Regulation & Client ProtectionMASMonetary Authority of Singapore
MAS (Monetary Authority of Singapore)
Singapore's central bank and integrated financial regulator, which caps retail forex leverage at 1:20.
What MAS (Monetary Authority of Singapore) means
The Monetary Authority of Singapore is unusual in combining the roles of central bank and integrated financial regulator, supervising banks, insurers, capital markets intermediaries and payment services under one roof. A broker offering leveraged forex or CFDs to Singapore retail clients requires a capital markets services licence in dealing in capital markets products, listed with the licence details on the MAS Financial Institutions Directory. MAS also maintains an investor alert list of unregulated entities that have been wrongly perceived as licensed or regulated in Singapore.
MAS caps retail leverage on major currency pairs at 1:20, one of the tighter regimes outside Japan, with lower ratios on other asset classes. Licensed intermediaries must hold retail customer money in trust accounts with approved banks, segregated from the firm's own funds and reconciled regularly, must meet base capital and risk-based capital requirements, and must give risk fact sheets and conduct a customer knowledge assessment before allowing retail clients to trade specified investment products. Advertising and representative conduct are also subject to detailed MAS notices and guidelines.
MAS does not operate an investor compensation fund for CFD or forex customers of a failed intermediary. Trust segregation improves the odds of recovery in an insolvency but does not guarantee a full return, particularly where there are shortfalls or the money was held with an intermediary abroad. Complaints can be taken to the Financial Industry Disputes Resolution Centre, which offers free mediation and adjudication, but neither MAS nor a dispute scheme compensates a client for losing trades or for a legitimate margin close-out.
Worked example
A Singapore retail client depositing 5,000 SGD can open a major-pair position of at most roughly 100,000 SGD notional. An accredited investor who opts up to that status can access higher leverage but gives up several of the retail-only safeguards in the process.
Related terms
- Leverage CapA regulatory ceiling on the leverage a broker may offer retail clients, varying widely between jurisdictions.
- Professional ClientA client category with fewer regulatory protections, available to institutions and to individuals who pass an opt-up test.
- Segregated AccountsClient money held in bank accounts separate from the broker's own funds, so it is not available to the firm's creditors.
- Financial OmbudsmanA free independent dispute resolution service that decides complaints against regulated firms, with decisions binding on the firm.
- Retail ClientThe default regulatory client category, carrying the highest level of protection under conduct rules.
Frequently asked questions
What does MAS (Monetary Authority of Singapore) mean in forex trading?
Singapore's central bank and integrated financial regulator, which caps retail forex leverage at 1:20.
How does MAS (Monetary Authority of Singapore) work in practice?
MAS caps retail leverage on major currency pairs at 1:20, one of the tighter regimes outside Japan, with lower ratios on other asset classes. Licensed intermediaries must hold retail customer money in trust accounts with approved banks, segregated from the firm's own funds and reconciled regularly, must meet base capital and risk-based capital requirements, and must give risk fact sheets and conduct a customer knowledge assessment before allowing retail clients to trade specified investment products. Advertising and representative conduct are also subject to detailed MAS notices and guidelines.
What is an example of MAS (Monetary Authority of Singapore)?
A Singapore retail client depositing 5,000 SGD can open a major-pair position of at most roughly 100,000 SGD notional. An accredited investor who opts up to that status can access higher leverage but gives up several of the retail-only safeguards in the process.
Trade with a regulated broker
Understanding the terminology is the cheap part. The expensive part is choosing a counterparty whose execution, financing and withdrawal behaviour match what the marketing implies. Every broker below has been reviewed with a funded live account, and each review states which legal entity and which regulator applies to the account you would actually open.
Check the licence on the regulator's own register before you deposit — our regulators directory explains what each authority enforces, from leverage caps to compensation limits.