Currently, Singapore is positioning itself as a financial focal point amid London’s dwindling stature as the financial hub after Brexit. Despite the fact that Singapore is a small city-state, it is wealthy complete with a clear and trade-steered economy. The country is becoming a popular destination for forex trading.
Some of the factors influencing this popularity and continued improvement of the foreign exchange market include an efficient regulatory system and a solid government. Further, Singapore is gaining from a friendly economic environment compared to some other developed countries.
What’s more, the Singapore Dollar has been gaining massive recognition in the forex market worldwide and this has brought about an enhanced liquidity level while stimulating its foreign exchange market.
The Numbers Indicate a Dynamic growth
Singapore trade data indicates a dynamic growth in the city-state’s foreign exchange market. A report released by the Singapore Monetary Authority shows that the city-state has overtaken many of the developed countries from their reign as the biggest forex center in Asia.
Actually, it has been ranked as the third-biggest foreign exchange center with London and New York taking position two and one respectively. This is a clear indication that Singapore is determined to become a global trading hub.
With these statistics, there are many Singaporeans are confident that the future of forex trading in the city-state can only get better in the future. While many of them are already trading professionally and earning big amounts, it is important to understand the basics of trading forex before entering the market.
There are numerous tips to master prior to starting your journey as a forex trader. For instance, you should know how to pick a broker, evaluate the market, and install your trading platform. Further, you will require sufficient experience which you can only gain by practicing on the market.
Still, there are various tips to help you enhance your trading performance especially if you are contemplating entering the forex market. Below are various tips to help you get started.
Starting Forex Trading
In order to start trading forex, you will require internet access and a computer, a trading platform, and a brokerage account. Ensure the computer is efficient enough to execute multiple platforms concurrently. Forex trading involves lots of research and market analysis.
You will definitely have many tabs open and you need a computer that runs efficiently. Eventually, you will need a brokerage account which you can easily open with a forex broker. Your application can be processed within two days after which your account will be up and running.
How to Choose a Broker
With the forex market in Singapore soaring, there are numerous brokers in the market and choosing a reputable and regulated one can be difficult. You can easily establish whether or not they are regulated by checking their homepage for their credentials.
A genuine and regulated broker will have their license and regulatory body displayed on their site. By choosing a regulated broker, you are guaranteed that your deposits are secure, and industry standards are maintained.
· Transaction Expenses
Traders pay fees every time they place a new trade through spread(the contrast between the ask and bid prices of a currency pair) can be up to 1 point in percentage on prime currency pairs. Currently and as a result of intense competition among forex brokers, fortunate enough, many of them have stiff spreads.
· Customer support
Ensure that the forex broker is ready to provide customer support. Such brokers have their various contact details available on their websites. This assures you that your problems will be solved in a timely manner.
After choosing your broker, you can proceed to complete a registration form on their website. You can only deposit funds in your CFD trading account and execute your inaugural trade once your application is processed.
As an investor, there are numerous things you should know about forex. If you are starting, you want to ensure that you are dealing with a genuine and regulated forex broker. Forex trading has a long learning curve and you will need to research extensively to achieve success.