Best Singapore regulated brokers

What is MAS regulation?

MAS (Monetary Authority of Singapore) is Singapore's central bank, chief financial regulator and supervisor of financial institutions. It was founded in 1971 with the capacity to operate as the Singapore government's banker and financial agent.

MAS' mission is two-fold: to track the inflation rate and to create a sound and progressive financial center. To achieve this mission, MAS carries out four main functions;

In conducting monetary policy, MAS aims to "maintain price stability conducive to the sustainable growth of the economy." The importance of price stability, which means low and stable inflation, stems from theoretical considerations and empirical evidence that it is a necessary precedent for sustainable economic growth.

When there is price stability, movements in the relative prices of goods and services can serve as clear signals to consumers, businesses and the government to help them allocate resources efficiently. Price stability also encourages saving and investment as it prevents the value of assets from being eroded by unexpected inflation.

MAS manages the nation's Official Foreign Reserves (OFR). To promote the effective operation of the financial markets and sustain confidence in Singapore's exchange rate-based monetary policy framework, OFR is required.

They are employed explicitly to: Intervene in foreign exchange markets to carry out the monetary policy stance; and provide finance for the balance of payments demands during a crisis. This ensures macroeconomic stability.

MAS regulates the banking and insurance sectors, capital markets, and payment systems. In addition to its primary goal of preserving financial stability, MAS also wants to ensure the success and resiliency of the Singaporean economy by fostering a healthy and forward-thinking financial sector.

MAS accomplishes this through financial oversight and developmental programs.

The Monetary Authority of Singapore (MAS) also oversees the activities of Forex brokers in Singapore and establishes their operating guidelines.

The MAS guidelines are in place to safeguard Singapore traders, so you may complain to them at any time if a broker breaks the rules, and they will assist you in obtaining compensation.

However, if you trade with a broker not licensed by MAS, the agency cannot safeguard you since the broker is not under its jurisdiction and hence is not required to obey the MAS guidelines.

List of MAS Regulated Brokers

Swissquote

Review

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Between 70 and 80% of retail investors are losing money when trading forex instruments and CFDs.

The Swissquote brokerage firm has been operating in the Forex market since 1996. The company is regulated by the Swiss Financial Markets Authority (FINMA). The company is a member of the Swiss Bankers Association. The company falls short in the category of customer service when compared to other top companies and is significantly inferior to popular Forex brokers in many other respects also. Swissquote has prioritized reliability, while paying less attention to indicators that are important for each trader, such as the size of the minimum deposit, trading conditions, deposit conditions, and its rules on withdrawing funds.

Interactive Brokers

IBKR Review

Interactive Brokers is the best Forex broker for active professional investors. Aside from offering one of the most advanced trading platforms on the market, they also provide a wide variety of financial instruments.

Saxo bank

Saxo Bank Review

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The SaxoBank brokerage company was founded in 1992 under the original name Midas. In 2001, the broker was licensed by the FSA, a Danish Financial Supervisory Authority. After that, the company changed its name to SaxoBank. Today the broker provides online access to various financial markets to clients from 170 countries. In 2017, the SaxoTraderGO terminal was recognized as the best trading platform for active trading according to FX Week’s e-FX Awards and ADVFN International Financial Awards.

Oanda

OANDA Review

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The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

Plus500

Plus500 Review

Plus500 broker is owned by Plus500UK Ltd, a UK registered company with headquarters in London. The company is regulated by the FCA (UK Financial Conduct Authority). Plus500.com has been an active trading platform since 2008, where traders can trade more than two thousand financial assets. The broker provides its services in Asia and Europe, being also one of the fastest-growing companies that make it possible to trade CFD (contract for differences) contracts.

IG Markets

IG Markets Review

The Forex broker IG Markets is a structural subdivision of the IG Group corporation. Its securities are listed on the London Stock Exchange and are included in the FTSE 250 index. IG Markets is a UK registered company created in 1974, but since its inception, its representative offices have appeared in some other European countries. Since 2014, a retail line of brokerage services has been opened. The main activity of the broker is the provision of services for trading financial derivatives (CFDs).

