When it comes to forex trading, finding the best broker in Singapore is a critical step for ensuring success in the currency market.
As a global financial hub, Singapore offers traders access to many world-class brokers with cutting-edge platforms, competitive fees and strict regulatory oversight.
Therefore, it can be quite daunting to know who is the best forex broker in Singapore, particularly if you are a beginner.
In this article, we’ll explain how to choose the best forex broker for your needs.
We’ll explain what fees and charges to watch out for, how trading platforms vary and how to compare forex brokers in Singapore.
We’ll also explain the benefits of Subscription-Based Trading, and how this new finance model can save you money on your trading costs.
How to choose the best forex broker in Singapore
Selecting the best forex broker in Singapore requires thorough evaluation of several key criteria.
Here we look at the criteria you should use for comparison, and the most important points to consider when choosing a forex broker.
The criteria we’ll consider include:
- Regulation and licensing
- The cost of trading – pricing and fees
- Hidden fees to watch out for
- Ease of use of trading platform
- Additional broker services to compare
- Leverage and margin offered
Regulation and licensing
In Singapore forex trading, the Monetary Authority of Singapore (MAS) is the primary regulatory body.
MAS-regulated brokers adhere to strict guidelines designed to protect traders from fraudulent activities.
To operate legally, Singapore forex brokers must obtain a Capital Markets Services (CMS) licence from the MAS.
This licence authorises the forex broker to provide leveraged foreign exchange trading services to clients within the country.
When evaluating a Singapore forex broker, look for clear evidence of licensing on their website.
Some brokers may also hold international licensing from other respected authorities such as:
- UK – Financial Conduct Authority (FCA)
- Australia – Australian Securities and Investments Commission (ASIC)
- International – Financial Services Commission Mauritius (FSC)
Costs of forex trading
Understanding the cost of forex trading is essential to selecting the right broker.
Forex brokers typically earn their money through markups on spreads, commissions or swap rates, or a combination of all three.
A markup is a fee that brokers add on to the price quoted by their liquidity provider.
This combined price becomes the retail price you, as a trader, will pay.
Depending on the broker’s fee structure, a markup may be added to the spread, commission, or overnight finance rate.
Markups of 0.2 to one-pip or more on spread are common in highly liquid markets like EUR/USD, but exotic currency pairs may have spreads of 5–10 pips or more.
- Spreads: Spreads are the difference between the bid and ask price of a currency pair. Lower spreads translate to lower trading costs. Compare spreads across different brokers and currency pairs to find the most competitive offerings.
- Commissions: Some brokers charge commissions on trades in addition to spreads. Carefully evaluate the combined impact of spreads and commissions on your overall trading costs.
- Swap rates: Swap rates are overnight financing fees charged for holding positions overnight. Consider the impact of swap rates on your trading strategy, especially if you intend to hold positions for extended periods.
From the Singapore forex traders’ point of view, low spreads and commissions are vital for cost-effective trading.
Some brokers may offer zero-commission accounts, but compensate with wider spreads.
Conversely, others may have narrower spreads, but charge a per-trade commission.
Evaluate your broker’s pricing model to determine if their charging method aligns with your trading style.
Consider an alternative – Subscription-Based Trading (SBT)
Subscription-Based Trading (as offered by MarketMates) offers the opportunity to trade with no markup on spreads, commissions or swaps.
SBT means you pay a single monthly subscription fee, but then you get to trade at wholesale rates – in other words, exactly the same rates charged by big liquidity providers.
This can amount to large savings on trading costs for both big and small traders.
It’s a bit like the difference between paying to download one movie on Netflix, as opposed to paying a monthly subscription and getting an unlimited number of movies to watch.
Instead of paying a markup on each trade you do, you pay one small monthly subscription and get all your trades with no additional markups.
In addition, if you trade less than US $1M a month on forex, you can have a FREE account with MarketMates with no subscription fee at all!
Hidden fees to watch out for
Some of the best forex brokers in Singapore impose hidden fees that all traders should be wary of.
You can find out more about hidden costs and fees in our MarketMates Guide to Trading Fees and Charges.
Hidden fees may include:
- Currency conversion fees
Suppose your trading account is denominated in a currency different from your local currency (e.g. USD instead of SGD). In that case, you may incur currency exchange fees when depositing or withdrawing money from your account.
