| Updated: January 15, 2025Forex trading has become a popular investment vehicle in Singapore, with many residents looking to capitalize on the price movements in the global currency market. As a hub for international trade and finance, Singapore offers a favorable environment for forex trading, boasting a robust regulatory framework to protect local traders.
Below you can find a list with Forex brokers regulated in Singapore:
Top 10 Forex Brokers in Singapore
-
Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading Instruments- CFDs on: Forex
- Crypto
- Indices
- Commodities
- Stocks
- Options
- ETFs
-
Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
-
FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
-
IC Markets
- Offers 2,200+ tradable markets, including 61 currency pairs
- Leverage of up to 1:1000 in select jurisdictions
- EUR/USD spreads from 0.8 pips for standard accounts
Trading Instruments- CFDs on Forex
- Commodities
- Index
- Bond
- Cryptocurrencies
- Stock
- Futures
-
IG
- Offers different account types, including DMA (Direct Market Access) one
- Offers turbo warrants on forex pairs, commodities, indices, and equities
- Supports popular platforms like MT4 and TradingView as well as ProRealTime, L2, and more
Trading Instruments- CFDs on Indices
- Shares
- Crypto
- Futures
- Commodities
- Options
- Interest Rates
- Sectors
- Bonds
- Knock-out trading
-
Pepperstone
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex
- Indices
- Commodities
- Cryptocurrencies
- Share CFDs
- ETFs
-
eToro
- Popular broker for social trading
- Trading is conducted on innovative in-house platform
- Offers both investing and trading products
Trading Instruments- CFDs on Forex
- Stocks
- Commodities
- Crypto
- ETFs
- and Indices
-
Admirals
- Trade using MetaTrader 4 and 5, as well as Admirals' specialized plugins for additional functionality.
- Access forex, shares, indices, commodities, ETFs, bonds, and cryptocurrency CFDs.
- Admirals is overseen by top-tier regulatory bodies: FCA, ASIC, CySEC, and EFSA, assuring transparency and customer security.
Trading Instruments- CFDs on Forex
- Indices
- Stocks
- Commodities
- Bonds
- ETFs
- Cryptocurrencies
-
XM Group
- XM provides great trading experiences using MetaTrader 4 and MetaTrader 5, which are improved by personalized features.
- Zero commission accounts are available
- Top-tier regulation from CySEC, ASIC, FSC, and DFSA oversee XM's operations, assuring transparency and client safety.
Trading Instruments- Forex
- Stocks
- Indices
- Commodities
- Thematic Indices
-
FXTM
- Established brokerage company regulated by UK FCA, Kenya CMA, and Mauritius FSC
- MT4, MT5, Mobile Trading Platform
- $1M Lloyd’s of London account insurance
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| Plus500 | 1.2 | $0 |
| Fusion Markets | 0.93 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account |
| FP Markets | 1.1 | $0 Standard Account; $6 round turn on Pro Account |
| IC Markets | 0.8 | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
| IG | 0.86 av.spread | $0 |
| Pepperstone | 1.00 (min) | $0 (Standard Account), $7 round-turn (Razor Account) |
| eToro | 1.0 | $1 or $2 (stocks only) |
| Admirals | 0.1 | $3 per lot |
| XM Group | 0.8 | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account |
| FXTM | 0.1 |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Plus500 |  |
$100 |
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| IC Markets | |
$200 |
| IG | |
$0 |
| Pepperstone | |
$0 |
| eToro | |
$50 or $100 based on country ($10 for the UK, $1 in the US) |
| Admirals | |
$100 ($1 for Invest MT5 Account) |
| XM Group | |
$5 |
| FXTM | |
$200 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Plus500 | |
1:30 |
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| FP Markets | |
1:30 |
| IC Markets | |
1:30 |
| IG | |
1:30 |
| Pepperstone | |
1:30 |
| eToro | |
1:30 (1:400 advanced leverage at Seychelles entity) |
| Admirals | |
1:30 |
| XM Group | |
1:30 |
| FXTM | |
1:2000 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Plus500 | |
60+ |
| Fusion Markets | |
80+ |
| FP Markets | |
70+ |
| IC Markets | |
61 |
| IG | |
80+ |
| Pepperstone | |
90+ |
| eToro | |
55 |
| Admirals | |
82 |
| XM Group | |
50+ |
| FXTM | |
Comprehensive Comparison of the Best Singapore Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$100 |
|
1.2 | ||
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$200 |
|
0.8 |
|
|
 |
$0 |
|
0.86 av.spread |
|
|
 |
$0 |
|
1.00 (min) |
|
|
 |
$50 or $100 based on country ($10 for the UK, $1 in the US) |
|
1.0 |
|
|
 |
$100 ($1 for Invest MT5 Account) |
|
0.1 |
|
|
 |
$5 |
|
0.8 |
|
|
 |
$200 |
|
0.1 |
|
In this article, we provide detailed information about the legalities and restrictions surrounding forex trading in Singapore and tackle the regulatory requirements forex brokers must meet to operate legally in the country. Also included is information about the taxes forex trading may attract and the key criteria that can help Singaporeans spot reliable brokers.
