| Updated: June 19, 2024Forex trading continues to be at the forefront of financial markets, with nearly $6.6 trillion in daily volume across different countries. If you are among the Singaporean investors looking to diversify their trading experience you are welcome to examine our top list of authorized brokers. We tested their platforms by creating live accounts and placing real trades. Each of the listed brokers is available in Singapore.
Fusion Markets74-89% of retail CFD accounts lose money
Markets.com74.2% of retail investor accounts lose money
easyMarkets71% of retail investor accounts lose money
Spreadex64% of retail investors lose money
Capital.com75% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
Plus50080% of retail investor accounts lose money
Saxo Bank65% of retail investor accounts lose money
Tickmill70% of retail investor accounts lose money
AxiThe vast majority of retail client accounts lose moneySingaporean Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1409 | 4.8 ⭐ |
| 2. Markets.com | 1165 | 4.7 ⭐ |
| 3. easyMarkets | 1618 | 4.5 ⭐ |
| 4. Spreadex | 93 | 4.4 ⭐ |
| 5. Capital.com | 10490 | 4.2 ⭐ |
| 6. Plus500 | 13168 | 4.1 ⭐ |
| 7. Global Prime | 100 | 4.1 ⭐ |
| 8. Saxo Bank | 5596 | 3.7 ⭐ |
| 9. Tickmill | 525 | 3.4 ⭐ |
| 10. Axi | 1436 | 3.3 ⭐ |
Singaporean Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Tickmill | 0.1 | 0.1 | 0.4 | 0.3 |
| 2. Fusion Markets | 0.11 | 0.13 | 0.15 | 0.11 |
| 3. Global Prime | 0.13 | 0.28 | 0.28 | 0.22 |
| 4. Spreadex | 0.6 | 9 | 0.9 | 0.8 |
| 5. Markets.com | 0.6 | 0.7 | 0.9 | 0.9 |
| 6. Capital.com | 0.6 | 10 | 2 | 1.3 |
| 7. easyMarkets | 0.7 | 1.0 | 1.0 | 0.9 |
| 8. Saxo Bank | 0.9 | 1.2 | 0.8 | 1 |
| 9. Axi | 1.2 | 1.4 | 1.1 | 1.2 |
| 10. Plus500 | 1.2 | 1.5 | 1.5 | 1.5 |
Singaporean Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. easyMarkets | $0 |
| 2. Saxo Bank | $3 per lot |
| 3. Plus500 | $0 |
| 4. Spreadex | $0 |
| 5. Markets.com | $0 |
| 6. Capital.com | $0 |
| 7. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 8. Tickmill | $0 on Classic Account; $3 per side on Raw Account |
| 9. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 10. Axi | $0 on Standard Account; $7 round trip on Pro Account |
Important Note: Forex trading is legal in Singapore, with the Monetary Authority of Singapore (MAS) being the regulatory body of the financial industry and the country’s central bank. The government agency’s official website is https://www.mas.gov.sg, and its X (former Twitter) account is @MAS_sg. Forex brokers must obtain a license from MAS to accept Forex and CFD traders from the country as customers.
This publication aims to provide comprehensive information on the legality of Forex trading in Singapore, the local regulator, available investor protections, taxes, trading platforms, and more.
Top 10 FX Brokers in Singapore
Fusion Markets Broker Details Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade Trustpilot Rating 4.8 out of 1409 reviews Number of Forex Pairs to Trade Over 200 Leverage Forex & Metals: 30:1
Index CFDs: 5:1
Cryptocurrencies: 2:1Spread EURUSD: 0.11
USDJPY: 0.13
EURGBP: 0.15
GBPUSD: 0.11Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple Founded by Australian trading experts, Fusion Markets was launched in 2017 and is currently one of the top destinations for traders all over the globe. While it is common for brokers to advertise low spreads, Fusion Markets was actually recognized by Brookerchooser, receiving the award “Lowest Spread Forex Broker” four years in a row.
In addition to offering traders tight spreads, Fusion Markets is committed to offering the best value for your trading, charging a significantly low commission of only $2.25 per lot ($4.50 per side). As you can see, const-effectiveness is one of the main values of this top-shelf broker.
Safety is always a priority for Fusion Markets, with major regulatory bodies like the Australian Financial Services (license No.385620), the Financial Services Authority of Seychelles (license No.SD096), and authorities in Vanuatu regulating the services provided by the broker. Under ASIC’s (Australian Securities & Investments Commission) regulation, the broker also provides a negative balance protection to some of its clients.
