CFD trading on US stocks offers Singapore traders the opportunity to profit from both rising and falling markets with leverage. In this guide, we explore the most compelling US stocks to watch and how they can fit into your CFD trading strategy.
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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.
US stock CFDs (Contracts for Difference) are derivative products that allow Singapore traders to trade the price movements of American companies without owning the actual shares. When trading CFDs with IG Singapore, you're entering into an agreement to exchange the difference between the opening and closing price of a US stock.
Unlike traditional stock investing, CFD trading offers several key features:
Leverage and margin trading: CFDs are leveraged products, meaning you only need to deposit a fraction of the trade's full value. For most US stock CFDs, IG Singapore requires a 10% margin, allowing you to control a larger position with less capital.
Go long or short: CFDs enable you to profit from both rising and falling markets. You can 'buy' (go long) if you expect the stock price to rise, or 'sell' (go short) if you anticipate a decline.
No share ownership: With CFDs, you don't own the underlying shares, so you don't receive voting rights or physical dividend payments (though dividend adjustments may be applied to your account).
Singapore traders are drawn to US stock CFDs for several compelling reasons:
Market access: IG provides access to major US markets including NASDAQ and NYSE, with over 10,000 international share CFDs available.
Extended trading hours: Unlike traditional stock markets, IG offers extended hours trading on over 70 US stocks, allowing you to trade from 5pm to 9am Monday to Thursday and 5pm Friday to 6am Saturday (UTC+8).
Leverage opportunities: The ability to trade on margin means your capital can go further, though this also amplifies both potential profits and losses.
Regulatory protection: IG is regulated by the Monetary Authority of Singapore (MAS) and holds a capital markets services licence, providing regulatory oversight and client protection.
Key highlights:
Apple remains one of the most actively watched stock CFDs on IG Singapore's platform. The company's integrated ecosystem continues to drive customer loyalty and revenue growth across multiple product lines. With CEO Tim Cook's strategic focus on artificial intelligence and augmented reality, Apple demonstrates resilience in the competitive technology landscape.
The stock's volatility, particularly around product launches and quarterly earnings, creates opportunities for CFD traders to capitalise on both upward and downward price movements. Apple's premium positioning and substantial cash reserves provide fundamental strength, while market reactions to innovation cycles offer trading opportunities.
Key highlights:
NVIDIA's position at the centre of the artificial intelligence revolution makes it one of the most compelling US stocks to watch for active traders. The company's graphics processing units (GPUs) have become essential infrastructure for AI development, data centres and autonomous vehicles.
Recent earnings show remarkable growth, with the company reporting 69% revenue growth year-over-year in its latest quarterly results³. NVIDIA's stock exhibits significant volatility as markets react to AI spending trends, making it suitable for both short-term and medium-term CFD trading strategies.
Key highlights:
Microsoft CFDs offer traders exposure to one of the most stable yet innovative technology companies. Under CEO Satya Nadella's leadership, Microsoft has successfully transitioned to a cloud-first strategy while maintaining its dominance in enterprise software.
The company's Azure cloud platform continues to show strong growth, benefiting from increasing enterprise adoption of cloud services and AI technologies. Microsoft's integration of AI across its product suite, including Office 365 and its Copilot services, provides multiple growth drivers for traders to monitor.
Key highlights:
Tesla CFDs are particularly popular among Singapore traders due to the stock's high volatility and strong directional movements. The company has gained approximately 69% since the US election in November 2024, driven by optimism about CEO Elon Musk's relationship with the incoming administration⁶.
Tesla's expansion beyond traditional automotive into energy storage, solar technology and autonomous driving creates multiple catalysts for price movements. The stock's sensitivity to regulatory news, production reports and broader EV market trends makes it suitable for active CFD trading strategies.
Key highlights:
Alphabet CFDs provide exposure to the world's leading internet search company and a growing cloud computing platform. The company recently reached new all-time highs following announcements of breakthrough quantum computing chips⁸.
Google's core search business continues to generate substantial advertising revenue, while Google Cloud shows strong growth momentum with 34.9% year-over-year growth in recent quarters⁹. The company's investments in artificial intelligence, including its Gemini large language models, position it competitively in the evolving AI landscape.
Before trading US stock CFDs with IG Singapore, it's crucial to understand how these instruments work:
Margin requirements: Most US stock CFDs require a 20% margin. This means to control a $1,000 position, you only need to deposit $200. However, your profit and loss calculations are based on the full $1,000 position size.
Leverage implications: While leverage can amplify profits, it equally amplifies losses. It's essential to understand that you can lose more than your initial deposit when trading CFDs.