Example: A Singapore forex trader may need to convert SGD into USD for trading, and then back into SGD when withdrawing funds, leading to currency exchange fees from the broker or payment processor.
However, some brokers even charge currency conversation fees on your profits, even if crediting them to your account incurs no cost to your broker at all.
- Deposit and withdrawal fees
Some brokers charge fees for funding your account, withdrawing funds or transferring between accounts.
These fees may vary based on the payment method used (e.g. bank transfers, credit cards, crypto or e-wallets.)
Example: Bank transfers may incur higher charges compared to e-wallets or debit cards, so be sure to read the fine print carefully.
- Account inactivity fees
Singapore forex brokers may charge inactivity fees if your account remains dormant for a specific period, usually ranging from three to 12 months.
Example: A fee of $10–$50 per month might be deducted from your account balance if you don’t use it for three months or more.
- Platform/data usage fees
Some brokers charge fees for access to an advanced trading platform or premium features.
Example: A $50 a month subscription fee for advanced analytics tools or access to third-party integrations like TradingView.
- Slippage
Slippage occurs when the execution price of a trade differs from your intended price. It can be due to market volatility, or minute delays in order execution.
Slippage can either be positive or negative. If it is positive, it means you benefit, as you are getting a better price. If it is negative, then you are receiving a worse price.
Be aware that some less-than-ethical brokers benefit from slippage by purposely executing trades at a less favourable price.
Ease of use of trading platform
The trading platform offered by your broker is the backbone of your forex trading experience.
The best forex brokers in Singapore will offer a platform that is:
- User-friendly: Easy to navigate, even for beginners
- Reliable: Stable performance with minimal downtime
- Feature-rich: Includes advanced charting tools, indicators, and order types for seasoned traders
Platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5) and proprietary platforms are popular choices among traders.
It’s always a good idea to test the demo version of your broker’s platform to ensure compatibility with your trading style and preferred trading device.
For example, some brokers offer a desktop version of their platform, but not a mobile version or a web-based version.
Make sure that the platform offered by your broker fits in with your trading style and personal needs.
Additional broker services to compare
The best forex brokers in Singapore may offer additional trading features such as:
Market research
Market research involves providing traders with detailed insights, such as technical analysis, market news, economic calendars and expert commentaries. These resources help traders make informed decisions by analysing market trends, events and potential opportunities.
Trading tools
Trading tools are features that enhance a trader’s experience and efficiency.
They may include:
- Charting software
- Trading calculators
- Free custom indicators
- A signal service
- Automated trading systems
These tools aim to help traders analyse the markets and execute their strategies more effectively.
Copy trading
Copy trading allows less experienced traders to replicate the trades of professional or successful traders.
This feature provides an opportunity to participate in the markets without extensive knowledge, as users benefit from the expertise of seasoned traders.
Education resources
Many brokers offer educational materials, such as webinars, eBooks, video tutorials and trading courses.
These can be particularly helpful for beginners looking to develop their skills and knowledge or for traders looking to build their trading skills and take them to the next level.
Trading community
A trading community connects traders through forums, social platforms or broker-hosted networks.
These communities encourage the exchange of ideas, strategies and insights while fostering collaboration and mutual learning.
Account management services
Account management services are tailored offerings that assist traders in handling their accounts.
This may include dedicated account managers, customisable portfolios or managed trading accounts where professionals trade on behalf of their clients.
Islamic accounts
Islamic accounts, also known as swap-free accounts, are designed for traders who follow Muslim Sharia law.
These accounts eliminate interest payments (swap fees) on overnight positions to align with Islamic financial principles.
Here you can find out more about is forex halal or haram?
Prop trading opportunities
Prop trading opportunities allow traders to trade with a firm’s capital instead of their own.
Traders can earn a portion of any returns while avoiding the risks of personal capital losses, although they must adhere to the firm’s rules and performance criteria.
VPS hosting for trading
A Virtual Private Server (VPS) ensures reliable and fast execution of trades, even in the event of local internet issues.
This is ideal for automated traders who rely on expert advisors (EAs) or algorithms.
Leverage and margin offered
Leverage is a powerful tool in forex trading, allowing traders to control larger positions with a smaller initial investment.
While it can amplify potential profits, it also significantly magnifies potential losses.
Leverage in the forex market ranges from 1:20 to 1:200 or more.
