Is Prop Trading Legal in Singapore? Top 3 Prop Trading

Last updated: 10/09/2024

Curious about Is prop trading legal in Singapore? Get the facts you need to trade confidently and legally. Stay informed, read our in-depth guide now and ensure your trading practices align with Singapore’s regulations!

What is Prop Trading? 

Prop trading, or proprietary trading, is when a financial firm or bank uses its own capital to trade financial assets like stocks, bonds, currencies, and commodities. Instead of trading on behalf of clients, the firm trades for its own profit, aiming to capitalize on market opportunities.

What is Prop Trading? 
What is Prop Trading?

Key Points of Prop Trading:

  • Profit Motive: The main objective is to earn direct profits from market movements, rather than relying on fees or commissions from clients.
  • Risk and Reward: The firm assumes full responsibility for the risks involved, meaning any losses directly affect the firm, but successful trades lead to higher profits.
  • Proprietary Traders: Traders employed by the firm use advanced tools, research, and strategies to make well-informed trading decisions.
  • Common Strategies: These can include arbitrage, high-frequency trading, market making, and leveraging short-term market trends.

Is prop trading legal in Singapore

Yes, proprietary trading is legal in Singapore, but is subject to strict regulation by the Monetary Authority of Singapore (MAS). Firms engaging in proprietary trading must comply with the Securities and Futures Act (SFA) and other relevant financial regulations to ensure that their trading activities are lawful and transparent.

Is prop trading legal in Singapore
Is prop trading legal in Singapore

In addition, MAS supervises financial institutions in Singapore, including those engaging in proprietary trading, to maintain market integrity and protect investors.

At the same time, proprietary trading firms may need to apply for specific licenses depending on the nature of their trading activities.

So, through this, you have gradually been answering the question of Is prop trading legal in Singapore? Please follow up to better understand the activities within the legal framework set by the Singapore government to avoid penalties and legal consequences.

Head-to-head Comparison of Prop Trading Firms In Singapore

When considering prop trading firms in Singapore, it’s essential to weigh both the benefits and the drawbacks. Here’s a closer look at the key advantages and disadvantages of operating a prop trading firm in this vibrant financial center:

Head-to-head Comparison of Prop Trading Firms In Singapore
Head-to-head Comparison of Prop Trading Firms In Singapore

Advantages of Singapore Prop Trading Firms:

  • Access to key Asian markets and time zones.
  • Strong oversight by the Monetary Authority of Singapore (MAS).
  • Access to top talent in finance and technology.
  • Investment in cutting-edge trading systems.
  • Favorable corporate tax rates and incentives.
  • Credibility and attractiveness to international investors.

Disadvantages of Singapore Prop Trading Firms:

  • Expensive office space and talent acquisition.
  • Fierce rivalry for market share and talent.
  • Strict compliance requirements.
  • Exposure to risks with limited flexibility.
  • High demand leading to increased costs.
  • Risks of system failures and cybersecurity threats.

Top 3 Best Prop Trading Legal In Singapore

If you’re exploring prop trading opportunities in Singapore, these three leading firms stand out for their innovation, performance, and reputation in the financial markets:

FTMO and Funded Bull

FTMO and Funded Bull
FTMO and Funded Bull

Founded in 2024, FTMO is a new but rapidly growing prop trading firm based in Singapore. As a local player in the financial markets, FTMO is well-positioned to offer tailored services and support to Singaporean traders.

Fundedbull stands out in the prop trading landscape for its robust security features and diverse range of tradable instruments. The firm is highly regarded for several key aspects:

  • Maximum Funded Account: Up to $250,000 available through a structured scaling plan.
  • Competitive Fees: Attractive fee structure for funded accounts.
  • Variety of Instruments: Offers trading in shares, commodities, indices, and cryptocurrencies.
  • Fast Withdrawals: Multiple options for quick and convenient withdrawals.
  • Educational Resources: Extensive learning materials, including blogs and webinars.

Fundedbull is recognized as one of the highest-rated prop trading firms in Singapore, earning a FirmFunded rating of 4.03 out of 5. This high rating reflects its strong performance and commitment to supporting traders with excellent resources and competitive trading conditions.

Funded Trading Plus

Funded Trading Plus (FTP), established in 2013 in the UK, is renowned as one of the most experienced prop trading firms globally and extends its services to traders in Singapore. Known for its extensive expertise and comprehensive trading solutions, FTP offers several attractive terms for its clients:

  • Profit Target: A 10% profit target for funded accounts.
  • Trading Platform: Access to MetaTrader 4, a widely used and reliable trading platform.
  • Funding Limit: Maximum funding limit of $2.5 million through FTP’s scaling plan.
  • Entry Fee: A minimum entry fee of $119 for a $5,000 account.
  • Profit Retention: Traders keep 80% of the profits generated on their funded accounts.

Funded Trading Plus has earned a strong reputation among prop trading firms worldwide and holds a FirmFunded rating of 4.05 out of 5. This rating highlights FTP’s commitment to providing exceptional trading opportunities and support to its partners across numerous countries, including Singapore.

Blue Guardian

Blue Guardian
Blue Guardian

Blue Guardian, a UK-based prop trading firm, is also making waves in Singapore’s trading community. Renowned for its favorable terms and high ratings, Blue Guardian provides traders with a robust platform to trade forex pairs, commodities, indices, and cryptocurrencies using MetaTrader 4.

Here are some key features of Blue Guardian:

  • Profit Retention: Traders keep 85% of the profits generated from their funded accounts.
  • Profit Targets: The profit targets for Phases 1 and 2 are set at 4% and 8%, respectively.
  • Account Costs: A $10,000 funded account is available for a cost of $87, with the option to scale up the account balance to a maximum of $2 million.
  • Affordability: Blue Guardian is one of the most cost-effective prop trading firms available in Singapore.

With a FirmFunded score of 3.95 out of 5, Blue Guardian is highly regarded for its accessible entry fees and favorable profit-sharing terms, making it an attractive choice for traders looking to enter the prop trading space.

Conclusion

In conclusion, Is prop trading legal in Singapore? the answer is a clear yes. As a leading global financial hub, the city-state not only supports but also enhances the integrity of prop trading activities. So, for those eager to seize trading opportunities, Singapore offers a vibrant and legally sound platform that stands out in the world of financial markets.

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Hypothetical Performance Closure

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is made that any account will likely achieve performance-based rewards or losses similar to those shown. There are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk on actual trading. For example, the ability to withstand losses or to adhere to a particular trading program despite trading losses is a material point, which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect trading results. Testimonials appearing on this website may not represent other clients or customers and are not a guarantee of future performance or success.

Hypothetical Performance Disclosure – CFTC Rule 4.41

Simulated or hypothetical trading results have inherent limitations. Unlike actual performance records, they do not represent real trading activity and may be designed with the benefit of hindsight. No representation is being made that any account will, or is likely to, achieve profits or losses similar to those shown or implied.

Risk Disclosure

This is not an investment opportunity. You do not deposit any funds for investment. We do not ask for any funds for investment. At no time do you risk your own capital. There are no promises of rewards or returns. Trading contains substantial risk and is not for every investor. An investor could lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading, and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

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All trades presented for customer compensation should be considered hypothetical and should not be expected to be replicated in a simulated trading environment. All accounts in the WeMasterTrade program may represent simulated trading accounts. Payments are collected and facilitated by Wecopy Fintech LTD (Company Number: 14905703), 71-75 Shelton Street, Covent Garden, London, United Kingdom, WC2H 9JQ, acting as a Payment Agent on behalf of WeMasterTrade, with the applicable entity determined based on the user’s location and selected payment method.

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