How to Trade CFDs in Singapore

Contract for Difference (CFD) trading is a regulated form of leveraged trading in Singapore, allowing investors to gain exposure to global markets — from US tech stocks to crude oil, forex, and indices — without owning the underlying assets. 

In Singapore, interest remains strong. A 2024 report by Investment Trends estimates that around 73,000 Singaporeans either already trade or intend to trade CFDs.

In Singapore, all CFD trading is regulated by the Monetary Authority of Singapore (MAS). Traders must pass a Customer Knowledge Assessment (CKA), and brokers must adhere to strict rules on leverage limits, margin requirements, and risk disclosures. 

While CFDs offer flexibility and access, they also come with amplified risks, including margin calls and the potential for rapid losses. That’s why MAS continues to enforce protective measures to ensure only informed investors participate in these markets.

This guide breaks it all down — from how CFDs differ from traditional investing to the best brokers, costs, strategies, and key risks you should know before placing your first trade.

What exactly is a CFD?

CFD stands for Contract for Difference. It’s a type of financial derivative that lets you trade the price movement of an asset — like a stock, index, currency, or commodity — without actually owning it.

Here’s how it works: You enter into a contract with your broker to settle the difference between the opening price and closing price of an asset.

• If the price moves in your favour, you earn the difference as profit.
• If it moves against you, you pay the difference as a loss.

You can trade in both directions:

• Go long if you think the price will go up
• Go short if you expect it to fall

CFDs are popular among active traders because they’re flexible and give access to global markets — all from one account.

The role of leverage — why it matters

CFDs are leveraged products. This means you can open a large position with a small upfront deposit, called the margin.

In Singapore, leverage for retail traders is capped. For example:

• Forex: up to 20:1 (i.e., 5% margin)
• Equities: usually 5:1 or less
• Commodities and crypto: even lower

Say you put in S$500 — with 20:1 leverage, you control a S$10,000 position.

This cuts both ways:

• If the market moves in your favour, your gains are magnified.
• If it goes against you, your losses can exceed your deposit.

That’s why CFD trading isn’t for everyone. You need to actively manage your risk, use stop-losses, and know when to walk away.

Which types of CFD trading products are available in Singapore?

CFDs are available across a wide range of asset classes. As a trader in Singapore, you can access many of these through MAS-regulated brokers. Whether you're looking to trade global stocks, track entire indices, or ride the price swings of oil and bitcoin, there’s a product for you. Here are the main types of CFD products available:

Shares

CFDs on shares let you trade the price movements of individual companies without owning the actual stock. You can profit whether prices go up or down, which makes them ideal for short-term trading strategies.

Example: DBS, Apple, Nvidia, Tesla

Indices

Rather than picking a single stock, you can trade on the performance of an entire market index. This gives you broader exposure and helps smooth out company-specific volatility.

Example: Straits Times Index (STI), S&P 500, NASDAQ-100, FTSE 100

Commodities

Commodity CFDs let you take positions on raw materials like oil, gold, or silver — without having to physically own them. These markets often respond to global economic trends, inflation, and geopolitical events.

Example: Gold, crude oil, natural gas

Cryptocurrencies

Some brokers allow CFD trading on popular digital currencies. You can trade the volatility of crypto without needing a wallet or exchange account.

Example: Bitcoin, Ethereum, Solana Note: Crypto CFDs are only available through selected brokers and may be restricted due to MAS guidelines.

Forex

The forex (foreign exchange) market is one of the most actively traded globally, and forex CFDs are a staple for many short-term traders. You’re essentially betting on one currency strengthening or weakening against another.

Example: USD/SGD, EUR/USD, GBP/JPY

ETFs

If you’re not keen on individual stocks or indices, CFDs on ETFs give you exposure to broader sectors or themes — from tech to sustainability — through a single product.

Example: ARK Innovation ETF, SPDR S&P 500 ETF

Bonds and Treasuries

CFDs on government bonds let you trade on interest rate movements without needing to buy the bond outright. These are less common but are available on some platforms.

Example: US Treasury Bonds, German Bunds

Sectors

Some brokers allow you to trade CFDs tied to specific sectors like technology, energy, or healthcare. This is useful when you want to express a macro view without stock-picking.

Example: Global Tech Sector, US Financials

Options

More advanced brokers offer CFDs based on options pricing. These are niche instruments and best suited for experienced traders who understand derivatives.

Note: Not commonly available on beginner-friendly platforms.

Is CFD trading safe in Singapore?

Yes — CFD trading is legal in Singapore and closely regulated by the Monetary Authority of Singapore (MAS). But that doesn’t mean you can trade with just anyone or use any platform you find online.

Here’s what you need to know before you get started:

Only MAS-licensed brokers are allowed

If a broker wants to offer CFDs to Singapore residents, it must be licensed by MAS under the Capital Markets Services (CMS) licence.

