Choosing a secure, reliable and efficient broker is one of the best trading decisions you will make. Even better than buying Amazon shares when they first listed at $18 in 1997 or shorting the oil market just before COVID drove crude prices into the ground in 2020. There's nothing more disappointing than making the right calls on the market to find your broker isn't legitimate and that you can't recover your profits or original funds.
Therefore, choosing a regulated broker is the first step towards successful trading, and this review considers a selection of trusted Singapore CFD (Contract for Difference) brokers. Broker choice is down to more than the safety of funds, and all of the below are also ranked highly in terms of the service they offer clients. The good news for traders and investors is that with the Singapore CFD market now ranked number four in the world, many high-quality brokers have opened their doors to Singapore traders. It's just a case of finding the best fit.
Plus500 is a global broker with a client base of millions of traders, and it has recently taken the step of applying for and obtaining regulatory approval from MAS. Its commitment to the Singapore CFD market is in line with its track record of embracing innovative ideas.
Plus500 offers traders a secure and straightforward trading experience backed by a range of neat user-friendly trading tools. These all add up to making the Plus500 trading experience one of the best in the market. Registering for a Demo account is highly recommended so that potential clients can try Singapore CFD trading in a risk-free environment.
Singapore based clients operate using trading limits set by the Monetary Authority of Singapore. Maximum leverage is accordingly 1:20
Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services licence from the Monetary Authority of Singapore for dealing in capital markets products (Licence No. CMS100648-1) (Source: Plus500).
Office Address: Plus500SG Pte Ltd | 1 Temasek Avenue, Millenia Tower #37-03 | Singapore 039192.
eToro is about ease of use. The super-reliable platform has superb functionality so new clients can be set up and trading CFDs in minutes. Managing trades can be done using the desktop platform or eToro app, available on iOS and Android devices.
For those who want to trade using their own ideas, there is a range of charting tools, trade entry indicators and in-depth research notes, but the core selling point of the eToro platform is Social and Copy Trading. Clients can use the same account to book trades based on their strategies or those of other traders, which they can copy for no extra charge. Selecting which trader to follow is made easy by the filtering function on the platform. It allows you to sort through traders using criteria such as their location, risk profile and track record. It is possible to end the copy trading relationship at any time.
eToro is a global broker, and regulatory protection is based on a client’s country of residence. Authorities the firm holds licences with include FCA (UK), ASIC (Australia), CySEC (Cyprus), GFSC (Gibraltar), FinCen and FINRA (United States).
eToro (Seychelles) Ltd. is licensed by the Financial Services Authority Seychelles (“FSAS”) to provide broker-dealer services under the Securities Act 2007 License #SD076.
Pepperstone has built its reputation to become one of the world’s leading forex brokers. The Australia-based firm offered such excellent service that its client base became worldwide, and the number of markets it offered also expanded.
The broker now offers a high-quality CFD trading experience in markets ranging from commodities to stock indices. Additional features that help clients set up in the best way possible include the award-winning customer service and in-depth but jargon-free training webinars and market reports available in video and written format.
Pepperstone Group Limited (pepperstone.com/en-au/) is headquartered at Level 16, Tower One, 727 Collins Street, Melbourne VIC 3008 Australia and regulated by ASIC (Australian Securities & Investments Commission).
Pepperstone Markets Limited (pepperstone.com/en/) has the registered address: Sea Sky Lane, B201 Sandyport, Nassau, New Providence, The Bahamas and is regulated by the SCB (Securities Commission of The Bahamas)
Global clients of Pepperstone are allocated regulatory protection based on where they live.
It’s hard to know where to start when listing the good points about IG. It’s well-regulated, provides an ever-popular platform choice to clients, has thousands of CFD markets on offer and competitive pricing. The scale of the operation is something else. Over the decades it has been operating, the firm has built up numerous additional services, including its TV channel.
It broadcasts market news reports, shares’ The Week Ahead’ reports with clients to prepare for upcoming events, and the broker also offers ‘Trade of the Week’ ideas.
IG Asia Pte Ltd (Co. Reg. No. 200510021K) with registered address, Straits Trading Building, 9 Battery Road #01-02, Singapore 049910, holds a capital markets services licence issued by the Monetary Authority of Singapore for dealing in capital market products that are over-the-counter derivatives contracts and is an exempt financial adviser.
The recent revolution in online trading has democratised the investment industry. It is simple to set up an online brokerage account, and the process is carried out online and takes minutes to complete. Once onboarded to a platform account, holders have several ways of gaining exposure to the financial markets, one of which is CFDs.
Traditional buy-and-hold investing is best explained by a broker taking S$500 from a client account and using it to buy S$500 shares in firm ABC. At CFD platforms, the client doesn't hold the actual stock; instead, they enter into a legal contract with the broker. The S$500 can be best thought of as a deposit or stake, and if the value of the position in firm ABC goes up to S$550, the broker will credit the client S$50 profit. If ABC falls in value by S$100, then a loss of S$100 is applied, and the client is left holding S$400 rather than S$500.
Fundamental principles relating to market price apply. You can't buck the market. But because the contract is between the client and the broker, there is some wriggle room which means CFDs have some neat features.
Sell short as well as go long – Clients can agree with the broker that profits will be made if a market falls (not rises) in value
Leverage – brokers can, at their discretion, allow clients to scale up on positions. A S$500 cash deposit can be used to take on positions much greater in size. A position of S$1,000 reflects leverage of 1:2, and in Singapore, leverage in some markets can be as high as 1:20. Considering how leverage scales up risk levels, that is more than sufficient for most traders.
CFD trading relies on your broker's ability to pay out any profits made on trades, so using a trusted and viable platform is essential. In CFD trading, you don't have a position in the underlying asset but an agreement with the broker. No matter what additional functionality CFDs offer, there's no point making a profit if your broker can't pay investment returns.
Reputable firms, whose business model is based on delivering an attractive service to clients, have realised this and have invested in ways that demonstrate they are a reliable business. One option is applying to be authorised by a regulatory body. The regulatory body overseeing the financial markets in Singapore is the Monetary Authority of Singapore (MAS).
Investors and traders who use a MAS-licensed broker can take a degree of comfort from a range of client protection measures. There is also the option to take complaints to the regulator if the broker doesn't adequately address your issues
It's entirely legal for Singapore citizens to use a broker not regulated by MAS and other brokers operating under other regulators' licences. As long as the regulator is one of the Tier-1 authorities listed, the box is ticked for broker reliability.
Brokers invest a lot of time and money gaining a licence and then meeting the ongoing reporting requirements. They also have to demonstrate to the regulator that they have enough cash on hand to make good all their outgoing payments to clients. If a broker opts to be regulated, it is a sign that it is a legitimate business that intends to be operating for years to come. That is crucial in the CFD markets.
The list of brokers includes firms all regulated by Tier-1 authorities, and there's a bonus feature. Fierce competition in the Singapore CFD broker sector means the firms must compete with each other to gain new business. Some, for example, provide exceptional research and learning resources. Some offer super-low trading costs, while others provide an excellent all-around service. Trying the demo accounts of the Singapore CFD brokers is a risk-free way to test the service each offers and develop some trading skills at the same time.