Legal Forms of Forex Trading in Singapore
Forex trading is legal and regulated by the Monetary Authority of Singapore (MAS) under the Securities and Futures Act 2001. To target local customers legally, brokerage firms must first obtain Capital Markets Services (CMS) licenses from the Singaporean regulator. Spot trading and derivative instruments like the contracts for difference (CFDs), futures, options, and knock-out options are all legal in the country provided a broker is authorized to offer them.
- Spot Trading
Spot trading is the most common form of forex trading, where you buy or sell currency pairs at their current market prices. It involves swapping one currency for another, with the goal of profiting from fluctuations in exchange rates. Spot trading is typically settled within two business days, with traders owning the underlying assets, or the currencies in this case.
- Forex Derivatives in Singapore
Derivative instruments are also legal in Singapore, with contracts for difference (CFDs) serving as a prime example. They enable you to speculate on the price movement of a currency pair without actually owning the underlying asset and offer leverage, allowing you to control larger positions with a relatively small initial capital.
Other derivative instruments, such as futures and options, are also available to Singaporeans. The former are agreements to buy or sell a currency at a specified price on a predetermined date in the future. Options contracts are similar, giving you the right, but not the obligation, to buy or sell a currency pair at a given price on or before a specific date. Some Singapore-friendly brokers also offer knock-out options that become worthless if the underlying asset reaches a certain price level.
- Binary Options Restrictions
While there is no outright ban on forex binary options in Singapore, the local financial regulator advises locals to exercise extreme caution when trading them. In 2017, MAS issued a warning to investors about the risks associated with trading this instrument with unregulated brokers.
Binary options are a type of derivative that involves betting on the price movement of an underlying asset, offering a fixed payout if the trader is correct. The MAS cautions that binary options are susceptible to fraud and manipulation when traded at unauthorized platforms. The watchdog recommends trading them only at licensed and regulated brokers, and remaining wary of any firm that offers unusually high returns or guarantees of success.
Restrictions on Currency Trading in Singapore
The MAS imposes restrictions on the maximum retail leverage for CFDs in Singapore, with the current limits set at 1:20 for major currency pairs and 1:15 for minor currency pairs. Previously, the retail leverage caps in Singapore were set at 1:50 for forex majors and 1:20 for minors. However, MAS reduced them further in 2019 to protect retail investors from excessive risk-taking and potential significant losses.
Locally-regulated forex brokers must also ensure retail traders can adequately manage their risk. They must maintain a minimum margin when trading on leverage and have access to negative balance protection, which helps them avoid slipping into debt. The margin requirements ensure that investors have sufficient funds in their accounts to cover potential losses, while negative balance protection prevents them from suffering losses exceeding their account equity.
Who Regulates Forex Trading in Singapore?
The Monetary Authority of Singapore (MAS) is the primary regulator of forex trading in the city-state. Established in 1971, the MAS is responsible for regulating and supervising the financial sector in Singapore, including forex brokers, fund managers, trustees, and insurance companies.
The MAS was founded after the Monetary Authority of Singapore Act was passed into law in 1970. Its regulatory responsibilities include licensing and regulating all capital market entities, such as forex brokers, and ensuring they remain compliant with the local financial legislation. The MAS also has the power to investigate and enforce compliance with regulatory requirements and impose penalties on transgressing entities.
Requirements for Forex Brokers in Singapore
To operate in Singapore, forex brokers must obtain a CMS license from the MAS. The requirements for procuring a permit include meeting the base minimum capital requirement, which ranges from $50,000 to $5 million. The exact amount depends on the type of services offered by licensees and whether a broker engages in market making.
Additionally, MAS-regulated forex brokers are required to provide negative balance protection and to segregate client funds from their own operating capital. This ensures that client funds are protected in the event of the broker’s insolvency and prevents the companies from misusing customer money. Forex brokers must also comply with the MAS’s regulatory rules, including reporting and disclosure requirements. Licensees must have adequate risk management systems and controls in place.
Are There Taxes on Profits from Forex Trading in Singapore?