This is significantly higher leverage than the 1:10 leverage commonly provided on stocks, or the 1:20 leverage commonly provided in the crypto or futures market.
How leverage works
Leverage is expressed as a ratio, such as 1:20, 1:50 or 1:100.
For example, with 1:50 leverage, a trader can control a position worth 50 times their initial investment.
For example:
- Without leverage: If a trader wants to buy $10,000 worth of EUR/USD, they would need the full $10,000
- With 1:50 leverage: The same trader could control that $10,000 position with only $200 ($10,000 / 50 = $200) as margin
The best forex brokers offer a variety of balanced leverage options suitable for various experience levels.
This can range from leverage of 1:10 right up to 1:200.
Singapore CFD leverage requirements
Under MAS regulations, the leverage for Contracts for Difference (CFDs) is subject to specific margin requirements.
This is to ensure investor protection and to mitigate some of the risks of leveraged trading.
Since forex trading is a form of CFD trading, these rules apply to Singapore forex brokers who are MAS licensed.
Retail traders leverage cap in Singapore
MAS imposes a leverage cap of 1:20 (5% margin requirement) for retail clients trading CFDs.
This means traders must deposit a minimum of 5% of the contract’s notional value as margin.
Accredited investors (AIs) and institutional investors
Accredited and institutional investors may have access to higher leverage levels depending on their agreements with the CFD provider.
Such traders are deemed to have a higher risk tolerance and understanding of leveraged trading.
How internationally-licensed forex brokers differ from Singapore brokers
The best online forex brokers who are licensed internationally (such as MarketMates) are not bound by Singapore leverage caps.
This is because different licensing authorities worldwide have different compliance rules and regulations.
Therefore, with an internationally-licensed forex broker such as MarketMates, traders are able to take advantage of leverage up to 1:100 or higher, rather than the Singapore MAS-imposed limit of 1:20.
Trading using high leverage is a double-edged sword. It can magnify your profits, but also your losses.
Using high leverage is only recommended for experienced traders or those with a thorough understanding of sound risk management principles.
Beginner traders should use lower leverage to reduce their trading risk.
Forex broker site reviews
While online reviews can be a valuable resource, it’s essential to approach them with a critical eye.
Many comparison websites offer legitimate broker reviews, but not all review sites are created equal.
Some may be biased, misleading or even driven by financial incentives.
We know of one broker review site that threatens to publish damaging reviews unless an ‘inclusion’ fee is paid.
The pitfalls of biased reviews
- Paid reviews: Some websites may receive payment from brokers in exchange for favourable reviews. This creates a clear conflict of interest and compromises the objectivity of the review.
- Affiliate marketing: Many review sites operate on an affiliate marketing model. This means they earn commissions when readers sign up with a broker through their referral links.
While not inherently unethical, this incentive structure can influence the tone and content of reviews, potentially highlighting positive aspects while downplaying negative ones.
- Lack of transparency: Reputable review sites should disclose any potential conflicts of interest, such as affiliate relationships. However, many do not, leaving readers in the dark about the motivations behind the review.
- Outdated information: The forex industry is constantly evolving. Some review sites may not update their information regularly, leading to outdated and potentially inaccurate reviews.
- Focus on attracting clients: Some review sites prioritise attracting new clients to brokers rather than providing unbiased and comprehensive information. This can lead to overly positive reviews that gloss over potential drawbacks.
How to identify and avoid biased reviews
- Check for transparency: Check if the review site discloses any affiliate relationships or other potential conflicts of interest.
- Read multiple reviews: Don’t rely on a single review. Compare reviews from multiple sources to get a more balanced perspective.
- Look for negative reviews: Be wary of review sites that only showcase positive reviews. Legitimate brokers will have both positive and negative feedback.
- Verify information: Cross-reference information from the review with the broker’s official website.
- Trust your intuition: If a review seems overly positive or promotional, be cautious.
Best online broker offering Subscription-Based Trading
MarketMates is an online trading platform that is on your side.
With just one monthly subscription fee, we offer unlimited trading with no markups on spread, swap or commission, ever.
MarketMates has subscription plans for all levels of traders including a FREE plan for new and smaller traders.
This allows any trader to have the same trading conditions as a large professional or institutional trader no matter their trade size.
There are also no currency conversion markups on your profits.
Many brokers in Singapore charge a 0.5-1% fee on profits. This fee is usually hidden in the fine print under ‘currency conversion.’
