How to Start Day Trading in Singapore? - Step by Step Guide

trading-strategies | 22-12-25

Singapore has become one of Asia’s most active trading hubs thanks to its strong regulatory oversight, reliable digital infrastructure, and easy access to global markets. For many people, day trading is appealing because it blends flexibility, skill development, and the potential for performance-based income. But getting started requires more than enthusiasm—it requires proper tools, structured planning, and a clear understanding of how markets function.

This guide breaks down the full process so beginners can move from curiosity to action with confidence.

How to Start Day Trading in Singapore?

Day trading is fully accessible to Singapore residents, and the steps to begin are straightforward. To start successfully, a trader must learn the basics of market structure, choose the right brokerage setup, develop a simple, tested strategy, and manage trades in a disciplined manner. The core requirement isn’t high capital—it’s preparation, risk awareness, and consistency.

“Every trading journey begins with clarity, clarity of skill, structure, and the strategy you choose to master.”

The rest of this guide explains each step clearly so that new traders can build a confident and structured path into day trading.

Day Trading in Singapore: Quick Comparison of Trading Approaches 

1. Build Your Trading Foundation: Skills, Strategy & Market Understanding

Before placing your first real trade, it’s essential to understand how markets move and how trading decisions are made. Day trading rewards structure, not spontaneity, so your foundation should include:

Learn the Basics of Market Behavior

Before placing real trades, a trader must understand how the market behaves—how prices move, why volume drives momentum, and how news events can increase volatility. This foundation provides context for every decision you make.

Once the basics are clear, beginners should start with a simple, rule-based strategy that includes:

• A clear entry pattern
   
• A predefined stop-loss rule
   
• One or two profit-taking methods
   
• A specific risk level per trade
   

Simple strategies help new traders avoid emotional decisions and keep performance consistent.

Practice on a Demo

Use simulated accounts provided by brokers before using real funds. This builds confidence and sharpens execution skills without financial risk.

2. Choose a Broker and Set Up Your Trading Platform

To begin day trading in Singapore, you must first select a brokerage structure that fits your trading style. Singapore offers two main types of accounts, and understanding the difference is essential because it affects fees, speed, and how your trades are settled.

A. CDP vs Custodian Account

Singapore’s market operates through the Central Depository (CDP), which acts as the official record-keeper for share ownership. Depending on your trading goals, you can hold shares directly under your name or through your broker.

• CDP Account: Shares are held directly in your name in the Central Depository. This structure is ideal for long-term investors because it provides direct ownership, dividend processing, and long holding periods. However, it typically comes with higher minimum commissions—making it less suitable for day trading.
   
• Custodian Account: Shares are held under the broker’s name on your behalf. This setup usually offers much lower trading fees, faster execution, and immediate fund settlement, making it the preferred choice for intraday traders who need speed and cost efficiency.
   

B. Select a Suitable Broker

Choose a broker based on speed, cost, and ease of use. Common features to look for:

• Low commissions
   
• Fast order execution
   
• User-friendly day trading platform
   
• Access to the markets you want to trade
   

Popular brokers in Singapore include Tiger Brokers, Moomoo SG, Webull, Interactive Brokers, and others, depending on your trading style.

C. Understand Market Mechanics

Before placing live trades, it’s important to understand how the Singapore market operates. Learn the SGX trading hours (9:15 AM to 3:30 PM), how volatility spikes at the market open, and how auto square-off penalties work if intraday positions are not closed on time. You should also know the difference between intraday and delivery orders, as well as how leverage and margin requirements affect your buying power. Mastering these mechanics helps you avoid common and costly mistakes.

3. Prepare Your Trading Routine: Planning, Execution & Review

Consistency matters more than complexity. A basic daily routine should include:

Pre-Market Preparation

• Identify stocks with strong volume or news
   
• Mark support and resistance
   
• Define your maximum risk for the day
   

During the Trading Session

• Trade only when your setup appears
   
• Use stop-losses on every trade
   
• Avoid overtrading in choppy conditions
   

Post-Market Review

• Review charts and decisions
   
• Record wins, losses, and emotional notes
   
• Adjust your plan for the next day
   

This cycle builds long-term improvement.

4. Tax Classification & Compliance in Singapore 

Tax treatment depends on how IRAS classifies your activity:

General Principle

• Capital gains from occasional trading are not taxed.
   
• Income from frequent, systematic trading may be taxed as business income.
   

What Traders Should Maintain

Keep records of:

• Trading activity
   
• Platform fees
   
• Broker statements
   
• Hardware or software expenses
   

Clean record-keeping ensures compliance if IRAS requires clarification.

5. Risk Management: The Core of Long-Term Survival

Most new traders don’t fail due to a lack of strategy—they fail because they allow losses or emotions to spiral out of control. Effective risk management begins with knowing exactly how much you’re willing to lose in a session and sticking to that boundary. A well-placed stop loss protects you from unexpected moves, while sensible position sizing keeps one bad trade from damaging your entire account. Just as important is emotional awareness: recognising frustration or overconfidence early helps you pause before making impulsive mistakes. With these habits in place, risk management becomes the safety net that allows your skills to grow over time.

Quick Risk Checks Before Trading

• Is your daily loss limit written down and realistic?
   
• Have you defined your stop loss before entering the trade?
   
• Does your position size stay within safe percentage risk?
   
• Are you calm, focused, and free from emotional bias?

Final Thoughts: Strategy, Structure, and Opportunity for Singapore Traders

Day trading in Singapore is not just accessible—it is supported by one of the best financial infrastructures in Asia. Traders who approach the process with discipline, proper tools, and a well-defined strategy have a realistic path toward consistent improvement.

“Successful day traders don’t rely on luck—they rely on structure, patience, and repeatable skills.”

Begin your day trading journey in Singapore with the right foundation and a reliable funding partner. Explore Apex Trader Funding and consider evaluations like the 25K Rithmic or 50K Tradovate accounts to trade the global futures markets.