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 brokers and platforms in Singapore 2020, plus answer any regulatory and legal questions.

CFD Brokers in Singapore

FXTM Are leading forex and CFD brokers. Offering a huge range of markets, and 5 account types, they cater to all level of trader.
A trader with a Plus500 account can trade CFDs on underlying financial instruments such as Forex, Stocks, Commodities, Cryptocurrency, Options and Indices. With tight spreads and no commission, they are a leading global brand. Plus500 offer a first deposit bonus, up to $10,000 AUD
Leading forex and CFD broker regulated in Ireland, Australia, Canada and South Africa. Avatrade are particularly strong in integration, including MT4
Trade Forex on 0.0 pip spreads with the world's leading True ECN forex broker - IC Markets.
Forex.com boast a global reputation. Regulated in the UK, US, Canada and Australia they offer a huge range of markets, not just forex, and offer very tight spreads and a cutting edge platform.
Fusion Markets are delivering low cost forex and CFD trading via low spreads and trading costs. Their message is - Stop paying too much to trade
XM.com Offer a range of Account types and a low minimum deposit to appeal to all levels of trader. With 1000+ markets and low spreads they offer a great service.
Trading 212 Offer a truly mobile trading experience. With tight spreads and a huge range of markets, they offer a dynamic and detailed trading environment.
Alpari offer forex and CFD trading across a big range of markets with low spreads and a range of account types that deliver for every level of trader from beginner to professional.
BDSwiss offer 250+ Shares, Indices, Forex, Commodities and Cryptocurrencies markets via CFDs. With spreads from 1 pip and an award winning app, they offer a great package.
Markets.com offer CFDs across a huge range of assets from shares and indices to commodities and cryptocurrencies.
Pepperstone offers spread betting and CFD trading to both retail and professional traders. Clients can trade FX, indices and more on MT4, MT5 and cTrader platforms.
Global brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features.
Binary.com are the established pioneers of binary options. The choice of the advanced trader, Binary.com offer the greatest flexibility of any binary broker. They also offer Forex and CFD via the MT5 platform.
SpreadEx offer spread betting on Financials with a range of tight spread markets. Popular award winning, UK regulated broker.
A regulated bank, Saxobank offer CFD, Stocks and Forex trading on 35,000+ markets via the SaxoTrader Pro and SaxoTrader Go platforms
easyMarkets.com - Simply Honest. Trade CFDs on Forex, Commodities, Indices, Shares & Cryptos With a Top Rated Forex Broker
Finq.com offer a great all round service with trading on 2100+ assets and immediate bonus offers. $50 Welcome Bonus & Up to 30% Deposit Bonus.
Vantage FX are a Raw ECN Forex broker, regulated by ASIC is Australia. Boasting MT4, MT5 and Webtrader platforms, a range of account types and a deposit bonus of up to 50%
NinjaTrader offer Traders Futures and Forex trading. Use Auto-trade algorithmic strategies and configure your own trading platform, and trade at the lowest costs.
IG offer spread betting, CFD and Forex trading across a range of markets. They are FCA Regulated, boast a great trading app and have a 40 year track record of excellence.
Libertex - Trade Online. Libertex offer CFD and Forex trading, with fixed commissions and no hidden costs.
Ayondo offer trading across a huge range of markets and assets. They also offer negative balance protection and social trading.
FXCM are an FCA regulated, London based broker. Companies under the FXCM umbrella are also regulated in Australia and Canada.
Zulutrade provide multiple automation and copy trading options across forex, indices, stocks, cryptocurrency and commodities markets
New Forex broker Videforex can accept US clients and accounts can be funded in a range of cryptocurrencies. Payouts reach 95% per trade.
Trade nearly 200+ global stocks at 24Option via CFDs. Spreads are competitive and stop loss and take profit orders are available. Even trade new cannabis firms in Canada!
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Multi-Award winning broker. Specialising in Forex but also offering stocks and tight spreads on CFDs and Spread betting across a huge range of markets.
Invest.com provide portfolio management plus standard trading. Leverage and spreads improve with each account level - Bronze, Silver or Gold
Deriv.com are a new brokerage, offering binary options and CFD trading
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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:

  • Open an account – Most Singaporean traders benefit from instant account activation once their ID and address have been validated. Traders can then consider finance options and fund their account.
  • Find an opportunity – Informed by your strategy, identify a market opportunity to use a CFD instrument, such as on stocks.
  • Enter a position – On your trading platform, take a position depending on whether you think price will rise or fall.
  • Risk management – Set a stop-loss order to automatically close out a trade when losses reach a certain point. Use a stop-limit order to automatically protect profits when they hit a specific level.
  • Monitor & close – Keep an eye on your charting software for real-time changes to the market. If you haven’t set stop-loss and stop-limit orders, close out the trade when you’re ready.

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 brokers 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 Broker

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

When doing your brokerage comparison, consider:

  • Costs – Commissions and spreads will eat into returns. So, make sure you’re aware of all the trading fees before you open an account.
  • Platform – MetaTrader (MT4) is the most popular, but bespoke software can allow for a more personalised feel. Request a demo account to explore the platform before you invest money.
  • Customer service – Opt for the cheapest online brokerage in Singapore and you may find customer support, be it through live chat or the phone, just isn’t available when you really need it.
  • Additional tools – What else can the broker offer to improve your CFD trading success? Automated trading algorithms can streamline an already proven strategy, for example.

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

  • Maybank Kim Eng – Traders from Singapore can get up to 20x leverage on this DMA platform.
  • CMC Markets – One of the largest brokers in Singapore, CMC Markets has a huge offering with competitive leverage.
  • IG Markets – IG Markets receives great customer reviews, offering CFDs in indices, shares, FX, commodities, and more. IG Markets also offers an ECN trading account.
  • Phillip CFD – Although smaller than some of the other brokers on this list, it is reputable with a long list of loyal Singaporean CFD traders.
  • Oanda – A well-established international broker, Oanda is particularly good for traders interested in CFDs in forex and cryptocurrency.
  • DBS Vickers –  The popular online trading platform offers a suite of CFDs to Singapore traders, including across forex, stocks, and commodities. The platform is also available on a mobile-friendly app and provides extensive market insights.
  • Interactive Brokers – IB offers impressive commission rates, but they do charge for basic tools such as market data and news insights.

For further guidance on CFD brokers, 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.