Making Money in the Singapore Financial Markets - - Singapore Wacky Digital Underground Outpost

Making Money in the Singapore Financial Markets

Singapore successfully developed into one of the largest international financial centers in a relatively short amount of time. Given the complex nature of the modern market, there are lots of challenges facing investors within the market, but with nearly 800 listed companies there are more opportunities than ever to make some serious money. In this guide, we will be explaining some of the best ways you can enter the Singapore financial market and grow a strong portfolio.

Capital growth 

Capital growth is the first way shares generate higher returns. When shares are bought, you’re essentially buying an acquisition of the company, even if that percentage is extremely low. If the company goes up in value, seeing increases in profit and revenue, so will the worth of your shares. The resulting increase in price is known as “capital growth,” and is the growing amount of money you will earn in this situation. This growth can also be seen in fx trading, whereby if a global event has caused a local currency to rise in price compared with another, so will your traded investment.

Capital gain is a term used by investors to describe the actual profit that can be recognised at the time of a sale. As with all investments, there is a chance that the company could decrease in size, meaning that your capital will depreciate in value. In that event, when a share is sold the money you receive is known as a capital loss.

Dividend yield

Another way to make money in the Singapore financial market is through dividends. When companies make a profit they have the opportunity to pay back towards the reinvestment of the business. This reinvestment will accelerate the growth of the business and enable CEOs and directors to hold on to future opportunities, and, more importantly, distribute back to the shareholders in the form of dividend payouts.

If you want to create a revenue stream of passive income, investments are the best option, so investing in companies known for paying dividends is a good idea. Dividends can be paid at different times: quarterly, semi-annually, or annually. If you receive a dividend payment you can choose to take the money or reinvest it into the same company to increase your stake in the business by collecting more shares.


Investing shares are also great as they can be easily bought or sold. The amounts are specified giving flexibility to the investor based on their current financial position. There is a minimum of 100 shares that need to be bought or sold, but it can be done quickly and easily through a broker.


With over 700 companies listed across the Singapore Exchange Market, there are lots of opportunities to invest. All these businesses use varying growth cycles, which can bring balance to your portfolio. Several companies can be easily invested in with a minimum of 100 shares each. Having more investments helps to spread your involvement across your portfolio, meaning if a certain asset has a considerable fall you aren’t just tied to that one. 

Portfolio diversification is another convenient way to invest using exchange-traded funds (ETFs). These are company stocks or funds that are bought and sold through the Singapore Exchange.


The market price can be seen by everyone on the Singapore Stock Exchange whenever they are bought or sold, giving complete transparency to the investors. Choosing the right investment is made much easier, as there are no hidden elements. You can buy or sell at a desired price. This could be for a new asset, or one already owned. Setting a price won’t create an instant transaction, but when your asset reaches a certain price it will automatically be sold.

Set goals

There are lots of reasons to invest in any kind of financial market, the most popular being to make money. Although this is the underlying objective, you should have smaller goals to aim for throughout your trading journey. Knowing what financial achievement you aim to hit is the best way to know which investments you should make.

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