Forex Trading In Singapore | Important Information!
This website will reveal to you how to trade forex in Singapore and live like a king from now on.
Singapore can easily boast one of the greatest commercial and social success stories that has taken place in the world over the past few decades. The economic success of Singapore is well known. Its economy has grown at a rate in excess of 7% per annum since independence in 1965, and it is now regarded as one of the world’s leading commercial locations, boasting the fourth largest financial center, along with being one of the five busiest ports for shipping traffic.
Over the years, it has become a financial and distribution center for Asia, and the total trade volume through its ports is actually four times the size of its GNP, the highest in the world. These economic achievements have come as a result of hard work and a farsighted government’s desire to sustain a free and open economy, avoid any subsidies, welcome foreign investment, and target budgetary surpluses as a rule.
Forex Trading In Singapore
So you want to make money out of Forex Trading and you don’t know how to start, especially when all information on the net is saturated and bombarded with advertisements from 1,001 Forex Brokers trying hard to attract you to click on their links. But all you need is more information on Forex Trading In Singapore.
According to the Bank for International Settlements, Singapore is the third most active institutional foreign exchange trading centers in the world. It is also the second largest over-the-counter derivatives trading center in Asia, and a leading commodities derivatives trading hub. An active local stock exchange completes the necessary infrastructure to support a healthy trading environment for local retail forex brokers.
A number of major firms have opened local offices to support retail forex trading as the local populace has begun to gain interest in this new investment medium. It is common knowledge that the Singapore Dollar correlates closely with movements in the Chinese Yuan and acts as a proxy for those wishing to emulate Yuan price movements.
As in all investment genres, the selection of your broker is your most important decision. Safety and security heads the list of considerations, and this issue requires that there be an active financial regulator in place. In Singapore, regulatory services are provided by the Monetary Authority of Singapore (MAS), which is mandated by law to oversee the functioning of banking, finance, and insurance businesses, including brokerages/ securities dealers.
In recent years, the MAS has been concerned over the level of losses incurred by consumers in OTC market trading and, in response, it has tightened leverage and margin requirements and other regulatory rules. Singaporean brokers are licensed as clearing members of the Singapore Exchange, but rest assured that the MAS will come down hard on any recalcitrant forex brokers located on the mainland.
As is often disclosed, forex trading involves high risk. Knowledge, experience, and emotional control are the prerequisites for success, and each of these three factors requires an investment of time on the front end that beginners often dismiss to their peril. Due diligence and care must be exercised first to select a forex broker that meets your tough list of requirements and also provides ample educational materials and practice trading systems.
Be sure to comparison shop, check back with your local regulator for clarification on safety and soundness, and be sure to check with other traders in your area. Beware of marketing claims that seem to good to be true. You can never be too safe in this area. After your choice, invest the time practice trading on the broker’s demo system to develop your trading strategy, gain valuable market experience, and learn to control your emotions when opening and closing positions.
Choosing a competent forex broker from the many local and foreign choices available is never an easy task. To make your selection process easier, I have compiled the three (3) best Forex Brokers for my Singaporean friends here.
Just keep in mind;
1. Do trade responsibly.
2. BE responsible for your own trading.
3. Do not trade for someone else i.e. with someone else’s money (because that means unlicensed deposit-taking).
4. Do not ask someone to trade on your behalf (because that means placing a deposit in an unlicensed person or company).
5. Do NOT trade against the Singapore Dollar.
6. Do convert your SGD asset to USD (for example) with any Authorized Dealer (i.e. Singapore Banks) without fear. And after you receive your new USD asset, you may trade/invest (i.e. place a margin deposit) to your heart’s content.
7. Do NOT convert your SGD asset to USD with unauthorized dealers (you know who they are).
8. Do research for (relatively) reputable offshore brokers.
9. NEVER EVER EVER trade on credit. Always make sure you have backup capital to help you pay day-to-day bills during the losing spells.
Hope that helps.