SGX-listed securities. When your shares are held in a CDP account, you are the registered holder and your name is on the record.
Where do my SGX dividends go if I use a custodian broker?
With a custodian account, the broker receives the dividend and passes it into your brokerage account, sometimes net of a small handling fee. With a CDP account, cash dividends are credited to the bank account you have linked to CDP.
Do I still own my shares in a custodian account?
Yes. The broker holds the shares in its own nominee name and you are the beneficial owner. Your name is not on the SGX register, and rights issues and other corporate actions are handled through the broker's platform.
How do I know if my SGX shares are in CDP or with a custodian?
Look at where the dividends land. If SGX dividends arrive in your bank account, those shares are with CDP. If they arrive inside your brokerage app, that broker holds them as a custodian.
Can I hold US stocks in a CDP account?
No. CDP only holds SGX-listed securities. Foreign shares, such as US stocks, are held through a broker's custodian account.
Merlio is a tracker and calculator, not a licensed financial adviser, and this is a general explanation of how SGX holdings are custodied, not a recommendation of any account type or broker. For personalised guidance, speak to a MAS-licensed financial adviser.