Best Forex Broker SINGAPORE

Last updated: November 23rd, 2020

In this article we provide you with full list of best forex brokers in Singapore fully regulated in credible jurisdictions.

Compare in detail all authorised forex brokers in Singapore for the year of 2020.

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What is the best forex broker Singapore?

This is the carefully selected list of what we believe are the top forex brokerages.

  1. Pepperstone ⇒ Best Ultra Low Spreads
  2. XM ⇒ Best All Around Offering in Singapore
  3. HotForex ⇒ Leverage 1:1000, Spreads from 0.1 Pips
  4. HYCM ⇒ Good reputation in Asia + competitive spreads

 

Founded in 2010 Pepperstone is well known brand, and multi-awarded ECN broker with one of the lowest spreads you can find on the market.

Competitive pricing and state of the art trading tools Metatrader 4, Metatrader 5 and cTrader, makes it a good choice for serious traders.

Pepperstone is truly a world leader in forex trading, with the aim to provide an excellent customer support and top notch trading tools .

Pepperstone is well known for its Extremely Low Spreads & High Customer Loyalty! 

 

Pros
  • Account Currencies: SGD, USD, EUR, GBP, AUD, CHF, HKD, NZD, JPY
  • Awarded as “2020 Best Forex Trading Platform in Singapore
  • No Dealing Desk
  • Access to over 180 currency pairs
  • Trade SGD currency vs all majors USD, EUR etc.
  • Ultra Tight Spreads from 0.0 Pips (on Razor Account)
  • Order execution under 30 miliseconds
  • Regulation: ASIC, FCA, SCB, DFSA, CySEC
  • High quality research & education
  • Access to CFDs on Stocks, CFDs ETFs, Indices, CFDs on Commodities
  • Hedging and scalping is allowed
  • MT4 / MT5 / cTrader platforms
Cons
  • Stocks trading only as CFDs
  • Not available to USA traders

 

 Visit Pepperstone.com

 



Established in 2009, XM Group has quickly become the leader  in retail foreign exchange industry. XM Group is regulated in three tier-1 jurisdictions (FCA U.K., ASIC Australia, CySEC Cyprus and one tier-2 jurisdiction making it a very safe platform. With the complete MetaTrader suite it is challenging market leaders. On the pricing side, its spreads are a bit more expensive than the leader Pepperstone.

Pros
  • Safe & perfect for larger deposits
  • 56 currency pairs available
  • Base account SGD currency
  • Max. Leverage up to 888: 1
  • Trade SGD vs all major currencies (USD,EUR,JPY,AUD,NZD)
  • Start trading with micro lots
  • 50% BONUS up to the deposit of $ 500*
  • 20% BONUS up to $ 4500*
  • No slippages / price requotations
  • Metatrader 4 / Metatrader 5
  • Free VPS for deposits over $ 5000
  • Excellent for Expert Advisor or FX Robots
Cons
  • More expensive than Pepperstone
  • Market maker
  • Stocks trading only as CFDs
  • Not available to USA traders

 Visit XM.COM

 

XM webtrader (click to enlarge image)

What to look for in a good Singapore forex trading platform online

If you are just starting out to trade forex, it might be very frustrating to select the right online trading platform due to sheer number that is available to Singaporeans.

  • REGULATION – All trusted online trading platforms must be regulated by some of the sound international institutions such as FCA (UK), ASIC (Australia) or CySEC (Cyprus). There are also many Singapore brokers that are regulated directly by MAS Monetary Authority (Central bank).

 

  • COMMISIONS – Commisions are calculated as a fixed fee that you pay for each round Lot traded. Commisions are usually around $7. Some fx brokerages offer a trading account where you do not pay a commisions. For this type of account, however, look at the spreads for your currency pair, which tend to be usually slightly more expensive than the merchant account where you pay the flat commision transaction fee.

 

  • SPREAD – If you choose a trading account with no commisions, the optimum spread for intraday trading is around 1.2 pips. If you choose a trading account with an order execution fee, the best Forex broker offers a spread on the EUR / USD currency pair from as low as 0.01 pips.

 

  • CUSTOMER SUPPORT – This is crucial! Quality brokers offer customer support 24 hours 5 days a week. All of them have customer support not only in English language but also other world languages and some might even have support in Malay or Thai language.

 

  • TRADING PLATFORMS – The MT4 trading platform, or an improved version  MT5, is nowadays a golden standard in forex trading. Some professional trading platforms also include cTrader. Almost each brokerage is offering its own Web trader solution (many use Sirix platform which is excellent) and inhouse built iOS/Android Apps.

best forex broker singapore


What is better Market Maker or ECN ?

There is a never ending discussion on forex forums among the traders whether Market maker or ECN is better solution.

Dealing desk or Market Makers are creators of the market prices. That means they are the counter party for each trade that you open via your trading platform. With small volume (if you trade up to 50 standard lots each day) market makers have no problem to fulfill your orders in mili-seconds. In case you start trading volume of millions $$ every day they might be in trouble and start hedging their positions on the forex market.

In our opinion if you are just starting out with small capital (less than $1k deposit) then just start with market maker without any doubt.

