Singapore’s
leverage trading market posted its first growth in active participants since
2021, with the number of CFD and forex traders rising 3% over the past year,
according to Investment Trends’ 2025 Singapore Leverage Trading Report released
today (Wednesday).
Singapore CFD Traders
Return as Market Finds Bottom
The
increase stems largely from dormant accounts reactivating rather than fresh
capital entering the market. According to Finance Magnates Intelligence
estimates, active trader numbers jumped to 39,000, suggesting the total
potential CFD trader base in the country has grown to approximately 75,000.
That marks
a shift from expansion to engagement, where brokers must now focus on winning
back traders who stopped participating rather than hunting for new clients.
“What
we’re seeing is a market that’s come through significant macroeconomic shifts
with its core base intact,” said Lorenzo Vignati, Associate Research
Director at Investment Trends. “That matters because sustained confidence
enables traders to stay active, adapt their strategies, and continue
contributing to market liquidity and momentum.”
Traders Rate Themselves
More Skilled Despite Volatility
More than
one in four active traders now consider themselves proficient or expert in
leveraged trading, up from previous periods. Confidence held steady through
regulatory tightening and global uncertainty, partly because brokers improved
communication during volatile periods. Investment Trends surveyed 2,734
participants between August and September 2025.
The figures
contrast
sharply with last year’s report, which showed active trader numbers had
fallen to 38,000, the lowest since 2019 and nearly 10,000 below the 2021 peak
of 47,000. At that time, only 73,000 investors expressed interest in CFDs, with
just half staying active through 2024.
“While
active trader numbers have declined, the interest in CFDs remains significant,
driven by sharp pricing and effective decision-support tools,” Vignati
commented in 2024.
Another
report released last week by Coinbase showed that, in Singapore, crypto
is currently more popular than CFDs, with more than 60% of Singaporeans
already owning digital assets.
Single-Platform Preference
Accelerates Broker Consolidation
Over half
of traders now want to manage all leveraged products through one platform,
driven by demands for lower costs, faster funding, and interest payments on
idle cash. That preference is forcing smaller brokers to either expand product
offerings rapidly or risk losing clients to larger, multi-asset competitors.
“Reactivation
is now doing the heavy lifting for growth,” Vignati added. “Providers
need to think less about casting wider nets and more about how they re-earn the
trust and interest of existing traders, because that’s where sustainable growth
is coming from.”
The
consolidation wave mirrors developments in other Asian markets where platform
fragmentation has given way to unified trading environments. Singapore’s market
had previously seen sustained declines, with the overall online trading
community shrinking to under 250,000 active traders in 2024 from 264,000 the
year before – the lowest level since 2018.
AI
Adoption Transforms Trading Behavior and Decision-Making
Three in
four traders are either using or plan to use artificial intelligence for
charting, signal generation, and performance analysis. The adoption rate
suggests AI tools have moved from experimental features to core infrastructure
for many retail participants.
“Traders
are asking for two things: simplicity and intelligence,” Vignati said.
“The providers that thrive will be those that offer integrated access with
AI tools that enhance decision-making, not overwhelm it. But they must act
fast. This consolidation wave is moving quickly, and those who delay risk
falling behind.”
The AI
trend aligns with broader technological shifts in Singapore’s trading
ecosystem. Last year’s Investment Trends report showed two-thirds of traders
were either utilizing or expressing interest in AI-assisted trading tools,
while 60% of active investors showed interest in proprietary trading firms.
MAS
Rules Reshape Competitive Landscape Without Killing Demand
Recent
Monetary Authority of Singapore measures tightened leverage limits and client
protections but have not eroded trader optimism or participation rates. The
regulatory changes reshaped how brokers compete but left demand for leveraged
products largely intact.
Cost
consciousness and execution quality emerged as primary drivers for broker
switching, with transparency becoming increasingly important. Traders who
consider changing platforms cite fees and trade fills as top concerns,
suggesting the market has matured beyond marketing-driven client acquisition.
Singapore
remains an important market for major brokers. IG Group reported that Singapore
was the only jurisdiction showing revenue growth in its fiscal 2024 results,
with larger clients driving a 6% increase through higher trading volumes.
This article was written by Damian Chmiel at www.financemagnates.com.
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