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FinTechs belonging to this category operate trading platforms or online marketplaces for investment opportunities or certain financial contracts – e.g. securities, factoring etc. and sometimes furthermore provide contact to financial experts and tools for the decision-making.
FinTech-signalling and social trading platforms provide users with the opportunity to exchange opinions on financial investments and offer signal providers and traders the possibility to make their securities portfolio publicly visible. This way the portfolios can be linked to and followed by other traders via the platform automatically, so that the trading and investment strategy of the followed traders can be copied.
The platform often cooperates with a financial services provider or a credit institution where both the trader and the follower hold their securities accounts, and which execute the orders both of the trader and the follower and to which the platform passes on the trading decisions.
Introduction
Attitude of the country towards trading, social trading or signalling platforms
The Singapore government is supportive of the growth and development of trading, social trading or signaling platforms among the wider push for FinTech innovations in Singapore. Singapore users are also receptive, such as seen in the example of Moomoo Singapore which reports over one-third of Singapore residents aged 20-70 using the platform, representing a significant user base.
MAS has been proactive in its supervision of trading platforms and has previously taken measures against overseas trading platforms and blocked their use from Singaporean residents as they do not hold the requisite licences required to conduct their activities.
Legal affairs
Obligations and requirements to provide trading, social trading or signalling platforms described above
Providers of these platforms are generally required to hold a Recognised Market Operator (RMO) Licence or an Approved Exchange (AE) licence to operate an organized market for trading capital markets products in Singapore.
Additional comments regarding the legal situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area
N/A
Economic conditions
Market size for trading, social trading or signalling platforms and biggest companies in this business area
The market size has grown considerably in recent years due to increased adoption of social media and online communities for trading insights, growing demand for accessible trading platforms. Notable platforms include Moomoo Singapore, Interactive Brokers and Saxo Markets.
Additional comments regarding the economic situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area
N/A