With no minimum on deposits and a wide range of popular trading platforms like MetaTrader4, MetaTrader5, cTrader, and more, it is no surprise that Fusion Markets is one of the top choices of traders. With an average score of 4.6 out of 5 on Trustpilot, this broker has received an Excellent rating from more than 1,300 happy customers.
Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
Global Prime Broker Details Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.1 out of 100 reviews Number of Forex Pairs to Trade 56 Leverage Forex & Metals: 500:1
Index CFDs: 100:1
Cryptocurrencies: 10:1Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 0.22Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Global Prime is a reliable brokerage that has been providing low-cost trading services since 2010. Regulated by the watchdogs of Vanuatu and Australia, the broker facilitates trading with over 150 financial instruments, including indices, bonds, commodities, cryptocurrencies, and more than 50 currency pairs. Major-pair spreads on raw accounts start at zero pips, with most orders being executed within 10 milliseconds on average. The broker works with MT4 only but plans to soon expand its range of supported platforms with cTrader, MT5, and TradingView.
These excellent trading conditions, coupled with a streamlined registration process, fee-free transactions to and from customer accounts, and round-the-clock support, have earned the broker a solid 4.1 score on Trustpilot. Still, there is scope for improvement as the company offers no cent and swap-free accounts for Islamic customers. The broker has no compensation scheme for client funds, either, which is yet another area Global Prime could improve in.
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
easyMarkets Broker Details Regulators CySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), and FSC (license no. SIBA/L/20/1135). Min Deposit $100 Trading Platforms easyMarkets, MetaTrader 4, MetaTrader 5, TradingView Trustpilot Rating 4.5 out of 1618 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.7
USDJPY: 1.0
EURGBP: 1.0
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer Withdrawal Methods Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer Starting in 2001, nowadays, easyMarkets is one of the top brokers that cater to the preferences of a wide range of traders, with several licenses authorizing the brand to operate in multiple markets. To ensure traders’ safety, the broker is regulated by authorities like CySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), and FSC (license no. SIBA/L/20/1135).
Being among the pioneers in online trading, easyMarkets was the first one to introduce advanced tools like dealCancellation, Freeze Rate, and Inside Viewer. As for the platforms available to members of the broker, first, we would like to highlight the easyMarkets platform, which boasts a simple design and a selection of advanced trading tools that will appeal to experienced traders. Meanwhile, there is also the alternative to use platforms like MetaTrader 4 and 5 as well as TradingView. Mobile trading is also very accessible thanks to the dedicated easyMarkets app available to both Android and iOS users.
Competitive spreads and low fees are also among the features that make easyMarkets a preferable destination for a large number of traders. The company enjoys an average score of 4.6 out of 5 on Truspilot’s review platform, further cementing the broker’s reputation. Going live requires a minimum deposit of only $100, with the broker supporting a wide selection of deposit methods.
Key Pros
- Offers tight spreads and low fees
- Supports trading of over 60 currency pairs
- Regulated by several reputable authorities
- Supports a wide range of payment methods
- Offers a proprietary platform
Key Cons
- Number of supported products is somewhat limited
- Does not offer copy trading platform
- Traders from certain countries may have access to fewer payment methods
Saxo Bank Broker Details Regulators FCA (No. 551422), FSA Denmark (No. 1149), MAS (No. 200601141M), ASIC (No. 32110128286), SFC Hong Kong (No. 1395901), FSA Japan (No. 0104-01-082810) Min Deposit $0 Classic$200,000 + Platinum $1,000,000 + VIP Trading Platforms SaxoTraderGO, SaxoTraderPRO, TradingView Trustpilot Rating 3.7 out of 5596 reviews Number of Forex Pairs to Trade 185+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.9
USDJPY: 1.2
EURGBP: 0.8
GBPUSD: 1Forex Commission per Lot per Trade $3 per lot Deposit Methods Visa, Visa Electron, Mastercard, Maestro, Bank Transfer, Quick Payment Withdrawal Methods Bank Transfer Established in 1992, Saxo Bank provides a superior trading experience across multiple asset classes and more than 71,000 financial instruments. The brokerage is operated by one of Denmark’s largest investment banks and carries licenses from several first-tier financial regulators, including the British FCA, Australia’s ASIC, and Singapore’s MAS. Saxo Bank provides a solid choice from over 185 major, minor, and exotic currency pairs available for commission-free trading at highly competitive spreads.
