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Singapore, situated in Southeast Asia, is a global hub for financial markets, renowned for its sophisticated banking system, advanced financial infrastructure, and strategic location that links East and West.
The country’s currency is the Singapore Dollar, abbreviated as SGD.
When it comes to the oversight and regulation of retail forex trading activity in Singapore, it falls under the purview of the Monetary Authority of Singapore (MAS). MAS not only functions as the country’s central bank but also ensures the stability of its financial system by regulating all financial institutions operating within its borders, including those involved in forex trading.
In this ranking, we have identified some of the top forex brokers for Singaporean traders. In doing so, we have taken these factors into consideration:
- Singaporean license
- Available languages
- Awards won
- The general quality of the broker
- Forex commissions
What are the best forex brokers in Singapore?
Below is our curated list of the best forex brokers for traders living in Singapore, with details and information about the country laws, the features, and the characteristics.
Is forex trading legal in Singapore?
Forex trading in Singapore is completely legal.
In fact, within Singapore, forex market oversight is provided by MAS (Monetary Authority of Singapore) who are one of the most respected and influential regulators in the entire region. Altogether this means you should have no fear at all in regard to the legality of trading in Singapore.
How to trade forex in Singapore
For forex trading in Singapore, the regulatory body of the country, MAS actually prohibits unregulated brokers from operating within Singapore. In that case, if you do decide to trade with forex trading brokers which are not MAS regulated, you will not be prosecuted, but the broker operation risks being banned from the country.
In this case then, we certainly recommend that you stick to trading with MAS-regulated brokers as featured. The process of setting up is simple, you just need to select your broker, provide the related ID and proof of residence documents, fund your account, and start forex trading.
What should Singaporean traders look for in a forex broker?
As a Singapore-based trader, there are a few key areas to monitor when seeking a new forex broker. It is important to note that MAS is one of the most respected regulatory bodies out there with a max leverage of 20:1 and bonuses available.
Here are some tips to make sure you make a well-informed broker choice:
1. Register with MAS regulated brokers only
This is the first and perhaps most important point in forex trading. Always choose a regulated broker. In Singapore, since brokers not regulated by MAS cannot offer services then it is made a little easier.
With that said, try to steer clear of any unregulated broker but do remember that even if a broker, like FXTM for example, is not regulated by MAS, they can still be a very top level forex broker.
2. Look for the lowest SGD forex pair spread
In Singapore, you will most likely benefit from having your account in SGD. This means you will be saving on conversion fees and we definitely recommend sticking with this and trading these SGD pairs where you can.
This means you should find the broker above offering the best spreads rates on SGD pairs.
3. Choose the broker before choosing the bonus
You will find that forex broker bonus offers are not too common in Singapore. With that said, there are some available. These are great but remember to think of the bigger picture beyond just the bonus when choosing your broker. A big bonus is great, but not if the other trading conditions of a broker do not fit your needs. Think broker ahead of bonus.
How to verify if a forex broker is regulated in Singapore
In forex trading, you may very well want to double-check the details of your broker’s regulation for yourself. As a Singapore-based trader, this will mean checking through MAS for your broker. Follow this link to reach the MAS homepage.
From there, you will need to know the business or trading name of your broker.. Type this name into the search bar and they should pop up as being regulated on the MAS website.
You can typically find the business or trading name at the very bottom of the broker landing page and typically in slightly smaller print.
Is forex trading taxable in Singapore?
As far as Singapore tax regulation goes, if you have made money from overseas investments, they may not need to be taxed. With that said, since all brokers you should be dealing with are regulated by MAS within Singapore, forex trading will be liable to tax.
This amount of tax will vary from 0% up to 22% depending on your income. If this income is below 22,000 SGD then you won’t have to pay any tax.
- [Disclaimer: we are not accountants, we have done internet research. If you don’t know how to handle this matter, we strongly suggest you contacting Singaporean local authorities before proceeding]
InvestinGoal.com may receive a monetary compensations from the brokerage companies listed above.
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