How to Choose the Best Options Broker in Singapore: 8 Checks Before You Fund the Account

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Why options approval and fees feel so hard from Singapore, and the checks that tell you which broker fits you, with no broker named and no referral link.

Last updated: 16 October 2026 · By Spencer Li, CFTe

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There is no single best options broker in Singapore, and I am not going to name one. The best broker for you is the one that passes 8 checks. It is licensed by MAS, and you know which company holds your money. It offers the markets and the approval level you need, at an all-in cost per contract you can see. It explains expiry and assignment in writing, its platform handles your orders, and you understand the US tax that comes with US-listed options.

Most of the “why is this so hard” comes from one MAS rule. Options are derivatives, and before a broker opens an account for you to trade listed derivatives, MAS requires it to review your “knowledge and experience in derivatives.” Many brokers then add their own approval levels on top. That is why the sign-up feels like an exam.

Do note that we do not teach options at Synapse Trading, and this post names no broker and carries no referral link. It sits under our ultimate guide to options trading, and it answers a question that turns up again and again on Singapore forums: which broker should I use for options, and why are the fees and approvals so hard?

Why is options approval so hard to get in Singapore?

Because there are 2 gates, and most people only expect one.

The first gate is the law. Under MAS Notice SFA 04-N12, any capital markets product outside a short list of simpler ones is a Specified Investment Product. Before a broker opens an account for you to trade a listed one, it must run a Customer Account Review, which the notice defines as “a review of a Customer’s knowledge and experience in derivatives.” Options are derivatives, so expect this review before an options account opens. You pass if you meet any one of these, from Annex 2 of the notice:

• a diploma or higher in a field such as accountancy, business, economics or finance
• a professional finance-related qualification
• at least 6 trades in listed Specified Investment Products in the preceding 3 years
• at least 3 consecutive years of relevant work experience in the past 10 years

If you meet none of them, MoneySense, the national financial education site, says you can also pass by completing the free SGX Online Education Programme module and its assessment. And if you still do not pass, the door is not shut. The notice says the broker must tell you the outcome in writing, get your written confirmation that you still want to go ahead, and explain the features and risks of derivatives to you. A lot of people take the first “you did not pass” email as a rejection, when it is the start of that process.

A pass does not last forever. Paragraph 16 of the notice stops the broker from letting you trade listed Specified Investment Products more than 3 years after your review, unless you traded them through that account more than once in the past 3 years, or you take a new review. US-listed options also count as overseas-listed products. Paragraphs 29D and 29E say the broker must give you a written risk warning, and get your acknowledgement, before your first such trade.

The second gate is the broker’s own. Many brokers sort options accounts into levels, each one unlocking riskier strategies. Covered calls and bought calls and puts usually sit near the bottom, spreads in the middle, and selling uncovered options at the top. Each broker sets its own rules for who gets which level. So you can clear the MAS review and still find that the strategy you wanted is locked.

The 8 checks, in one table

I call this the fund-it-last checklist, because every line on it can be checked before a single dollar leaves your bank account, and almost none of it is easy to fix afterwards.

[INFOGRAPHIC: the fund-it-last checklist as 8 boxes, ticked from left to right before the deposit button]

How do I check that a broker is licensed and my money is protected?

Start with the register. MAS keeps a public Financial Institutions Directory. Search for the exact company name on your account agreement, and check that it holds a capital markets services licence. Then search the MAS Investor Alert List for the same name. The scam checks in our post on how to choose a good forex broker apply here too.

The second half is where people get caught out. A broker group can run several companies in several countries, and the one holding your account decides which rules protect you. Singapore’s rules for licensed brokers have a whole part on customers’ money and assets, including how it is held in trust accounts. Ask the broker, in writing, which entity holds your cash and your positions, how the cash is held, and where.

Then there is the US scheme people quote in forums. SIPC protects customers of SIPC-member firms up to USD 500,000, “which includes a $250,000 limit for cash,” whatever country they live in, but only for accounts held at a SIPC member. An account held with a company that is not a SIPC member is outside it, so check which entity holds yours. And SIPC, in its own words, “does not protect against the decline in value of your securities.” Nothing protects you from a bad trade.

Why are options fees so hard to compare?

Because the price is spread across several lines, and most comparison pages only show 1. A share trade usually has one commission. An options trade can carry a commission per contract, a minimum per order, exchange and regulatory fees, and the spread you pay when Singapore dollars become US dollars. Some platforms also charge for live options prices, so the real cost only shows up after you have funded the account.