Apart from trading on the spot markets, Saxo Bank clients can dabble in Forex forwards, vanilla options, contracts for difference, and futures. All costs are built into the spreads as the brokerage charges no additional commissions on foreign exchange trades. Customers looking to diversify their portfolios can trade in various hard and soft commodities, equity indices, mutual funds, bonds, and ETFs. Its somewhat limited range of deposit and withdrawal methods is one of the very few shortcomings of Saxo Bank, whose overall score on Trustpilot averages 4.2 out of 5 stars.
Key Pros
- Offers a varied range of major, minor, and exotic FX pairs
- Provides tier-1 liquidity for high order fill rates
- Boasts over 30 years of experience in the financial industry
- Offers more than 140 FX forward contracts
- Excellent fill rates for FX majors like EUR/USD
Key Cons
- Steep minimum deposits for VIP and Platinum accounts
- Overcrowded and hard-to-navigate website
- Customizing SaxoTraderPRO for desktop takes some time
Tickmill Broker Details Regulators CySEC (No. 278/15), FCA (733772), CONSOB (No.4310), BaFin (No.146511), ACPR (No.75473), CNVM (No.4082), FSA Seychelles (SD 008), FSCA (FSP 49464) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, ZuluTrade Trustpilot Rating 3.4 out of 525 reviews Number of Forex Pairs to Trade 62 Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.1
USDJPY: 0.1
EURGBP: 0.4
GBPUSD: 0.3Forex Commission per Lot per Trade $0 on Classic Account; $3 per side on Raw Account Deposit Methods Bank Transfer, Skrill, Mastercard, Visa, PayPal, Przelewy24, Neteller, Trustly Withdrawal Methods Mastercard, Visa, Skrill, Neteller, Przelewy24, PayPal, Bank Transfer ickmill is a multi-licensed broker with over 780,000 registered customers worldwide. It provides low-cost trading with over 180 financial instruments, including currency pairs, equity indices, commodities, cryptocurrencies, bonds, and stocks. Raw spreads start at zero pips for FX majors, with nominal commissions on Raw accounts. It is also worth mentioning that Tickmill is one of the few online brokers to issue no requotes. It receives heaps of praise for delivering some of the fastest execution times in the industry, filling client orders within 0.20 seconds on average.
The brokerage supports trading via the robust MT4 and MT5 platforms, with customers facing a choice from their downloadable and web-based versions. Clients interested in dipping their toes in copy trading can conveniently connect their Tickmill accounts to the ZuluTrade platform. Tickmill keeps client funds in segregated accounts and maintains insurance against insolvency with Lloyds Bank despite boasting sufficient liquidity to weather hard times. On the downside, bank-transfer deposits incur additional fees when below the $5,000 threshold.
Key Pros
- Offers swap-free accounts for Islamic customers
- No commissions on FX trades via Classic accounts
- Global presence in over 180 countries
- FX spreads from zero pips on Raw accounts
- Swift order execution with no requotes
Key Cons
- Could use more base account currencies
- Bank-transfer deposits below $5,000 incur extra fees
Plus500 Broker Details Regulators FSA (No.4.1-1/18), FCA (No. FRN 509909), CySEC (No.250/14), FMA (No.47546), SFSA (No. SD039), MAS (No. CMS100648), DFSA (No. F005651), ASIC (No. 417727) Min Deposit $100 Trading Platforms Proprietary desktop and mobile platforms Trustpilot Rating 4.1 out of 13168 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 1.2
USDJPY: 1.5
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Deposit Methods Mastercard, Visa, Skrill, PayPal, Bank Transfer, Apple Pay, BPAY Withdrawal Methods PayPal, Bank Transfer, Visa, Mastercard, Skrill Plus500 is a well-funded trading company with a spotless reputation that services over 25 million customers across 50 countries. This market-leading brokerage is regulated by some of the strictest financial watchdogs in the world, including ASIC, FCA, and CySEC. Its parent company Plus500 Ltd trades publicly on the Main Market of the London Stock Exchange, which only adds to the broker’s good reputation.
