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.
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.
This post is originally published on FINANCEMAGNATES.