There is no cost to the broker for currency conversion on profits, so it’s not something that you need to pay when selecting a broker. Be careful to ask any broker you are researching if they charge such as fee.
This way you’ll be able to avoid paying a percent of your profitable trades to a broker.
How to get started trading with MarketMates
Getting started trading with MarketMates is simple:
- Choose your plan
Choose from Free Mate, Good Mate, Best Mate or Pro Mate subscription plans, depending on how much you intend to trade per month.
You can change plans or cancel your subscription at any time, with our ‘no-questions-asked’ money-back guarantee
- Verify and fund your account
This will involve verifying your identify through a simple process, which includes taking a selfie and providing proof of residential address
- Start trading – and save thousands
This graph shows the difference that lower trading fees can have on your trading account over a period of ten years.
It is based on average forex broker fees of $3,000 per year, compared to $1,188 with MarketMates.
It shows how using Subscription-Based Trading can save you thousands of dollars over your trading career.
Additional perks offered by MarketMates
MarketMates offers two additional perks which come with a SBT plan:
Premium daily calls and signals
3CAnalysis (3CA) has been providing signals to banks and hedge funds since 2002. Through your SBT subscription, you can access these daily calls too.
Access to the MarketMates community
The MarketMates members’ group is THE place to be to trade with mates. Learn and grow with live masterclasses and direct access to experienced trading mentors.
Finally, if you want to learn, you can join our free course:
FREE Advanced Forex Course – trader education
Join over 42,000 traders and get access to 17+ lessons, including five hours of videos based on the famous ‘Market Wizards.’
MarketMates ceo Sam Eder takes you step-by-step through what it takes to become a consistent trader, based on principles first explored in his best-selling book ‘The Consistent Trader’ (rated 4.4/5 on Amazon).
Get a FREE Trading Plan Template, a Traders’ Compass Template, a Contingency Plan Template and lots more by enrolling in this practical hands-on advanced forex course.
Frequently asked questions
Is forex trading legal in Singapore?
Yes, forex trading is entirely legal in Singapore and is regulated by the Monetary Authority of Singapore (MAS).
The MAS ensures that brokers operate within a strict legal framework, protecting traders from fraud and unfair practices.
As a globally recognised financial hub, Singapore has a vibrant forex trading community supported by advanced infrastructure and regulations.
There are also numerous internationally-licensed online forex brokers such as MarketMates offering very competitive services to Singaporean traders.
Is forex trading taxed in Singapore?
Forex trading taxation in Singapore depends on the nature of the trading activity. Generally, there are two main categories to consider:
- Forex trading as a personal investment
If forex trading is done as a personal investment and not as a primary source of income, any gains are considered capital gains.
In Singapore, capital gains are not taxable, meaning you won’t pay taxes on profits made from trading forex as a personal investor.
- Forex trading as a business or professional activity
If forex trading is your main source of income or you trade frequently in a business-like manner, the profits may be classified as income.
In such cases, the income earned is taxable under Singapore’s income tax laws.
Factors such as trading volume, frequency and intention may be considered when determining if forex trading constitutes a business.
Additional considerations
- Tax residency: Your tax liability may also depend on your residency status in Singapore. Non-residents may be taxed differently based on specific regulations.
- Consultation with a tax professional: Given the nuances of tax laws, it’s advisable to seek guidance from a tax consultant or the Inland Revenue Authority of Singapore (IRAS) for personalised advice.
What’s the best online stock broker for beginners?
Determining the best online stock broker for beginners depends on your individual needs, such as your trading style and budget.
Brokers regulated by MAS in Singapore who offer competitive spreads, an excellent trading platform, and strong customer support should all be considered.
However, online international brokers such as MarketMates who offer Subscription-Based Trading for both forex and stock CFD traders can save both big and small traders a lot of money on their overall trading costs.
Even though these costs may seem small at the time, they can accumulate over the years and reduce your overall trading profits by thousands of dollars.
Which brokers accept Singapore residents?
Most reputable forex brokers accept Singapore residents.
These include both local brokers regulated by MAS, and internationally-recognised brokers operating in Singapore, such as MarketMates.
If you like this article then sign-up for our newsletter or join over 42,000 traders and get The Advanced Forex Course for Smart Traders 2.0. It’s 100% free.
