City Index is the top online brokerage for investors in Singapore seeking to make CFD trades exclusively. The platform charges some of the lowest commission fees and typically has the best spreads for CFD trades. While the platform lacks some diversity in terms of trading methods and market access, its competitive CFD pricing makes it a great fit for seasoned traders. For this reason, it is not surprising that more than 140,000 retail investors worldwide use City Index.
|Summary of City Markets' Online Brokerage|
|Most Competitive CFD Trading Costs & Offerings|
|Diverse Market Access (Stocks, Indices, Forex, Commodities & Cryptocurrencies)|
|24-Hour Investor Support & Investor Training Modules|
Table of Contents
- What Makes City Index Stand Out to Investors
- Investment Opportunities at City Index
- What is CFD Trading?
What Makes City Index Stand Out to Investors
City Index is an excellent online brokerage platform, particularly for those planning to conduct CFD trades. First, the platform offers commission-free CFD trading for all assets aside from stocks. Additionally, the commission fees it does charge are competitive with Singapore's other top online brokerages.
|City Index||Saxo Markets (Classic Pricing)|
|CFD Commission for Stocks|
|Index CFD Spread:|
|US SP 500||0.4||0.4|
|US Tech 100||1||1|
|Hong Kong 50||10||5|
However, investors seeking an online brokerage that allows them to make other types of trades would be better off with Saxo's platform, which generally charges the lowest fees for most non-CFD trades and offers access to more markets than any other platform in our review.
Investment Opportunities at City Index
CIty Index offers a range of CFD trading opportunities, including on 17 global indices, more than 4,500 shares, 84 forex pairs, several commodities and cryptocurrencies including Bitcoin, Ethereum, Litecoin and Ripple. This wide range of offerings may be attractive to those seeking to make CFD trades of a range of asset types.
Summary of City Index's Trading Fees
|Instrument||Min. Spread||Commission Fees||Max. Margin|
|Stocks||Market||0.08% (min S$10 SGD)||10%|
|* Variable based on market conditions|
What is CFD Trading?
CFD (contract for difference) trading allows investors to speculate on the price movement of a financial asset (e.g. stocks). Investors do not actually purchase the asset, but make gains or losses based on the changes to the asset's market price. In effect, investors are betting that the asset will either appreciate or depreciate.
Another important aspect of CFD trading is leverage. City Index does not require investors to purchase a CFD in-full, rather investors must make a deposit based on a required margin. This allows them to amplify their potential returns. However, it also can result in much more significant losses than traditional trading, which should inspire caution in less seasoned investors.