Top 10 HFT Firms in Singapore Worth Checking Out in 2026
Singapore is well-known as Asia’s leading financial center. Because of its high-speed internet, clear regulations, and proximity to Asian markets, many world-class trading firms have offices there. In this environment, High Frequency Trading (HFT) has become an important part of market activity, making it useful to first understand what it is and how it works before looking at the major firms involved.
We will look at ten well-known HFT firms in Singapore. However, first, you must understand what HFT is, how it works, how it differs from traditional algo trading, and its benefits and drawbacks. These businesses make more sense once you understand the fundamentals.
What Is HFT?
High Frequency Trading (HFT) is a trading strategy that employs ultra-fast computers to buy and sell assets in incredibly short periods of time, often seconds or milliseconds. Humans can obviously not do this manually because their click speed is limited. Computer algorithms make all buy and sell decisions in HFT, rather than humans pressing buttons one by one.
HFT’s primary goal is to identify small price differences in the market. For example, if the price of an asset differs slightly between two exchanges, the HFT computer buys at the cheaper exchange and sells at the more expensive exchange almost immediately. Although the profit per transaction is small, the volume of transactions is large enough to generate a significant total profit.
HFT is now an essential component of the modern trading environment. Many stock, forex, and cryptocurrency exchange transactions are carried out using HFT. Because of its speed, HFT has the potential to influence price movements and market liquidity, as well as contribute to market volatility.
HFT vs. Algo Trading
Although HFT is a subset of algorithmic trading, not all algo trading is HFT. Algo trading refers to the use of computer algorithms to determine when to buy and sell. The difference is that algorithmic trading isn’t always lightning fast. Sometimes the algorithm simply helps with analysis, and transactions are completed in minutes or hours.
Speed is essential in high-frequency trading. Milliseconds are the time it takes to complete transactions. The system is close to the exchange server, allowing for faster receipt of price data. Regular algo trading emphasizes strategy and analysis over extreme speed. As a result, algo trading is suitable for medium-term investors, whereas HFT is typically used by large firms with expensive technology.
In terms of complexity, HFT is far more complex. It necessitates powerful computers, lightning-fast internet connections, skilled programmers, and high costs. Regular algo trading can be done using a standard computer and simple strategies such as moving averages. So, you could define HFT as “super-fast and super-sophisticated” algorithm trading.
Main Characteristics of HFT
HFT differs from traditional trading in a number of ways. These characteristics concern speed, transaction volume, technology, and small but significant profits. Furthermore, these characteristics are interconnected and interdependent, allowing HFT to operate so effectively in modern financial markets.
Speed
Speed is critical in high-frequency trading. Transactions happen in fractions of a second, which is much faster than blinking an eye. To reduce latency, HFT systems make use of specialized networks and servers located near exchanges. Even minor differences, such as a few microseconds, can cause a company to lose speed to competitors.
Algorithms
Algorithms make all decisions in high-frequency trading. These algorithms are computer programs that can read price data, charts, and market trends in real time. These algorithms can detect patterns, such as when prices are about to rise or fall slightly, and execute orders without waiting for human intervention.
High Volume/Turnover
Every day, HFT executes thousands to millions of transactions. Positions, on the other hand, are usually held for only a few seconds, if not less. Thus, it is not a “buy and hold” type of trading. To take advantage of small market opportunities, the system constantly opens and closes positions.
Micro-Profits
Profits from HFT are typically very small per transaction, such as fractions of a rupiah or cent. However, because there are so many transactions, the overall profits can be significant. As a result, they place a higher value on the quantity of transactions rather than the size of a single transaction.
Liquidity
High-frequency trading contributes to increased market liquidity. Because they consistently place buy and sell orders, it makes it easier for others to conduct transactions. The bid-ask spread can also be reduced, resulting in lower trading costs.
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How Does HFT Work?
HFT is more than just “fast computers,” as it encompasses technology, algorithms, and data analysis. All of these components must work together within a very short period of time. Profit opportunities can be quickly lost if one component is slow.
Operational Mechanisms
HFT operates by seeking out small price opportunities, automatically deciding on them, and then executing orders as quickly as possible. The system operates continuously as long as the market is open, reading millions of price data points, order books, and news in real time.