Profits from forex trading in Singapore are subject to taxation and the tax liability depends on the individual’s tax residency status. The Inland Revenue Authority of Singapore (IRAS) is responsible for collecting taxes from forex trading profits, with the rates ranging from 2% to 24%.
The “Badges of Trade” criteria are used to determine the tax treatment of forex traders. Individuals considered to be trading in the course of a business are liable for taxation. The current tax rates for Singapore residents for 2024 and onwards are outlined in the table below.
| Taxable Income | Tax Rate |
|---|---|
| Up to $20,000 | 0% |
| $20,001 to $30,000 | 2% |
| $30,001 to $40,000 | 3.5% |
| $40,001 to $80,000 | 7% |
| $80,001 to $120,000 | 11.5% |
| $120,001 to $160,000 | 15% |
| $160,001 to $200,000 | 18% |
| $ 200,001 to $240,000 | 19% |
| $240,001 to $280,000 | 19.5% |
| $280,001 to $320,000 | 20% |
| $320,001 to $500,000 | 22% |
| $500,001 to $1 million | 23% |
| Over $1 million | 24% |
Foreigners must have spent at least 183 days in the country to be liable for tax residency. A fixed tax rate of 15% applies in this case. CFDs on forex do not attract stamp duty taxes in Singapore, as traders do not own the underlying assets.
How to Identify Reliable Forex Brokers Accepting Singaporean Clients
When it comes to choosing a forex broker, Singaporeans have a wide range of options to consider. However, with so many brokers operating in the market, it can be challenging to identify a reliable and trustworthy one. In this section, we will provide you with some tips and guidelines on how to identify a reliable forex broker that accepts Singaporean clients.
Here are a few hints on identifying trusted Singapore-friendly brokers.
- A license from the Monetary Authority of Singapore (MAS) indicates the broker is compliant with all regulatory requirements and is subject to ongoing supervision and monitoring.
- Reliable brokers should provide transparent pricing information, including clearly stated spreads, commissions, and non-trading fees.
- Brokers with a physical presence in Singapore are more likely to be subject to local regulatory oversight and are more accessible to Singaporean clients.
- Onboarding customers should research the broker’s reputation online, read reviews, and check for any regulatory warnings or fines.
- Reliable brokers should provide negative balance protection, which prevents clients from incurring losses that exceed their account balance.
To verify a broker’s license status, Singaporeans should search the register of locally licensed brokers on the MAS website. Investors can also contact MAS directly to verify a broker’s license and regulatory status by dialing +65 6225 5577, sending an email to [email protected] or visiting the regulator’s headquarters in person (10 Shenton Way, MAS Building, Singapore 079117).
FAQ
What deposit methods can Singaporeans use to fund their live forex trading accounts?
Singaporeans can fund their live trading accounts using a variety of deposit methods, including bank transfers, credit/debit cards, and online payment solutions like Fasapay. Many forex brokers also accept deposits via popular e-wallets like Skrill and Neteller, making it convenient for Singaporean traders to manage their accounts. Additionally, some brokers may offer deposit methods specifically tailored for the Singaporean market, such as PayNow.
Do Singaporeans face legal action for trading at offshore forex brokers?
Singaporeans who trade with unlicensed offshore forex brokers risk falling prey to fraud and unethical practices, although the local government is highly unlikely to take legal action against such traders.
Is using MT4 and MT5 legal in Singapore?
Using MetaTrader 4 (MT4) and MetaTrader 5 (MT5) is legal in Singapore, as these third-party platforms are widely implemented by forex brokers and traders around the world. MAS does not have any specific regulations or restrictions on the use of MT4 and MT5. However, it is essential to note that the legality of using these platforms in Singapore depends on the broker’s compliance with MAS regulations.
What is the minimum deposit to start trading forex in Singapore?
The minimum deposit to start trading forex in Singapore varies depending on the broker, but it can range from $100 to $1,000 or more. Some brokers may offer micro or mini accounts with lower minimum deposit requirements, while others may require a higher initial deposit to access certain trading platforms or features. It’s essential to check with the specific broker for their minimum deposit requirements.
What is the best time to trade forex in Singapore?
The best time to trade forex in Singapore depends on the individual’s trading strategy and goals, but generally, the most liquid and volatile trading hours are during the overlap of the Asian, European, and US market sessions. For Singaporean traders, the best times to trade are typically between 7:00 am and 12:00 pm SGT (Singapore Time) when the Asian markets are open, and between 4:00 pm and 12:00 am SGT when the European and US markets are open. However, it’s essential to consider the specific currency pairs being traded and the market conditions at the time.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.