Singapore is the largest foreign exchange hub in the Asia-Pacific and the world’s third-largest after London and New York, with an average daily FX trading volume of over half a trillion dollars. The country’s well-developed financial centre, solid infrastructure, supportive regulatory framework and lenient tax regime make it an attractive destination for CFD traders.
The financial services industry, including CFD trading in Singapore, is regulated by the Monetary Authority of Singapore (MAS), which acts as a banker and financial agent to the Singapore government. Although MAS officially began operations on January 1st, 1971, it did not establish a dedicated enforcement department until August 1st, 2016. The Monetary Authority of Singapore aims to enhance consistency and expertise in enforcement across banking, insurance, capital markets and other sectors.
The Best CFD Brokers in Singapore 2022
All CFD brokers in Singapore must register with the Monetary Authority of Singapore (MAS) to provide CFD trading facilities to its citizens. Therefore, if you wish to choose the best CFD broker in Singapore, look for those that provide multiple trading platforms, low spreads and fees, high-speed trade execution, speedy deposits and withdrawals, and good customer support.
Here’s a table of the best CFD brokers in Singapore.
| Broker | Features | Min Deposit | EURUSD Spread | ||
|---|---|---|---|---|---|
 Your capital is at risk
US Clients: No Regulated : Yes
|
– 40% New Member Bonus
|
$100 | Fixed |
Sign
Up
Europe* CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
|
|
 Your capital is at risk
US Clients: No Regulated : Yes
|
|
$500 | From 0.6 pips | ||
 Your capital is at risk
US Clients: No Regulated : Yes
|
$50 | 0.02 | |||
 Your capital is at risk
US Clients: No Regulated : Yes
|
|
$200 | From 0.1 pips | ||
|
|
|||||
Trading CFDs in Singapore
CFD trading in Singapore is categorized under unlisted Specified Investment Products (SIP). If you would like to trade these products, you must complete a Customer Knowledge Assessment (CKA) before setting up a CFD account.
As mentioned earlier, CFD trading comes under the Monetary Authority of Singapore (MAS) regulations. Although MAS doesn’t provide investor compensation similar to the UK’s Financial Services Compensation Scheme (FSCS) or the Investor Compensation Fund (ICF) in Europe, it has very stringent rules when it comes to client protection.
According to rules framed by MAS, CFD brokers in Singapore are only permitted to offer a maximum leverage of 20:1. Moreover, all client funds and assets must be maintained in segregated or omnibus accounts separate from the firm’s money and cannot be used by the CFD broker for any of their purposes, including meeting margin requirements.
The Benefits of Trading CFDs
Singapore is ranked among the largest CFD trading marketplaces globally. Not only is Singapore one of the best-regulated markets, but the stringent regulations set out by the Monetary Authority of Singapore (MAS) ensure clients are adequately protected against wayward brokers.
Newcomers to the CFD markets can take advantage of the fact that most brokers in Singapore offer retail traders the choice of multiple asset classes including forex, shares, cryptocurrencies, indices, commodities, and others. In addition to brokerage firms, several banks in Singapore provide retail traders access to CFD trading.
However, the drawback is that CFD brokers provide a max leverage of 20:1 on some forex pairs, which is in line with the rules framed by the market regulator to ensure clients do not over-leverage their trades, which could result in huge losses. However, this is only a minor disadvantage, and many traders relish the experience of trading across global markets using world-class platforms, zero-spread, and low fees from one of the safest countries in the world.
How to Choose a Safe CFD Broker
All foreign and domestic CFD brokers operating from Singapore are generally safe since they must be registered with the Monetary Authority of Singapore (MAS). For additional peace of mind, several Singapore-based CFD brokers also provide trading facilities across multiple jurisdictions such as Europe, the UK, and Australia. It is also worth noting that the best CFD brokers in Singapore offer the Direct Access (DMA) model, where prices correspond directly to the reference instrument in the underlying exchange or market. This is widely considered to be a better approach than the non-DMA or market-making model.
Conclusion
CFD trading is growing rapidly, and Singapore is the largest financial hub in Asia for these instruments. In addition to some renowned international firms offering CFD trading here, many home-grown financial institutions have attracted clients.
Singapore is home to a highly educated population with a high financial literacy rate compared to many other countries worldwide, and it is estimated that thousands of Singaporeans are engaged in CFD trading. With thousands of assets available to choose from, CFD trading in Singapore continues to gain popularity among the masses.