Commodity Trading Act
Trade smoothly when your business is licensed in compliance with Singapore's regulatory laws and the CTA
Through licensing, assure your customers and business partners of the credibility of your firm's operations
About this Act
"Spot commodity trading" refers to the buying or selling of a commodity at its current market price. Such transactions result in the physical delivery of the commodity.
The Commodity Trading Act 1992 (CTA) regulates “spot commodity trading”. It promotes bona fide business activities involving “spot commodity trading” as well as protects investors and the public against “bucket shops” in “spot commodity trading”.
While the CTA provides a safeguard for the public, the public must remain vigilant and wary of fraudulent firms or individuals conducting business activities involving commodities.
You can refer to the Financial Institutions Directory on the MAS website for a list of financial institutions regulated by MAS and the regulated activities they are authorised to provide.
You can also check the Investor Alert List (IAL) on the MAS website. The IAL provides a listing of unregulated persons or entities that, based on information received by MAS, may have been wrongly perceived as being licensed or regulated by MAS. Consumers must exercise caution when dealing with all unregulated entities, not just entities that are listed on the IAL, as the list is not exhaustive and is updated from time to time.
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Commodities include (but are not limited to):- Oil
- Gas
- Chemicals
- Palm oil
- Rubber
- Soya beans
- Iron ore
- Aluminium
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Online versions of the CTA and its subsidiary legislation are available on the Singapore Statutes Online (SSO) website
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Hardcopies may be purchased online
License requirements
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Licences are mandatory for anyone who is conducting or is involved in spot commodity trading, unless exempted
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You can be exempted from licensing if you:
- carry on “spot commodity trading” on your own account and do not solicit any funds from the public
- facilitate “spot commodity trading” for a customer, but you are not a party to the contract, and you do not handle any customer money or assets
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Ensure that your intended business activities are in compliance with the CTASeek independent legal advice from a lawyer qualified to practise Singapore law to ensure that your intended business activities are in compliance with the CTA and all applicable legal and regulatory requirements in Singapore.
Ready to apply?
If you are conducting or intending to conduct business activities involving “spot commodity trading”, you should seek independent legal advice from a lawyer qualified to practise Singapore law. Ensure that your intended business activities are in compliance with the CTA and all applicable legal and regulatory requirements in Singapore.
The Singapore Government takes a firm stance against unlicensed and illegal business activities involving “spot commodity trading”. Failure to comply with the CTA may result in an offence punishable by fine or imprisonment or both.
Before submitting any new licence applications, provide us with a brief description of your intended business activities by reaching out to us at go.gov.sg/askenterprisesg.
Please include the following details in your email:- Company name (and company registration number)
- Name of contact person
- Contact number
- Email address
- Website address
Need additional help?
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Policies and licensing enquiriesFor policy and licensing enquiries regarding the CTA, please reach out to us at go.gov.sg/helloesg with the following details:
- Company name (and company registration number)
- Name of contact person
- Telephone number
- Email address
- Website address
- Your query
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Reporting breaches of the CTAThe Commercial Affairs Department (CAD) of the Singapore Police Force enforces the CTA. The public may report suspected breaches of the CTA to the CAD by filing a police report at any Neighbourhood Police Centre.
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Disclaimer
- In addition to the Terms of Use of this website, please note that the information on the Commodity Trading Act 1992 (CTA) presented in these webpages is not intended to be, and should not be relied upon to be, a definitive interpretation of the statutory provisions of the CTA and its subsidiary legislation.
- For the avoidance of doubt, nothing in these webpages concerning the CTA constitutes legal advice by Enterprise Singapore. Any person conducting or intending to conduct business activities involving commodities should seek independent legal advice from a lawyer qualified to practise Singapore law to ensure that the person’s intended business activities are in compliance with the CTA and all applicable legal and regulatory requirements in Singapore.
- In the event of any discrepancies between these webpages and the CTA, the CTA shall prevail.
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