The broker specializes in providing CFD trading across multiple asset classes, offering a choice from over 2,800 financial instruments. Forex, indices, stocks, commodities, cryptocurrencies, options, and ETFs are all tradable at Plus500. It ensures a clean trading experience with a robust platform flaunting a modern yet highly intuitive design.
Plus500 caters to traders with tight spreads and charges no additional commissions on forex trades. Customers can fund their live trading accounts via cards, bank transfers, and several popular e-wallets, with minimum deposits starting at $100. Deposits and withdrawals are free but administrative fees are levied on dormant accounts after three months of inactivity.
Key Pros
- Trades publicly on the London Stock Exchange
- Commission-free FX trading with tight spreads
- Great selection of analytical tools and educational materials
- Easy and quick account opening
- Provides real-time FX quotes
Key Cons
- Charges administrative fees on inactive accounts
- The platform could use more customization features
Axi Broker Details Regulators ASIC (No. 318232), FMA (No. 518226), FCA (No. 466201), FSA (St. Vincent and Grenadines) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 WebTrader, Axi Mobile Trustpilot Rating 3.3 out of 1436 reviews Number of Forex Pairs to Trade 80 Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 1.2
USDJPY: 1.4
EURGBP: 1.1
GBPUSD: 1.2Forex Commission per Lot per Trade $0 on Standard Account; $7 round trip on Pro Account Deposit Methods Visa, Mastercard, Bank Transfer, Neteller, Skrill, AstroPay, Fasapay, Przelewy24, Boleto, Pix, Bitcoin, Ethereum, Ripple, Litecoin, Tether, Stellar Withdrawal Methods Mastercard, Visa, Bank Transfer, Przelewy24, Fasapay, Skrill, AstroPay, Pix, Boleto, Neteller, Bitcoin, Ripple, Ethereum, Litecoin, Tether, Stellar Since 2007, Axi has served 60,000 traders from more than 100 countries, offering low-cost trading with over 290 financial instruments across five major asset classes. The company carries licenses from Australia’s ASIC, New Zealand’s FMA, and the UK’s FCA. It enjoys a fine reputation among traders worldwide and has not seen any controversies.
The Sydney-based broker caters to customers with over 70 currency pairs and charges no commissions on FX trades conducted via Standard retail accounts. Commissions are in place only on Pro and Elite accounts but fall within the industry averages. Hard and soft commodities, equity indices, cryptocurrencies, and stocks are tradable at favorable conditions and low pricing via the MT4 platform.
Leverage caps are jurisdiction-specific, with customers in some countries benefiting from leverage ratios of up to 500:1. Multiple base currencies are available for retail accounts, allowing traders to save on currency conversion fees. The broker caters to its international client base with over a dozen payment methods. Using payment solutions like Fasapay and Boleto is restricted to specific regions only.
Key Pros
- Provides multilingual customer support
- Standard and Pro accounts available in 10 base currencies
- No minimum deposit requirements on Pro and Standard accounts
- Over 70 FX pairs tradable from zero pips
- Swift order execution and tight spreads
Key Cons
- A limited choice of trading platforms
- Below-average number of tradable symbols
Spreadex Broker Details Regulators FCA (No. 190941) Min Deposit $0 Trading Platforms TradingView, proprietary software Trustpilot Rating 4.4 out of 93 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.6
USDJPY: 9
EURGBP: 0.9
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Deposit Methods Mastercard, Visa, Maestro, Direct Debit, Check, Bank Transfer Withdrawal Methods Visa, Maestro, Mastercard, Bank Transfer, Check Spreadex is a UK-regulated firm that provides financial spread betting and leveraged trading through contracts for difference. The company carries the stamp of approval of the Financial Conduct Authority (FCA) and has over 25 years of industry experience. Over 60,000 customers worldwide choose Spreadex for its competitive pricing, advantageous trading conditions, and diverse product range comprising more than 10,000 financial instruments.
Clients can trade over 60 currency pairs with tight spreads averaging 0.6 pips on majors like the EUR/USD. Beyond Forex, Spreadex has decent enough coverage of the equity index, commodity, and stock markets. Options, bonds, interest rates, and exchange-traded funds are also available for trading at favorable conditions.
Traders at Spreadex can stay ahead of the curve with weekly technical analysis, trading updates, and an economic diary, all available under the News & Analysis tab. Connecting your Spreadex account to TradingView is an option, although the broker’s proprietary software also ensures a seamless trading experience and fast order execution. Spreadex does not support MT4 and MT5 at the moment but has earned an above-average Trustpilot score of 4.5 stars despite this shortcoming.
