Explore What’s Behind Singapore’s Growth in e-FX

Key Takeaways

International investor demand and a robust base of buy-side clients fuel Singapore's e-FX growth
Geopolitical stability and regulatory frameworks help create a conducive environment for digital FX
Singapore offers FX market participants innovative trading technology, skilled workforce, and a strong financial ecosystem

In a recent piece for e-Forex Magazine, Qian Ying Goh, Head of Institutional FX Sales for StoneX Pro, Singapore, offered her insights into what's behind the dynamic growth experienced by Singapore's FX market.

The article highlights the unique elements and situation that have Singapore poised to dominate e-FX in the region. Stable regulation and a strategic location are only two reasons institutions, regional banks, and market stakeholders flock to set up shop there.

Singapore enjoys a robust financial system, employs innovative trading technologies, and occupies a strategic location in the region. The continued growth of Asian economies and rapid economic expansion in the area from China and India have drawn global investors. The demand for efficient FX execution pushes the need for ever more sophisticated e-FX platforms.

The Monetary Authority of Singapore (MAS) is responsible for maintaining an upward growth trend. As such, the MAS' progressive regulatory framework is designed to create a vibrant environment for new and innovative fintech.

With Asia's populations mostly young and digitally connected, new and more sophisticated financial products, like cross-border transactions, are being sought.

Goh stated, "At StoneX, we've observed FX trading in Singapore shifting towards more complex FX instruments such as forwards, swaps, and options as corporates and financial institutions look for more advanced instruments to hedge their currency exposure and occasionally take some exposure to the market."

The article explains that service providers in the region have invested heavily in tech, and infrastructure has undergone significant upgrades, offering transactions with improved performance, better market data, and custom order types.

Goh added, "We've seen a significant increase in solutions for digital assets and global payments in the past 24 months, and this growth is expected to continue."

When asked about the impact of America's move to T+1 on Singapore, Goh said, "Our FX business continues to grow at a rapid pace in Singapore, and it's unclear if this is in any way connected to T+1. We suspect that this growth is due instead to the development of the wider APAC market and the increasing penetration of StoneX across all asset classes in the region."

MAS recently launched the Financial Services Industry Transformation Map 2025 (ITM) to create 3-4,000 jobs and achieve annual growth of 4-5% to add further stability and increase competitiveness. The move bolstered the city-state's position as the preferred regional market hub.

Goh commented on the ITM. "Singapore can lean on attributes such as a stable political system, which is particularly appealing in today's political climate, a globally respected regulatory regime in MAS, and a positive attitude towards technology and digital adoption," she said.

"As an example, in 2020, the Singapore government launched a special legal structure that provides tax incentives for hedge funds, venture capital, and private equity firms to encourage them to establish a presence in Singapore," she continued. "As of the end of 2022, over 600 financial services companies had taken advantage of the program. This growth in the financial services ecosystem will almost certainly have a positive knock-on effect on FX trading."

By developing a highly skilled workforce and attracting top global talent, the country is creating partnerships and international collaborations to stay well-positioned as a leading global FX trading hub, regardless of global competition.

According to Goh, Singapore's FX future is bright, with no sign of fading. "The Singapore government is expected to continue fostering a favorable business climate to attract financial services firms to the city," she said.

Read the full article here.

See why StoneX is a partner of choice

Have questions about our products or services? We're ready to help.

Start a conversation

StoneX: We open markets

Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.

Globality

With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
Transparency

As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
Expertise

From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.

Tell us about yourself. Are you a:

First name

Last name

Company

Country

Province/Region

By submitting this form, you are sending StoneX Group Inc. and its subsidiaries your personal information to be used for marketing purposes. View our Privacy notice to learn more.

First name

Last name

Company

Account number

Account holder name (if different from above)

By submitting this form, you are sending StoneX Group Inc. and its subsidiaries your personal information to be used for marketing purposes. View our Privacy notice to learn more.

The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter ("OTC") products or swaps are made on behalf of StoneX Markets, LLC (“SXM”), a member of the National Futures Association ("NFA") and provisionally registered with the U.S. Commodity Futures Trading Commission ("CFTC") as a swap dealer. SXM's products are designed only for individuals or firms who qualify under CFTC rules as an 'Eligible Contract Participant' ("ECP") and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.

