10 Best Forex Brokers Singapore for 2021

Forex trading has become very popular among the residents of Singapore. To find the best forex brokers Singapore we have tested and reviewed almost every single forex broker that accepts Singaporean citizens. We only recommend top brokers that are fully regulated in either credible Tier 1 jurisdictions or by MAS (Monetary Authority of Singapore).

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Best Forex Brokers in Singapore

This is the list of top Singapore forex brokers.

  • XM – Best Overall FX Broker 2021
  • HotForex – Best High Leverage 1:1000 MT4/MT5
  • Plus500 – Best Simple Trading Platform & MAS Regulated
  • Pepperstone – Ultra Low Spread +MT4/cTrader
  • City Index – Best web platform, many currency pairs
  • HYCM – Excellent reputation in Asia
  • Saxo Markets – Great for Advanced & Profi Traders
  • CMC Markets – Great platforms, most currency pairs
  • Forex.com – Trusted Global Brand

Broker Comparison Table

 



Established in 2009, XM Group company has quickly become the leader  in retail fx 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 its direct competitors. It caters to all types of forex traders.

What we  like
  • 50% BONUS up to the deposit of $ 500*
  • 20% BONUS up to $ 4500* deposit
  • Super safe & perfect for larger deposits
  • 56 currency pairs available
  • Base account currency: SGD Dollar
  • Max. Leverage up to 888: 1
  • Trade SGD vs all major currencies (USD,EUR,JPY,AUD,NZD)
  • Start trading with micro lots
  • Free Demo Account
  • No slippages / price requotations
  • Metatrader 4 / Metatrader 5
  • Free VPS for deposits over $ 5000
  • Excellent for Expert Advisor or FX Robots
What we don’t like
  • Stocks trading only as CFDs
  • Not available to USA traders

 Visit XM.COM

 


Founded in 2010, Pepperstone is authorised and regulated, multi-awarded ECN broker with ultra low spreads.

Competitive pricing and state of the art trading tools Metatrader 4, Metatrader 5 and cTrader, makes it a good choice for those who want to start trading.

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

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

 

What we like
  • Account Currencies: SGD, USD, EUR, GBP, AUD, CHF, HKD, NZD, JPY
  • Non-dealing desk broker
  • Awarded as “2021 Best Forex Trading Platform in Singapore
  • Access to over 180 currency pairs
  • Leverage up to 1:500 (ASIC)
  • Trade SGD currency vs all currencies
  • Spreads from 0.0 Pips (on Razor Account)
  • Average spreads on Razor Account are:
  • AUD USD: 0.17 Pips
  • EURUSD: 0.09 Pips
  • GBPUSD: 0.59 Pips
  • USDCAD: 0.31 Pips
  • USDCHF: 0.35 Pips
  • USDJPY: 0.25 Pips
  • Account Types: Razor, Standard, Islamic, MAM/PAMM
  • Demo Account
  • CFDs on Stocks, CFDs ETFs, Indices, CFDs on Commodities
  • Hedging / Scalping trading strategies allowed
  • MT4 / MT5 / cTrader platforms
What we don’t like
  • Only FX and CFDs
  • Stocks trading only as CFDs
  • Not available to USA traders

 

 Visit Pepperstone.com

 


What you should look out for in a good broker

If you are just starting out to trade currencies 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 brokerages that are regulated directly by MAS Monetary Authority of Singapore (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, every solid fx 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 fx currency 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.

Forex Trading in Singapore 

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.

Is forex legal in Singapore?

Yes forex is legal, Singaporeans are free trade currencies online with any fx broker they want. Foreign exchange 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. Always make sure to check broker 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

The best time for foreign currency trading 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  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.

Most commonly traded forex pairs

Singaporean residents are able to trade all major and exotic world currency 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

How to start forex trading

Forex stands for “foreign currency exchange” and describes the trading of currencies on the FX markets. 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 online 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 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.

Singapore Dollar (SGD)

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


MAS Monetary Authority of 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

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, it 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 financial brokerages in Singapore.

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.

 

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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