Why Compare Forex Brokers Before Trading?

As a Singapore trader, you should compare Forex brokers to ensure you are trading with the best broker for your trading needs. From low spreads and fast execution speeds to advanced trading tools, mobile functionality, and educational resources, Singapore traders should compare every aspect of their broker of choice to ensure they meet your trading requirements.

We have compiled a list of things you should consider when choosing a forex broker:

1. Regulatory Compliance

Always ensure your forex broker has regulation from the Monetary Authority of Singapore (MAS). As the main regulatory body of Singapore that oversees all financial services, MSA sets out a strict set of guidelines all brokers need to comply with; this ensures you can be confident the broker is safe to trade.

2. Spreads and Fees

We think comparing trading costs such as spreads and commissions is a good idea since costs can add up over time. Look at the different account types to see which account suits your trading needs.

When choosing a trading account, be aware of the differences between Standard and RAW spread accounts. Standard accounts have commission costs built into the spread, while RAW accounts charge a small commission fee on top of the spreads.

3. Trading Platforms

Each broker has different trading platforms with features that will appeal to different traders. The most popular trading platform is the MetaTrader 4 (MT4), which is superb for algorithmic trading via Expert Advisors. Other popular platforms include MetaTrader 5 (MT5), cTrader, and TradingView.

Some forex brokers, such as OANDA, PLUS500 and IG Group have proprietary trading platforms with tools not found on mainstream platforms, such as a Guaranteed Stop Loss.

Additionally, you should also compare trading tools such as Myfxbook and Signals, which are used for copy trading, and Capitalise.ai, which is used for automated trading.

4. Account Types

Forex brokers offer different account types to suit the needs and experience of different traders. For beginners, we recommend Standard accounts as they offer low spreads with commissions built into their spread, consolidating your trading costs. More advanced traders should consider RAW accounts where the spreads are the lowest but small additional commission fees are added on top of the spread.

5. Leverage Options

Leverage increases your exposure to the markets, which also increases your risk and should be used cautiously as a beginner. Leverage ratios are usually set by either the Monetary Authority of Singapore (MSA) or your broker. In Singapore, the maximum leverage you can trade with is 20:1, which is relatively conservative compared to the rest of the world.

6. Customer Support

Excellent customer support is one of the most underestimated aspects of forex trading. Efficient, accurate, and knowledgeable customer support is essential, especially as a beginner trader. Most brokers offer 24-hour customer support, either five or seven days a week. You can usually speak to customer support using live chat, email, or phone.

7. Educational Resources

As beginner traders, you will need all of the educational resources you can find, and fortunately, most brokers have a wide array of tools to help you learn to trade efficiently. Demo accounts offering unlimited trading with virtual funds are helpful, as are educational resources and news feeds to help inform and educate you on your trading journey.

8. Market Access

You should always look for a forex broker that offers a range of markets and currency pairs (e.g., EUR/USD and AUD/GBP) to trade in, allowing for portfolio diversity and reduced risk. Look for major and minor currency pairs and even CFDs, a derivative product that increases your market exposure potential. Other financial markets to look for would be the ability to trade cryptocurrencies (e.g., Bitcoin), ETFs and other financial instruments.

9. Deposit and Withdrawal Options

Most forex brokers offer a wide range of deposit and withdrawal methods. You can deposit and withdraw using bank transfers, credit and debit cards, and e-wallets such as PayPal and Skrill. These processes should be quick and hassle-free.

Also, check the minimum deposit requirements of your forex broker of choice. While many forex brokers have no minimum deposit requirements, some can be as high as $10,000. Beginner traders should choose forex brokers with small minimum requirements, as you should only be trading large sums once you have built up your trading skills.

What are the Best Forex Brokers In Singapore?

IC Markets, Peppertsone, OANDA, and City Index are the best forex brokers in Singapore, as they each offer a range of excellent trading platforms that boast advanced trading tools and superb execution speeds. Additionally, they offer competitive low spreads and smart mobile functionality.

What Are The Best Trading Platforms In Singapore?

MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and TradingView are the best trading platforms in Singapore. While MT4 remains the most popular trading platform overall, the updated MT5 platform offers a wider range of advanced trading tools more suitable to experienced traders. c Trader and TradingView also perform well, especially regarding execution speeds and mobile functionality.

What Automated Trading Platforms Can You Use In Singapore?

While you can use a few automated trading platforms in Singapore, Expert Advisores found on MetaTrader 4 (MT4) and MetaTrader (MT5) are popular along with Capitalise.ai. Capitalise.ai, in particular, is often used by experienced traders who laude its overall functionality and user-friendly capabilities.

FAQ

What is The Monetary Authority Singapore (MAS)?

The Monetary Authority Singapore is the only regulatory body that oversees all financial regulation in Singapore. Forex trading falls under their jurisdiction and they set out a strict set of guidelines that forex brokers must comply with to protect their forex traders.

Brokers operating in Singapore are regulated by MAS, similar to how brokers in Australia are regulated by ASIC and the English are regulated by the FCA.

Is Forex Trading Legal In Singapore?

Yes, forex trading is legal in Singapore so long as you trade with an MSA-regulated forex broker. Offshore forex trading is strictly prohibited in Singapore as the MSA does not regulate traders.

You should also beware of scams where online brokers would offer fraudulent retail investor accounts to trade on foreign exchange or crypto. This is why retail traders like you should stick to regulated CFD brokers.

Are You Taxed When Forex Trading In Singapore?

No, you are not taxed when forex trading in Singapore so long as you do not derive your full income from forex trading. Unlike in most countries, Singapore does not tax profits from forex trading unless you are a full-time trader. In which case, you will be taxed an Income Tax on all your profits.

