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Everything you need to know about CFD trading Singapore

You may have heard countless times how trading is profitable and can help you earn quick cash. While this is all true, trading consists of numerous risks as well. It is specifically because of the volatile market of the forex. Other than that, generally, you have to invest a hefty profit to upscale your profit, which is risky as well.

Luckily, as the forex market is enormous and consists of numerous trading strategies, there is a solution to this. It means with this particular solution; you can earn more while investing low (minimalizing your loss). And that solution is CFD trading.

Best Singaporean CFD Trading Platforms

Platform Deposit Rating Description Trade
fpmarkets Singapore
SGD140
  • Most Trusted, Fully Licensed & Largest Forex Broker
  • End-to-end digital workflow platform
  • Accept Crypto, SGD Bank, Paynow. Deposit within 5min, withdrawal within 15min
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exness broker Singapore
SGD14
  • Highly safe, reliable and trusted Singaporean trading app
  • Countless number of FX pairs
  • Best Multiple trading platforms
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FXCC Singapore
100% Bonus
SGD140
  • No.1 Trusted Trading Platform in Singapore
  • Accept Singapore Dollar
  • 100% First Deposit Bonus
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Plus500 Singapore
SGD140
  • The best trading app in Singapore
  • No commissions for trades
  • Alerts on price movements
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easyMarkets Singapore
SGD140
  • Lower Spreads Platform
  • Official Partber Spanish Club Real Madrid
  • Top Singaporean trading broker since 2015
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Fusion Markets Singapore
SGD140
  • Non-trading fees & Very Low trading fees
  • Excellent customer service
  • Tight Spreads Broker
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Eightcap Singapore
SGD140
  • Quick & Seamless account opening
  • MT4 & MT5 platforms are available
  • No fees for deposits and withdrawals
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HYCM Broker Singapore
SGD140
  • Real Singaporean broker
  • Very Low forex and CFD fees
  • Broker accepts SGD
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BlackBull Markets Singapore
SGD275
  • Official Sponsor for 3-Time Motorsport Champion Tom Alexander
  • Wide range of educational tools
  • Top 5 Trading Platform Singapore in Google
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Avatrade Singapore
SGD140
  • Singapore No.1 online platform
  • Fast user-friendly account opening
  • Great markets research tools
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LegacyFX platform
SGD685
  • Excellent VIP Offers
  • Widest Trading Selection
  • MetaTrader 5 available
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Olymp Trade Platform Singapore
SGD14
  • Clean, intuitive and easy-to-use trading interface
  • No fees and Low commisions
  • Accepts wire transfers from SG banks
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Top Traded Instruments in Singapore

What is CFD trading?

To understand CFD trading, you must understand what are CFDs. So, let’s begin. CFD stands for Contract for Differences. And as the name mentions, this is a legitimate contract between a seller and a buyer.

The agreement states that the buyer needs to pay the seller the specific price of an asset. The price is the difference between the current price of an asset, such as forex, indices, and cryptocurrency. And its price at the agreement.

 

CFD trading in Singapore

With CFDs, you can trade between some of the most popular financial options without owning them. It is because CFDs allow you to trade on leverage and is referred to as a leverage-based trading strategy. In CFD trading you only have to pay a fraction of the underlying asset. These assets may be indices, stocks, and more to secure your position. This price is referred to as the margin price.

In recent years, CFD trading has increased tremendously. And is considered one of the most profitable strategies.

An insight into the technical aspects

To understand CFDs better, we would like to give you an example. Suppose, a single share or a stock of a company is trading at $20, and its margin rate is 10%. Now, you buy 1000 CFDs to secure your position.

But with CFD as you only have to pay the margin price of the total trade value, you’d only pay 2000. It is because the margin price (10% in this case) of 1000×20 = 20,000 is 2000.

Now, if the stock would rise to $25 you would get $5000 in revenue only by investing 2000. Now, normally without the CFD, you would be paying a lot more to secure your position. However, when trading in CFDs you can experience a loss as well. It is why you must choose a reliable broker that provides excellent market predicting tools and more.

Plus, leverage plays a vital role in CFD trading, and the higher the leverage, the lesser your profit is. So, it is crucial to choose the best CFD trading Singapore platform.

Top CFD trading platforms Reviewed

CFD tradingWith the rise in the trend of CFDs, brokers have also started supporting the strategy. Below specified are some of the most reliable and widely used CFD trading platforms Singapore.

1. City Index

City Index is one of the best CFD trading platforms used in Singapore. The platform is authorized by several financial governing bodies, such as the Monetary Authority of Singapore.

Moreover, the spreads are overall low to moderate, which are between 0.5-0.8 pips on several currency pairs. In addition, with City Index, you can access more than 4000 financial assets, including some of the most profitable ones.

Furthermore, the platform has some of the most advanced, yet easy-to-use tools. These tools are perfect for beginners as well as professional traders. With the platform’s advanced tools, such as charts, and 65+ indicators, you get a chance to analyze the market. And then customize your trading strategy accordingly.

Pros

  • The platform is easy to use and consists of several educational and research tools.
  • Easy withdrawals.
  • Multiple depositing and withdrawal options.
  • Professional hedging tools.
  • Supports the MT4 platform, which benefits several professional forex traders.

2. Capital.com

When it comes to low CFD fees, and some of the tightest spreads on currency pairs, Capital.com is your gateway. Firstly, the platform is without a doubt authorized and does not consist of any inactivity fees. It means that if you do not trade for a while, you won’t need to pay a single dime when you resume.

In addition, the platform has a minimum deposit fee of $20, which is inexpensive. Moreover, the platform does not charge any withdrawal fee as well. The market offered accessible through the platform is enormous. Traders in Singapore can trade between thousands of underlying assets. These assets include over 130 currency pairs, 3600 stocks, and 33 commodities.

Pros

  • No account opening charges.
  • Great customer support, including multiple options, such as email and live chat.
  • Supports demo account, which makes the platform perfect for novice traders.
  • Supports both mobile and web trading.

3. Saxo Capital Market

Saxo Capital Market is another great CFD trading Singapore platform. With Saxo Market, traders in Singapore can access more than 40,000 financial assets and trade between them. With that said, the platform supports trading between bonds and mutual funds as well. In addition to being authorized by the MSA, the platform is also licensed under FCA and ASIC.

Moreover, there are three types of accounts that you can choose from. These are namely, Classic, Platinum, and VIP. Each has different perks and benefits traders of different trading strategies.

The average spreads range from 0.4-0.6 pips on different currency pairs, which is low compared to other CFD brokers. In addition, the platform offers a 66:1 leverage, and there is no withdrawal fee as well.

Pros

  • Multiple financial derivatives options, such as futures, and Options.
  • User-friendly interface.
  • Great educational tools.
  • Fast and secure account opening.

4. CMC Markets

When it comes to the wide range of CFD markets, CMC Markets is without a doubt one of the best. The platform lists over 10,000 stock CFDs, 1000 ETF CFDs, 123 commodities, and over 50 bonds that you can trade. Plus, the overall fees and commission are not that high as well. Moreover, there is no withdrawal fee as well.

Pros

  • Responsive interface.
  • Excellent and easy-to-use market analyzer tools.
  • Fast and secure account opening.

Conclusion

These are some of the CFD trading tools Singapore. Each one of them has different features and functionality. Make sure to choose a reputable CFD platform. So, you do not lose your money in the future.