The Best CFD Brokers In Singapore

April 24, 2024
Blog

The best CFD brokers in Singapore include Capital.com, Pepperstone and OANDA. These brokers offer low fees, a wide variety of assets you can trade, and user-friendly platforms for both beginners and more advanced traders.

The Best CFD Trading Platforms In Singapore

#1 Capital.com – Best Overall

Capital.com allows users to trade CFDs of stockscommodities, forex, market indices, ETFs and more—all without any trading fees. It supports 20+ cryptocurrency CFDs, and users can trade with 20x leverage on crypto CFDs (up to 200x leverage on other assets).

Capital.com charges a tight spread ranging from 0.1% – 0.3% (depending on the asset), making the overall cost of using the platform (0% trading commissions + 0.1% – 0.3% spreads) very low. It has a fully functional desktop platform, a well-rated mobile app (4.7/5 on Android and iOS), and an excellent demo account where you can practice trading with real assets in real time.

Capital.com is regulated by several regulators around the world to ensure it complies with local standards wherever it operates. Every user receives a dedicated account manager they can reach by email or phone, which is part of the reason Capital.com’s customer support team receives such positive reviews.

Deposits and withdrawals are always free with Capital.com, and you’ll never pay trading commissions regardless of whether you place spot orders or limit orders. Capital.com is ISO 27001 certified for meeting robust information security standards, making it an extremely safe platform to trade with.

I’ve personally used Capital.com for years, and based on my experiences and those of thousands of other users, I can’t recommend it highly enough. 

Features

  • Zero trading commissions
  • Tight spreads
  • Supports 100+ cryptocurrency CFDs
  • Allows up to 200x leverage (20x leverage on crypto CFDs)
  • Fully functional demo account for paper trading
  • Free deposits and withdrawals via debit/credit cards, bank transfer, Apple Pay, Google Pay, etc.
  • Dedicated account manager you can reach at any time
  • Excellent desktop trading platform
  • 3,000+ markets can be traded as CFDs
  • Integrates with MT4 and Trading View
  • Well-rated mobile app (4.7/5 on both Apple and Google)
  • ISO 27001-certified for meeting extremely high information security standards

Cost

  • Trading fees: 0%
  • Deposits & Withdrawals: Free
  • Currency Conversion: 0.7% (only when you trade assets in other currencies)

Best For

Investors looking for the best overall CFD trading experience with no trading commissions.

80.84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

#2 Pepperstone

Best Leverage
Pepperstone Logo

Trading fees: 0%
Security: 10/10
Customer support: Excellent

Easy to use & ultra-secure.

★★★★★

Rated 4.9/5

Pepperstone is an Australian brokerage and CFD trading platform licensed and regulated by the Australian Securities and Investments Commission (ASIC), the FCA in the UK, and the DFSA in the United Arab Emirates. With direct access to CFDs on indices, ETFs, stocks, and forex, Pepperstone is an all-in-one investing platform used by investors worldwide.

I appreciate Pepperstone for its low trading commissions, tight spreads, and extensive offering of assets to invest in. Experienced investors can trade with 10x leverage (depending on jurisdiction and experience) on most assets.

Pepperstone doesn't charge any deposit or withdrawal fees, and spreads range from just 0.0 to 1.2 pips depending on the underlying asset. The Pepperstone app is rated 4.3/5 on Android and 4.0/5 on iOS, with customer support available 24/7 via telephone or email to answer all your questions.

Features

  • Zero trading commissions
  • Tight spreads (around 0.0 – 1.2 pips)
  • 24/7 customer support via phone and email
  • Up to 10x leverage (depending on jurisdiction) on most assets
  • Access to TradingView's advanced charting tools
  • Supports 1,200+ CFDs
  • Free deposits and withdrawals

Cost

  • Spread: From 0.0 – 1.2 pips
  • Trading Fees: Low
  • Deposit Fees: Free
  • Withdrawal Fees: Free

Best For

Experienced investors looking for low fees and access to charting tools.

Note: US & Canadian investors cannot use Pepperstone.

#3 OANDA

OANDA doesn’t offer the widest selection of CFDs, but it has no minimum deposit or withdrawal amounts, making it a great fit for users who want to buy and sell smaller amounts. It also offers a demo account, which allows users to trade with paper money without putting real money on the line.

Opening an OANDA account is free, and users can fund their accounts via ACH, bank transfer, and debit card. OANDA's customer support is offered via email, phone and live chat.