CMC Markets

CMC Markets Review

CMC Markets is one of the leading companies in Forex and CFD trading, founded in 1989. The broker is regulated by the FCA (UK Financial Conduct Authority). The company provides a wide range of trading assets, including indices, stocks, and cryptocurrencies. Solid experience in the financial services market, regulation in the UK, and segregated accounts for clients are the foundation of a high level of traders' trust. The broker also has a risk management program.

How To Check MAS Regulations?

For Forex brokers to be trusted, they need to be regulated by MAS regulations to make sure they don't do anything they want. Some don't have a license, and it will be better to stay away from them. Here are some tips to check MAS-approved brokers.

MAS-Regulated Brokers' Trading Limitation

MAS regulation imposed some restrictions on brokers' work to protect investors and traders based in Singapore and ensure service providers treat them fairly. One of these restrictions is on the amount of leverage offered by brokers.

Because leverage has the potential to magnify both gains and losses, the MAS has imposed a limit of 1:20 for retail traders and 1:50 for professional traders. This leverage limit is in place to assist you in minimizing losses when you conduct a transaction. Lowering your leverage lowers your risk exposure.

Another restriction is keeping clients' funds. The MAS requires forex brokers to retain customer funds separately from the account used to conduct the firm or broker's activities.

This implies that the funds you deposit into your trading account for investment are not saved in the same account as the broker's operating funds. This is done to safeguard clients' assets safely and prevent the broker from utilizing your funds for day-to-day company operations.

How To Choose A MAS (Singapore) Regulated Broker?

When choosing a MAS-regulated broker that is best for you, there are some factors you will need to consider. Some brokers are excellent in providing some services but might be lacking in others areas. So you will need to put these factors in mind and compare them before choosing a MAS regulatory broker. These factors include:

Reliability (Regulation, Trust Level)

Ensure your broker of choice is heavily regulated by MAS or another regulator. With so many online scammers, it is hard to know which broker is genuine these days, so you will need to check if MAS regulates a broker. That should be the first thing you should check before checking out other factors.

Trading Fees/Spreads

Before choosing a broker, it's also good to consider its pricing and cost. Some brokers charge more for their services; for example, many brokers have fixed and variable spreads and different pricing.

These spreads affect the profit you make, the wider the spread, the lesser the profit and the tighter the spread, the more the profit, but they charge for commissions depending on the spread you are using.

ECN-style trading accounts come with a flat rate, and the commission rate charge allows for ultra-competitive spreads as low as 0.0 pips, while standard accounts have bigger spreads but no commission fees. Lower trading expenses equal a larger possibility of profit. Never pay more than necessary.

Supported Assets

It is also essential to check the amount of assets a broker offers for trading before engaging in them. Some brokers support only forex currency assets, while many assets are to be traded in the forex markets.

Some of these assets to be traded in the forex markets include: currency pairs, metals, indices, crypto, futures, commodities etc. examining the wide range of assets a broker is offering will enable you to make the right choice.

Trading Platforms

It is good to understand the type of trading platform your broker uses if you can adapt to it. Many traders choose brokers that offer third-party platforms with an established trading community and a wide range of trading assets.

While many experienced traders might like to use an advanced desktop platform that looks like an institutional trading environment, new traders might prefer simple software designs for mobile apps like MT4 and MT5. Some brokers also provide web trading platforms available from any computer and browser.

Quality Customer Support

Having a broker you can contact whenever you have issues with your account is essential. Getting in touch with your broker should be quick and easy. Look for a broker that offers 24/5 support in English and other languages across email, live chat and phone.

Few brokers even provide support 24 hours a day, 7 days a week. Common contact methods include email, phone and live chat. Online live chat seems to be the best as they provide a swift solution to your issue.

Execution Speed And Slippage

With the forex market being very volatile, it is essential to have a broker that has a fast execution speed of orders in the market. Also, look for a broker with minimal spillage.

Spillage refers to the difference between the price you executed your trade and the final price your broker executed your order. To reduce the chances of frequent spillage, traders need to choose brokers with fast execution.

Deposits & Withdrawals

It is also important to choose a broker that offers a range of depositing and withdrawal methods. Also, choosing a broker with a fast deposit and withdrawal method is very important to avoid anxieties about waiting tirelessly for your funds.

Methodology for compiling our ratings of Forex brokers

Traders Union applies a rigorous methodology to evaluate brokers using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.

Key aspects of the assessment include:

Find out more about the unique broker assessment methodology developed by Traders Union specialists.