MAS regulated brokers for leveraged forex trading

Updated 17 January 2017MAS webpage for financial institutions. There are seven new players. Total number of forex brokers with Capital Markets Services license from Monetary Authority of Singapore now 29.

  1. BLACKROCK (SINGAPORE) LIMITED
  2. CIMB SECURITIES (SINGAPORE) PTE. LTD.
  3. CITIGROUP GLOBAL MARKETS SINGAPORE PTE. LTD.
  4. CMC MARKETS SINGAPORE PTE LTD
  5. EATON VANCE MANAGEMENT INTERNATIONAL (ASIA) PTE. LTD.
  6. FIRST STATE INVESTMENTS (SINGAPORE)
  7. GAIN CAPITAL SINGAPORE PTE. LTD.
  8. GMO SINGAPORE PTE. LIMITED
  9. GOLDMAN SACHS (SINGAPORE) PTE.
  10. G.K. GOH FINANCIAL SERVICES (S) PTE. LTD.
  11. IG ASIA PTE LTD
  12. KGI FUTURES (SINGAPORE) PTE. LTD.
  13. MAYBANK KIM ENG SECURITIES PTE. LTD.
  14. MERRILL LYNCH (SINGAPORE) PTE. LTD.
  15. MF GLOBAL SINGAPORE PTE LIMITED (IN CREDITORS’ VOLUNTARY LIQUIDATION)
  16. MILLENNIUM CAPITAL MANAGEMENT (SINGAPORE) PTE. LTD.
  17. MORGAN STANLEY ASIA (SINGAPORE) PTE.
  18. OANDA Asia Pacific Pte. Ltd.
  19. OCBC SECURITIES PRIVATE LIMITED
  20. PHILLIP FUTURES PTE LTD
  21. PICTET ASSET MANAGEMENT (SINGAPORE) PTE LTD
  22. RWC SINGAPORE (PTE.) LIMITED
  23. SAXO CAPITAL MARKETS PTE. LTD.
  24. SG SECURITIES (SINGAPORE) PTE. LTD.
  25. SYSTEMATICA INVESTMENTS SINGAPORE PTE. LTD.
  26. UOB BULLION AND FUTURES LIMITED
  27. UOB KAY HIAN PRIVATE LIMITED
  28. WORLDQUANT (SINGAPORE) PTE. LTD.
  29. WUBS FINANCIAL SERVICES (SINGAPORE) PTE. LTD.

 

Changes from last update in 09 January 2015

There is quite a number of changes since our own last update back in 09 January 2015. MAS updates this information yearly.

1. Overall the number of players with CMS license for Leveraged Foreign Exchange Trading increased from 24 to 29.

2. New names are:

  • EATON VANCE MANAGEMENT INTERNATIONAL (ASIA) PTE. LTD.
  • GMO SINGAPORE PTE. LIMITED
  • MILLENNIUM CAPITAL MANAGEMENT (SINGAPORE) PTE. LTD.
  • RWC SINGAPORE (PTE.) LIMITED
  • SG SECURITIES (SINGAPORE) PTE. LTD.
  • SYSTEMATICA INVESTMENTS SINGAPORE PTE. LTD.
  • WORLDQUANT (SINGAPORE) PTE. LTD.

3. Gain Capital Singapore replaced City Index Asia. Gain Capital acquired City Index back in November 2014 so in fact should be updated by January 2015.

4. KGI FUTURES SINGAPORE PTE. LTD. replaced KGI ONG CAPITAL PTE. LTD.

5. CUSTOM HOUSE CURRENCY EXCHANGE (SINGAPORE) PTE. LIMITED and GFT GLOBAL MARKETS ASIA PTE LTD were dropped.

 

Key information of each broker

Alternatively, you can visit MAS webpage for financial institutions directly.

If you follow the links, you will arrive at a page for each broker listing its licensed activities and critical information. In this example for IG Markets, an established broker in Singapore.

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Why is MAS regulation for brokers important?

The Securities and Futures Act (SFA) covers financial market operators including brokers for leveraged forex trading in Singapore. It ensures the proper functioning of the market. For individuals, the immediate concern is the protection of own trading and investing capital.

