2024 Singapore Leverage Trading Report

Leverage Trading Market: Trader Numbers Dip, but Growth Drivers Emerge

• Retail Trader Decline – Retail CFD/FX trader numbers are gradually sliding toward pre-pandemic levels, but 73,000 investors remain interested in CFDs.
• Diversified Portfolios Rising – Traders are using CFDs across a wider range of asset classes, with trends like prop trading and AI-assisted trading gaining momentum.
• Switching on the Rise – Switching intentions are increasing, driven by demands for lower commissions and superior trade execution.

13 November 2024, Singapore – Investment Trends, a leader in financial market research, has released its 15^th edition of the 2024 Singapore Leverage Trading Report, highlighting a rapidly evolving trading landscape in Singapore and the need for brokers to adapt to the shifting demands of a sophisticated trader community.

The latest report reveals that retail CFD/FX trader numbers in Singapore continue to show greater resilience than most other markets studied, despite gradually declining toward pre-pandemic levels. This contraction is underpinned by the lowest recorded influx of new-to-market traders and a moderate dormancy rate. Significant growth opportunities remain, with the report modeling that 73,000 online cash equities investors are interested in CFDs. Notably, the most common goal of trading CFDs and FX has shifted to profiting from specific market events (47%), while leverage, though reduced, remains a key factor for 41% of traders.

Lorenzo Vignati, Associate Research Director at Investment Trends, observed, “The data highlights an evolving dynamic in Singapore’s leverage trading market. While active trader numbers have declined, the interest in CFDs remains significant, driven by sharp pricing and effective decision-support tools. This shift reflects changing trader priorities and signals an opportunity for the market to better meet evolving investor needs”.

Copyright 2024: Investment Trends. 2024 Singapore Leverage Trading Report

The report also highlights the growing diversification of Singaporean traders’ investment portfolios, with CFDs being used together with a broader range of investment products. Global trends like prop trading and AI-assisted trading are also gaining momentum, with three in five traders either engaging in or interested in prop trading, and two in three currently using or open to AI tools.

Vignati observed, “The diversification of investment products and the integration of global innovations like AI-assisted trading reflect a more sophisticated trader base. The data clearly shows Singaporean traders are increasingly seeking cutting-edge tools and insights to enhance both trading opportunities and efficiency.”

Switching activity among traders has remained stable over the past five years, with transparency concerns emerging as a key driver for change. The data indicates that switching intentions are on the rise, with traders primarily motivated by the promise of lower commissions and superior trade execution.

“Transparency is an increasingly vital factor for traders,” Vignati emphasised. “Those looking to switch are demanding not only lower costs but also more reliable and efficient trading experiences. Brokers who can deliver on these fronts will be well-positioned to win over this discerning segment.”

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