Best Forex Brokers Singapore 2023

Traders from Singapore looking for an online broker to execute forex or derivative trading such as contract for difference trading should be able to find many foreign brokers to cater for their needs, with the prerequisite of the broker being authorised by the MAS.

Brokers having MAS supervision will typically be preferable for traders from Singapore due to their obligation of upholding a good reputation with Singapore’s central bank. Moreover, it should also be possible to litigate locally in Singapore should a dispute arise with the broker.

As a general principal, any foreign broker needs to be well regulated in a strict jurisdiction. This will ensure governance principals such as ensuring clients’ funds are separate from the broker assets. Brokers should also cater for a satisfactory range of services and have earned a good reputation with their clients to be considered as a potential trading partner.

Another factor to consider, is that many online brokers provide virtual money-funded demo accounts that traders can use to practice trading, check out their trading platform and a platform to test strategies. Moreover, brokers also offer funded accounts where traders need to provide a minimum initial deposit to start live trading. Many brokers will also cater to Sharia compliant traders in Singapore by providing Sharia law compliant or Islamic Accounts without swaps on rollovers.

language is an important consideration, be sure to check that the broker’s website and customer support offers services in your preferred language, whether it be English, Mandarin, Malay or Tamil. The vast majority of online brokers will allow you to communicate with them and view their websites in English, although some might provide support for Malay or Tamil. Therefore, an idea may be to inquire ahead of time about any language requirements.

Additionally, regarding stock trading, the SGX aims to provide a fair and transparent market in various asset classes, including Singapore based and foreign stocks. SEX trades are generally executed in SGD, although they can also be executed in U.S. dollars since 2012 under its dual currency trading system. Moreover, as of August of 2004, the Singapore Exchange uses the trading software called SGX QUEST, an abbreviation of the SGX Quotation and Execution System. This system is employed for securities and derivatives trading on the SGX.

According to export.gov, Singapore presents opportunities in several market sectors, including healthcare and medical technology, energy and environment (oil and gas, water), defence and aviation, and information communication technology (ICT) and digital technologies (smart grids, FinTech, , smart cities, ecommerce).

Singapore also has some major ongoing infrastructure projects with significant government contracts. These include:

• The construction of Singapore Changi Airport Terminal 5, including a third runway scheduled for completion around 2030.
• Singapore’s Next Generation Port Vision for Tuas Terminal. This four-phase project has a completion date of 2040.
• The second phase of the Singapore Deep Tunnel Sewerage System, which is targeted for completion in 2025.
• ICT tenders of $1.9 billion from the Singapore Government for smart city enhancements and other projects.

With respect to enforcing contracts, Singapore ranked at the top of the list of countries surveyed by the World Bank. For overall ease of doing business, Singapore ranked an impressive second behind New Zealand, while the city state ranked third for starting a business. Other areas where Singapore ranked highly include protecting minority investors, paying taxes and dealing with construction permits, ranking 7th, 8th and 8th respectively.

Asian countries remain some of Singapore's top and closest trading partners, including China, Hong Kong/China, Malaysia, Indonesia and Japan. Consequently, since China is Singapore's main trading partner, the current trade dispute between the United States and China might indirectly affect trade with China.

Singapore is a consistent net exporter with a positive trade balance, so the imposition of trade tariffs, trade wars and the failure of key trade agreements with China could potentially adversely affect the economy of the city state. Moreover, based on data compiled by the World Bank in 2017, Singapore's extremely high trade to GDP ratio of 322.4 could imply an increase in the economy's exposure to trade disruptions. Lastly, the World Bank also ranked Singapore 45th in regards to trading across borders, 32nd in obtaining credit and 27th in resolving insolvencies.

Overall, traders and businesses looking to operate in Singapore should find the country a fairly secure place to do business, especially regarding the financial services sector due to the strict oversight of the MAS. Moreover, as ranked by the World Bank Singapore also has a top ranking for enforcing contracts and ranked second overall for ease of doing business, offering a relatively competitive and safe place for a business to operate.

Traders seeking an online broker to trade with from Singapore should find one authorised by the MAS and that offers a sufficiently broad range of asset classes and full featured trading platform. Furthermore, a broker should also enjoy a good reputation with clients, be competently regulated in its local jurisdiction and segregate its clients’ money from its own funds.