Forex Brokers in Singapore

Yes. It is 100% legal to trade forex in Singapore. It is one of the few countries in Southeast Asia that fully permits and regulates forex trading. In this case, The Monetary Authority of Singapore (MAS) is the authorized institution to oversee the Singapore forex industry. Interestingly, MAS also operates as the central bank, so it is also responsible for regulating banks, issuing Singapore's currency, as well as managing the country's foreign exchange reserves.

There are no specific obligations for traders to pay taxes. Singapore-based forex brokers do not withhold your gains for tax purposes, and the government does not impose capital gains tax.

However, it is worth noting that individuals are required to pay taxes on their income.

Singapore follows a progressive resident tax rate system, starting at 0% for earnings up to 20,000 SGD and gradually increasing to 22% for earnings exceeding 320,000 SGD. Some individuals believe that part-time traders might be exempt from taxes, but full-time traders are subject to taxation.

Singaporean traders are advised to maintain detailed financial records and consult with a qualified accountant for the most accurate guidance.

1. Leverage up to 1:20 for major currency pairs and 1:10 for non-major currency pairs.
2. No restriction on trading with overseas brokers or non-MAS-regulated brokers.
3. No restriction on choosing the account currency, in which Singaporean traders don't have to use SGD as their base currency.
4. Thorough registration process where traders might be required to prepare detailed personal information and documents before trading.
5. Segregated account.

To ensure good legality and security for Singaporean traders, the first thing that should be taken into account is whether the broker is regulated by MAS. Nonetheless, since the authority does not restrict traders in choosing other brokers, they can consider overseas brokers even without a MAS license with these checklists:

• Experienced for more than 5 years.
• Having an SGD account currency and SGD instruments to trade are highly preferred.
• Local or specified contact support for Singaporean clients.
• Regulated (or at least registered) in at least two well-known financial jurisdictions (the UK - FCA, Australia - ASIC, Cyprus - CySEC, the US - CFTC/NFA, etc.)
• Supports affordable trading costs, variable instruments, and favorable trading conditions that go well with your trading strategy.