BROKERAGE firm KGI Fraser Securities and financial technology group Ayondo are launching a contracts for differences (CFDs) platform.
Called KGI Contrax, the platform will be based on Ayondo's existing TradeHub system.
Contracts for differences are leveraged derivatives that allow investors to gain exposure to an underlying asset with a smaller outlay and without actually owning the underlying. Major CFD houses in Singapore include Phillip Securities, IG and CMC Markets.
The move into the CFD space is the latest initiative by KGI since the former AmFraser Securities was fully taken over this year by the securities arm of Taiwan-based China Development Financial Holding Corp.
The partners hope that the platform will eventually allow investors to automatically follow the trades of "leading traders". That copycat option is now available only through Ayondo's London platform.
As a leading trader, an investor who allows others to copy his or her strategy can generate additional revenue as the investor gains followers. Ayondo chief executive and co-founder Robert Lempka touted this as a way to help remisiers in Singapore.
"There have been a lot of discussions about online trading threatening the livelihood of remisiers," Mr Lempka said in a statement. "We see social trading as a possible way in which remisiers can have a profitable future by signing up to become leading traders."
KGI Fraser head of wealth management Edwin Lee said: "We believe that KGI Contrax may appeal to many investors because of its ease of use and innovative features."
An earlier version of this story said that the copycat option was already available on the new CFD platform. The companies have clarified that this is not the case.