- Algorithm Development: Before HFT systems are used, programmers and mathematicians develop specialized algorithms. These algorithms are trained to detect patterns such as price fluctuations, arbitrage opportunities, and extremely rapid trends. In addition, the algorithms are repeatedly tested to ensure their accuracy and reliability.
- HFT analyzes market data continuously, 24 hours a day. Prices, volume, order movements, and, on occasion, news are among the data points collected. Everything is being analyzed in real time. If the system detects an opportunity, such as a slight price difference between two locations, it takes immediate action.
- Order Execution: Once the algorithm has decided whether to buy or sell, the order is transmitted to the exchange via a high-speed connection. The goal is to make sure the order arrives before other businesses. Latency is critical in this scenario, as microseconds can mean the difference between profit and loss.
Technology and Infrastructure
HFT necessitates expensive technology. A basic laptop and home Wi-Fi are insufficient. To ensure that the system runs smoothly, they use dedicated servers, sophisticated software, and a professional IT team.
- Low-Latency Networks: A low-latency network means a network with very little delay. Price information from the exchange can be obtained almost instantly. This is critical for the system to make quicker decisions than competitors.
- Co-Location Services: Co-location entails housing the HFT company’s servers in the same building as the exchange’s servers. This results in shorter physical distances, faster signal speeds, and lower latency. The data will arrive more quickly if the servers are closer together.
- Advanced Software: High-frequency trading software must be capable of interpreting large amounts of data, making decisions, and placing orders quickly. As a result, the software is custom-built and constantly updated to maintain competitiveness.
Top 10 HFT Firms in Singapore Worth Checking Out in 2026
Now that you’ve learned about HFT and how it works, here are the top ten HFT firms in Singapore that will be active in 2026. They use cutting-edge technology and have a significant impact on Asian market liquidity.
1. Quant Matter
If you’re interested in truly data-driven trading, Quant Matter is a name that often comes up in Singapore. They play with numbers, statistics, and quantitative models to read market movements with high precision. Their approach feels serious but also very focused on one main thing: how to make fast and accurate trading decisions.
For traders, Quant Matter’s presence in Singapore means there are active and responsive liquidity providers across various instruments. Their activities help the market move more smoothly, allowing transactions to occur quickly without having to wait too long. You may not see them directly, but the results of their trading activities are felt in the market.
2. Citadel Securities
Citadel Securities often comes up when discussing global market makers. Their role is more pronounced on the trading side, as they are heavily involved in providing buy and sell prices in various markets. This is beneficial for traders because the prices displayed on the screen are usually tighter, making transactions more convenient.
In Singapore, they are quite active in various assets, such as stocks and derivatives. Their activity keeps the market lively, especially during peak hours. If you trade in a major market, you’ve likely already indirectly interacted with the liquidity they provide.
3. DRW Trading
DRW has a reputation for being an opportunity-seeking player across a wide range of markets, from traditional assets to digital assets. They are known for their aggressive reading of price movements and seeking opportunities in volatile market conditions. For other traders in the market, their presence translates into higher trading volume.
In Singapore, they are heavily involved in the Asian session, making the market feel active from early morning. If you trade during these hours, available liquidity is often boosted by the activity of firms like DRW. This results in faster order execution and more competitive pricing.
4. Hudson River Trading
Hudson River Trading employs a trading style that relies heavily on quantitative research and the speed of technology. They operate behind the scenes, shaping price dynamics through millions of small transactions every day. While not directly visible, their influence is felt on the charts.
For traders, the presence of HRT means more opportunities to enter and exit the market without difficulty. Order books are filled more easily, and spreads tend to be tighter. This is especially helpful for those who enjoy scalping or fast-paced trading.
5. Jane Street
Jane Street is known as a major player in ETFs and global equity markets. Their market reading is often highly mathematical and disciplined. This impacts stable liquidity across many instruments frequently traded by retail and institutional traders.
In Singapore, they help maintain market activity during the Asian session. If you trade ETFs or popular derivatives, the pricing you see is likely influenced by the market-making activities of firms like Jane Street.
6. Jump Trading
Jump Trading operates extensively across various global exchanges. They primarily trade assets with high volatility and super-fast response times. Their activity keeps the market lively, especially in high-volume instruments like indices, commodities, and crypto.
