Singapore's leverage trading market posted its first growth in active participants since 2021, with the number of CFD and forex traders rising 3% over the past year, according to Investment Trends' 2025 Singapore Leverage Trading Report released today (Wednesday).

Singapore CFD Traders Return as Market Finds Bottom

The increase stems largely from dormant accounts reactivating rather than fresh capital entering the market. According to Finance Magnates Intelligence estimates, active trader numbers jumped to 39,000, suggesting the total potential CFD trader base in the country has grown to approximately 75,000.

That marks a shift from expansion to engagement, where brokers must now focus on winning back traders who stopped participating rather than hunting for new clients.

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"What we're seeing is a market that's come through significant macroeconomic shifts with its core base intact," said Lorenzo Vignati, Associate Research Director at Investment Trends. "That matters because sustained confidence enables traders to stay active, adapt their strategies, and continue contributing to market liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and momentum."

Traders Rate Themselves More Skilled Despite Volatility

More than one in four active traders now consider themselves proficient or expert in leveraged trading, up from previous periods. Confidence held steady through regulatory tightening and global uncertainty, partly because brokers improved communication during volatile periods. Investment Trends surveyed 2,734 participants between August and September 2025.

The figures contrast sharply with last year's report, which showed active trader numbers had fallen to 38,000, the lowest since 2019 and nearly 10,000 below the 2021 peak of 47,000. At that time, only 73,000 investors expressed interest in CFDs, with just half staying active through 2024.

“While active trader numbers have declined, the interest in CFDs remains significant, driven by sharp pricing and effective decision-support tools,” Vignati commented in 2024.

Another report released last week by Coinbase showed that, in Singapore, crypto is currently more popular than CFDs, with more than 60% of Singaporeans already owning digital assets.

Single-Platform Preference Accelerates Broker Consolidation

Over half of traders now want to manage all leveraged products through one platform, driven by demands for lower costs, faster funding, and interest payments on idle cash. That preference is forcing smaller brokers to either expand product offerings rapidly or risk losing clients to larger, multi-asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term competitors.

"Reactivation is now doing the heavy lifting for growth," Vignati added. "Providers need to think less about casting wider nets and more about how they re-earn the trust and interest of existing traders, because that's where sustainable growth is coming from."

The consolidation wave mirrors developments in other Asian markets where platform fragmentation has given way to unified trading environments. Singapore's market had previously seen sustained declines, with the overall online trading community shrinking to under 250,000 active traders in 2024 from 264,000 the year before – the lowest level since 2018.

AI Adoption Transforms Trading Behavior and Decision-Making

Three in four traders are either using or plan to use artificial intelligence for charting, signal generation, and performance analysis. The adoption rate suggests AI tools have moved from experimental features to core infrastructure for many retail participants.

"Traders are asking for two things: simplicity and intelligence," Vignati said. "The providers that thrive will be those that offer integrated access with AI tools that enhance decision-making, not overwhelm it. But they must act fast. This consolidation wave is moving quickly, and those who delay risk falling behind."

The AI trend aligns with broader technological shifts in Singapore's trading ecosystem. Last year's Investment Trends report showed two-thirds of traders were either utilizing or expressing interest in AI-assisted trading tools, while 60% of active investors showed interest in proprietary trading firms.

MAS Rules Reshape Competitive Landscape Without Killing Demand

Recent Monetary Authority of Singapore measures tightened leverage limits and client protections but have not eroded trader optimism or participation rates. The regulatory changes reshaped how brokers compete but left demand for leveraged products largely intact.

Cost consciousness and execution quality emerged as primary drivers for broker switching, with transparency becoming increasingly important. Traders who consider changing platforms cite fees and trade fills as top concerns, suggesting the market has matured beyond marketing-driven client acquisition.

Singapore remains an important market for major brokers. IG Group reported that Singapore was the only jurisdiction showing revenue growth in its fiscal 2024 results, with larger clients driving a 6% increase through higher trading volumes.