CIMB Bank is a Malaysian financial institution whose subsidiary CIMB Securities (Singapore) has a license for Leveraged Foreign Exchange Trading from the Monetary Authority of Singapore (MAS), as well as several other licenses. The company offers trading in more than 70 currency pairs including Precious Metals (Spot Gold & Spot Silver). The margin forex trading is part of the investment services portfolio of CIMB Bank.
The only forex trading conditions of CIMB we could find are about the minimum required deposit of S$5 000/US$4 000 and the maximum leverage of 1:20. As per the other significant trading conditions like spreads, commissions and minimum trade size, they are listed in the “Trading Conditions”, which are not readily available on the broker’s site. It is worth noting that CIMB charges a USD 2 (or equivalent) for trades below the Commission Threshold as specified in Trading Conditions.
When compared to other Singapore forex brokers, the trading conditions of CIMB do not seem very favorable – the leverage is lower than the not very high leverage (1:50) offered by IG, UOBKH, KGI and GFT. Among the 29 holders of such licenses in Singapore are other major global forex brokerages like Gain Capital, Oanda, CMC Markets, Saxo Bank, etc.
Company Country Regulation
CIMB Securities Singapore MAS
The forex and OTC derivatives market in Singapore is considered the third largest in the world (in terms of turnover), after the US and the UK and is estimated at around $517 billion in April 2015 by the Bank for International Settlements (BIS).
The Singapore financial products market is tightly regulated by the MAS, which has relatively high capital requirements and a number of strict requirements, making the regulated brokers among the more reliable.
MAS’ main goal is to protect clients from misconduct and crooked brokers and one of the main requirements is for keeping client funds in segregated accounts. MAS also requires that all financial companies operating in the country are either licensed, exempt or otherwise regulated by it and that its staff is sufficiently competent and qualified. Forex brokers in particular are required to have a license from MAS if they want to operate legally in Singapore. The watchdog has complete authority over its charges and can award and revoke licenses. The forex brokers are continually supervised and required to provide regular audit reports to MAS.
MAS is adamantly against any broker practices that harm traders. If a broker is found to have created non-favorable trading conditions for their clients, MAS swiftly imposes a fine. The regulator also does not permit speculative trading like hedging and automated trading and this is one of the reasons why most local brokers do not provide the MetaTrader 4 (MT4) platform.
The forex brokers regulated by MAS are also required to disclose information relating to investment products being recommended to consumers.
Considering the insufficient information about the trading conditions offered by CIMB, we cannot reach a verdict whether or not the broker is to be preferred over others. As we already noted there are other companies (29 in total) who hold licenses for margin trading in forex and there are some of them who offer much better ones. IG, for example, requires just $1 to open an account and offers leverage of up to 1:50.
CIMB Review Conclusion
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