Singapore CFD Market 2025 Comes Back to Life After Decline

Introduction

The Singapore leverage trading market 2025 has entered a pivotal recovery phase, marking its first sustained growth in active participants since 2021. Industry reports highlight a resurgence among CFD and forex traders in Singapore, driven by account reactivations, platform consolidation, and accelerating AI adoption in trading. Analysts suggest this rebound signals a structural shift from expansion to engagement, reshaping how brokers compete in one of Asias most regulated yet dynamic financial hubs.

Singapore Leverage Trading Market 2025 Signals Renewed Confidence

The latest Investment Trends survey shows active leveraged trading accounts rising to 39,000, up 3% year‑on‑year. This increase stems largely from dormant accounts re‑entering the market rather than new capital inflows, underscoring the resilience of Singapores trading community.

• The total potential CFD trader base now stands at approximately 75,000.
• Engagement is replacing expansion as brokers focus on re‑earning trust from inactive clients.
• Regional comparisons reveal Singapores rebound contrasts with declines in other Asian markets, where fragmentation remains a challenge.

Industry experts argue that this revival reflects confidence in regulatory stability. The Monetary Authority of Singapore (MAS) has tightened leverage limits and client protections, yet demand for leveraged products remains intact. Transparency, cost efficiency, and execution quality are now the primary drivers of broker switching.

CFD and Forex Traders Singapore Adapt to Consolidation Wave

More than half of CFD and forex traders in Singapore now prefer single‑platform solutions, consolidating leveraged products under one provider. This trend is accelerating broker competition:

• Smaller firms face pressure to expand offerings or risk losing clients to multi‑asset competitors.
• Larger brokers, such as IG Group, reported revenue growth in Singapore despite global volatility.
• Consolidation mirrors broader Asian market trends, where fragmented ecosystems are giving way to unified trading environments.

Traders themselves are evolving. Surveys show one in four now rate their skills as proficient or expert, reflecting improved communication from brokers during volatile periods. Confidence has held steady despite macroeconomic uncertainty, suggesting that Singapores trading base is maturing into a more sophisticated, cost‑conscious community.

AI Adoption in Trading Singapore Reshapes Decision‑Making

The most transformative development in 2025 is AI adoption in trading in Singapore. Three in four traders are either using or planning to use AI tools for charting, signal generation, and performance analysis.

• AI has shifted from experimental add‑ons to core infrastructure.
• Traders demand simplicity and intelligence: integrated platforms with AI‑driven insights.
• Providers that fail to adapt risk losing relevance in a rapidly consolidating market.

This technological shift aligns with Singapores broader fintech ecosystem, where AI is increasingly embedded in compliance, risk management, and retail trading. MAS has encouraged innovation while maintaining strict oversight, ensuring AI adoption enhances transparency rather than undermines trust.

Quotes from analysts emphasize that AI is not just a competitive advantage but a survival requirement. As one research director noted, “Providers must act fast. Those who delay risk falling behind.”

Market Data & Regional Context

• Active trader numbers: 39,000 (2025), up from 38,000 in 2024.
• Potential CFD trader base: ~75,000.
• Overall online trading community: 250,000 active traders in 2024, the lowest since 2018.
• Crypto adoption: 60% of Singaporeans own digital assets, outpacing CFD participation.

This data highlights the competitive landscape: while crypto dominates retail interest, leveraged trading remains a critical segment for brokers seeking sustainable revenue.

Regulatory Insight

MAS continues to reshape the competitive landscape without eroding demand. Key measures include:

• Tighter leverage limits.
• Enhanced client protections.
• Greater transparency requirements.

These rules have matured the market, shifting broker competition from marketing‑driven acquisition to execution quality and cost efficiency. Singapores regulatory credibility remains a cornerstone of its appeal to global brokers.

Conclusion

The Singapore leverage trading market 2025 is entering a new era defined by consolidation, reactivation, and AI adoption in trading Singapore. For CFD and forex traders in Singapore, the challenge is no longer access but adaptation: leveraging technology, managing costs, and navigating a competitive broker landscape.

With MAS regulation ensuring stability and AI reshaping decision‑making, Singapore is poised to remain one of Asias most influential trading hubs. The next phase will test whether brokers can balance innovation with trust — and whether traders can translate confidence into sustainable performance.