Best ETF Brokers in 2025

What is an ETF or Exchange Traded Fund?

An ETF (Exchange Traded Fund) is a financial product that allows you to invest in a collection of assets in a single transaction. It is an index fund listed on the stock exchange, the objective of which is to replicate the performance of a benchmark index, such as the Straits Times Index (STI), the S&P 500, or the MSCI World.

Unlike traditional actively managed funds, an ETF follows passive management: it replicates the composition of the index it tracks, with lower fees compared to active funds. It is continuously traded on the markets, just like a stock, allowing investors to buy or sell their shares at any time during the trading day.

ETFs are very popular due to their numerous advantages:

• Immediate diversification: By buying an ETF, the investor positions themselves on several assets in a single transaction.
• Reduced costs: ETF management fees are generally much lower than those of traditional investment funds.
• Accessibility: It is possible to invest in ETFs with a modest amount, and some brokers offer fractional purchases.
• Transparency: The composition of ETFs is generally accessible in real-time, allowing investors to know exactly what they are investing in.

Advantages of ETFs

ETFs offer instant diversification: a single transaction allows you to invest in a range of assets reflecting the composition of the tracked index. For example, an ETF replicating the Straits Times Index allows access to the largest companies in Singapore, while an ETF based on the FTSE Straits Times Small Cap Index gives exposure to the main listed companies in Singapore.

What is an ETF broker?

An ETF broker is an online trading platform or financial intermediary that allows investors to buy and sell Exchange-Traded Funds (ETFs) on stock exchanges. In Singapore, ETFs are widely available through brokers offering access to the Singapore Exchange (SGX) as well as international markets like the NYSE, NASDAQ, and HKEX.

There are two main types of brokers that offer ETF investing:

• Direct ETF brokers, which allow investors to buy real ETF units through a CDP-linked account or custodian account.
• CFD brokers, which allow traders to speculate on the price movements of ETFs without owning the actual assets, using Contracts for Difference (CFDs).

Your choice depends on your investment strategy:

• If you’re a long-term investor or passive wealth builder, a direct ETF broker such as Saxo, FSMOne, Tiger Brokers, or POEMS by Phillip Securities is ideal. These platforms allow you to invest in physical ETFs across different sectors, geographies, and asset classes — with no capital gains tax in Singapore.
• If you're an active trader looking for short-term opportunities and are comfortable with higher risk, CFD brokers like IG, CMC Markets, or eToro offer leveraged ETF exposure. However, note that these are not suitable for beginners due to the risk of amplified losses.

How to choose an ETF broker?

Choosing an ETF broker is an essential step for investing effectively in the stock market. Some brokers allow you to buy ETFs directly, while others offer CFDs on ETFs. Each type of platform caters to different investment strategies. Here are the criteria to consider to make the right choice.

1. Accessibility to ETFs

Not all brokers offer the same access to ETFs. It is important to check:

• Available ETFs: Some brokers offer a wide selection of physical ETFs, while others only offer ETF CFDs.
• Access to international ETFs: Some brokers allow you to invest in European and American ETFs, while others restrict their offer to certain geographical areas.
• Eligibility for tax-advantaged accounts: If you want to optimise your taxation, favour a broker offering ETFs compatible with tax-advantaged accounts. (Singapore does not have a direct equivalent of the French PEA, so this is a generalisation).

2. Brokerage and Management Fees

Fees directly influence the profitability of your investment. Here are the main costs to compare:

• Order fees: commission applied to each purchase or sale of ETFs. Some stock brokers offer free orders, while CFD brokers often apply a spread (difference between the purchase and sale price).
• Management fees: levied annually by the ETF issuer (generally between 0.05% and 0.50%).
• Inactivity fees: some brokers charge fees if no order is placed over a given period, especially CFD trading platforms.
• Conversion fees: for ETFs listed in foreign currencies, there may be exchange fees on transactions.

3. Platform Ergonomics and Tools

Whether you are a beginner or experienced investor, an intuitive and efficient platform is essential. Check for:

• The quality of search tools and filters to easily find ETFs.
• The existence of a mobile application to manage your investments in real time.
• The availability of advanced charts and technical indicators for active investors, especially for those trading CFDs.

4. Account Type and Taxation

The type of account offered by an ETF broker in Singapore can affect cost efficiency, access to markets, and ownership structure, though Singapore’s tax system is very favourable for investors.

• CDP-linked Account: ETFs are held directly in your name via the Central Depository (CDP). This option is typically available for Singapore-listed ETFs on SGX. You get full legal ownership and shareholder rights, but brokerage fees can be slightly higher.
• Custodian Account: ETFs are held in the broker's name on your behalf (common for overseas ETFs). Fees are often lower, and brokers like FSMOne, Tiger Brokers, and Moomoo offer this for global ETFs (e.g., US, Hong Kong).
• Taxation in Singapore:
• No capital gains tax: Profits from selling ETFs are tax-free for most individual investors.
• Dividends: Local ETF dividends are not taxed. However, foreign ETF dividends may be subject to withholding tax in the source country (e.g., 30% from US ETFs unless reduced via tax treaty).
• If you trade frequently and your activity resembles a business, gains could be taxable under IRAS business income rules, though this is rare for retail investors.
• CFD Trading on ETFs: Gains from CFD trading are not subject to capital gains tax, but if trading is considered a business activity, income tax may apply. Check with a tax advisor if you trade large volumes or use leverage regularly.

