Singapore's online trading landscape is undeniably shrinking. The active trader population declined for the third consecutive year despite reaching unprecedented levels of client satisfaction.

Singapore Online Trading Base Contracts Despite Record Satisfaction Levels

The latest Singapore Online Investing Report by Investment Trends reveals that the number of active online traders has decreased to 248,000, down from 264,000 in September 2023. This decline brings the trading population back to levels last observed in 2018, marking a significant shift in the market dynamics.

What portion of this consists of FX/CFD traders? Although current data is lacking, a previous Investment Trends report from two years ago suggested that 43,000 retail investors in Singapore engaged in contracts for difference, representing one in five of all active online traders in the country.

“The online investing market in Singapore is undergoing a recalibration,” explains Lorenzo Vignati, Associate Research Director at Investment Trends. “While the decline in active investors poses challenges, the path to growth lies in brokers' ability to effectively re-engage the vast dormant client base.”

Despite the shrinking user base, client satisfaction has reached an all-time high. However, investors are increasingly demanding enhanced features, with 35% citing live pricing as crucial, while 32% prioritize enhanced security measures. Additionally, 28% of traders express interest in sophisticated portfolio risk management tools.

“Client satisfaction is at record levels, but the message from investors is clear: they want more,” explains Vignati.

Singapore has emerged as a significant market for brokers, as evidenced by IG Group's fiscal year 2024 financial report. The country was the only jurisdiction to record higher revenue last year, with increased trading activity by larger clients producing a 6% increase in income. In its financial results, IG noted that Singapore “delivered stronger trading revenue reflecting higher volumes from some of our largest traders.”

Traders Want Education

The report highlights a strong emphasis on education within the trading community. An impressive 51% of online investors engage with educational content daily, while 21% consider themselves proficient or expert traders. This high engagement level signals a robust appetite for continuous learning and professional development among Singapore's trading community.

“Education has become a key differentiator in this market,” notes Vignati. “The appetite for financial knowledge is substantial, especially among newer investors eager to build their confidence.”

A similar outcome was shown in a separate report for the French market, where high demand for education was also observed, particularly among new and less experienced investors. The same situation was noted in the Italian market.

The findings suggest that brokers who can adapt to evolving investor expectations while providing comprehensive educational resources will be better positioned to capitalize on future growth opportunities.

“For brokers, investing in high-quality educational content presents a powerful way to deepen engagement and strengthen client relationships over the long term,” adds Vignati.

The focus has clearly shifted from quantity to quality, with successful platforms needing to balance advanced features with user satisfaction and educational support.