How Do You Get Started Trading In Singapore?

You can start trading in Singapore by following this procedure:
1. Choose an MSA-regulated broker that offers the range of markets and currency pairs you wish to trade in

2. Look for low spreads and commissions as well as advanced trading tools

3. Find a broker that offers a user-friendly trading platform with fast execution speeds and excellent mobile functionality

4. Select a broker that offers excellent 24-hour customer support

5. Open a demo account and start trading with virtual funds. Ensure your forex broker of choice has a range of educational tools to help you learn how to trade effectively.

6. Once you have practised your trading strategies, open an account and upload your Know Your Customer (KYC) documents.

7. Fund your account. As a beginner, we recommend you start trading with small capital amounts.

8. Start trading

Ideally, your chosen forex broker should have a mobile app for mobile trading and also have a social trading aspect to it. The best broker offers feature educational materials (e.g., webinars and trading courses) that would strive to reduce the high-risk nature of trading.

Which Forex Brokers Are Good For Beginners?

OANDA, Pepperstone, and IC Markets are good for beginners as they offer excellent demo accounts with various educational tools. Additionally, they have fast execution speeds to minimise slippage and offer competitively low spreads on all account types.

Which are the best ECN Brokers For Singapore Traders?

Pepperstone, IC Markets, and IG Markets are the best ECN brokers in Singapore as they offer fast execution speeds, excellent RAW spreads on their ECN accounts, and superior user functionality. These ECN brokers are consistently rated in the top 5 ECN accounts in Singapore for their range of markets and access to advanced trading tools as well.

Best MAS-regulated Forex Brokers

The major benefit of being a Singaporean trader is having the option of many great brokers to choose from. This is largely due to the Monetary Authority of Singapore (MAS) being the gold standard of global regulators, with many top brokers licensed to offer trading services in Singapore.

Some of the top brokers in Singapore include OANDA, CMC Markets and Plus 500. Still, each broker has a unique point of difference that sets it apart from the rest. Given every trader is different, it’s important to consider a broker that suits you based on your trading preferences. These brokers have platforms suitable for different types of traders, so we have covered the best platforms for beginners and for copy traders.

To make life easier, you can check out our review of forex brokers that are MAS Regulated for the top forex brokers in Singapore.

Lowest Spread Forex Brokers

Choosing a forex broker with low brokerage costs is a vital decision for Singaporean traders. This is because forex trading can get very costly, especially when you factor in commissions and other fees. As such, choosing a broker with low spreads greatly reduces your overall trading costs.

Given spreads are generally variable (in some cases fixed), they tend to widen in volatile market conditions, causing trading costs to increase. When you factor in other costs such as commissions, these will increase your trading costs further. Even the no-commission, market maker style brokers generally offer wider spreads to take into account the lack of commissions.

This is why we have done all the research for you and come up with the Lowest Spread Forex Brokers in Singapore.

Best ECN Brokers

An Electronic Communications Network (ECN) broker automatically matches trading participants and passes on trade orders to major liquidity providers such as banks and other financial institutions via the ECN. These brokers have no dealing desk which means you will obtain the best possible prices, depending on the ECN connection and what platform you’re using. To trade with Forex markets with a no dealing desk brokers, you will need a CFD trading platform.

On the other hand, some brokers are market makers that have a dealing desk and provide their own liquidity, thus profiting from the bid-ask spread. The reason why ECN brokers are favoured over market makers is that ECN brokers tend to offer lower spreads, while charging commission costs on top.

As such, we have considered all of these factors and come up with our best ECN brokers Singapore review.

Top Forex Demo Accounts

It’s important to ‘try before you buy’ when choosing an appropriate forex broker. You can do this via a demo account where you can practice trading with virtual funds in a live market environment. Thankfully, most brokers offer demo accounts for Singaporean traders.

The ability to practice different trading strategies as well as test out a given trading platform in live market conditions will help make you a better trader. In addition, you can see if the broker in question is right for you given your trading preferences and what they offer. Factors such as spreads, trading platforms and products available are all important considerations to make when testing out a demo account.

Demo accounts are available with MetaTrader 4 (MT4), MetaTrader 5 (MT5) and other trading platforms like TradingView and cTrader. To help you we have covered the best trading platforms. You can also test out automation platforms if you wish to create algos and free yourself of the need to manually monitor and action your trades.

We have taken all of these factors into consideration and chosen the best forex demo accounts in Singapore.

Singapore Methodology for Broker Reviews

When rating forex brokers, we consider the following:

Regulation – MAS regulates all forex brokers in Singapore

Range of Markets – All forex brokers should offer a wide range of markets and currency pairs to trade in

Trading Costs – Forex brokers should offer low trading costs on their spreads and commissions

Advanced Trading Tools – There should be an array of advanced trading tools on offer such as pip value calculators, risk meters, guaranteed stop-loss orders and charting tools.

User-Friendliness – Trading platforms should be easy to use and offer excellent mobile functionality

Customer Support – Forex traders should offer efficient and knowledgeable 24-hour customer support via email, phone, and live chat

Educational Resources – Forex brokers should have a wide array of educational resources on offer, including demo accounts that offer virtual funds for you to practise your trading strategies.

Understanding The Risks of Forex Trading

Even with the most advanced trading tools, Forex trading is not without risk. The biggest and most obvious risk is the potential loss of funds due to bad market performance. Additionally, there are other risks, such as leverage risk, where your exposure to the markets is increased with leverage trading. Before you begin trading, you must understand the risks involved and ensure you are familiar with the fundamentals of forex trading to limit loss.

Disclaimer: Leveraged instruments are risky. Do your own research before trading on margin or with leverage. Trading with leverage is at your own risk.

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