5. Leverage and Risk Management

If you wish to use leverage, only brokers offering ETF CFDs will allow you to amplify your positions (generally with leverage of x2 to x5). However, the risk of loss is increased, as leverage can also multiply losses. Make sure your broker offers:

• Protections contre le solde négatif pour éviter de perdre plus que votre capital initial.
• Des ordres stop-loss et take-profit pour gérer efficacement vos positions.

6. The quality of customer service

Good customer service is essential, especially for active investors. Before opening an account, find out about:

• Available contact methods (phone, online chat, email).
• Support availability (days and opening hours).
• Quality of educational resources offered (guides, webinars, tutorials).

7. Security and Regulation

Investing securely means choosing a broker that is licensed and regulated by a trusted financial authority. In Singapore, look for brokers regulated by:

• MAS (Monetary Authority of Singapore) – All local brokers (e.g., DBS Vickers, POEMS, FSMOne, Saxo Markets) must be licensed by MAS and comply with strict financial and cybersecurity rules.

If using an international broker, ensure they are supervised by a credible foreign regulator, such as:

• FCA (Financial Conduct Authority, UK)
• ASIC (Australian Securities and Investments Commission)
• SEC and FINRA (United States)
• CySEC (Cyprus Securities and Exchange Commission) — often used by platforms like eToro

Which ETF Broker is Suitable for a Beginner?

If you're just getting started with ETF investing in Singapore, it’s important to choose a broker that is easy to use, affordable, and provides educational tools to help you make informed decisions. Singapore offers a wide range of brokers suited for different types of beginner investors.

Here are the key features you should look for:

• User-friendly platform (mobile and desktop)
• Low commission fees on ETF trades (especially on SGX and US markets)
• Access to low-cost index ETFs (e.g. STI ETF, S&P 500, MSCI World)
• Support for CDP-linked accounts or low-fee custodian models
• Reliable customer support, preferably with local presence
• Educational content: tutorials, webinars, ETF screeners, demo portfolios

What are the different types of ETFs accessible in Singapore?

In Singapore, investors have access to a wide range of ETFs that allow them to invest in different assets and strategies. Here is a summary table of the main types of ETFs, with their description and some popular examples among Singaporean traders.

How to Invest in ETFs Online in Singapore

Investing in ETFs online is a simple and accessible method to diversify your stock portfolio. Here are the essential steps to start investing effectively.

1. Choosing a Suitable Broker

The first crucial choice is the selection of a broker that will allow you to buy ETFs. To do this, you need to compare several criteria:

• Brokerage Fees: Prioritise platforms with low fees.
• ETF Offering: Ensure the broker offers a wide selection of ETFs (stocks, bonds, sector-specific, thematic, etc.).
• Account Type: Verify if you want to invest via a securities account or a regular trading account for unlimited access to global ETFs.
• Security and Regulation: Opt for a broker regulated by the Monetary Authority of Singapore (MAS) or other recognised authorities.

2. Ouvrir un compte d’investissement

Once you've chosen a broker, you need to open an account by providing a few documents:

• Identification document (identity card or passport).
• Proof of address (bill, tax notice).
• Bank identity statement (RIB) for deposits and withdrawals.

The account validation process can take a few hours to a few days, depending on the broker.

3. Deposit funds into your account

Before buying ETFs, you need to fund your account by making a deposit. Depending on the broker, you can deposit funds via:

💳 Bank transfer (the most common method).
💰 Credit card (faster but sometimes with fees).
📱 Electronic wallets (PayPal, Skrill, etc., depending on the platform).

4. Selecting ETFs to Buy

It is important to choose ETFs that are suitable for your strategy. You can invest in:

• Index ETFs (MSCI World, S&P 500, Straits Times Index) for a passive and diversified approach.
• Sector ETFs (technology, healthcare, renewable energies) to target a trend.
• Bond ETFs for a more defensive allocation.
• Dividend ETFs to generate a passive income.

5. Placing a Buy Order

Once you've chosen your ETF, you need to place a buy order. There are several types of orders:

• Market Order: immediate purchase at the current price.
• Limit Order: purchase only if the ETF reaches a defined price.
• Stop Order: purchase triggered when the price exceeds a certain threshold.

6. Monitor and Adjust Your Portfolio

Investing in ETFs requires regular monitoring to ensure that your portfolio remains aligned with your objectives. To do this:

• Analyse performance: Monitor the performance of your ETFs through your broker or tools like Google Finance.
• Rebalance your portfolio: Adjust your asset allocation if a sector becomes too dominant.
• Invest regularly: Adopt a Dollar Cost Averaging (DCA) strategy by buying ETFs at regular intervals to smooth out the risk.