Note: Always verify a broker’s MAS licence number through the Financial Institutions Directory. If it’s not there — don’t trade.

MAS is actively blocking illegal platforms

In June 2025, MAS and the Singapore Police Force jointly blocked Octa, XM, and several other offshore platforms for marketing CFDs to locals without a licence.

This crackdown is part of MAS’s ongoing efforts to protect retail investors from unregulated platforms that offer high leverage, trading bonuses, or zero transparency.

Trader protection is built into the rules

MAS-regulated brokers must comply with strict safeguards, including:

• Segregation of client funds – Your money must be held separately from the broker’s operating funds
• Leverage limits – Typically capped at 20:1 to 50:1 depending on the asset
• Risk disclosures and CKA – You must pass a Customer Knowledge Assessment (CKA) to ensure you understand margin trading risks

These rules are there to minimise the risk of large, unexpected losses — especially for newer traders.

What about taxes on CFD profits?

In Singapore, capital gains aren’t taxed, so most retail traders don’t pay tax on CFD profits. However, if you're:

• Trading frequently
• Generating regular, sizeable profits
• Treating trading as a business

…then IRAS may treat your gains as personal income, which is taxable. If in doubt, speak to a tax professional.

Cost of trading CFDs in Singapore

CFD trading might seem cost-effective at first glance — especially with low entry capital and no need to own the asset. But once you look closer, the costs can add up quickly, particularly for active traders or those using high leverage.

Here’s a breakdown of the key fees you’ll encounter, how they work, and why they matter.

1. Commission fees

If you’re trading share or ETF CFDs, commissions are typically charged on both entry and exit. Most MAS-regulated brokers charge 0.08% to 0.15% per trade, with minimum fees ranging from S$5 to S$25.

Example:

If you trade S$10,000 worth of DBS shares via CFD with a 0.10% commission:

• You’ll pay S$10 to open, and another S$10 to close the trade.
• That’s a total cost of S$20, even before considering spreads or financing.

Small trades often get hit harder due to minimum fees, so check your broker’s commission structure before you start.

2. Bid-ask spread

The spread is the difference between the buy (ask) and sell (bid) price — and it’s often overlooked. Even if a broker advertises “zero commission,” they earn through spreads.

For liquid instruments like major forex pairs or indices, spreads can be tight:

• EUR/USD: ~0.7–1.3 pips
• S&P 500 index: ~0.5–1.0 points

But for less liquid or volatile assets, spreads can widen significantly — meaning your trade starts in the red the moment it’s opened.

3. Overnight financing (swap/rollover fees)

This is one of the most important costs to understand — and often the most misunderstood.

When you use leverage to open a CFD position, you're effectively borrowing money from your broker. If you keep the position open past market close (typically 5am Singapore time), the broker charges you interest on the full position size, not just your margin.

The rate is usually calculated as:

Benchmark rate (e.g. SOFR, SONIA) + 2.5% to 3.0% annual markup

Example:

If you hold a S$20,000 long position on the NASDAQ 100, with an overnight financing rate of 6.75% p.a., you’ll pay roughly:

• S$3.70 per day in financing
• S$25.90 per week, or more if rates go up

If you hold positions for weeks or months, these charges can seriously erode returns.

4. Margin requirements (not a fee, but crucial to know)

CFDs are leveraged products, which means you only need to put up a fraction of the total position size. This is known as margin, and it varies by asset:

• Major FX pairs: 5% margin (i.e., 20:1 leverage)
• Singapore stocks: 10–20% margin
• Commodities or crypto: typically higher margins, lower leverage

While margin allows you to control larger positions, it also means small price moves can trigger large percentage gains or losses — including margin calls.

5. Other potential fees

Depending on the broker, you may also encounter:

• Inactivity fees if your account is dormant for several months
• Withdrawal fees for certain payment methods
• Currency conversion fees if you trade in USD or EUR while holding an SGD account

These may not show up immediately, but they can catch you off guard if you don’t read the platform’s pricing guide.

CFD trading costs overview 

MAS-regulated CFD brokers in Singapore (2025)

In Singapore, all CFD brokers must hold a Capital Markets Services (CMS) licence from the Monetary Authority of Singapore (MAS). These licensed platforms are subject to strict standards on client fund segregation, leverage limits, and product transparency — all of which help protect retail traders.

A quick warning on unlicensed brokers

MAS has recently cracked down on unlicensed overseas platforms like Octa and XM, blocking access for soliciting Singapore-based traders without a licence. 

No matter how attractive their offers may look — such as higher leverage or trading bonuses — avoid using platforms that are not MAS-regulated. If something goes wrong, you’re left with little to no legal recourse.

How do I start CFD trading in Singapore?

