15 reasons why you should buy CFDs in Singapore

15 reasons why you should buy CFDs in Singapore

Singapore is a central financial hub in Asia and is well known for its stable economy and liberal investment environment. It makes it an ideal place to trade CFDs.

What are CFDs?

CFDs (Contracts for Difference) are a type of derivative trading instrument that allow traders to speculate on the price movement of an underlying asset. CFDs are traded on the margin, which means that you only need to put down a small percentage of the total trade value as collateral. It allows you to take advantage of more significant price movements with less capital outlay.

Here are 15 reasons why you should consider buying CFDs in Singapore:

Stable economy

Singapore has a stable economy, with a low inflation rate and strong currency. It makes it a safe place to invest your money and increases the likelihood that your CFD trades will be profitable.

Wide investment range

When you buy a CFD, you are essentially buying exposure to the price of an underlying asset. It could be anything from stocks and indices to commodities and currencies. It gives you a wide investment range, unavailable with other investment options.


CFDs offer leverage, which means you can control a more significant position than what you have invested. It can magnify your profits (or losses), so it is essential to use caution when trading CFDs.

No commissions or fees

There are no commissions or fees when trading CFDs, unlike other investment options. You only pay the spread, the difference between the buy and sell prices. It can save you a lot of money in the long run.

Liberal investment environment

Singapore has a very liberal investment environment, allowing traders to operate in a free and efficient market. This openness encourages competition and benefits traders by giving them more trading options.

24/7 trading

CFDs are traded over the counter (OTC), meaning they are not linked to any exchange. It allows you to trade CFDs 24/7, regardless of the time zone you are in.


One of the main benefits of investing in CFDs is that it can help you to diversify your portfolio. By investing in different assets, you can reduce your overall risk exposure.

Well-regulated financial sector

The Singaporean financial sector is well-regulated, providing traders with a high degree of trust and security. It gives traders the confidence to invest their money in CFDs, knowing that their funds are safe and secure.

High liquidity

The high liquidity of CFDs means that you can get in and out of trades quickly and easily. It makes them a good option for short-term traders.


CFDs are traded over the counter; they are considered capital gain rather than income. It means that you can save on taxes, which significantly benefit investors.

High quality of life

Singapore is known for its high quality of life, excellent healthcare, education and infrastructure. It means that residents can enjoy a comfortable lifestyle while trading CFDs.

Strong economic growth

Singapore has one of the strongest economies globally, with a GDP growth rate of around 3%. It means that there is potential for substantial profits when trading CFDs in Singapore.

Easier than stock trading

CFD trading is much easier than stock trading. There is no need to worry about order types, margin requirements, or stop losses. It makes it a good option for novice traders.

Hedging opportunities

CFDs can also be used for hedging purposes, which can protect your portfolio from unwanted risks.

Excellent trading infrastructure

Singapore has an excellent trading infrastructure, with world-class exchanges and a well-developed financial sector. It allows traders to access the market quickly and easily and increases the chances of making profitable trades.

In conclusion

There are many reasons why you should consider buying CFDs in Singapore. They offer a wide investment range, leverage, no commissions or fees, 24/7 trading, diversification, and tax efficiency. So if you are looking for an investment option that offers flexibility and convenience, then CFDs may be the right choice for you; visit the site to find out more.