Singapore penny stocks offer exciting opportunities for CFD traders seeking high volatility and potential returns. These low-priced securities, typically trading under S$2, can be accessed through CFD trading platforms like IG Singapore, allowing you to trade price movements without owning the underlying shares directly.
This article is intended for educational and informational purposes only and does not constitute any form of investment advice. Please ensure that you understand the risks and consider your specific investment objectives, financial situation or particular needs before making a commitment to trade.
Singapore penny stocks refer to shares of publicly traded companies listed on the Singapore Exchange (SGX) that trade at around S$2 or below per share. These securities are particularly popular among CFD traders due to their high volatility and potential for significant price movements.
When trading Singapore penny stocks through CFDs (contracts for difference), you're trading the price movements of these stocks without actually owning the underlying shares. This approach offers several advantages including leverage, the ability to profit from both rising and falling markets, and lower capital requirements.
Many Singapore penny stocks are listed on both the SGX Mainboard and the Catalist board, covering various sectors from retail to precision engineering. These companies have experienced significant price fluctuations that create opportunities for active CFD traders.
The appeal of trading Singapore penny stocks via CFDs lies in the combination of high volatility and flexible trading capabilities. CFD traders can use leverage to amplify their exposure while maintaining the ability to enter and exit positions quickly as market conditions change.
Lower capital requirements
CFD trading allows you to gain exposure to penny stocks with a smaller initial outlay compared to buying shares directly. With leverage, you can control a larger position size while only putting down a fraction of the total value as margin.
High volatility creates opportunities
Penny stocks are known for their significant price swings, which can create numerous trading opportunities for active CFD traders. This volatility is particularly attractive for short-term trading strategies like day trading and swing trading.
Ability to profit from falling markets
Unlike traditional share ownership, CFD trading allows you to short sell penny stocks, potentially profiting when prices decline. This flexibility is especially valuable in volatile penny stock markets.
Leverage amplifies losses
While leverage can increase potential profits, it equally amplifies potential losses. A small adverse price movement can result in significant losses relative to your initial margin deposit.
High volatility cuts both ways
The same volatility that creates opportunities can also result in rapid, unpredictable losses. Penny stocks can experience dramatic price swings that may quickly move against your position.
Limited liquidity
Many penny stocks suffer from low trading volumes, which can result in wider bid-ask spreads and difficulty exiting positions quickly, particularly during volatile market conditions.
Higher risk of company failure
Penny stock companies often have weaker financial positions and may be more susceptible to business challenges, delisting or bankruptcy, which can result in total position loss.
Traders considering Singapore penny stock CFDs must have a high risk tolerance and employ robust risk management strategies including stop-loss orders, position sizing and diversification.
Company
|
Latest share price*
|
Share price change in 2025*
|
Available for CFD trading with IG?
|
Available for investing with IG Markets SG app?