We recommend ECN brokerage (Electronic Communication Network) for high volume and high frequency trading , otherwise you dont’ reap the full benefits of ECN broker in our opinion. You pay besides the spread also the commision around “$7 per trade” for each trade regardless if you trade micro lots of standard lots.

Is Forex Legal in Singapore?

Yes unlike in Indonesia where forex is illegal, Singaporeans are free trade currencies online with any forex broker they want. Currency trading has been very popular and is fortunately completely legal in the country. At the moment there are more than 550 financial providers present in the country. Though the forex trading is completely legal here, always make sure to check the reviews before depositing.

The most sophisticated traders of course turn to top notch foreign forex trading companies for example Pepperstone which are located in the world’s renowned financial centers like London (FCA regulated), Cyprus (Cysec) or Australia (ASIC) and select the one that fits their own trading style the best.

Is Income from Forex Taxable in Singapore?

This is good question. As many investors know, in Singapore there is no capital gains tax, in fact there is only income tax. The profits made during intraday trading should be logically can be subject to income tax. However if you want to be 100% sure, we strongly advise you to speak with your local IRAS tax advisor whether the profits are income or capital gains.

What are the best times to trade forex

Important to know: Local citizens need to align with different time zones. Since most trading activity is during Asian, European and US sessions, you will need to wake up a bit earlier.

singapore forex market hours
Singapore forex market hours

The best time to trade is during off hours meaning during the late-US, Asian or European trading sessions, that means 8AM until 12PM Singaporean time zone.

Most people trade forex during the peak times (during high volatility), but we think this is the best way to blow your trading account fast. Most traders should stay away from high volatility.


MAS is responsible for regulating forex brokers in Singapore

MAS (Monetary Authority of Singapore) regulates financial market operators in Singapore including forex trading brokers and stock trading companies for example CMC Markets, Saxo Markets, City Index, Interactive Brokers etc.

MAS monetary authority singapore logo
Image source: mas.gov.sg

What is MAS Monetary Authority of Singapore

MAS (Monetary Authority of Singapore) established by the government in 1971 as a Central bank of SG is a powerful local regulatory agency with a serious regulatory capacity. Its main role is to keep a healthy monetary market by ensuring the financial stability of the country by ensuring inflation rate and economic growth is at a sustainable level. Besides being a central bank, MAS is also the only official regulatory body in the country. Its main role is the regulation of financial capital market. Besides other tasks they are the watchdog for forex trading companies in Singapore.

It is wise to consider MAS-regulated brokers

MAS-regulated brokers are a safe bet for Singaporeans who are serious about online trading and want to start trading with their hard earned cash. The fact is, that MAS-regulated brokerages (Oanda, Saxo Markets, City Index, CMC Markets, Interactive Brokers etc.) need to meet very strict requirements set by the Monetary Authority.

MAS has introduced financial educational programme called MoneySENSE

MoneySENSE has started in the last decade as a financial educational for masses of financial consumers with a goal to educate and increase financial literacy in the country.

 


Overview of Singapore financial market

Foreign exchange is very popular in Singapore and the country is a gateway to the South East Asia and also an international financial hub together with Hong Kong.

Since 1999 the SGX is the main Singaporean Securities Exchange. SGX holds the main stock market index called STI (Straight Times Index) that consists and tracks the performance of top 30 companies listed on SGX exchange.

Most commonly traded forex pairs

Forex brokers allow Singaporeans to trade with all major and exotic world forex pairs , but  they most frequently traded including the local currency are:

  1.  USD SGD
  2.  EUR SGD
  3.  GBP SGD
  4.  SGD JPY
  5. USD JPY
  6. GBP USD

Singapore currency trading facts

Name of currency: Singapore Dollar

International short name: SGD

The SGD currency has been introduced in 1965 when Singapore has gained its independency. During the first decades the SGD was pegged to GBP and then to USD but since 1985 it is floating.

Read more interesting facts about SGD Dollar on Wikipedia.org

How to start forex trading

Forex stands for “foreign exchange” and describes the trading of currencies in the foreign exchange market. Unlike the securities markets, the foreign exchange market is decentralized : trading takes place directly and almost completely electronically between the market participants. Market participants are large banks and other institutional investors. Don’t forget, there is a high risk of loosing money, as markets tend to be volatile.  If you can, use risk management tools like stop loss orders to mitigate any future loss. Here is full article on getting started with forex trading in Singapore where you can find the A to Z guide.

Let’s dive into the main definitions:

  • Base Currency: In USD /SGD currency pair this is the USD
  • Quote Currency: In the USD /SGD, this is the SGD
  • Standard lot: 100,000 units of the base currency
  • Pip: a change by one unit on the fourth decimal place
  • Long position: Speculation on appreciation of the base currency
  • Short position: Speculation on devaluation of the base currency

The hypothetical forex trade: The USD/SGD is quoted on the foreign exchange market at 0.75, for 1.00 USD are therefore paid 0.75 SGD. Say you expect the USD to appreciate against the Singapore dollar and therefore you open a long position of one standard lot (100,000 units) at a price of 0.75

Your assessment was correct: the exchange rate rises to 0.80 USD/SGD within a few hours. You smooth the position to this course and make a profit.

FX Risk Disclaimer

FX and CFDs are leveraged products and involve high level of risk. You must have high risk tolerance. First of all learn how CFDs work before proceeding.


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