All you need to know about CFD Trading in Singapore

Have you been thinking about CFD trading in Singapore but you don’t know where to start? CFDs provide a good investment vehicle for traders seeking to make decent returns in a short time.

What is CFD Trading?

CFD trading is considered as one of the best ways to trade in any financial market. High capital leverage, low-cost trading, minimum deposit requirements, wide asset selection, and availability of easy-to-trade platform are some of the things that make CFD contracts popular among traders.

CFD is an acronym for Contract for Difference. It is a financial product that allows a trader to gain or lose money due to the changes in the price of an underlying asset. In other forms of investing, traders usually have an idea of what asset or the company they are investing their money. CFDs operate differently.

Look at it this way. In a typical contract between a buyer and a seller, the buyer is bound to pay a certain amount of money for what the seller is offering. In Contract for Difference (CFD), either the buyer or the seller only pays the difference in the price of the asset between now and a future date.

Are you still confused?

Let’s look at a case scenario of a real estate agent who buys a property when prices go down and resell the property when prices increase. For such real estate agent, they have to sign two contracts. One contract is signed when buying the property, and the second contract is signed when selling the property.

In CFD trading, the real estate agent would not even need to purchase the property. Instead, the agent would get paid if the value of the property increases between now and a future date, or pay for the loss if the prices go down. It, therefore, means that the real estate agent doesn’t need to own the property to make money from it.   

What products have CFD contracts in Singapore?

Forex trading is arguably the most popular CFD product in SG. Besides forex trading, there are several other investment vehicles that you can sign up for in Singapore. They include:


Trading in shares is considered as one of the oldest forms of investment. CFDs for shares allows traders to earn a profit when there is a change in the price of shares. Share CFDs are increasingly becoming popular since they offer significant advantages such as advanced trading platforms, high capital leverage, tax exemptions, and multiple orders. SG CFD providers allow traders to buy shares from around the world. You can easily trade in European shares, US/ Canadian shares, South American Shares, and Asia/Oceania Shares.


Commodity CFDs allows trading in assets such as oil and precious metals. You can actually make money by speculating oil prices without owning even one barrel. Traders who chose to invest in assets using CFD contracts benefit immensely from high capital leverage, low-cost trading, advanced trading platforms, minimum deposit requirements, and the ability to trade in any market direction.


With an index CFD contract, you can trade in tens of indices, including the US indices such as the S&P-500, Dow-30, and Nasdaq. You can also trade in European indices such as CAC-40, FTSE, and DAX, and indices from other parts of the world such as Australia and Asia.


The use of cryptocurrencies as a medium of exchange continue to draw heated debates among players in the finance industry. The hype surrounding the digital currency was responsible for the hiking of bitcoin prices in 2017. At some point, the value of one bitcoin hit the $20,000 mark.

A lot of people lost their money buying bitcoin since they expected the prices to keep going up. The good news is that you can now invest in cryptocurrencies such as bitcoin and Ethereum without actually owning them. CFD for cryptocurrencies enables you to invest in volatile currencies by betting on an increase or decline in prices.

Leave a Reply

Your email address will not be published. Required fields are marked *