List of Brokers with MAS Regulation
All central banks and financial service providers in Singapore are regulated by the Monetary Authority of Singapore (MAS). Founded in 1971, the institution is responsible for implementing the rules and regulations that brokers must comply with. MAS also has several other functions including anti-money laundering, setting monetary policy, and ensuring security and transparency in financial markets.
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MAS stands for the Monetary Authority of Singapore, which is the central bank and financial regulatory authority in Singapore. MAS serves as the primary regulatory body responsible for overseeing and regulating various financial institutions and markets in Singapore. Its main subjects and functions include:
- Formulating and implementing monetary policy in Singapore.
- Supervises and regulates banks and financial institutions operating in Singapore.
- Regulates and oversees financial markets in Singapore, including the securities and derivatives markets.
- Issuing and managing the Singapore dollar currency. It also acts as a banker and financial agent to the Singapore government.
- Oversees payment systems and payment service providers to ensure the reliability and security of payment transactions in Singapore.
- Monitors and assesses the overall stability of the financial system in Singapore.
- Promotes consumer protection in financial services by enforcing regulations that safeguard the interests of consumers.
- Actively encourages innovation and the development of the fintech industry in Singapore. MAS has introduced initiatives like the FinTech Regulatory Sandbox to facilitate innovation within their standards.
MAS plays a crucial role in maintaining the stability and integrity of Singapore's financial system, which is known for its robustness and reputation as a global financial hub. Its regulatory approach is often regarded as pragmatic and risk-based, making it an attractive destination for financial institutions and investors.
As such, trading in a MAS-regulated broker means:
- Detailed registration process, since MAS forex brokers must have robust KYC and AML procedures in place to verify the identity of their clients and prevent money laundering and other illicit activities.
- Segregated account, following MAS policy to segregate client funds from the broker's operational funds. This segregation helps protect client funds in the event of the broker's insolvency.
- Leverage up to 20:1 for major currency pairs and 10:1 for non-major currency pairs.
- Risk awareness, since MAS regulation requires forex brokers to provide clear and comprehensive risk disclosure statements to their clients
- Client education. This is in line with MAS' directive that encourages brokers to provide educational resources and materials to help traders understand the forex market better and make informed trading decisions.
- Effective procedures for complaint handling and disputes. MAS-regulated brokers are expected to be members of the Financial Industry Disputes Resolution Centre (FIDReC) to offer dispute resolution services to clients.
- Transparency and fair pricing, as MAS requires its members to ensure that clients are not disadvantaged when it comes to pricing and order executions.
- Cybersecurity and data protection. MAS forex brokers must take measures to protect client data and ensure the security of their trading platforms against cyber threats.
It's important to note that MAS protection is unavailable for Singaporean traders who choose overseas brokers that are not registered under their regulations. The traders would be denied any assistance of financial aid in tackling scams and the approach of the Singapore Government for any problem resolution.
- Go to MAS' official page.
- Click on eServices, then choose Directories.
- Go to Financial Institutions Directory.
- Type on a broker's name. If the broker is listed under MAS, the result should appear immediately.
- You could click on the broker's name to look for more details.
In terms of trading regulations that concern the clients, here is a comparison between MAS and other well-known regulatory agencies for forex brokers:
|Aspects||🇸🇬MAS||🇨🇾CySEC - Cyprus||🇬🇧FCA - UK||🇺🇸CFTC - US|
Up to 20:1 for major currency pairs and 10:1 for non-major currency pairs
|Up to 30:1 for retail clients||Up to 30:1 for retail clients||Up to 50:1 for major currency pairs and 20:1 for non-major currency pairs|
|Compensation schemes||Yes||Yes, up to €20,000 under the ICF (Investor Compensation Fund) program||Yes, up to £85,000 under the FSCS (Financial Services Compensation Scheme)||Yes|
|Negative balance protection||❌||✔️||✔️||✔️|
|📝AML and KYC procedures||✔️||✔️||✔️||✔️|
| Hedging on the same instrument ||✔️||✔️||✔️||❌|
MAS has established a set of policies and regulations to ensure the integrity of financial markets and the protection of traders and investors. Here are some of the key policies and requirements that MAS has in place for forex brokers:
- Must obtain a Capital Markets Services (CMS) License from MAS.
- Fulfills the minimum capital requirements. It can range between 50,000 to 5 million SGD, depending on the range of products offered, the type of clients served, the broker-dealer's affiliation with an authorized clearinghouse or exchange, whether the broker holds client positions or manages client funds or assets, and the involvement in transactions with clients as a principal party.
- Segregate client funds from their operational funds.
- Set the maximum leverage between 20:1 to 50:1.
- Implement robust KYC and AML procedures.
- Provide best execution of client orders, ensuring that orders are executed at the best available prices and with minimal slippage.
- Provide comprehensive risk disclosure documents to clients, highlighting the risks associated with forex trading. They are also encouraged to provide educational materials to help clients understand the market.
- Have effective procedures in place for handling client complaints and disputes, one of which is by applying for membership in the Financial Industry Disputes Resolution Centre (FIDReC).
- Implement robust cybersecurity measures to protect client data and ensure the security of their trading platforms.
- Maintain detailed records of client transactions and submit regular reports to MAS.
- Participate in the Investor Compensation Scheme.
Selecting a broker regulated by the Monetary Authority of Singapore (MAS) should be the foremost consideration when embarking on your trading journey in Singapore. MAS is Singapore's premier financial regulatory body, renowned for its unwavering commitment to maintaining the integrity and stability of the financial sector. When a broker is subject to MAS regulation, the institution adheres to the highest industry standards.
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