Overnight financing: Positions held overnight incur financing charges based on prevailing interest rates and IG's funding adjustment, typically around 2.5% per annum.
Successful CFD trading requires comprehensive research combining multiple analytical approaches:
Technical analysis: Study price charts, support and resistance levels and technical indicators to identify potential entry and exit points. IG Singapore's platform provides advanced charting tools with over 25 technical indicators.
Fundamental analysis: Monitor company earnings, revenue growth, market share and industry trends. Pay particular attention to quarterly earnings announcements, which often create significant price volatility.
Market sentiment: Track news flow, analyst recommendations and broader market conditions that might impact individual stocks or sectors.
Effective risk management is crucial when trading leveraged CFDs:
Position sizing: Never risk more than a small percentage of your trading capital on a single trade. Many professional traders limit individual trade risk to 1-2% of their total account.
Stop-loss orders: Use stop-loss orders to automatically close positions if they move against you. IG Singapore offers guaranteed stop-loss orders for additional protection (fees may apply).
Diversification: Avoid concentrating all trades in a single sector or company. Spread risk across different industries and geographic markets.
Leverage control: While IG sets maximum leverage automatically, you can effectively reduce leverage by trading smaller position sizes relative to your account balance.
Trading US stock CFDs with IG Singapore involves several straightforward steps:
Day trading involves opening and closing positions within the same trading day. This strategy is particularly suitable for volatile US stocks like Tesla and NVIDIA.
Advantages: No overnight financing charges, reduced exposure to gap risk, ability to capitalise on intraday volatility.
Considerations: Requires significant time commitment, faster decision-making and strong emotional discipline.
Swing trading involves holding positions for several days to weeks, aiming to capture medium-term price movements.
Advantages: Less time-intensive than day trading, ability to capture larger price movements, suitable for traders with other commitments.
Considerations: Exposure to overnight financing charges, gap risk over weekends, requires patience and discipline.
This strategy focuses on trading around specific events like earnings announcements, product launches or regulatory decisions.
Advantages: Clear catalysts for price movements, well-defined risk/reward scenarios, ability to plan trades in advance.
Considerations: High volatility around events, potential for gap movements, requires thorough fundamental research.
US stock CFDs can be suitable for experienced traders who understand leverage and risk management. However, beginners should start with a demo account and thoroughly educate themselves about CFD trading risks before committing real capital. Remember that 71% of retail client accounts lose money when trading CFDs with IG.
US stock CFDs mirror the volatility of underlying US stocks, which can be influenced by company earnings, economic data, geopolitical events and market sentiment. Technology stocks like NVIDIA and Tesla typically exhibit higher volatility than established companies like Microsoft or Apple.
IG Singapore doesn't specify a minimum deposit requirement for opening an account. However, practical considerations around margin requirements and risk management suggest starting with sufficient capital to manage risk effectively across multiple trades.
IG Singapore charges commission-based fees for US stock CFDs rather than spread-based pricing. Specific commission rates vary by market and are detailed in IG's fee schedule. Additional costs may include overnight financing, currency conversion and guaranteed stop-loss fees.
Yes, IG Singapore offers extended hours trading on over 70 US stocks, allowing you to trade from 5pm to 9am Monday to Thursday and 5pm Friday to 6am Saturday (UTC+8). This includes pre-market and after-hours sessions when significant news or earnings announcements often occur.
CFD trading involves trading price movements without owning the underlying shares. You can use leverage and profit from both rising and falling markets. Stock investing involves purchasing actual shares, giving you ownership rights but requiring the full purchase price upfront.
¹ CNBC, "Nvidia tops Microsoft, regains most valuable company title," June 3, 2025
² CNBC, "Nvidia tops Microsoft, regains most valuable company title," June 3, 2025
³ CNBC, "Nvidia tops Microsoft, regains most valuable company title," June 3, 2025
⁴ CNBC, "Nvidia tops Microsoft, regains most valuable company title," June 3, 2025
⁵ CNBC, "Alphabet and Tesla reach fresh records," December 11, 2024
⁶ CNBC, "Alphabet and Tesla reach fresh records," December 11, 2024
⁷ The Motley Fool, "1 Unstoppable Stock That Could Join Nvidia, Apple, and Microsoft in the $3 Trillion Club in 2025," January 13, 2025
⁸ CNBC, "Alphabet and Tesla reach fresh records," December 11, 2024
⁹ The Motley Fool, "1 Unstoppable Stock That Could Join Nvidia, Apple, and Microsoft in the $3 Trillion Club in 2025," January 13, 2025
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