StoneX Financial Ltd. ("SFL") is registered in England and Wales, company no. 5616586. SFL is authorised and regulated by the Financial Conduct Authority (registration number FRN:446717) to provide to professional and eligible customers including: arrangement, execution and, where required, clearing derivative transactions in exchange traded futures and options. SFL is also authorised to engage in the arrangement and execution of transactions in certain OTC products, certain securities trading, precious metals trading and payment services to eligible customers. SFL is authorised & regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 for the provision of payment services. SFL is a category 1 ring-dealing member of the London Metal Exchange. In addition SFL also engages in other physically delivered commodities business and other general business activities which are unregulated and not required to be authorised by the Financial Conduct Authority.

StoneX Financial Europe S.A. ("SFE") is a securities trading firm registered in the Grand Duchy of Luxembourg under company number RC Lux B 10821. SFE is authorised by the Ministry of Finance in Luxembourg and regulated by the Commission de Surveillance du Secteur Financier (registration no. P00000012) to carry out, inter alia, the activities of investment adviser, portfolio manager, professional acting on own account, broker in financial instruments, and commission agent. StoneX Financial Pte. Ltd. (Co. Reg. No. 201130598R) (“SFP”) holds a Capital Markets Services Licence and is regulated by Monetary Authority of Singapore (“MAS”) for dealing in Exchange-Traded Derivatives Contracts, OTC Derivatives Contracts and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. StoneX Financial (HK) Limited (CE No.: BCQ152) (“SHK”) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Futures Contracts. StoneX Group Inc. acts as agent for SFL in New York with respect to its payments services business. StoneX Financial Pte. Ltd. acts as agent for SFL in Singapore with respect to its payments services business. StoneX Europe Ltd, is a Cyprus Investment Firm company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission under license number 400/21. StoneX Europe Ltd is a Member of the Investor Compensation Fund. StoneX Financial Pty Ltd is registered with ACN 141 774 727 and holds an Australian financial services licence numbered 345646. StoneX Securities Co. , Ltd is registered in Japan and is a member of the Financial Futures Trading Association Member number 1539.

StoneX Financial Pte. Ltd. (Co. Reg. No. 201130598R) (“SFP”) is regulated by the Monetary Authority of Singapore and is a Capital Markets Service Licensee (for dealing in capital market products), an Exempt Financial Adviser (for advising on investment products and issuing or promulgating analyses/ reports on investment products) and a Major Payment Institution (for cross-border money transfer service). StoneX APAC Pte. Ltd. (“SAP”) (Co. Reg. No 200616676W) is regulated as a Dealer (PS20190001002) under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 for purposes of anti-money laundering and countering the financing of terrorism. SAP is an “Approved International Trading Company” authorized to act as a “Spot Commodity Broker” under the Commodity Trading Act. StoneX Financial (HK) Limited (CE No.: BCQ152) (“SHK”) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Securities and Dealing in Futures Contracts. StoneX Financial Pty Ltd (“SFA”) (ACN: 141 774 727) holds an Australian Financial Service License and is regulated by the Australian Securities and Investments Commission (AFSL: 345646). StoneX Securities Co., Ltd. (“SSJ”) (Co. Reg. No 010401047199) is regulated by the Japanese Financial Services Agency as a Type-I Financial Instruments Business Operator (Kanto Local Finance Bureau (FIBO)No.291’), is a member of the Financial Futures Association of Japan for dealing and broking FX and FX Option transactions, and is a member of the Japan Securities Dealers Association for dealing and broking stock indices and option transactions.

Please note that depending of your jurisdictions and/or in certain circumstance a partnership may be better suited to open and trade with our FOREX.com affiliates, either GAIN Capital Group LLC DBA FOREX.com a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826) or GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033. Forex Trading Involves significant risk of loss and is not suitable for all investors.

Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX Group Inc. of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. The service mark “StoneX” is a service mark of StoneX Group Inc. and its affiliates. All rights are reserved. Unauthorized use of this mark is strictly prohibited.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.