For traders, Jump’s presence means more opportunities for quick transactions. When the market moves rapidly, they often stay amidst the flow of liquidity, allowing you to buy or sell at prices close to market prices.
7. Tower Research Capital
Tower Research Capital is known for its active presence throughout the day in global trading sessions, including the Asian session in Singapore. They are frequently present on the order book as a consistent provider of liquidity across multiple markets. This helps maintain a smooth transaction flow, even during quiet periods.
For retail traders, this is a favorable environment because orders can be entered without significant price differences. The market doesn’t feel “empty,” and you don’t have to wait long to find a counterparty.
8. Optiver
Optiver has a long history as a market maker, particularly in derivatives. They actively quote buy and sell prices, making it easier for other traders to enter the market. Their activities often result in tight spreads.
In Singapore, they are active in options and other derivatives. If you’re interested in learning or trying derivatives trading, Optiver’s name is often associated with liquidity, making these instruments feel actively traded.
9. Flow Traders
Flow Traders are known for their active presence in ETPs and digital assets. So, if you trade ETFs or exchange-traded tokens, you likely benefit from the liquidity they offer. They operate globally, making the market feel more vibrant 24/7.
In Singapore, their activities help connect Asian markets with Europe and the Americas. Traders who prefer global products often benefit from this, as spreads are tighter and orders are executed faster.
10. IMC Financial Markets
IMC has long been a market maker on various exchanges worldwide. They are involved in numerous instruments, particularly derivatives and options. Their presence often contributes to market stability because there are always parties ready to buy and sell.
For traders, this means there’s no need to worry about a quiet market. With IMC’s activity, transaction volume remains stable, allowing you to enter and exit positions more easily without experiencing extreme price fluctuations.
Advantages of HFT
HFT’s incredible speed and automation have several clear benefits for today’s markets. Trades get executed faster, prices adjust more efficiently, and orders are matched without long waiting times, making the market feel more active and liquid. From here, a number of key advantages emerge, explaining why HFT is gaining traction in modern trading.
Enhanced Liquidity
HFT helps to make the market more liquid, which means there is always someone willing to buy and sell at almost any time. This allows you to enter and exit positions without having to wait long. High liquidity also gives the market a sense of stability because transactions continue to occur in large volumes on a daily basis.
Reduced Bid-Ask Spreads
Because HFT frequently provides continuous buy and sell prices, the spread between them is typically smaller. Many traders benefit from narrow spreads, which lower their trading costs. You can bring prices closer to the actual market price, reducing losses due to price differences.
Market Efficiency
HFT contributes to price movements that are more consistent with real market conditions. If a price is too low or too high, the HFT system quickly intervenes to correct it via continuous transactions. As a result, prices better reflect true values, and new information reaches the market faster.
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Disadvantages of HFT
Despite its speed and sophistication, high-frequency trading has drawbacks that must be carefully considered. As a result, while exploring the various benefits of HFT, it is also critical to understand the risks before fully committing to high-frequency trading.
Market Manipulation
Some HFT operators may use tricks such as spoofing or placing a large number of fake orders to mislead investors. This can lead to other traders seeing bogus supply and demand signals. As a result, others may make incorrect decisions based on manipulated price movements.
Increased Volatility
Prices can occasionally move too quickly up or down due to the extremely fast transaction speed. If the market is panicked, HFT can exacerbate the panic by causing prices to fall or rise sharply in a short period of time. This is what causes phenomena such as flash crashes to happen unexpectedly.
Technology Reliance
HFT is entirely dependent on extremely fast computers, internet networks, and servers. If there is an error, a power outage, or the system is attacked, losses can occur within seconds and cannot be reversed. These technological risks make HFT appear powerful, but they also expose it to significant and unexpected disruptions.
Conclusion
High-frequency trading (HFT) has become an essential component of modern markets, whether in stocks, derivatives, or digital assets. Its speed contributes to market activity, liquidity, and efficiency, making daily transactions easier for people to complete. Although it operates in the background, its impact is evident on the price charts we see when trading.
However, HFT entails risks that should not be underestimated. When technology fails, the same speed can cause manipulation, high volatility, and major problems. Understanding how HFT works allows us to become more aware traders, rather than blindly following, and to be more cautious when observing extremely rapid market price movements.
