Why Compare Forex Brokers Before Trading?

As a Singapore trader, there are a lot of factors to consider when choosing a Forex and CFD broker, no matter if you’re a beginner or a professional.

These are generally split up into primary and secondary factors, as some are more important than others for most traders. Primary factors include trading costs (I.E. spreads and commissions), trading platforms, range of tradeable markets and additional trading tools such as charting and algorithmic tools. The secondary factors to consider include educational resources (I.E. videos, webinars and market research), customer service and regulations.

From a regulatory point of view, Singapore has one main financial regulatory body: the Monetary Authority of Singapore (MAS). As the sole regulator in Singapore, the MAS has regulatory oversight of the financial services industry across various sectors. The MAS is also the central bank of Singapore. Although it is possible to trade with a broker regulated outside of Singapore, it is highly recommended to choose one that is MAS-regulated.

The MAS also has a reputation as the top regulator in the entire Asia/Pacific region, so there are plenty of top MAS-regulated brokers to choose from. Globally-renowned brokerages in Singapore include Oanda, IG Markets and Plus 500.

To make your life easier, the experienced team at Compare Forex Brokers has meticulously analysed all of the above factors to provide a list of reviews suited for retail traders in Singapore. We have written all of these broker reviews in plain English so any trader can understand. Check out our best forex broker Singapore page, which lists our overall winners.

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 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

As a Singapore trader, there are a lot of factors to consider when choosing an appropriate broker. This is extremely complex and can take a lot of time (and sometimes money) to decide. The experienced team at Compare Forex Brokers has done their homework, so you don’t have to, with extensive analysis and testing of all the top brokers. Major factors we have considered include:

Account Types
Spreads
Commissions and other fees
Trading Platforms (in-house and third-party)
Additional trading tools
Trading Products
Customer Support
Regulations

There are also many additional factors including risk management and educational resources. Risk management comes in many forms, from advanced order types such as guaranteed stop losses (GSLO) or Negative Balance Protection. A GSLO helps prevent negative slippage while Negative Balance Protection helps protects a trader’s account from going negative. In addition, the educational resources a broker may offer can greatly add value to your trading via market research and insightful videos.

These pages are all Singapore focused, so we have only chosen brokers regulated the sole regulator, the MAS. However, a lot of these brokers are multi-regulated, meaning they offer trading services in multiple countries or regions. Other regulators a Singapore broker may have subsidiaries in may include ASIC in Australia, CySEC in Cyprus and FCA in the UK.

As Singapore trader, we recommend choosing a broker regulated by the MAS. However, there are many popular brokers that are not. Some such brokers that aren’t regulated by include Pepperstone, IC Markets and XTB.

We are always honest in our information regarding Singapore brokers, highlighting both positive and negative factors. Please note, however, that all information is general in nature and not to be treated as trading advice. It’s always important to do your own research before making a decision when choosing a broker.

Understanding the Risks of Forex Trading

Forex and CFD trading is inherently a high-risk venture. This is particularly true when trading on margin, and especially using leverage. The more leverage you expose yourself to, the more you can lose. For inexperienced traders, it’s doubly important to manage your exposure so you don’t risk losing more than you can afford.

The maximum retail leverage on offer in Singapore is up to 50:1. While this provides more flexibility when trading, it also opens up your downside risk should a trade go against you. As such, when opening an account, it’s vital to look carefully at the leverage on offer and also uses the online broker resources to better educate yourself.

Additionally, due to the increasing popularity of CFD and forex trading, there are plenty of unethical companies. As such, it’s vital to only trade with a trusted and reputable broker regulated in Singapore. This is to avoid scams from dodgy brokers that may pose as legitimate advisors offering their services to profit illegally. So before you sign up with a potential broker, make sure it is regulated by the MAS in Singapore.

Understanding The Risks of Forex Trading

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

THE 2023 LEADINGFOREX BROKER COMPARISON