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Author: Shelly Burns
Broker Specialist
Shelly Burns

Singaporean Traders Guide

If you want to trade binary options, then Singapore is a great place to start your journey.

As awareness of binary options grows, more and more brokers are offering their services to Singaporeans across a wide range of platforms. Desktop or mobile, it's not a problem; you won't struggle to find a reliable broker. To get started check out the vast amount of educational tools, demo accounts and other perks on offer.

In this article, you will learn:

  • The brokers best suited to your needs
  • What local payment methods are accepted
  • Taxes and fees that apply to SG residents

Traders in Singapore

Singapore

Like many countries where binary options trading isn't as commonplace as perhaps in Europe or the US, Singapore has a lack of regulated home-grown brokers. This lack of regulated native brokers is good news for international brokers who are always looking to break into new markets and extend their reach. So how do you choose a broker and what should you be considering when making your decision?

Licensing And Regulation

There is only one regulated and recommended broker that is local to Singapore. If there is only one regulated, you can be sure that there are many more that are operating unregulated, in this case, your money is most definitely at risk. Never invest your money with a broker who isn't licensed and regulated by reputable authorities.

Customer Support

While you may prefer the idea of trading with local business, in your local language, the best offshore brokers even go so far as to offering translation services on their sites to languages like Malay and Mandarin. They will also provide comprehensive customer support in many languages. Before you invest, check what forms of assistance they offer and how easy they are to contact.

Mobile Trading Tools

Most transactions, from banking to shopping, now take place on a mobile device. If you have a mobile phone and an internet connection, no doubt you want to be able to trade on the go. Make sure that the broker you choose offers an app or a suitable mobile responsive website.

Free Demo Account

The demo account is the best way to test a platform without risking your funds. While a no deposit bonus also gives you that opportunity, the demo account offers you a more substantial sum to practise trading. Use the demo account to get familiar with the functionality and layout of the platform and to execute many trades.

While there isn't a vast choice of local brokers, most Singaporeans prefer to trade in a foreign currency making offshore brokers an attractive prospect.

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Broker Fees And Tax

Like any country Singapore will have tax laws and regulations however any profits made from financial instruments such as binary options trading or Forex trading are not classed as income they are classed as a personal investment and fall into the capital gains bracket. That said you should always check with your accountant or another financial expert to ensure that these rules do apply to you as rules and regulations are subject to change and can depend on personal circumstances.

Alongside taxes, the other thing to consider is any fees that arise from binary options trading. As most brokers are offshore, there will need to be a consideration as to whether trading in a foreign currency will have an impact on you when you withdraw funds and the currency is converted back. Is there a conversion fee charged by your bank or credit card?

If you are going to be using a payment method like an e-wallet, then you need to check if they will take a percentage or if they charge a fee per transaction. If the broker charges a fee per transaction, then you will need to consider how many transactions you make and not withdraw every time you complete a successful trade.

Singaporean Licencing

While trading is now legal across all districts; this hasn't always been the case, and it has only been the last couple of years that the industry has seen real growth. Up until recently, it was only legal to trade binary options in 6 districts of Singapore. Now that has been extended to the entire state. The Monetary Authority of Singapore oversees regulation, but there is a very apparent lack of regulated brokers. It is still a tricky industry to regulate in many countries as it is still very much an unknown quantity.

Mainly the binary options industry across Asia is regulated by each country's national bank. It happens to be the Monetary Authority of Singapore who has imposed sanctions on unregulated brokers, but like anything when something is new and unknown, there are those that get in early doors and try to make a quick buck. These scam companies operate at the expense of the trader who invests their money in good faith never to see it again. While it is not illegal to trade it is unlawful for an unregulated broker to offer services.

The good news is that it is entirely legal for offshore brokers to offer their services to Singaporeans and many of the top international brokers have taken the opportunity to make their websites accessible and easy to use for many across the world. As binary options become more popular and more widely recognised the regulation will improve which will make room for new native brokers to enter the market place, but in the meantime, there are a whole host of offshore brokers.

If you're looking to trade binary options, then Singapore is excellent.

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How we Recommend Brokers

Our team of experienced experts has extensively researched every broker that we recommend. We do not put our name to any broker that we aren't entirely confident that they operate above board. From the bonuses and demo accounts that they offer to the user experience on mobile devices, we check every aspect of trading to ensure that we only bring you the very best.

We score each broker in each area so that you can see which brokers offer the benefits you want. We have vetted hundreds of brokers from across the world looking at every aspect of trading including:

  • Licensing and regulation
  • Welcome bonuses and incentives
  • Trade types and payouts
  • Mobile trading experience and ease of use of platform
  • Minimum deposit and minimum trade requirements
  • Demo account availability and features
  • Customer help and support
  • Contests and other special features

We look at everything that the broker has to offer to you as traders and how they differ from the competition and our scores reflect this.

If you are looking for somewhere safe to invest your money and don't have too many other criteria, then you can be safe in the knowledge that all of the brokers that we recommend will be suitable for you. If your standards are a little more select and you want to choose a broker based on the payout or the welcome bonus then equally we will be able to show you those that match your requirements.

One thing is for sure if you are looking for the best binary options Singapore has to offer we have a broker that will fit your needs, and we can help. Our job is to help you make the most of your trading experience ensuring that you trade safely and that the experience is an enjoyable one.

Frequently Asked Questions

FAQ

Is binary trading in Singapore legal and safe?

Where once binary options trading was only legal in six states of now it is legal in all ten districts. The Monetary Authority of Singapore regulates the industry, but there is only one regulated local based broker.

Do I need to pay fees and taxes on my profits?

The profits from binary options trading are classed as a personal investment and therefore capital gains, not income. Because of this, it is not subject to income tax.

Can I test brokers before trading with real money?

Most brokers offer attractive welcome bonuses while others offer demo accounts with no deposit required. It is worth looking at what is available that fits your criteria.

Is it easy to make deposits and withdrawals?

Depositing with any broker should be a straight forward process. When it comes to withdrawing funds, you will need to confirm your identity for fraud purposes.

Can I trade using my mobile or tablet device?

Many brokers offer apps on both Android and iOS as well as having a mobile responsive website unless you are going to be sat behind a laptop or PC all day you need to be able to trade on the go.

Meet The Author
Shelly Burns
Shelly Burns
Broker Specialist

Shelly is proud of her current position as Head of Brand for a well-known organisation that owns several brokerages in the trading sector. She’s consulted for us since 2015 and readers can benefit from her insider knowledge of how brokers work. Learn more.

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