Investing Is Easier Now More Than Ever. Here’s How You Can Get Started.

If you’re new to investing in the stock market, one of the best ways to get started is by using the right trading platform. Below, we explore why investing is now easier than ever before.

ValueChampion Editorial Team

by ValueChampion Editorial Team on May 31, 2024

stock ticker

It may surprise you to learn that a S$5,000 investment in Nvidia 5 years ago would be worth over S$162,000 today. Despite the potential gains from investing, many people around the global continue to find investing intimidating or scary. Overcoming this fear, though, could pay off over the long-run. Here’s just how easy investing in Singapore can be.

woman calculating
Source: Pexels

You Don’t Need to be Wealthy to Invest

A common misconception about investing is that it’s expensive. However, you don’t need to be rich to start investing. Based on the 50-30-20 rule, divide your monthly income into three categories: 50% for your essential needs, 30% for discretionary spending, and the remaining 20% for savings, investments, and emergency expenses.

The general rule of thumb is that you should invest 10% to 15% of your monthly income. This also depends on other factors including your retirement goals. Let’s apply the 50-30-20 rule below to see how much to allocate towards investments based on a salary of S$6,000/month.

How much of my income should I invest in stocks?

Monthly After-Tax IncomeNeedsWantsSavings, Investments, and Emergency Expenses
100%50%30%20%
S$6,000S$3,000S$1,800S$1,200

The above table illustrates one way to allocate a portion of your earnings towards investing. In reality, you could start investing in stocks for as little as S$10 per share. So don’t let money be a barrier to prevent you from investing (and potentially growing your income).

Related: How Much Money Do You Need To Start Investing?

Understand the Basic Concepts of Investment Literacy

There is nothing wrong with earning a stable income but wouldn’t it be better if you could grow your hard-earned savings on top of that? That’s where financial literacy and more specifically, investment literacy, come into play.

Investing is a proactive approach to strategically use your money to earn more income in the future. Unfortunately, investing carries a certain amount of risk as you may not always yield profits when investing in stocks.

A simple way to kickstart your investment literacy journey is to use trading platforms like moomoo, powered by Futu Holdings limited, which feature a News and Information section as well as a Market Insights section to help you learn more about how to invest intelligently across major financial markets such as Singapore, the US and Hong Kong.

1 Apr - 1 Jul 2024: New users can get up to 6.8% p.a. returns with Moomoo Cash Plus.
Get a S$20 Cash Coupon and 1 free AAPL Stock (worth ~S$243) when you deposit S$100 and make 1 buy trade.
Valid until 1 July 2024. T&Cs apply.

Moomoo

moomoo by FUTU is a great brokerage for investors who are looking for a platform that allows them to get the most bang for their buck.


Moomoo


Pros

  • Lowest commission fees in Singapore
  • Lifetime $0 commission for US stocks
  • No minimum income requirement

Cons

  • Commission free trades only apply to US stocks, does not apply to SG or HK stocks
  • High margin rates
More Details

The Math is Actually Very Simple

Investing does involve numbers but in most cases, you won’t actually have to do any math at all.

Consider using a compound interest calculator as you identify your investment goals and time frame for meeting those benchmarks. The easiest way to do this is the test-and-learn method, where you input how much money you have today for investment and based on your financial goals, adjust the investment timespan or amount that you invest on a monthly basis.

Sample compounding investment returns comparison

Initial DepositContributionsInvestment Time SpanEstimated Rate of ReturnCompound FrequencyFuture Balance (Principal + Interest)
S$1200S$300/Month5 Years10%AnnualS$23,955
S$1200S$600/Month5 Years10%AnnualS$45,978
S$1200S$1200/Month5 Years10%AnnualS$90,022

Related: How Do You Determine the Investment Horizon For Your Assets?

Investing isn’t About Finding ‘The Perfect Match’

Unlike signing a mortgage agreement, you aren’t bound to one investment for the long-run. It’s acceptable – and advisable – to vary your investments over time. So don’t put off investing because you’re waiting for the perfect investment. There are countless mutual funds, ETFs, and stocks to choose from. Day trading is a great way to dip your toes into investing and instead of focusing on finding one stock, consider starting with a few stocks for a more diversified portfolio.

Related: Five Ways to Diversify Your Investment Portfolio

The One-Stop Trading Platform to Make Smarter Investment Decisions

If you’re new to investing consider opening an account with moomoo. By downloading moomoo, you are able to trade commission-free for stocks and ETFs.

Is moomoo a good trading platform?

The platform is one of the most advanced trading platforms in the market. It’s a one-stop investment platform powered by Futu Holdings Limited (“Futu” or the “Company” (NASDAQ: FUTU)). moomoo positions itself as the next-generation one-stop investment platform that integrates investment transactions, up-to-date news, real-time market data, and trading community. FUTU SG currently supports transactions across Singapore, the US, Hong Kong markets.

Benefits of using moomoo

  • Fast trading: Place a trading order within 0.0037 seconds
  • Low fees: Commission-free trading during promotional period and low fees for trading
  • News and Information: Comprehensive market information and news provide in-depth knowledge for overseas stock trading
  • Market insights: Real-time Level II Quotes with millisecond-level updates
  • Social community: Live boarding and interactive communities enhance the investment experience and empower individual users

Is moomoo safe?

Yes, moomoo is a safe trading platform. In the United States, investment products and services on moomoo are offered by Futu Inc and regulated by the US Securities and Exchange Commission (SEC). In Singapore, capital market products and services on moomoo offered by Futu Singapore Pte Ltd are regulated by the Monetary Authority of Singapore (MAS).

1 Apr - 1 Jul 2024: New users can get up to 6.8% p.a. returns with Moomoo Cash Plus.
Get a S$20 Cash Coupon and 1 free AAPL Stock (worth ~S$243) when you deposit S$100 and make 1 buy trade.
Valid until 1 July 2024. T&Cs apply.

Moomoo

moomoo by FUTU is a great brokerage for investors who are looking for a platform that allows them to get the most bang for their buck.


Moomoo


Pros

  • Lowest commission fees in Singapore
  • Lifetime $0 commission for US stocks
  • No minimum income requirement

Cons

  • Commission free trades only apply to US stocks, does not apply to SG or HK stocks
  • High margin rates
More Details

It is important to start investing as early as possible as having as long a time as possible to compound your returns is the key to amassing a large amount of wealth. If you would like to compare some other options of online brokerages before you get started on your investing journey, check out our resources below.

Compare Online Brokerages in SingaporeFind Out More

Disclaimer: No content on this advertisement shall be considered an offer or solicitation for the purchase or sale of securities, futures or other investment products. All information and data, if any, are for reference only and past performance should not be viewed as an indicator of future results. It is not a guarantee for future results. Investments in stocks, options, ETFs and other instruments are subject to risks, including possible loss of the amount invested. The value of investments may fluctuate and as a result, clients may lose the value of their investment. When trading in a margin account, a client may lose more than their original investment. No content on this advertisement shall be considered as an opinion or recommendation. Please consult your financial adviser as to the suitability of any investment. This advertisement has not been reviewed by the Monetary Authority of Singapore.

This article was written in collaboration with FUTU. While we are sponsored by them, we still review products and services with an objective lens and stay true to our mission— providing you with the best recommendations and advice to make smarter financial decisions.

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