Getting started with CFD trading in Singapore is straightforward — but it’s important to do it right. From choosing a MAS-regulated broker to practising on a demo account, here’s a step-by-step guide to help you begin trading confidently and responsibly.

Step 1: Choose a MAS-regulated CFD broker

Start by selecting a broker that is licensed by the Monetary Authority of Singapore (MAS). This ensures the platform meets strict standards for transparency, client fund protection, and product risk disclosures.

Look for a broker that offers:

• A user-friendly trading platform (web, desktop, or mobile)
• Competitive spreads and low fees
• A wide range of CFDs (shares, forex, indices, commodities, etc.)
• Transparent overnight financing and margin policies

Tip: You can verify a broker’s MAS licence on the MAS Financial Institutions Directory.

Step 2: Open a CFD trading account

Once you’ve selected a broker, you’ll need to complete the account opening process. This typically involves:

• Submitting your NRIC or passport for identity verification
• Providing proof of address (e.g. utility bill, bank statement)
• Completing a Customer Knowledge Assessment (CKA) — required by MAS to ensure you understand the risks of leveraged trading

Approval usually takes 1–2 business days, depending on the broker.

Step 3: Fund your trading account

After your account is approved, you can deposit funds using one of the broker’s supported payment methods, which often include:

• Bank transfer (FAST or telegraphic)
• Credit/debit card
• E-wallets like PayNow or GrabPay (varies by broker)

Check the minimum deposit requirement — some brokers have no minimum, while others (e.g. Saxo Markets) may require up to S$2,000.

Step 4: Practise with a demo account

Before putting real money on the line, it’s strongly recommended to use a demo account. This allows you to:

• Learn the platform’s features
• Test different strategies
• Understand how leverage, margin, and spreads work — without any financial risk

Most MAS-regulated brokers offer free demo accounts with live market data.

Step 5: Start trading — with a plan

Once you’re confident and understand the risks, you can switch to a live account and begin trading CFDs. Successful trading requires more than market intuition. Be sure to:

• Monitor key market news and trends
• Use both technical and fundamental analysis
• Set stop-loss and take-profit levels
• Avoid overleveraging — trade only what you can afford to lose

How to manage risk when trading CFDs

CFD trading isn’t just about spotting opportunities — it’s about protecting your downside. The market doesn’t care how confident you are. Without proper risk management, one bad trade can wipe out weeks of gains. Here's a practical playbook to help you stay in the game.

Start with the basics: limit risk to 2% per trade

This is the golden rule among experienced traders. You should never risk more than 2% of your total account balance on a single trade.

Let’s say you have S$10,000 in your account. That means your maximum loss on one trade should be capped at S$200. This gives you breathing room even if you hit a losing streak. Five wrong trades in a row won’t kill your account — or your confidence.

Use smart stop-losses — not “hope”

Every trade should have a predefined exit, no exceptions. Hope is not a strategy.

Consider setting two layers:

• A soft stop — an alert or mental checkpoint if your trade moves halfway toward your risk limit. It’s your cue to reassess: is the trade still valid?
• A hard stop — an automated exit placed on your trading platform, based on your 2% risk rule. This is your line in the sand.

Don’t risk too much across your trades

Even if each trade follows the 2% rule, opening five positions at once means you’re potentially risking 10% of your account in a single day. That’s a quick way to blow up your capital.

A safer approach: keep your total daily exposure under 1.5% to 3% of your account balance. If all your stop-losses hit on the same day, you’ll still live to trade tomorrow.

Watch out for overlapping trades

Just because you hold multiple positions doesn’t mean you’re diversified. If they’re all linked to the same theme, you’re just doubling down.

Example:

• Long on the NASDAQ 100
• Long on Nvidia
• Long on a semiconductor ETF

They might look like three different trades, but they’re all tied to US tech. One bad headline could sink them all. Be aware of correlations between your positions — especially in volatile sectors.

Manage weekend and event risk

Markets can open at drastically different prices after a weekend or major economic event. This is called gapping, and your stop-loss might not protect you — it’ll only trigger at the next available price, which could be far worse than expected.

To avoid surprises:

• Reduce or close positions before weekends or key announcements (like US jobs data or central bank meetings)
• If your broker offers it, consider using a Guaranteed Stop-Loss Order (GSLO) — this ensures your exit price, even during sharp gaps. It might cost more, but it's worth the protection.

Alternatives to CFD trading in Singapore

If you're looking for tools beyond CFDs — whether for leverage, hedging, or long-term investing — here’s how other products stack up.

CFDs vs. long-term investing: where StashAway fits in a balanced portfolio

CFD trading is designed for short-term tactical exposure. With leverage of up to 20:1, traders can take amplified positions on indices, equities, commodities, and currencies — without owning the underlying asset. While this creates the potential for outsized gains, it also introduces significant downside risk, particularly when markets move sharply or gap overnight. Returns are further eroded by costs such as spreads, commissions, and overnight financing, making risk and cost management critical to long-term survival.

