As online brokerages burgeon, MAS warns against unlicensed ones

Singapore

NEW-TO-MARKET online brokerages tout lower or even zero commissions for trading on their platforms, but investors should be aware of risks for those not authorised or licensed by the authorities to operate in Singapore.

Investment platform eToro, for instance, last month announced the extension of its commission-free stock trading offering to clients in the Asia-Pacific - the first such option for investors in Singapore. But the firm does not have a Capital Markets Services (CMS) licence to operate here.