Singapore Leverage Trading Market Matures as Growth Shifts to Reactivated Traders

Singapore's leverage trading market is showing signs of maturity, with growth now driven by the reactivation of dormant traders rather than new client acquisition, according to latest research from Investment Trends. Research Director Lorenzo Vignati stated the number of reactivated traders rose to 6,900 from 5,700 a year earlier, while new traders placing their first leverage trade declined from 6,000 to 5,500.

US equities remain the dominant instrument for Singapore's leverage traders, though diversification beyond equities is increasing. Cryptocurrency adoption has surpassed 40% among these traders, with participation increasingly motivated by portfolio diversification and long-term growth rather than speculation.

Trading behavior shows a platform divergence, with half of all leverage trades executed via mobile, while desktop remains central for analysis. The research also highlights strong demand for improved decision-support tools, with satisfaction lagging behind perceived importance.

Artificial intelligence is gaining traction, with about three in four traders using or open to AI tools, primarily for market analysis and insight generation. Data also points to potential broker consolidation, as two-thirds of traders would consider moving to a single provider offering all their asset classes. Regulatory standing remains the most influential factor in broker selection, ranking ahead of cost and platform quality.