What fees are involved with an ETF broker?

Investing in ETFs incurs fees that can impact the profitability of your portfolio. These costs vary depending on the type of account, the target market, and the investment method. Here are the main fees to anticipate with concrete examples.

1. Brokerage fees

Brokerage fees are applied to each purchase or sale order of ETFs. They can be fixed (example: SGD 1.5 per order) or proportional (example: 0.1% of the amount invested). Some brokers offer commission-free ETFs under certain conditions, such as a scheduled purchase or a limited order per month.

Exemple de frais de courtage ETF

Achat d’un ETF pour 1 000 SGD avec des frais de 0,5 % → 5 SGD de frais.

Achat du même ETF avec un courtier offrant un ordre gratuit par mois → 0 SGD de frais.

2. ETF Management Fees

These fees are directly levied by the ETF issuer and slightly impact the fund's performance. They are expressed as an annual percentage of assets under management.

Example of ETF Management Fees

• A global ETF with a 0.40% management fee results in an annual cost of 4 SGD for every 1,000 SGD invested.
• An S&P 500 ETF at 0.07% costs only 0.70 SGD for every 1,000 SGD invested over a year.

3. Currency Conversion Fees

If the ETF is listed in US dollars (USD) or British pounds (GBP) and the account is in Singapore dollars (SGD), currency exchange fees apply to purchases and sales. These fees vary between 0.1% and 1% depending on the platform.

Example of Currency Conversion Fees

Buying a Nasdaq-100 ETF in dollars for SGD 2,900, with a currency exchange fee of 0.5% → SGD 14.50 in fees.

4. Inactivity Fees

Certain brokers charge fees if no order is placed for several months. These fees are generally charged after 6 to 12 months of inactivity and may be fixed or proportional to the account balance.

Example of inactivity fees

• An inactive account for 1 year with a fee of SGD 15 per month results in a cost of SGD 180 over the year.

5. Withdrawal fees

Some platforms charge fees to withdraw funds to a bank account. These fees can be fixed (example: SGD 7 per withdrawal) or proportional (example: 1% of the amount withdrawn).

Example of withdrawal fees

A withdrawal of SGD 500 with a fixed fee of SGD 5 incurs a cost of 1% of the amount withdrawn.

6. Spreads and overnight fees (for ETF CFDs)

If you trade ETF CFDs, you need to consider:

• Le spread : écart entre le prix d’achat et de vente, qui peut être fixe ou variable.
• Les frais overnight : appliqués lorsque vous conservez une position avec effet de levier d’un jour à l’autre.

Example of CFD ETF Fees

• Buying an S&P 500 ETF CFD with a spread of 0.2% on a SGD 1,450 position → SGD 2.90 in fees.
• Holding the CFD for 5 days, with overnight fees of 0.01% per day → SGD 0.73 in cumulative fees.

What ETF investment strategies are there?

ETFs offer numerous investment strategies tailored to different investor profiles. Depending on your objectives (growth, passive income, protection against volatility, etc.), some approaches will be more suitable than others.

Here is a summary table of the main ETF investment strategies:

What is the taxation on ETF income in Singapore?

One of the main advantages of investing in ETFs from Singapore is the favourable tax environment. Singapore does not tax capital gains for individual investors, and many types of investment income enjoy tax exemptions. However, some nuances apply depending on where the ETF is domiciled and whether it distributes dividends.

1. Capital Gains Tax – Not Applicable in Singapore

In Singapore, capital gains from selling ETFs are not taxable for individual investors. Whether you invest via a CDP-linked account or a custodian platform, profits from buying low and selling high are tax-free.

Example

You buy 100 units of an S&P 500 ETF at SGD 30 and later sell them at SGD 40 → your SGD 1,000 profit is not subject to tax.

⚠️ Note: If you engage in very frequent trading, the Inland Revenue Authority of Singapore (IRAS) may assess whether your activity qualifies as a trade. If so, profits may be taxed as business income — this is rare and typically affects professional traders.

2. Taxation of Dividends from ETFs

• Singapore-listed ETFs: Dividends received from ETFs listed on the SGX are generally not taxed for individuals.
• Foreign ETFs (e.g. US-listed): Dividends may be subject to withholding tax by the source country.

For example:

• US ETFs impose a 30% withholding tax on dividends for foreign investors. This can be reduced to 15% if your broker supports Form W-8BEN (most major platforms do).

Example

You receive USD 1,000 in dividends from a US-listed ETF → USD 150 is withheld if Form W-8BEN is filed; otherwise, USD 300.

3. Tax Treatment of Leveraged ETFs and CFDs

If you use leveraged ETFs or trade CFDs on ETFs, your profits are also generally not taxed, unless your trading activity is deemed a business by IRAS.

• CFD trading is considered speculative and not subject to capital gains tax.
• However, if you trade very actively with large volumes, gains might be reclassified as income.

Example

You earn SGD 5,000 trading ETF CFDs on a UK platform → no tax applies unless IRAS determines this as business income.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.