The Best of Both Worlds: Moomoo Announced Full CDP Linkage

For Singaporean investors, there has always been a fundamental trade-off when choosing a brokerage. 

Do you opt for a low-cost discount broker, where your shares are held in a custodian account?

Or do you go with a traditional broker and pay high fees to have your shares held securely in your own CDP account? 


Moomoo has announced in MooFest 2025 their plans to offer full CDP linkage, allowing users to buy and sell stocks directly to and from their Central Depository account.

This is a feature I've been waiting for, and it's a huge win for all long-term investors using moomoo SG. Full details such as pricing plans have yet to be announced, but the feature is set to launch this November or two months from the writing of this article.

Why Does This Matter?

The Central Depository is the national, government-backed custodian for SGX stocks. It serves as the ultimate safe for Singapore shares for all Singaporean investors. Holding shares in CDP makes you the direct, legal owner of your shares, which means they are completely safe even if your broker were to face financial difficulties.

I see 3 big benefits to this new change.

1. Ultimate Peace of Mind

Our stocks portfolios can be bought on moomoo and stored in the ultra-secure CDP account. I can sleep even better at night knowing that the shares are held directly in my name, rather than through a custodian.

2. Low Costs Meets True Ownership

We can now enjoy moomoo's competitive, low-cost trading fees while getting the full security of direct ownership. Previously, getting CDP linkage meant paying the high commission fees of traditional bank brokers alongside an assortment of other fees their platforms might have.

3. Full Shareholder Rights

More importantly, as the direct legal owner, we will automatically receive all annual reports, dividend notifications, and invitations to Annual General Meetings (AGMs) directly from the companies we've invested in. This allows us to be truly engaged owners of the businesses you hold.

Conclusion

Moomoo's move to offer CDP linkage is a fantastic development for the Singaporean investment community. It's a rather promising development that could remove the long-standing trade-off between low costs and direct ownership. As a long-term, dividend-focused investor, this is exactly what I've been waiting for.

Disclaimer: This blog post is for entertainment purposes only and does not constitute financial advice. Please do your own due diligence. 

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