Key Pros
- Provides access to over 10,000 tradable symbols
- Well-designed and intuitive mobile trading app
- Offers spread betting on FX pairs
- Commission-free FX trading with tight spreads
- Seamless registration process
Key Cons
- No support for MetaTrader 4 or 5
- Licensed by a single financial regulator (FCA)
- Deposits under $/£50 may incur additional charges
Markets.com Broker Details Regulators ASIC (license no. 424008), FCA (license no. 481853), CySEC (license no. 092/08), FSCA (license no. 46860), FSC (license no. SIBA/L/14/1067), FSA (license no. 27030 BC 2023) Min Deposit $100 Trading Platforms MetaTrader 4, MetaTrader 5, WebTrader, Mobile App Trustpilot Rating 4.7 out of 1165 reviews Number of Forex Pairs to Trade 50+ Leverage Forex & Metals: 30:1
Index CFDs: 20;1
Cryptocurrencies: 2:1Spread EURUSD: 0.6
USDJPY: 0.7
EURGBP: 0.9
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, PayPal, Apple Pay, Skrill, Neteller, Bank Transfer Withdrawal Methods Visa, Mastercard, PayPal, Apple Pay, Skrill, Neteller, Bank Transfer When it comes to online trading, it is always recommended to trust only reliable brokers that are capable of offering great trading conditions to their clients. Luckily for you, Markets.com is one of the most reputable trading brands, operating since 2008 and offering traders a wide selection of markets. Whether you are an expert in trading or you are a beginner, at Markets.com, you can find plenty of tools to help you improve your trading sessions.
Security is one of the broker’s strongest suits, with major regulators like ASIC, FCA, CySEC, and many more overlooking the operations of Markets.com. To make the trading process smoother and more intuitive, the brand supports popular platforms like MetaTrader 4 and 5 as well as WebTrader. The dedicated Markets.com app will also allow a seamless transition to mobile trading, with both MT4 and MT5 adapted for mobile trading.
When it comes to managing your deposits and withdrawals at Markets.com, you will be able to choose from several convenient methods, including bank cards, popular e-wallets, and bank transfers. Withdrawals are also possible via the same selection of methods, enabling easy bankroll management for members of the broker.
Key Pros
- Offers tight spreads and low fees for FX traders
- Traders can choose from over 50 currency pairs
- Supports a wide range of payment methods
- Mobile trading available through dedicated app
- Supports popular trading platforms
Key Cons
- Offers only CFD and FX products
- Charges inactivity fee
- No dedicated platform for copy trading
Capital.com Broker Details Regulators ASIC, FCA, CySEC, SCB, MiFID Min Deposit $20 Trading Platforms MetaTrader 4, TradingView Trustpilot Rating 4.2 out of 10490 reviews Number of Forex Pairs to Trade 125+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.6
USDJPY: 10
EURGBP: 2
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Deposit Methods Bank transfers, VISA, MasterCard, Maestro, Apple Pay, PayPal, Neteller, Skrill, Sofort, Przelewy, TrueLayer, iDEAL, Trustly, SPEI Withdrawal Methods Bank transfers, bank cards, Apple Pay, PayPal, Neteller, Skrill, Sofort, Trustly Capital.com is a broker that has been providing its services since 2016. It has licenses from several Tier-1 regulators, including the ASIC, CySEC, and FCA, ensuring a secure trading environment. More than 580K registered traders enjoy an excellent user experience, from hassle-free account opening to streamlined trading.
Capital.com offers market-leading spreads on more than 125 currency pairs. The brand’s product offering goes far beyond forex trading, with 3,000 indices, commodities, shares, major cryptocurrencies, and altcoins tradable both on desktop and mobile.
The minimum deposit requirements at Capital.com start from $20, with diverse payment methods, including bank transfers, bank cards, and various e-wallet brands. Withdrawals do not entail processing fees and demo accounts are available to practice in a simulated trading environment with virtual funds. The brand is praised for its rich assortment of educational materials, the latest market news, and advanced analytical tools.
