How to Find the MAS Regulated Best Broker in Singapore?
In the past few years, Southeast Asia has been experiencing significant growth in forex trading. Although, some countries in Southeast Asia have banned forex trading due to the risk of money laundering. Singapore, on the other hand, has the most open economy that encourages business with low taxes. With the help of the best broker in Singapore, you can get all the benefits from Singapore brokers emerging forex trading industry.
However, the Monetary Authority of Singapore (MAS) controls Singapore brokers, so trading with a regulated broker should be safe. That being said, you just need to find a MAS-regulated Singapore forex broker. And there are some simple criteria to find them. After completing this article, you will know the ways to find the MAS-regulated best broker in Singapore.
We will begin with the details of MAS then will discuss everything one by one.
What is the Monetary Authority of Singapore (MAS)?
MAS was originally founded in 1971 with the authorization of Singapore’s central bank. MAS was aimed to regulate Singapore’s financial sector, including insurance, banking, and securities. Later, with the availability of forex for the retailers, MAS got authorization from the Singapore government to promote a sustainable forex trading environment.
So, all king of brokers, including CFD Singapore brokers, needs authorization from MAS. The MAS also fights fraud, corrupted, and scam brokers, if there are any. However, a license from MAS is the gateway to do the trading operation in Singapore.
How to Check the MAS Authorization of a Broker?
If you wish to trade forex in Singapore and found a broker, it is better to check the regulatory status of that broker as some scam brokers are always looking forward to cheating.
MAS has Financial Institutions Directory section on its website. It is fundamentally a database that contains all the registered financial institutions in Singapore alongside the forex brokers.
To verify your intended broker, first, you will need to retrieve the broker’s license number. You can get it from their website or by calling them. Next, search the license number in Financial Institutions Directory.
If the database returns you with the broker’s data, you can go ahead with that trader. However, Singapore doesn’t have many brokers, so searching for the best broker in Singapore will be easy for all.
What to Look to Choose the Best Broker in Singapore?
Since a retailer cannot participate in forex trading directly, instead, they need to tarder via an intermediary such as a broker. The broker participates in trading on behalf of the individual trader. However, the trader needs to have a trading account with a broker and trading software. The broker provides the necessary trading software and other elements. However, the service may vary from broker to broker. So, registering with the best Singapore forex broker is mandatory.
But, finding the best forex broker is not easy if you don’t know the criteria you need to look at. So, we have made a list of some measures that you can follow to find the best Singapore brokers.
It is the very first thing to look at. The license from the proper regulatory body ensures the reliability of a broker. In Singapore, MAS is the only regulatory body. So, you should check the broker’s validity via MAS.
We have mentioned the processes earlier on checking the MAS authorization. You can follow that to check the broker’s credibility.
Check the Currencies and Market Access
Most of the best Singapore brokers offer major currencies to trade alongside some other profitable minor and exotic currencies too. So, when you choose the broker, make sure you are aware of the offered currencies and other instruments. For example, if your priority is to trade US stocks, then you must look for Singapore brokers for US stocks.
That’s how you will need to set your priority and choose the desired broker.
Commissions and Spread
Usually, the spread represents the buying and selling price of currencies at a specific period of time. As the forex market is volatile, spreads tend to increase, so you should check the spread when the market is stable.
However, the popular forex pairs usually have an average spread of 3 pips. But, if you find a broker that offers spreads of more than five pips, you should avoid that broker.
Trading Platform and Tools
Normally, the best broker in Singapore provides their service via MetaTrader forex trading platforms. However, a few of the brokers may offer in-house developed platforms too. But, MetaTrader is widely known and used by numerous brokers and traders across the words.
So, you can shortlist the MetaTrader 4 forex brokers and MetaTrader 5 forex brokersto make your selection task easier.
A demo account is an excellent way to know the details of a Singapore forex broker. A demo account allows you to access the broker like a live account so that you can get a chance to know the platform and trading process before selecting the broker for a live account. However, All the established Singapore brokers offer a free demo account for all.
Deposit and Withdrawals
To have a great forex trading experience prompt transaction method is necessary. Therefore, if the broker can’t ensure a quick deposit and withdrawal method alongside the convenient ways, you should avoid it.
Technical difficulties during trading are inevitable sometimes. So, hasty customer service should be a definitive need. Before signing up for a live trading account, you should check the selected forex broker reviews online, whether it has a good record of providing customer service or not. The Singapore brokers with poor customer service should be avoided.
Providing education support for free is a new trend among the brokers. So, finding a broker with an education platform is not compulsory. But if you are a newbie, you can search for one. However, expert traders may also sign up with a broker that offers educational material. Regardless of the experience, anyone can get benefited from the Forex trading course Singapore offered by the brokers.
Is Forex Taxable in Singapore?
Taxation on forex trading in Singapore can seem confusing for some traders, as Singapore imposes the territorial principle for taxation. So, if the company operates offshore, tax is not required.
On the other hand, Singapore doesn’t imply tax for capital gains. But intraday profits may not be considered as capital gain, and income tax needs to be paid. The country should develop a transparent rule for taxation. But it is confirmed that income generated from forex trading is not taxable in Singapore.
Undoubtedly, Singapore provides a perfect situation for forex trading. That is why the best broker in Singapore is evolving slowly. And this guideline should get you a thorough idea to get the Singapore brokers recommendations comparing the various criteria.
On the other hand, MAS is a great source to get the list of all Singapore brokers, which will help you to sort out the brokers according to your requirement.
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