Singapore lowers its leverage cap to 1:20

Trading Discussion
1

Singapore has lowered its leverage cap by more than half. This means forex traders in the country will now have access to leverage of 1:20, as opposed to 1:50 as it was before the changes.

The decision was made by the Monetary Authority of Singapore, however, as with regulatory changes put forward by the European Securities and Markets Authority there are certain loopholes which allow for a more generous leverage under strict conditions.

Аccredited investors in Singapore will have access to the original leverage, however, as in Europe, this would mean meeting strict capital requirements.

Among the requirements is a personal net worth of more than 2 million Singaporean dollars ($1.5 million) or proof of an annual income of more than 300,000 Singaporean dollars. Traders with more than 1 million Singaporean dollars in cash may also qualify for the higher leverage.

2

Are there many traders from Singapore which abuse high leverage? I know there are many trading firms in Singapore which make competition to FX brokers and they also cap risk at reasonable levels.

3

I think the concern was more for traders who don’t know how to deal with high leverage than those who abuse it.
That and wanting to push the small fry traders out of the market, which seems to be a global trend.

4

I heard a lot of complaints from traders which face with with reduce opportunity of using leverage. I think the limits should be flexible supported by reasonable qualification tests. Hope the watchdog is aware of these difficulties

5

They probably are but whether they care is another matter altogether.

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