Singapore’s CFD Trading Market Shows First Signs of Recovery

Singapore’s leveraged trading sector has posted its first rise in active CFD and forex traders since 2021, driven mainly by dormant accounts returning rather than new capital, according to Investment Trends’ 2025 report. Active participation is estimated at 39,000 traders, suggesting a broader potential base of around 75,000.

Analysts say the market has stabilized after years of macroeconomic pressure. “The core base remains intact, and that supports sustained trader confidence,” noted Lorenzo Vignati, Associate Research Director at Investment Trends.

Despite volatility, more traders now rate themselves as skilled, supported by improved broker communication. Preference for single-platform trading is accelerating consolidation, pressuring smaller brokers to expand offerings or risk losing clients.

AI adoption continues to reshape trading behavior, with three-quarters of traders using or planning to use AI tools. Meanwhile, MAS regulatory tightening has shifted competition toward cost transparency and execution quality without reducing market demand.

Singapore remains a key hub for major brokers, with IG Group reporting the country as its only region showing revenue growth in 2024.