By contrast, StashAway’s General Investing portfolios take a strategic, long-term approach to wealth management. Portfolios are constructed using globally diversified ETFs, with no leverage, and managed through StashAway’s proprietary risk-based framework.

Investors benefit from automatic rebalancing, dynamic asset allocation, and low, transparent fees starting at 0.2% per annum. The underlying assets are held in the investor’s name and custodied with licensed third parties, ensuring full ownership, visibility, and regulatory protection.

Rather than viewing CFD trading and long-term investing as opposing strategies, sophisticated investors treat them as complementary. A common approach is the core-satellite portfolio model:

• The core portfolio — often 70–90% of total capital — is allocated to diversified, long-term investments like StashAway’s portfolios.
• The satellite allocation — typically 10–30% — is reserved for higher-risk, short-term strategies such as CFD trading, where the objective is tactical alpha generation.

Here’s your CFD Trading FAQs: Your Complete Guide to Trading CFDs in Singapore — professionally written, human-friendly, and with all dividers removed:

CFD trading FAQs

Is CFD trading legal in Singapore?

Yes, CFD trading is legal and regulated by the Monetary Authority of Singapore (MAS). All brokers must be MAS-licensed, and CFDs are classified as Specified Investment Products (SIPs). This means most investors must pass a Customer Knowledge Assessment (CKA) before being allowed to trade.

How much do I need to start trading CFDs?

Minimum deposit requirements vary:

• IG, CMC, OANDA: No minimum
• Saxo Markets: S$2,000
• Plus500: S$100 Always check your broker’s terms.

Can I lose more than I invest?

Yes. CFDs use leverage, meaning you can lose more than your initial capital. This is why MAS enforces margin requirements and suitability checks. Proper risk management is essential.

How do I open a CFD account?

To open a CFD account with an MAS-regulated broker, you’ll need to:

1. Submit personal documents (ID + proof of address)
2. Complete the CKA unless you’re an Accredited Investor
3. Read and accept the broker’s risk disclosures
4. Fund your account Approval usually takes 1–3 business days.

What is the Customer Knowledge Assessment (CKA)?

The CKA is an MAS-mandated test to determine whether you have the knowledge or experience to trade SIPs like CFDs. You’ll need to meet at least one of the following:

• 6 SIP trades in the last 3 years
• Relevant financial qualifications
• Work experience in financial services

Can I practise before using real money?

Yes. Most CFD brokers offer demo accounts with virtual funds. It’s highly recommended to practise using a demo before switching to live trading.

What are the main fees when trading CFDs?

Key costs include:

• Spreads: Built into every trade
• Commission: Typically 0.08–0.25% per side for shares
• Overnight financing: Charged if you hold leveraged positions overnight (usually 3%–7% p.a.)
• Other potential charges: Currency conversion, withdrawal, or inactivity fees

What is a margin call?

A margin call occurs when your account equity falls below the required margin level. If you don’t top up your account or reduce your exposure, your broker may close out your positions to prevent further loss.

Can I short-sell using CFDs?

Yes. CFDs allow you to profit from falling markets by opening “sell” positions. Unlike traditional short-selling, there’s no need to borrow shares.

Are CFD profits taxable in Singapore?

Generally, capital gains are not taxed in Singapore. However, if CFD trading is your primary income source or you're trading professionally, gains may be classified as taxable income. Always consult a tax advisor.

What happens if my broker goes bankrupt?

MAS-regulated brokers are required to segregate client funds from their own. While this reduces risk, it doesn’t eliminate it entirely. That’s why it’s important to use only licensed brokers.

Can I trade CFDs offline?

Yes — but only through certain brokers that offer advisory-based CFD accounts. These typically involve higher fees and require a financial advisory agreement.

What are CFD trading hours?

Trading hours depend on the underlying market:

• SGX stocks: 9:00 AM – 5:00 PM
• US stocks: 9:30 PM – 4:00 AM SGT (daylight saving)
• Indices and FX: Often trade nearly 24 hours

Should I use guaranteed stop-loss orders (GSLOs)?

If your broker offers GSLOs, they can provide protection against slippage and weekend gaps. You’ll pay a small premium for the guarantee, but it may be worth it in volatile markets.

Which CFD products are best for beginners?

Popular beginner-friendly CFDs include:

• Major indices (e.g., S&P 500, STI)
• Forex pairs like EUR/USD
• Large-cap stocks you’re familiar with

These instruments tend to have tighter spreads and more predictable behaviour than smaller, illiquid assets.

What's the most important thing to remember as a beginner?

Risk management is everything. Use stop-losses, avoid overleveraging, and never risk more than you’re comfortable losing. Start small, learn consistently, and treat every trade as a learning opportunity — not a lottery ticket.