Forex vs stock trading in Singapore: What are the differences?

When it comes to investment, a few options are available in Singapore. You can choose to trade stocks, invest in properties, or dabble in forex trading. All of these have their pros and cons, and it can be challenging to decide which is the best option for you.

You have to consider many factors before you can make a decision, including how much time and effort you are willing to put in, the types of investment that your individual goals require, as well as your risk tolerance levels. This article will compare forex vs stock trading in Singapore and help you decide which is the better option for you.

Forex Trading

Forex trading is the business of buying and selling foreign currencies on a global market. It’s one of the most common types of investing, and it can be quite lucrative if done correctly. Traders who use forex make purchases and sales based on the belief that a currency’s value will rise or fall.

Forex trading is a risky investment, as the value of currencies can change very quickly. You also have to deal with market fluctuations, as well as fees for trading and withdrawals from your account. It takes a long time and effort to learn about different trading methods and strategies that may work for you in order to be successful in forex trading. It’s considerably more of a pastime than a real career alternative.

To be an excellent forex trader, you must have a great deal of skill and perseverance – something that not many people possess or are willing to put out effort for these days.

In Singapore, forex brokers provide real-time exchange rates from different banks so you can buy or sell your desired currency quickly. However, they will demand a fee for this convenience.

Stock Trading

Stock trading refers to buying and selling stocks on the stock market. Stocks can be purchased or sold at their current market price, which changes every second based on supply and demand. People invest in stocks when they believe that they will increase in value over time – which can take weeks, months, or years to happen. For short term investments (less than three months), there are no capital gains taxes imposed by the government. This allows the investments to grow tax-free.

Taxes in Singapore are based on when you sell your stocks rather than buying them. This means that you only pay taxes when you make a profit from your investment. However, to capitalise on this and make a profit in the long term, you would need to hold onto the stock for well over three months (the minimum time before capital gains taxes).

Profitable stock trading can be done correctly and over a long time if done well. The stock market is more steady than forex trading since not every share has the same value, and certain firms will outperform others, resulting in less risk. There are no special requirements or study hours required to master stock trading in Singapore. It’s also a wonderful alternative for individuals who don’t want to put in the time or effort required for forex trading yet still want to participate in the market.


Forex trading is a more risky option than stock trading, but it also can make more money. If you are comfortable taking risks and have the time to monitor the market closely, then Forex trading may be the right choice for you. However, if you are looking for a more durable option, then stock trading may be a better choice. If you are a new investor and want to trade in stocks or forex, we recommend using a reputable online broker from Saxo Bank. They offer the lowest commission, best customer service, and demo accounts for beginner traders to practice their skills before investing their money.