Can I trade US options from Singapore?
Yes. Singapore residents can trade US-listed stock and ETF options through a broker that accepts Singapore clients and offers US options. You'll usually need to pass the broker's knowledge or experience check and get options approval. You'll also sign a W-8BEN tax form, and trade during US market hours, which fall in the Singapore evening and night.
Step 1: Choose a broker
I trade on Interactive Brokers (primary) and Tastytrade (secondary). Several other brokers serving Singapore also offer US options. When comparing them, check:
- Regulation: how the broker is regulated and protects client assets. For firms with a Singapore entity, you can look them up in the MAS Financial Institutions Directory.
- Options availability: whether US equity and ETF options are offered, and which strategies your account level allows.
- Costs: per-contract commissions, platform fees, and currency conversion from SGD to USD.
- Tools: option chains with Greeks, implied volatility and an easy way to roll positions.
Step 2: Pass the knowledge check and get options approval
In Singapore, listed options are classed as Specified Investment Products (SIPs). Brokers serving Singapore customers generally assess your knowledge or experience before letting you trade them. This is commonly called a Customer Account Review (CAR). You typically qualify through one of: a relevant diploma or higher (for example in finance or accountancy), at least three years of relevant work experience, at least six trades in listed SIPs in the past three years — or by passing an online module and quiz.
Separately, most brokers grant options levels. Selling cash-secured puts and covered calls usually needs a basic level. Spreads and other strategies need higher ones. Answer the broker's questions honestly — the levels exist to protect you.
Step 3: Tax forms and funding
- W-8BEN: you'll sign this form to confirm you're not a US person for tax purposes. Most brokers do it during account opening.
- Funding: you deposit SGD and convert to USD, or deposit USD directly. Watch the conversion rate and fees.
Step 4: Know the trading hours
| US regular session (9:30am–4:00pm New York) | Singapore time |
|---|---|
| During US daylight saving (about March–November) | 9:30pm – 4:00am |
| Rest of the year | 10:30pm – 5:00am |
That's one reason I like the income strategies I teach. They can be placed in the first hour after the open and managed with rules, so you're not watching screens all night.
Step 5: Understand the basics before your first trade
- One US equity option contract usually covers 100 shares.
- US stock options are American-style, so they can be exercised or assigned before expiry.
- Prices are quoted per share: a premium of US$1.20 means US$120 per contract.
New to options? Start with what a cash-secured put is or the Options Foundations course.
Tax: what Singapore investors should know
- US dividends: as a Singapore resident, dividends from US shares — including shares you hold while running the Wheel — are generally subject to 30% US withholding tax.
- Gains in Singapore: Singapore doesn't tax capital gains. But gains can be taxed as income if IRAS considers your trading to be a business. Frequency, intention and how the activity is run all matter.
Your situation is personal, so speak to a qualified tax adviser.
Common questions
Do I need a lot of money to start?
Not to learn — you can paper-trade first. For cash-secured puts you need the full cash for 100 shares at the strike, so lower-priced stocks and ETFs are easier to start with.
Is trading US options legal for Singapore residents?
Yes, through a broker that's allowed to serve you and that has approved you for options.