Singapore’s CFD Market Rebounds After Three Years of Decline as Dormant Traders Reactivate

Singapore’s leveraged-trading sector has recorded its first increase in active CFD and forex participants since 2021, signaling a potential turning point after a sustained multi-year contraction. According to the Investment Trends 2025 Singapore Leverage Trading Report, released today, the number of active retail traders rose 3% year-on-year, reversing a downward trend that began during the post-pandemic cooling period.

The research indicates that active participation climbed to approximately 39,000 traders, driven primarily by previously inactive clients returning to the market rather than a wave of new entrants. Based on broader engagement indicators, Investment Trends estimates the total addressable CFD trader population in Singapore now sits at around 75,000.

Engagement Over Acquisition as Market Cycle Shifts

The renewed activity represents a shift in broker strategy. Rather than battling for new client acquisition, firms are increasingly focused on re-engaging experienced traders who pulled back during periods of heightened volatility and regulatory tightening.

A growing share of participants now describe themselves as “proficient” or “expert” in leveraged instruments—up sharply from previous years—reflecting rising confidence even as macro uncertainty persists. Clearer communication and risk-management tools played a role in sustaining confidence through regulatory changes, according to the research. The survey collected responses from 2,734 active traders between August and September 2025.

The recovery contrasts with 2024, when active participation fell to 38,000, its lowest point since 2019 and nearly 10,000 below the peak recorded in 2021. Interest in CFDs remained significantly higher than actual activity, suggesting a substantial base of disengaged but interested traders.

Platform Consolidation Accelerates as Traders Demand Simplicity

One of the most striking shifts in the report is traders’ preference for single-platform access to all leveraged instruments, driven by cost sensitivity, faster funding and withdrawals, and interest-earning on idle capital. This trend is pressuring smaller CFD brokers to expand product breadth or merge, as multi-asset giants continue to gain share.

“Reactivation is now driving growth. Sustainable expansion depends on re-earning the interest of existing traders rather than chasing new ones,” said Vignati in commentary accompanying the report.

The consolidation trend mirrors developments across Asia, where fragmented trading environments are gradually giving way to unified execution ecosystems. Singapore’s online-trading community had fallen below 250,000 active users in 2024, down from 264,000 the previous year, marking a multi-year low.

AI Becomes Central to Trading Decisions

AI is reshaping trading behaviour, with three out of four traders either using or planning to use AI for charting, signals and performance analytics. What began as experimental add-ons is now viewed as essential infrastructure.

“Traders want simplicity and intelligence,” Vignati said. “The providers that win will be those delivering integrated access supported by AI-driven decision tools—not overwhelming complexity.”

The finding aligns with last year’s report, which showed rising interest in proprietary trading firms and algorithmic-assisted execution.

Regulation Tightens But Demand Remains Strong

Recent Monetary Authority of Singapore (MAS) measures introduced stricter leverage controls and strengthened client-protection rules. Despite predictions of a slowdown, the regulatory environment does not appear to have dampened trader appetite for leveraged trading.

Instead, competition among brokers now revolves around execution quality, fee transparency, and platform reliability rather than aggressive marketing.

Switching decisions are increasingly driven by:

• Cost effectiveness, and
• Quality of trade fills and liquidity access.

The overall sentiment suggests a more mature market, where experienced traders dominate participation and retention becomes the primary battleground.

In a parallel development aimed at strengthening investor protection, the Monetary Authority of Singapore (MAS) has proposed a framework that would provide grant funding and legal support to retail investors involved in disputes with financial firms. The initiative seeks to improve access to justice and reduce cost barriers for individuals challenging misconduct or unfair treatment.