How To Select a Singapore CFD Broker

What is CFD?

A contract for difference (CFD) is a contract between a buyer and a seller that specifies that the buyer must pay the seller the difference between the current value of an asset and its contractual value. CFDs allow traders and investors to profit from price movements without owning the underlying asset. The CFD contract value does not take into account the underlying value of the asset. Only price changes between trade opening and closing are taken into account.

This is achieved through a contract between a client and a broker and does not use stock, forex, commodity or futures exchanges. CFD trading has some great advantages and has made the product more popular over the last decade.

How CFDs work?

A contract for difference (CFD) is an agreement between an investor and his CFD broker to exchange the difference in the value of a financial instrument (securities or derivatives) at the beginning and end of the contract.

CFD trading is a favoured form of trading in Singapore. To trade CFDs, you need to open an account with a broker. Many brokers offer CFD trading services in Singapore. This article will consider how you can ensure you select the one best suited to your needs.

Regulation

When choosing a CFD broker, you must ensure that the broker is regulated by the Monetary Authority of Singapore (MAS). The MAS is the financial regulator in Singapore and ensures that financial institutions operating in the country comply with laws and regulations.

Account types

Another factor to consider when choosing a CFD broker is the type of account best suited for your trading style. For example, if you are a day trader, you will likely need a different account type than a long-term investor.

Trading platform

Another important consideration is the trading platform the broker offers. The trading platform should be user-friendly and offer all the features and tools you need to trade CFDs effectively.

Customer service

When choosing a CFD broker, it is crucial to consider the quality of customer service offered. You should be able to contact customer service efficiently, and they should be able to answer your questions promptly.

Fees and commissions

Another factor to consider when choosing a CFD broker is the fees and commissions charged for trading. Comparing the fees charged by different brokers before selecting one is essential, as some may charge more than others.

Bonus offers

Some CFD brokers offer bonus offers to new and existing customers. These offers can be an excellent way to save money on trading fees, so it is worth considering them when selecting a broker.

Demo accounts

Many CFD brokers offer demo accounts to their clients. A demo account allows you to test the broker’s platform and see how it works before you commit to trading with real money.

Education and research

Some CFD brokers offer educational resources and research tools to their clients. These resources can be helpful for new traders who want to learn more about CFDs and how to trade them effectively. Selecting a broker that offers these resources can be beneficial if you are new to CFD trading.

Country of origin

Choosing a CFD broker is worth considering the country of origin. Some brokers are based in countries with more favourable CFD trading regulations, which can benefit traders.

Trustworthiness

It is crucial to select a broker you can trust, considering factors such as the time the broker has been in business and their reputation. It would be best to also read online reviews of the broker before making a decision.

Minimum deposit

The minimum deposit the broker requires is another essential consideration. Some may require a higher minimum deposit than others, so it is essential to compare the requirements of different brokers before selecting one.

Leverage

Leverage is a feature some brokers offer that allows traders to trade with more money than they have in their accounts. It can be risky, so it is vital to carefully consider whether you need it before choosing a broker.

Who are the best CFD brokerages in Singapore?

PhillipCapital

PhillipCapital is a Singapore-based financial services company that offers CFD trading. The company is regulated by the Monetary Authority of Singapore and offers a variety of account types to suit different traders.

CMC Markets

CMC Markets is a UK-based financial services company that offers CFD trading in Singapore. They are authorised and regulated by the FCA and offer a variety of account types and trading platforms.

IG Markets

IG Markets is a UK-based financial services company that offers CFD trading in Singapore. IG Markets is authorised and regulated by the FCA and offers various account types, including demo accounts.

Saxo Capital Markets

Saxo Capital Markets is a Denmark-based financial services company that offers CFD trading in Singapore. They are authorised and regulated by the Danish Financial Supervisory Authority and offer a variety of account types and trading platforms. Click here to see what they have to offer.

City Index

City Index is a UK-based financial services company that offers CFD trading in Singapore. They are authorised and regulated by the FCA and offer a variety of account types, including demo accounts.

Oanda

Oanda is a Australia based forex exchange company that offers CFD trading in Singapore. Its best for newbie traders who is willing to make an impact in CFD trading, The company offers Automated platform with web, mobile app and desktop software.

Plus500

Plus500 is a fintech firm providing only, who is willing to Focus only on CFD services for traders. Its high-level client money protection company with variety of risk management tools. Best for traders in Singapore CFD.

Trading 212

Trading212 Uk based company that offers CFD, forex, stocks and ETF services in Singapore. Its best for traders and investors seeking no commitment trading platform with user friendly interface.