Binary Options Brokers Singapore – Many Brokers but not all Safe?
If you happened to read some other of my articles on my website then you will notice that I always recommend that traders only register at binary options brokers that have a valid license issued in their home country or in another jurisdiction.
This is important because if a broker is licensed then it means that it only offers safe and fair online trading services. A licensed broker will never scam anyone or conduct any shady practices because the government is supervising it and any wrongdoing will have serious consequences.
Now, the issue with some countries, such as Singapore is the fact that it does not directly regulate and license binary options. This means that unlicensed and unregulated brokers can also offer their binary options services in Singapore.
For these cases there is a good solution that can overcome this problem. The solution is to choose a Singapore binary options broker that is licensed in another jurisdiction. It’s very important that this jurisdiction is a reputable country though.
Broker licenses – European Union, United Kingdom, Cyprus
There are many kinds of licenses that binary brokers can receive. The most reputable however are the ones issued by the European Union through MiFID, the United Kingdom through the Financial Conduct Authority (FCA) and Cyprus through CySEC.
The best license out of these three is the FCA license in the UK, followed by MiFID and last CySEC. Some criticize the CySEC license of offering lower protections than the first two, but usually CySEC licensed brokers also have at least another MiFID license or FCA license.
But how is this relevant for binary options brokers in Singapore?
Somewhere above I said that binary brokers cannot get a direct license in Singapore so why should it be relevant if they have licenses elsewhere? – It’s because a license issued by the above mentioned countries protects traders from any country, including Singapore.
If the FCA in the UK licenses a broker, then that broker cannot just offer safe services in the UK and then scam everyone else from other countries. If the FCA finds out that the broker conducts shady practices abroad then it will suspend the company’s UK FCA license.
And this is actually not just a matter of opinion or interpretation. One of the criteria and conditions of receiving an FCA (or CySEC, MiFID etc.) license is that the broker will have to follow the license terms and conditions and safe trading practices globally, in every country it does business in.
So, a UK licensed binary options broker will treat any of their clients, including from Singapore, as if they would be from the UK. They are not allowed according to the law to treat UK traders one way and Singapore binary options traders differently.
And this is precisely the reason why I specifically chose to display binary options brokers for Singapore that are licensed by the FCA, MiFID and CySEC. It’s because all of these three authorities have this non-discriminatory clause and all three are located in reputable countries.
So, where to sign up?
To conclude what I wrote above, it becomes obvious that if you are from Singapore you should register at a binary options broker that is either licensed by the FCA, MiFID or CySEC. The huge problem is that only a limited number of brokers have such licenses while most have no licenses at all.
And since Singapore does not have specific binary options laws and does not offer binary trading licenses, the shady brokers are also technically allowed to access the country. This means that it’s solely your responsibility as a trader to distinguish the licensed brokers from the unlicensed ones.
And this is where the list that I created comes into play. I specifically set out to only list binary options brokers for Singapore traders that have the above-mentioned licenses. The listed brokers either have one of the mentioned licenses or all of them together.
For example, 24Option has all the three licenses combined from the FCA, CySEC and MiFID. In fact, 24Option has several other licenses as well, such as Banque de France (BDF), Netherlands Authority for the Financial Markets (AFM), Bundesanstalt fur Finanzdienstleistungsaufsicht (BaFin) in Germany and several more.
Would Singapore offer its own binary options license then I’m sure 24Option would get one of that as well.
Other criteria for choosing a binary broker
So, now we got the legal part sorted. To summarize everything, the idea is that you as a binary options trader from Singapore need a broker that is licensed elsewhere but it has to be in a reputable country, preferably in the United Kingdom.
But there are other criteria you should be looking at when deciding what broker to choose. Once you have selected a legal Singapore binary options broker you will have to look at issues such as minimum deposit, payout rate, types of binary options offered and any extra services.
When it comes to minimum deposit, you should preferably choose a broker that has a lower minimum deposit, such as $200 to $250. This is important because this way you will be able to test the broker out without having to commit too much money right from the beginning.
Then, another important issue is that of the payout rate. It’s obviously very important to choose a broker that has a high payout rate. A high payout rate means that on each winning trade you will earn more money. Good payout rates start from 80% to 85%.
After this, you should also check the types of options available. Here, I mean things such as high/low options, one-touch option, 60 seconds options and long-term options.
Traditionally “binary options” are only the high/low options but more and more brokers offer other types of options as well. This is important because these exotic types of options usually offer higher payouts. Once you become more experienced you can make killer money with these.
A new trend is to offer long-term options as well and you as a Singapore trader should profit from these to the max. Long-term options have long expiration times such as several days or weeks and can be combined with news trading.
Final Words and Broker Recommendations
So, lets wrap this up by pointing out again that there are probably several hundred binary options brokers in Singapore at this moment. The problem is that they can’t acquire direct licenses in Singapore.
The good thing is that there are brokers that are licensed in other countries such as the UK, and other European Union countries. These brokers offer safe trading conditions for Singapore traders as well. Always trade at such brokers only. NEVER trade at a broker that does not have any license.
Once you have a shortlist of licensed brokers, then move on to evaluate them using the criteria I have shown above, such as payout rate, minimum deposit and types of options. Sign up at the broker that offers the best trading conditions.
Below you will find a list of binary options brokers in Singapore that I personally believe are the best in the business.
24Option – Licensed in the UK by the FCA, has a general MiFID European Union license and is registered with various national regulators such as BaFIN in Germany, CySEC, the Danish FCA, CONSOB in Italy, the BFD in France and more. It’s the oldest broker in the business and probably the number #1 top binary broker overall.
Stockpair – Similarly to 24Option, it has FCA license, MiFID, CySEC, BaFIN and several others. Stockpair only has a minimum deposit of $200 and is very friendly to Singapore traders according to what I’ve heard from emails sent to me from some of my Singapore readers.
10Trade – 10Trade is a new binary options broker but the first thing it did after opening was to get a license from the above-mentioned jurisdictions. It also only has a minimum deposit of $100 and has long-term options as well.
And that would be all for this article. I hope I could help you decide which binary options broker to choose if you are from Singapore. Remember what I said above, only the regulated brokers are safe. If you stick to the ones listed above then your assets will always be safe and you will always be offered only high quality services.
Thanks for reading. ☺