Here is the arithmetic that trips up small accounts, hypothetical and in round numbers. One contract covers 100 shares. An option quoted at 0.50 costs 50 US dollars before any fee. If the broker charges a per-order minimum, a 1-contract trade can pay several percent of the premium in fees, in and out, before the trade has done anything. A multi-leg order pays it on every leg.

So the useful number is the all-in cost of the trade you will actually place: a 1-contract trade and a 4-leg trade, every line on the fee schedule, plus the currency conversion.

What happens at expiry and assignment?

A bought option that finishes in the money is usually exercised for you at expiry, which means you suddenly own, or owe, 100 shares per contract. If you do not have the cash or the margin for that, the broker may close the position for you, at a price you did not choose. A sold option on a US stock can be assigned early, and a sold call assigned just before an ex-dividend date can leave you owing that dividend.

None of this is hidden, but it sits deep in the options terms. The expiry and assignment section should give 3 answers before you deposit: when exercise happens automatically, what the broker does if you cannot cover the shares, and when it will close positions on its own.

What about US tax and paperwork?

If you trade US-listed options from Singapore, the US tax system comes along.

Expect to be asked for Form W-8BEN, the IRS “Certificate of Foreign Status of Beneficial Owner”. The IRS tells a foreign person to give it to the withholding agent or payer, which for your US shares is usually the broker. On US-source dividends paid to non-residents, the IRS rule is to “withhold at 30% or lesser tax treaty rate.” Singapore does not appear on the IRS list of countries with a US income tax treaty, so the reduced treaty rate is not available to Singapore residents. An option pays no dividend. But an assigned option can leave you holding the shares, and the shares do.

Then there is the one people learn about late. For a non-resident who is not a US citizen, the IRS says the estate must file a US estate tax return “if the fair market value at death of the decedent’s U.S.-situated assets exceeds $60,000,” and those assets include “stock of corporations organized in or under U.S. law.” That threshold is low. This is general information, so check your own position with a tax professional.

Which broker should I use for options from Singapore?

The one that passes all 8 checks for the way you plan to trade, and only you can run that test.

Personally, I think the order matters more than the shortlist. The licence and money checks come first, because they protect you from the broker. The approval level and the cost come next, because they decide whether the strategy works at all. Expiry, the platform and tax come last, because they decide how painful your first mistake will be.

So which of the 8 can you already answer in writing, and which would you have found out the hard way?

If you would rather start with the part of trading we do teach, the free 15-Minute Swing Trader’s Checklist covers the questions to ask before every trade, whatever the market and whatever the broker.

FAQ

Can I trade options in Singapore?
Yes. Singapore residents can trade options through a broker licensed by MAS, once the broker has run the Customer Account Review that MAS requires for listed derivatives and approved your account for options.

What is the Customer Account Review?
The Customer Account Review is a check, required by MAS Notice SFA 04-N12, of your knowledge and experience in derivatives before a broker opens an account for you to trade listed Specified Investment Products. You pass by meeting one criterion, such as a relevant diploma, a finance qualification, 6 trades in the past 3 years, or 3 years of relevant work experience. If you meet none, you can still proceed after the broker explains the risks and you confirm in writing.

Is my money protected if my options broker fails?
It depends on which company holds your account and how it holds your money, so ask the broker in writing. SIPC protection applies only to accounts held at a SIPC-member firm. Nothing protects you from trading losses.

Do I pay US tax on options as a Singapore resident?
You may pay US withholding tax on dividends from US shares, at 30% for Singapore residents, which matters if an option is assigned and you end up holding the shares. US estate tax can also apply to US shares above USD 60,000. Check your own case with a tax professional.

Go deeper

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About the author. Spencer Li is the founder of Synapse Trading and a Certified Financial Technician (CFTe) with 15 years of trading across stocks, forex, crypto, commodities, and bonds. His trade log is public: every trade since April 2024, dated, losses left in. He teaches low-risk swing trading in 15 minutes a day, one system for any market.

Educational content only, not personalised financial advice. Trading carries risk, including loss of capital, and isn’t suitable for everyone. Past performance is not indicative of future results. Synapse Trading is not licensed or regulated by MAS.

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Educational content only, not personalised financial advice. Trading carries risk, including loss of capital. Past performance is not indicative of future results. Synapse Trading is not licensed or regulated by MAS.