Key Pros
- Trusted by 580K+ traders across the globe
- Trading guides for beginner, intermediate, and advanced traders
- Mobile apps for Android and iOS devices
- Low FX fees built into the spread
- Negative balance protection
Key Cons
- There is an inactivity fee after 1 year
- No two-step login
- No price alerts on the web platform
Is Forex Trading Legal in Singapore?
As stated on the official website of the Monetary Authority of Singapore (MAS), the city-state is the third largest forex trading center globally and the largest one in Asia Pacific. The daily trading volume in Singapore is approximately $US 1 trillion.
As a major Forex center, Singapore has authorized trading. The city-state has a properly regulated financial market with robust rules and regulations in place, monitored by the Monetary Authority of Singapore. Thus forex traders residing in the country can rest assured they may participate in the market through authorized brokers complying with strict financial standards.
MAS Regulation Info
Established in 1971, the Monetary Authority of Singapore performs a dual function. It operates both as the country’s Central Bank and as a monitoring authority of financial markets. MAS has been vested with its power to regulate the financial markets in Singapore through the Monetary Authority of Singapore (MAS) Act.
As a central bank, MAS upholds sustainable, non-inflationary economic growth via the application of monetary policy and in-depth analysis of the financial market. As a financial regulator, the agency is tasked with monitoring all financial institutions in the country, including banks, capital market investments, investment consultants, and stock exchanges. MAS also issues several license types and investigates reports of misconduct, regulatory breaches, and fraud.
The government agency imposes strict rules and regulations on forex trading operators in Singapore. To offer their services legitimately to Singaporean traders, they must hold a valid Capital Markets Service (CMS) license. Additionally, brokers are required to hold clients’ funds in segregated accounts, separate from their corporate funds. Last but not least, trading brokers are required to report regularly to MAS, with due information on financial statements, trading statistics, and customer complaints.
It is important to note that MAS does not settle traders’ disputes with brokers. Such cases are redirected to the Financial Industry Disputes Resolution Centre Ltd (FIDReC), a mediation service based in Singapore.
How Can I Verify MAS-Authorization?
Generally, there are two ways to verify if a forex broker catering to Singaporean traders is authorized by the Monetary Authority of Singapore.
The first one is to look for the disclosure text typically found at the bottom of the broker’s homepage. For instance, this is the key disclosure text from IG’s website: IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.
The second one is to check out the register of MAS, found at https://eservices.mas.gov.sg/fid/institution?term=Forex%20brokers. Here is the information for the license type and status of the same company, IG Asia PTE LTD found on the official register of the regulator: https://eservices.mas.gov.sg/fid/institution/detail/1489-IG-ASIA-PTE-LTD. Along with the business activity of the entity, the regulator provides information on its website, contact details, and registered address.
Are My Funds Safe with Forex Brokers in Singapore?
Forex trading comes with a certain amount of risk, so traders must ensure they are fully aware of it. There are different risk management tips, instruments, and techniques to protect your funds.
In the context of trading, risk is associated with the possibility of traders’ decisions not resulting in the outcome they planned. Trading risk comes in several forms with the most prominent being market risk, the impact of leverage, lack of knowledge, and succumbing to emotions while trading. Forex brokers provide different tools to mitigate these risks such as setting automatic stop-losses, guaranteed stops, limit orders, and price alerts. Additionally, retail trading account holders are protected through negative balance protection, which we will cover in the next section of this publication.
The Monetary Authority of Singapore is committed to ensuring a safe and transparent trading environment for all forex traders who register accounts with regulated brokers. Forex trading providers must adhere to robust guidelines for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) practices. As a founding member of the Asia/Pacific Group on Money Laundering, MAS upholds high standards in this respect.
Do Singaporean Brokers Provide Negative Balance Protection?
Negative Balance Protection is a vital aspect of forex trading. It is a mechanism that helps traders avoid losing more money than they have already deposited in their trading accounts. The mechanism is designed to ensure that a trader’s account balance never goes below zero. Even during unfavorable market circumstances and unexpected price movements, customers remain protected from incurring losses greater than their initial investment. The protection is particularly suitable for inexperienced traders who have not yet adopted a proper risk management strategy.
Generally, negative balance protection is available for retail customers of trading brokers. Professional account holders should normally waive such protection mechanisms. The top forex brokers authorized to operate in Singapore usually offer this tool, ensuring high levels of safety for their customers.
Do You Pay Tax on Forex Trading in Singapore?
