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Is Forex Trading Legal in Singapore?

Written by ForexSingapore.sg
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When investing capital, it is essential to understand the legal implications of your trading activity. This article covers the legality of Forex trading in Singapore.
Forex Singapore trading has taken off in a huge way over the last few years, with more and more people seeking to make an investment. However, a big and understandable concern for people residing in Singapore is the potential legality of trading Forex in Singapore. When investing capital, it is essential to understand the legal implications of your trading activity and the most obvious and frequently asked question from Singaporean’s and expats residing in Singapore is this – Is Forex Legal in Singapore?

We’ve performed deep and thorough research into the matter and discovered that trading Forex Singapore is 100% safe and legal. In fact, we uncovered a piece of legislation from the “Securities and Futures Act” which specifically relates to trading Forex. The legislation reads as follows:

“An Act relating to the regulation of activities and institutions in the securities, futures and derivatives industry, including leveraged foreign exchange trading, and of clearing facilities, and for matters connected therewith.” (1)

This sentence, while filled with legal terminology and phrases, is simple to deconstruct and shows the legality of trading Forex in Singapore. The Act is defined as a piece of legislation which lays the legal framework for trading not only Forex, but other major forms of investments such as spread betting, CFDs, and binary options. The legislation also states examples of both lawful and unlawful conduct in trading such as “Bucketing” and price manipulation (2), both of which are practices that can result in a fine.

All trading platforms operating within Singapore must first be approved by the Monetary Authority of Singapore, also known as the Central Bank of Singapore. The Authority has the power to grant licenses and regulate trading activity to ensure fair game for both operators and traders. Any trading platform or operators who break the rules may be subject to a fine, penalty, or even have their trading license revoked without notice.

So, what does this mean if you want to trade Forex in Singapore? Essentially, you need to ensure that you trade with a registered platform that has the authority to operate within Singapore. Unfortunately, many of the best online Forex trading platforms are not regulated by the MAS due to strict requirements and high fees set out by the authority. However, you can still trade with low fees and fewer restrictions using a platform which is regulated elsewhere such as CySec, ASIC, and FSC.

Gaining a better understanding of the legal requirement when trading Forex in Singapore can save you a large headache later and safeguard your investment. To help you choose a trading platform, we have created a list of the best Forex trading companies in the country. Should you have any further concerns or questions, please do not hesitate to contact us.

Sources:

Securities and Futures Act (2001) (Page 29)
Securities and Futures Act (2001) (Page 532)

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