Singaporean Day Trading

CFD Sites in Singapore

You have already seen the lengths that the Singapore government goes to in order to provide a safe trading environment, which means you can move on to looking at the other aspects of a broker that we feel are of particular importance to a day trader.

Mobile Trading

Every trader will, over time develop his or her own style of trading, have a preferred platform and create their own working hours. Gone are the days where being a day trader involved being confined to a desk for long hours, technology has moved on to a point where mobile device trading is on a level with any other. In recognition, brokers invest highly in providing a mobile service, by either developing an App or by optimising their own website for mobile use. Any broker that does not provide a great mobile option is unlikely to invest in other areas as well.

Deals And Incentives

You cannot fail to have seen seemingly ‘amazing’ offers made by some CFD brokers eager to engage new clients. Although it is not always the case, in our experience they are rarely as good as they first look. Reading the terms and conditions may mean reinvesting the ‘bonus’ multiple times, or it may be at the expense of better spreads throughout the broker's site. The best brokers are those who offer fair and reasonable asset spreads and reward traders for loyalty.

Diverse Asset Types

Unless you are already an experienced day trader that has a good idea of the assets or derivatives you intend to trade to fit in with your strategy, we recommend that you look for a broker offering a variety. Having a wider choice will enable you to learn much more about how various markets operate and to see patterns emerging throughout the trading week.

Good Customer Support

Customer support can be seen as a broad term, not just as a contact point. A broker who offers support from the time you sign up for a demo account onwards is worth its weight in gold at times. You should look for easily accessed and extensive FAQs, as well as helpful guides and videos, which hopefully cover everyday questions. For other problems directly related to your account, it is always good to know that there is a direct point of contact available during all trading hours; a toll-free phone number being the ideal.

Singapore Licencing

Laws and regulations relevant to brokers and traders in Singapore have undergone radical changes in the last 12 years. This is a good thing, but it is a subject that it is hard to keep up with. At the time of writing the regulation of all financial matters in Singapore is covered under the Commodity Trading Act (CTA) 1992. Following the 2008 financial crisis, the CTA was amended and the Securities and Futures Act (SFA) was passed, giving full regulatory powers to the Monetary Authority of Singapore (MAS), which is therefore responsible for licensing.

The MAS has taken the role very seriously and operates a strict regime, with broker licenses being calibrated in terms of the ‘risk’ they present to such things as money laundering and user protection, amongst several others. So far, the efforts of the MAS has not only improved financial stability in Singapore but has made the environment for retail traders much safer.

In terms of user protection, the MAS has concentrated its most recent efforts in these directions:

• Segregation of client accounts
• Enhanced online security
• Trader education via the ‘MoneySENSE’ program

As a trader, you are advised to use brokers licensed in Singapore but are still at liberty to use an offshore broker if that is your preference. Naturally, this comes with a higher risk factor and less protection for you as a retail trader, so we highly recommend only trading with brokers able show evidence of authentic licensing under the FCA, CySEC or ASIC governance.