|
|
S$1.46
|
-0.7%
|
✔
|
✔
|
|
S$1.16
|
-4.9%
|
✔
|
✔
|
|
S$0.84
|
+101.2%
|
✔
|
✔
|
|
S$1.91
|
+31.0%
|
✔
|
✔
|
|
S$2.32
|
+42.3%
|
✔
|
✔
|
*As of 28 October 2025
Latest earnings: ComfortDelGro reported Q3 2025 revenue of S$1.21 billion, up 3.4% year-on-year. Operating profit rose 12.1% to S$122.6 million. The company announced the acquisition of remaining shares in CityCab Pte Ltd and declared an interim dividend of S$0.021 per share.4
Technical levels: Support at S$1.44, resistance at S$1.52. Trading above 200-day moving average with moderate 2% weekly volatility.5
Latest earnings: StarHub posted Q3 2025 service revenue of S$453.4 million, a 1.2% increase from the previous quarter. EBITDA margin remained stable at 24.5%. The company issued S$200 million in 3.35% subordinated perpetual securities and reaffirmed its FY2025 dividend guidance of S$0.062 per share.9
Technical levels: 52-week range S$1.10–1.27. Trading near support with moderate volatility as of end-October 2025.10
Latest earnings: CSE Global reported H1 2025 net profit of S$15.5 million, a 63.2% increase compared to H1 2024. Revenue rose 14.3% year-on-year to S$341.1 million. The company’s orderbook stood at S$673 million as of 30 June 2025, supported by new contracts in the energy, infrastructure, and data centre segments.14
Technical levels: 52-week range S$0.375–0.84. Recent breakout (lend-October 2025) with 5% weekly volatility.15
Latest earnings: AEM Holdings posted H1 2025 revenue of S$190.3 million, up 9.6% from H1 2024. Net profit rose to S$3.16 million, a 283.9% increase year-on-year, while profit before tax reached S$3.94 million. Operating cash flow surged to S$46.4 million, up from S$7.1 million a year earlier. The company also guided for H2 2025 revenue to be in the range of S$170 million to S$190 million.19
Technical levels: High volatility (8% weekly). Trading near resistance following a 62% six-month rally.20
Latest earnings: Sheng Siong reported Q3 2025 net profit of S$43.8 million, a 12% increase from the same period last year. Earnings per share rose to S$0.0291, up from S$0.026. The company attributed growth to sustained consumer spending supported by CDC and SG60 vouchers.24
Technical levels: 52-week range S$1.57–2.32. Trading at highs with low beta and 2% weekly volatility.25
► Momentum trading approach
Momentum trading involves identifying penny stocks with strong price trends and entering CFD positions to capitalise on continued movement. Use technical indicators to identify momentum, set tight stop-loss orders, and monitor trading volumes to confirm trend strength.
► Swing trading method
Swing trading aims to capture price movements over several days to weeks, taking advantage of penny stocks' significant price swings. Identify support and resistance levels, use wider stop-losses, and consider both technical and fundamental factors.
► Risk management essentials
Regardless of strategy, effective risk management is crucial:
What are stock CFDs?
Before trading any Singapore penny stock CFD, conduct thorough research including company fundamentals, management quality, industry dynamics, technical analysis and recent news developments.
CFD trading offers several key differences: no ownership of underlying shares, leverage capabilities, short selling opportunities, overnight financing costs, and different tax implications compared to direct share ownership.
Singapore penny stocks are generally not recommended for new CFD traders due to high volatility, leverage risks, limited liquidity and the requirement for sophisticated risk management skills.
To begin trading with IG Singapore: open a CFD trading account, complete verification, fund your account, research opportunities using IG's tools, start with small position sizes, and implement proper risk management.
IG Singapore does not specify a minimum deposit requirement for CFD trading accounts. However, ensure you have sufficient capital to meet margin requirements, maintain positions through adverse movements and implement proper risk management.
All data were retrieved from the following websites on 28 October 2025.
1 Yahoo Finance - ComfortDelGro
2 SGInvestors - ComfortDelGro Analyst Target Price
3 Dividends.sg - ComfortDelGro
4 ComfortDelGro Earnings Report - H1 2025
5 TradingView - ComfortDelGro Technicals
7 SGInvestors - StarHub Analyst Target Price
9 StarHub Earnings Release - H1 2025
10 TradingView - StarHub Technicals
12 SGInvestors - CSE Global Analyst Target Price
14 CSE Global Earnings Release - H1 2025
15 TradingView - CSE Global Technicals
16 Yahoo Finance - AEM Holdings
17 SGInvestors - AEM Holdings Analyst Target Price
18 Yahoo Finance - AEM Holdings
19 AEM Holdings Earnings Release - H1 2025
20 TradingView - AEM Holdings Technicals
21 Yahoo Finance - Sheng Shiong Group
22 The Edge Singapore - "DBS raises target price for Sheng Shiong"
23 Dividends.sg - Sheng Shiong Group
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