If you're interested in trading Forex in Singapore, you probably want to know whether or not it is legal for you to do so. Afterall, with your capital at risk, the last thing you want is trouble with the law. Lucky for you, we've researched the legislation, and found that it is 100% safe and legal for you to trade Forex in Singapore.
The laws for trading Forex in Singapore are outlined in the "Securities and Futures Act". This piece of legislation is defined as the following:
"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
That means, the "Securities and Futures Act" not only lays the legal framework for trading Forex, but spread betting, CFDs, and binary options as well. For traders, a description of acceptable trader conduct is covered. False trading, "Bucketing", and price manipulation2 are 3 examples of unacceptable conduct under the act that will result in a penalty and fine.
Market operators, or trading platforms, are required to be approved by the Monetary Authority of Singapore (MAS). The MAS is also the central bank of Singapore. It grants licenses to operators, and regulates their activities. Licensed operators must follow the rules and comply to obligations set out by the MAS. Operators who break the rules, fail to meet their obligations, or operate without a license might also receive penalties and fines.
Unfortunately, none of the best online Forex trading platforms are licensed by the MAS. This is probably because of the high costs and unrealistic requirements they have set for online operators. If you want to trade with low fees and minimal restrictions, you will need to find a trading platform that is regulated somewhere else. CySec, ASIC, and FSC are a few of most common regulators for top Forex platforms.
Now that you have a better understanding of the legality of trading Forex in Singapore, it's time for you to choose a trading platform to make an investment with. We have created a list of the top Forex trading brokers for Singapore. Have look at that, and feel free to contact if you have any questions or concerns.
Sources:
1. Securities and Futures Act (2001) (page 29)
2. Securities and Futures Act (2001) (page 532)
Last updated: 05/30/2017 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