When it comes to account security, OANDA is one of the best. OANDA Corporation is regulated by the CFTC/NFA. OANDA is a member Firm of the NFA (Member ID: 0325821). CFDs are not available to residents in the United States.

OANDA is a member of the NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets.

Features

  • Supports 1,000+ CFD assets
  • Customer support via phone, email and live chat
  • Well-rated mobile app (4.7/5 on the App Store) 
  • Demo account for paper money trading 
  • Regulated by the CFTC/NFA

Cost

  • Account Opening: Free
  • Trading Fees: 0.25% 

Best For

Investors seeking a demo account

Key Features Of CFD Trading Platforms

There are some important features every CFD trading platform should have. Here are the most crucial features to look for in whatever CFD broker you decide to use:

  • User Interface and Experience: Look for platforms with intuitive interfaces and user-friendly features, making it easy for traders to execute trades and access market data.
  • Range of Tradable Assets: Evaluate platforms based on the variety of financial instruments available for trading, including stocks, indices, commodities, and currencies.
  • Leverage and Margin Requirements: Consider the leverage options and margin requirements offered by different platforms, as they can significantly impact trading strategies and risk management.
  • Risk Management Tools: Assess the availability of risk management tools such as stop-loss orders, take-profit orders, and negative balance protection to help mitigate potential losses.
  • Customer Support: Reliable customer support is essential for resolving queries, technical issues, and account-related concerns promptly.

How To Choose The Right CFD Trading Platform

Aside from the features above, here are some additional criteria to look for when choosing a CFD trading platform for your investing needs:

  • Regulatory Compliance: Prioritize platforms regulated locally to ensure legal compliance and investor protection.
  • Trading Costs: Compare spreads, commissions, overnight financing charges, and other fees associated with trading on different platforms to optimize trading costs.
  • Platform Reliability: Select a platform with a robust infrastructure and minimal downtime to ensure smooth trading execution, especially during volatile market conditions.
  • Educational Resources: Look for platforms offering comprehensive educational resources, including tutorials, webinars, and market analysis tools, to enhance trading knowledge and skills.
  • Demo Accounts: Utilize demo accounts offered by CFD trading platforms to practice trading strategies and familiarize yourself with the platform's features before committing real funds.

Risks and Considerations

As with all investments, there are some risks and considerations to keep in mind when trading CFDs. These risks include:

  • Leverage Risk: CFD trading involves leverage, amplifying both profits and losses. Traders should exercise caution and employ risk management strategies to mitigate leverage-related risks.
  • Market Volatility: Volatile market conditions can lead to rapid price movements, increasing the likelihood of slippage and unexpected losses. Traders should stay informed about market developments and adjust their strategies accordingly.
  • Counterparty Risk: CFD traders are exposed to counterparty risk, as they transact with brokers rather than directly with the underlying market. Choosing reputable and regulated brokers can help mitigate this risk.

Singapore‘s Financial Regulations

Singapore has established stringent financial regulations to protect the interests of investors and maintain the integrity of its financial markets. These regulations cover various aspects of CFD trading, including:

  • Licensing and Registration: CFD trading platforms operating in Singapore are required to obtain licenses and register with the relevant regulatory authorities. This ensures that only reputable and compliant platforms can offer their services to investors.
  • Capital Adequacy Requirements: Regulatory authorities in Singapore impose capital adequacy requirements on CFD trading platforms to ensure they maintain sufficient capital reserves to cover potential losses and fulfill their financial obligations to clients.
  • Client Fund Protection: CFD brokers in Singapore are mandated to segregate client funds from their operational funds, ensuring that investors' funds are held in separate accounts and protected in the event of broker insolvency.
  • Disclosure and Transparency: Regulatory frameworks in Singapore emphasize the importance of transparency and disclosure by CFD trading platforms. Brokers are required to provide clear and comprehensive information about trading terms, fees, risks, and potential conflicts of interest to help investors make informed decisions.
  • Fair Trading Practices: Singapore‘s regulatory authorities enforce fair trading practices to prevent market manipulation, insider trading, and other fraudulent activities in the CFD market. This ensures a level playing field for all investors and maintains market integrity.
  • Complaint Handling and Dispute Resolution: CFD brokers operating in Singapore must have robust mechanisms in place for handling client complaints and resolving disputes in a timely and impartial manner. Regulatory authorities oversee these processes to ensure that investors' grievances are addressed effectively.

These regulations underscore Singapore‘s commitment to promoting investor confidence, market stability, and financial transparency in the CFD trading sector. Investors can trade with greater peace of mind knowing that their interests are protected by robust regulatory frameworks.

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