The Inland Revenue Authority of Singapore (IRAS) defines forex trading as an activity subject to taxation. However, only traders who earn their main income from regular forex trading must pay income tax. What this means is that only professional traders must declare forex trading profits as income gained from trade. Currently, a tax rate of 17% applies to corporate clients, whereas individual tax rates can vary from 0% to 22% depending on income level. We advise traders to seek professional guidance from local accountants to clarify their tax obligations.
As far as forex trading losses are concerned, they are treated as a trade loss rather than capital loss and can be used to offset against other income. It is important to note that losses cannot be carried back to past years, only carried forward to future years.
How Does the Available Leverage of MAS-Regulated Brokers Compare to the Leverage at Brokers Regulated Offshore?
The concept of leverage is quite common in forex trading. The instrument enables traders to use borrowed capital to invest in forex. By borrowing funds from brokers, traders can trade larger positions and enjoy high returns upon favorable market conditions.
However, leverage is often described as a double-edged sword, as it can also amplify losses. Forex traders must learn how to manage leverage properly and apply sound risk management strategies to reduce forex losses. Therefore, financial regulatory authorities impose leverage limitations to protect traders from excessive losses.
In 2020, the Monetary Authority of Singapore imposed new leverage restrictions for forex trading. The limit for frequently traded pairs, such as ones including SGD, EUR, USD, GBP, and JPY was set to 50:1. The maximum allowable leverage for less frequently traded pairs was set to 20:1.
Before these restrictions came into force, the leverage limitations reached 500:1, which, however, was deemed quite risky by the MAS, especially for novice retail traders.
The same leverage limitations of 50:1 are valid for other forex trading markets such as the US and India. As for the UK, major currency pairs are traded with a maximum leverage of 30:1, and minor currency pairs – with a maximum leverage of 20:1. As for countries from the European Union, and Australia, for example, leverage is limited between 30:1 and 2:1, depending on the volatility of the underlying asset.
What Do You Need to be Designated as a Professional Trader in Singapore?
Forex traders may wish to upgrade their trading experience to the next level by applying for a professional status. In doing so, they waive some of the customer protection mechanisms that are in place for retail traders.
To apply for a professional account at a particular forex broker, they must have already created a retail trading account. They must find and fill in a request form for professional status. If necessary, they may be required to provide further supporting documentation.
To succeed, applicants must meet usually two of three eligibility criteria regarding their financial portfolio, the size of their trades, and their previous experience in the financial sector.
By securing a professional account, traders normally waive protections such as leverage limitations, negative balance protection, and specific product restrictions. Furthermore, professional traders usually do not receive standard risk warnings and brokers use more sophisticated language when communicating with them.
What Trading Platforms Are Available to Singaporean Traders?
Singaporean traders can unlock an exciting world of trading opportunities via a wide choice of trading platforms with licensed forex brokers operating in the country. Based on their trading needs, they can choose between popular platforms such as MetaTrader4, MetaTrader5, cTrader, and TradingView.
The perfect pick for customers looking to trade foreign currencies is MetaTrader4, developed by the company MetaQuotes. The platform is available for download for Android, iOS, MacOS, or Windows. The MT4 offers a diverse range of features including copy trading, charting tools, automated trading systems, custom indicators, and more. Trading from multiple devices simultaneously is possible, enabling investors to better monitor their positions. The intuitive design makes the platform especially suitable for inexperienced traders.
While the MetaTrader4 platform can be used by beginner traders, the MetaTrader5 offers some advanced trading opportunities. Experienced traders trying to create a strategy can explore what MetTrader5 has in store for them.
Designed by Spotware, cTrader is excellently suited for new and experienced CFD and Forex traders alike. The platform supports detailed trade analysis features to help traders become aware of their strengths and weaknesses. Besides, comprehensive educational videos are available within the platform helping traders improve their strategy and risk management. Investors can make informed trading decisions and analyze market trends thanks to advanced charting tools.
TradingView is a charting platform and social network, utilized by more than 60 million traders around the globe to spot trading opportunities across a variety of financial markets. It provides the latest data on Forex and a variety of other markets such as stocks, futures, indices, and Bitcoin in a useful format that works flawlessly across devices. The platform is equipped with hundreds of built-in indicators and strategies and offers comprehensive financial analysis.Below you can find some useful references with links to organisations that monitor the forex market in Singapore.