 

Under the Act, operators must apply for a CMS license

CMS licensed brokers must comply with many things. Some important points are listed here:

  1. Approval of key personnel including the CEO and director(s)
  2. Proper qualification and registration of trading representatives
  3. Proper book keeping
  4. Proper handling of customer assets (no co-mingling, held in separate accounts)
  5. Proper reporting and auditing
  6. Proper disclosure and no conflict of interest
  7. A system of enforcement and penalties

 

Beware forex fraud, message from central banks

Monetary Authority of Singapore (MAS)

“Consumers are strongly encouraged to deal only with persons that are regulated by MAS. MAS’ regulatory regime aims at safeguarding the interests of consumers by ensuring that only competent and professional persons may provide financial services. If a consumer chooses to deal with persons that are not regulated by MAS, he forgoes the protection afforded under laws administered by MAS, particularly if these persons are based overseas.” Consumer alert on the pitfalls of dealing with unregulated persons

 

Forex scam

Bank Negara Malaysia

“Bank Negara Malaysia would like to caution members of the public not to participate in any illegal investment or training programme on foreign currency trading offered by individuals or companies both domestic and foreign.” Under the Exchange Control Act 1953 (ECA), it is an offence for a person in Malaysia to buy or sell foreign currency

Members of the public are usually enticed to attend such investment or training programmes with promises of quick and good returns. The modus operandi of such programmes have included:

Offering free training, seminars or workshops to lure investors…

Recruitment of fresh graduates as marketing executives and encouraging them to get their family and friends to trade…

Requiring investors to deposit an amount of money into a bank account to begin trading foreign currency, and subsequently, requesting for a top up on their initial investment…

 

Forex Scam: Fraudulent setup claiming to be regulated broker

One of the best advice comes from Bank Negara Malaysia. In fact our very own encounter documented here tells us that Bank Negara understands the type of monkey business going on.. Read ‘Forex Scam: Fraudulent setup claiming to be regulated broker‘ or listen to the audio below.

A forex scam that could happen to stocks, futures and commodities as well

 

Commodity Futures Trading Regulatory Agency, Indonesia (Bappebti)

“Consumers and investors need to be careful when they invest their hard-earned money in unclear platforms or organizations. It is advised to search whether such organization has obtained an official operational permit from Bappebti. A list with organizations that obtained a permit (for brokers) can be found at the website of Bappebti.

It are usually the local (lower) middle class people who become victim of these scams. They have not been taught the dangers of investing and lack the awareness to find out whether an organization behind the lucrative investment offer is a reliable one. It is assumed people are highly interested in these lucrative offers because Indonesian banks offer unattractive interest rates for deposits (usually the level of inflation in Indonesia is higher than the rates offered by banks, implying people “lose” money by being dependend on banks’ rates). ” www.bappebti.go.id

 

Reserve Bank of India (RBI)

“It has been observed that overseas foreign exchange trading has been introduced on a number of internet /electronic trading portals luring the residents with offers of guaranteed high returns based on such forex trading…any person resident in India collecting and effecting / remitting such payments directly /indirectly outside India would make himself/ herself liable to be proceeded against with for contravention of the Foreign Exchange Management Act (FEMA), 1999.” Overseas forex trading through electronic / internet trading portals. Circular No. 46

 

US Commodities Futures Trading Commission

“The Forex market is volatile and carries substantial risks. It is not the place to put any money that you cannot afford to lose, such as retirement funds, as you can lose most or all it very quickly. The CFTC has witnessed a sharp rise in Forex trading scams in recent years and wants to advise you on how to identify potential fraud.” CFTC fraud advisories

 

MAS-regulated brokers for leveraged forex trading in Singapore

(Why is Singapore a good place to trade forex?)

The number of Capital Markets Services (CMS) licensees for Leveraged Foreign Exchange Trading or regulated brokers in short are growing in Singapore. This is probably in line with the adoption of leveraged forex trading by individual investors and speculators.

 

Year 2006 2007 2008 2009 2010 2011* 2012# 2013! 2014¹ 2016²
Number 13 14 18 19 19 19 23 24 24 29

 

* 2006 – 2011 data from Yearbook of Statistics Singapore 2012
# From MAS website ‘Number of financial institutions’ last updated as at 25 January 2013
! From MAS website ‘Number of financial institutions’ last updated as at 07 January 2014
¹ From MAS website ‘Number of financial institutions’ last updated as at 09 January 2015
² From MAS website ‘Number of financial institutions’ last updated as at 17 January 2017

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