MAS

The Monetary Authority of Singapore (MAS) is unusual among the regulators on this list: it is simultaneously Singapore's central bank, its banking supervisor and its securities regulator. That concentration gives MAS a broad view of systemic risk and a reputation for setting rules early and enforcing them quietly. For a retail forex trader, the practical consequence is a regime with hard leverage limits and a high bar to entry.

What the licence requires

A broker offering leveraged foreign exchange to Singapore retail clients needs a Capital Markets Services licence for leveraged foreign exchange trading under the Securities and Futures Act. MAS sets base capital and risk-based capital requirements, requires locally resident key executives, and reviews the applicant's shareholders and business model before granting the licence. Approval timelines are measured in quarters, not weeks, and the licence register is short as a result.

Client money must be held in trust accounts with MAS-approved institutions and reconciled. Firms must report to MAS regularly and submit to on-site inspection.

Leverage and retail protections

Since 2019 MAS has capped retail leverage on major currency pairs at 20:1, tighter than the European 30:1 and the Australian 30:1. Gold and other categories carry their own lower limits. Retail clients who meet income, asset or trading-experience thresholds may opt up to Accredited Investor status and access higher leverage, but the opt-up requires documentation and an explicit acknowledgement that retail protections fall away.

Risk disclosure is mandatory before account opening, and MAS requires firms to assess whether a retail customer understands leveraged products at all.

If a broker fails

Singapore has no retail compensation fund covering margin forex losses from a firm failure. Segregation in trust accounts is the protection, backed by MAS's capital rules and its willingness to intervene before a firm collapses rather than after. In practice the regime's strength is preventive rather than restitutive.

Verifying a licence

MAS publishes the Financial Institutions Directory, which lists every licensed entity and the exact regulated activities it may conduct. It also publishes an Investor Alert List of unregulated entities that have been reported for soliciting Singapore residents. Both are worth checking: the directory tells you what a firm may do, and the alert list tells you which brands MAS has already flagged. ProForexBrokers.com treats an entry on the alert list as disqualifying regardless of what licence a brand advertises elsewhere.

Who a MAS broker suits

MAS regulation suits traders who prioritise counterparty quality over leverage and who want a regulator with genuine supervisory capacity. It suits high-frequency and professional traders who can meet the Accredited Investor thresholds. It suits poorly anyone whose strategy depends on 200:1 or more, because that leverage is simply not available to a Singapore retail client.