Option trading in Singapore has gone from niche to mainstream, mostly because brokers like Webull and Syfe now let you buy a US contract for under a dollar. An option is a contract that gives you the right, but not the duty, to buy or sell 100 shares of a stock at a fixed price before a set date. Buy a call if you think a stock rises, a put if you think it falls, or sell options to collect income. The headline commission is the easy part. The number that decides whether you keep your profit is the full fee stack (commission, platform fee, three US regulatory fees, and 9% GST on top), and before any of that you need to clear a MAS eligibility check that most beginner guides skip.
An option is a contract tied to an underlying asset, almost always a US-listed stock or ETF for Singapore retail traders. One contract represents 100 shares. You pay a premium per share, so a contract quoted at US$3 costs US$300, not US$3.
There are two building blocks. A call gives you the right to buy the underlying at a set strike price up to the expiry date. A put gives you the right to sell at the strike. You are never forced to exercise; if the trade goes against you, the most a buyer loses is the premium paid. The seller (writer) of an option takes the opposite side: they collect the premium upfront but carry the obligation to deliver or buy shares if the option is exercised.
Say Apple trades at US$210 and you expect a jump before earnings. You buy two call contracts at a US$215 strike for a US$2.50 premium. Your outlay is US$2.50 x 100 x 2 = US$500, plus fees. If Apple climbs to US$230, those calls are worth at least US$15 each (US$230 minus US$215), so US$15 x 100 x 2 = US$3,000 before fees. If Apple stays below US$215 at expiry, the calls expire worthless and you lose the US$500 premium and nothing more.
That asymmetry, a capped loss against a large potential gain, is the appeal. It is also the trap: most short-dated options that finish out-of-the-money expire worthless, so the buyer loses 100% of the premium far more often than a stock investor loses their capital. Treat the premium as money you can afford to write off. If you are still building a core portfolio, start with the basics of investing in Singapore before putting cash into contracts that can go to zero in a week.
Buying calls and puts to bet on direction is only one use. The other common uses earn income or protect a position: covered calls and protective puts work on shares you already own, and a cash-secured put uses cash you set aside.
Update, 13 October 2026: OCC's clearing fee is now US$0.025 a contract with no cap (was US$0.02, capped at US$55), the exchange regulatory fee brokers pass on is about US$0.012 to US$0.02 (was about US$0.02675), and FINRA's sell-side fee is paused until 31 December 2026. Brokers advertise the per-contract commission because it is the smallest number. The real cost has up to five layers, and Singapore investors pay 9% GST on top. These pass-through charges are set by US bodies, so they differ little from broker to broker (figures as of October 2026):
| Fee | Charged by | Amount | Applies to |
|---|---|---|---|
| Commission | Your broker | US$0 to US$2.00 | Per contract, where the brokers compete |
| Platform fee | Your broker | US$0 to US$0.50 | Per contract on some brokers, on top of commission |
| Options Regulatory Fee (ORF) | US options exchanges | About US$0.012 to US$0.02, by broker | Per contract, both buy and sell |
| OCC clearing fee | Options Clearing Corp | US$0.025 | Per contract |
| SEC + FINRA fees | US regulators | SEC: US$20.60 per US$1 million sold. FINRA: US$0 until 31 December 2026 | Sell-side transactions |
| GST | IRAS | 9% on broker fees, and on pass-through fees at Tiger and moomoo | All Singapore residents |
Update, 13 October 2026: Syfe's zero-fee options offer is now tier pricing, 10 free contracts a month then US$0.49 each on its entry tier (was US$0), and moomoo now lists a US$1.99 minimum commission per order, so one contract on its default Fixed Plan costs at least US$2.98 (was about US$1.64). Below are the standard per-contract costs for the main MAS-regulated brokers offering US options to Singapore investors. Promotional rates churn constantly, so the figures below are the published standard pricing as of October 2026; always confirm the live rate on the broker's own fee page before you trade. If you want a wider view of trading accounts, our robo-advisor versus DIY brokerage comparison covers the non-options side.
| Broker | Commission/contract | Platform fee/contract | Effective min/contract | MAS regulated |
|---|---|---|---|---|
| Syfe | 10 free a month, then US$0.49 (entry tier) | US$0 | US$0.49, min US$0.99/trade | Yes |
| Tiger Brokers | US$0.65 (US$0.35 promo) | US$0.30 | About US$0.95, min US$2.99/order (US$0.65 promo, no min) | Yes |
| Webull | US$0.55 | US$0 | US$0.55 | Yes |
| Longbridge | US$0.65 (US$0 promo) | US$0.30 (US$0.50 promo) | From US$0.50 (promo) | Yes |
| moomoo | US$0.65 on Fixed Plan (min US$1.99/order) | US$0.30 (min US$0.99/order) | About US$0.95, min US$2.98/order | Yes |
| Interactive Brokers | From US$0.65 | Included | US$1.00 min order | Yes |
| Saxo | US$2.00 | Included | US$2.00 | Yes |
Options are a Specified Investment Product (SIP) under MAS rules, because their returns depend on derivatives and complex payoffs. You cannot just open an account and start buying. For exchange-traded products like listed options, the broker must run a Customer Account Review (CAR) before approving you, which checks your trading background. Many guides confuse this with the Customer Knowledge Assessment (CKA), which is the parallel test for unlisted SIPs such as structured notes.
You pass the CAR with relevant education, a finance qualification, 3 straight years of relevant work in the past 10, at least 6 listed SIP trades in the last 3 years, or by passing the free SGX Online Education Programme module and its test. It costs nothing, but the result lapses after 3 years if you traded a listed SIP once or not at all in that time, and then the broker has to review you again. MoneySense, the national financial education body, explains the SIP framework and why these assessments apply. If options sound heavier than you want, our guide to ETFs covers a simpler way to get diversified market exposure.
Options reward people who already understand the underlying stock, can stomach a total loss of premium, and treat the position as a defined-risk tool rather than a lottery ticket. They are a poor fit if this would be your first market exposure or if the premium is money you need.
A sensible order of operations: build an emergency fund, get a low-cost diversified core, then add options only with money you can lose. Run the numbers on your overall position sizing with our net worth calculator before deciding how much to risk, and keep contributions to long-term vehicles like your SRS account untouched by speculative trades.
Yes. Singapore residents can legally trade US-listed options through MAS-regulated brokers such as Webull, Tiger Brokers, Interactive Brokers, Syfe and Saxo. Because options are a Specified Investment Product, the broker must first assess your eligibility through a Customer Account Review.
There is no fixed minimum, but a single US contract can cost anywhere from tens to hundreds of dollars depending on the premium, since each contract covers 100 shares. Many traders start with a few hundred US dollars, treating it as risk capital they are prepared to lose entirely.
As of October 2026, Syfe gives 10 free contracts a month on its entry tier, more on higher tiers, then charges US$0.49 a contract (minimum US$0.99 a trade) with no platform fee, while Webull charges US$0.55 a contract with no platform fee. Promotions change often, so confirm the live rate on each broker's fee page before opening an account.
Yes. Singapore residents pay 9% GST on the broker's commission and platform fee, and brokers such as Tiger and moomoo also add it to the US regulatory fees they pass on. On a low single-digit-cent commission the GST is tiny, but it adds up across high-frequency trading.
This is general financial information for Singapore, not personal financial advice. Figures change, so verify current rates against the official sources above before acting. See our full disclaimer.
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