Choosing the best Contract For Difference (CFD) brokers is part science, part art. It requires an objective and quantitative calculation of the CFD provider's brokerage fees and spreads; as well as a subjective assessment of the broker platform's usability, reputation and yes, even customer service support. In Singapore, CFD has been around since 2003, and is now offered by various brokers. From well known local brokerages which have adapted and began offering CFD since 2003, to international brokers who are relatively new, traders in Singapore are spoilt for choices.
A list of the brokers in Singapore are:
Philips Securities
IG Markets
CMC markets
Kim Eng
City Index
Saxo Capital
MF Global
It is also possible to trade in CFD via discount online brokers. These brokers are based overseas without local presence in Singapore. They are thus not regulated by MAS. However, they do attract some traders due to their cheap commission rates and low spreads. Traders who trade with such discount online CFD brokers may face more hassle and incur higher telegraphic transfer fees when they wish to withdraw their capital.
Consider your preferences carefully and decide which matters more to you. Know the difference between Direct Market Access (DMA) CFD brokers and non DMA CFD brokers (compare DMA and Market Maker CFD brokers). This will determine whether you are comfortable trading with non DMA or Market Maker CFD brokers. Be aware that brokerage fees should include the spread offered and not just the commission rates. For CFD brokers that are based overseas, check the T&Cs and admin fees incurred whenever you wish finance or withdraw from your account. Finally, try some demo trades using the CFD broker's demo platforms to see if you are comfortable with the interface, before sinking in real money.
As they say, different strokes for different folks, or should we say, different traders. Ultimately, different CFD brokers exist to meet different trader's requirement. Choose the one that best fits your trading style.
