FOREX & CFD BROKERS IN SINGAPORE: WHICH FX TRADING PLATFORMS ARE THE BEST AND WHY?
Top Forex Brokers available in Singapore
While the Forex markets are anything but certain, our team has placed innumerable trades to test the available platforms, and help you choose the best FX broker available traders in Singapore.
With regards to the four Brokers that we have presented at the beginning of the article, following you may find comments that will help you choose the right one for you. Whilst other comparison sites will say "Best Forex Brokers in Singapore", and provide you with 100 options to choose from, we have only chosen what we believe are the best 4, aiming to facilitate the broker picking task for you. There are differences between them, but they are not so substantial at the top of the rank. We will now provide you with key points on the top 4 FX brokers in Singapore, and we will then mention a few aspects to take into account when picking the best match for your trading needs.
Comments on the FX Trading Accounts in Singapore
Pepperstone was founded in 2010 in Australia. As of 2020, the company has more than 57,000 accounts from clients based in more than 150 countries. Pepperstone is regulated by several top-tier, well-trusted regulatory bodies. This regulation makes Pepperstone a very safe broker choice. Having won more than more than 30 awards since 2016, Traders and even industry leaders recognize the contribution of Pepperstone to the Investment Services Industry. Pepperstone' spreads are among the lowest available in the market.
Being originally from Australia, Pepperstone focuses on the Asia Pacific region, holding events and seminars regularly. Also, their Market Analysis News section is strongly biased [Compared to other Brokers from Europe or the US] to Asian markets and the Singaporean and Australian Dollars (SGD and AUD). For obvious reasons, a large number of traders in Singapore focus their trading activity on these markets, that's why this Broker is particularly popular.
With its head office in Tokyo, Rakuten Securities is one of the major online brokers in Japan and across Asia servicing over 2.6 million clients since 1999. Rakuten is the 4th largest FX broker in the world. If you are an FX Trader in Singapore and your focus on pairs involving APAC currencies, then Rakuten should be among your top list: Offers trading with the tightest available spreads, Japanese trading tech, high leverage and a minimum deposit of only AUD 50.
Plus500 is one of the highest rated CFD trading apps as it is simple to use yet powerful in its many advanced features. Plus500 is regulated locally, holding a capital markets services license from the Monetary Authority of Singapore. It's CFD offering allows trading on several pairs with the SGD, and has one of the tightest spreads on the USDSGD.
With over 3,500,000 clients since it was founded in 2009, XM has grown to a large and well established international investment firm and has become a true industry leader in the FX market. XM is regulated in Australia, offers forex seminars in Singapore regularly and it offers a USD30 welcome bonus for new accounts without the need to deposit. Tight spreads (in particular to the pairs related to EUR) makes XM one of the top choices for local traders.
EURUSD Candlestick Graph: Almost every broker has a tight spread on the most traded pair globally, but the key for local FX traders is the one that offers a good spread on the USDSGD.
Choosing the best FX Broker in Singapore
Here is a look at just some of the criteria we test all the best Forex Brokers against.
First things first; Does the Broker accept clients from Singapore?: As we have mentioned previously, there are so many websites out there offering Brokers to local clients when they have not even fact-checked if the broker accepts locals. We have confirmed with the Brokers we present here that they do open FX accounts to clients from Singapore.
A reliable, secure, and mobile-optimized platform: We are living in the 21st century, and that means we need an FX broker to offer an equally (if not more) high-quality experience on mobile devices. You never know if the next major FX alert will catch you while having a pizza, or while at the toilette.
Spreads, Commissions, and other fees: Currency pairs are priced through the interbank market, a communications system used by big banks and financial institutions but without a central exchange like a Stock Exchange. Forex brokers make their revenues with their fees and spreads that arise from your trading transactions. And, they are not required to offer you the best interbank bid or ask prices, so they may intentionally display wider spreads with less favorable prices, adding to profits when they complete those trades through the system. So, spreads and commissions is a top priority that we took into account when choosing the best brokers.
A great FX Pair selection: We are not just looking for the major pairs, but also minors and crosses. In general terms, the more diverse the brokers offering is, the better the trading conditions they offer overall (although this is not an exact science).
Brokerage licenses: We only recommend licensed brokers so we can ensure the safety of our readers and fellow traders. If a new broker has not got their paperwork filed and approved yet, you won't find them here on our site.
An efficient customer support team: As much as we would like to hope you will never need it, a customer support team is an important portion of a great trading experience. When things go wrong, you desire that your questions are to answered quickly, in a fair way, and accurately.
How to choose the right FX Broker for you?
Choosing a forex broker requires you to decide what type of trader you are, your goals, and how will you use the trading platform when investing in Forex.
When looking for a reliable forex broker, take your time to check for the one that will handle your trades and funds appropriately. The safety of your capital and private information is more important than any other consideration when you open a forex account because brokers can get hacked or go bankrupt. Unlike stockbrokers, where clients' funds have (usually) a higher level of protection, some dodgy brokers provide no account protection at all.
Also, before you give a broker any money, review its funding and withdrawal procedures. Some require long waiting periods until you can trade when you fund through checks or wire transfers, while others will charge hefty fees when you withdraw funds or close the account.
And, of course, most importantly, check that the broker offers the best trading conditions for the instruments that you will trade. It won't matter if they offer the tightest spread on the EURUSD pair if your most traded pair is the Dollar against the SGD.
The new Forex Trader process
As a new Trader at any broker, you will need to go through a strict process before the ride begins. Forex Brokers are becoming increasingly concerned about things like responsible trading, and anti-money laundering and they’ll just want to make sure they know a bit more about you before you get started.
It’s nothing difficult, it’s simply a matter of answering a few questions and possibly supplying a couple of easy-to-find documents. Here’s a look at what to expect:
Opening your account: This is the easy part, and it just requires details like your name, age, address, email, and phone number. It should only take a few minutes.
Identifying information: The broker will ask you to prove your identity by supplying them with a copy of a recent utility bill with your name and address (issued within three months), a copy of your passport or driver’s license, and proof that you own the debit card you’re operating with. It’s pretty easy to scan these documents in, and all of the brokers on our top list are trusted and safe to share your information with.
KYC (Know Your Customer): This process involves providing information to prove your source of funds or wealth. You may fulfill this task easily using payslips or bank statements. It is not as difficult as it sounds since it’s just for the broker to ensure that you use legal funds to trade.
Responsible Trading: To make sure that you are not trading above your means (leverage instruments are risky and losses may exceed your deposit), some brokers may check in with you from time to time, in the case that your trading habits change (Although this is very unusual).
Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. Concerning margin-based foreign exchange trading, off-exchange derivatives like Forex, there is considerable exposure to risk, including but not limited to leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. You should not expect that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses.