CFD Trading In Singapore

CFD trading in Singapore is big business. In fact, it’s the fourth-largest CFD market globally. Here we’ll look at how traders can get started, the best CFD brokerage firms and platforms in Singapore 2024, plus answer any regulatory and legal questions.

Best CFD Brokers in Singapore

Our team have tested and reviewed hundreds of CFD brokers and found that these are the best options for traders in Singapore:

#1
AvaTrade
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20% Welcome Bonus up to $10,000
#2
IC Markets
#3
Deriv.com

The Best CFD Brokers

What Is A CFD?

A contract for difference (CFD) is a tradable agreement to exchange the difference in the value of an asset. If we take stocks and shares as an example, you could speculate on the change in value of the Singapore Stock Exchange, or on the share price of a specific stock, without actually owning the underlying asset.

Online CFD trading is attractive partly because it’s available in so many markets. You can trade CFDs on stocks, forex, commodities, and cryptocurrency. But despite wide-ranging market access, stick to classes you understand.

CFD traders in Singapore can also benefit from leverage, meaning you can borrow money from a brokerage to increase your position size. This is also known as trading on margin. The benefit of trading on leverage is that by increasing your trade size you can amplify potential profits. Of course, it also means the possibility of larger losses.

How To Trade

CFD trading in Singapore is straightforward:

Accounts

Which CFD brokerage account is best in Singapore will depend on user needs. Most providers have a tiered account system with varying minimum deposits. In general, the greater the minimum investment required, the more competitive the fees, the better the leverage options, and the greater the access to customer support.

Trading Platforms

The best online CFD trading platform in Singapore for one trader might feel clunky and lacking to the next. With that said, MetaTrader (MT4) and WebTrader are popular options. Some companies also use their own proprietary software, which can allow for extensive customisation.

Regardless of the system, staple requirements should be prompt deposits and withdrawals. Also essential are intuitive pattern recognition tools for analysing a stock index, for example. Mobile traders will need to check the platform is accessible through an Android or iOS app. Overall, choose a system that will complement your strategy. And be wary of opting for the cheapest trading platform as you want the best tools at your disposal.

How to Choose a Brokerage

The number of online CFD brokerages in Singapore is growing. Fortunately, the competition means providers are offering lower fees, ample products, and excellent platforms.

When doing your comparison, consider:

According to customer reviews, some of the best online CFD trading brokerages in Singapore are:

For further guidance on CFD brokerage firms, see here.

 

Educational Resources

CFD trading in Singapore is competitive. So, the more additional educational resources you can get your hands on the better. Head to online forums, such as HardwareZone for tips from Singapore traders. Videos, newsletters and demo accounts are also all great ways to hone your CFD shares strategy, for example.

For further guidance on day trading learning, see here.

Final Word

CFD trading in Singapore is hugely popular. Giving investors access to a breadth of markets with high leverage options, CFDs appeal to traders of all experience levels. It is true the regulatory oversight isn’t as robust as in other jurisdictions, such as the UK or US. However, the best trading platforms in Singapore still make for a great environment to trade CFDs.

FAQ

How can I trade CFDs in Singapore?

To start CFD trading in Singapore, sign up at an online brokerage, fund your account, and take a position when you see an opportunity. But make sure you have a clear strategy and risk management tools in place before you put real money on the line.

CFD trading in Singapore is legal and regulated by the Monetary Authority of Singapore (MAS), although as a relatively new market, MAS has a lax reputation. Nonetheless, all brokers should be licensed with the MAS Financial Institutions Directory. As part of your due diligence, check the provider’s website for a license number.

Part of the protection afforded to those trading CFDs in Singapore with a regulated broker is that client funds are segregated. If the provider were to go bankrupt, user funds would be protected. Regulated brokers are also required to issue prospective clients with a comprehensive list of risks.

Which CFD trading account is best in Singapore?

The best trading account will depend on your needs. Consider the minimum account deposit, speed of payment methods, and the customer support available. Also check customer reviews online.

What’s the best CFD trading platform in Singapore?

Whilst there isn’t a universal best platform in Singapore, MetaTrader (MT4) is the most popular. With that said, the bespoke software available at some providers often allows for customisation.

How much money do I need to start CFD trading?

Minimum deposits vary between platforms, however you can start CFD trading in Singapore with S$250.

Further Reading