Singapore is a Southeast Asian country, most notable for its robust economy, ranking among the top 10 wealthiest nations. Singapore has become a destination for people looking to do business, study, and build products and services. The country has grown in leaps over the last few decades and now ranks among the best places to live and work.
Trading From Singapore
The many policies and infrastructure implemented by Singapore’s government, aimed at providing stability and security, make the island an attractive and conducive business environment. This has led to an influx of financial services companies such as banks, brokers, payment processors, etc.
These firms (forex brokers) have changed how traders and investors access financial markets. Before, only individuals and corporate bodies with vast resources could trade forex; now, anyone with an internet-enabled compatible device can sign up with brokers and trade globally.
Individuals and firms involved in CFD trading, for instance, will find Singapore a dream play to live and trade while taking advantage of advanced technologies and effective financial regulators. However, the rapid increase in brokers makes choosing one a tad tricky for traders. Here are practical tips for selecting the correct trading broker in Singapore.
Choose a Singapore-Regulated Broker
The Monetary Authority of Singapore (MAS) is Singapore’s central bank and doubles as a regulator for financial firms and activities in Singapore. All brokers must pass the MAS check and receive regulatory approval before operating in the country. Make this the first criterion to consider as a trader in Singapore. You can check the MAS directory to confirm the registration code of your preferred broker.
You should also know that trading with an unregulated broker exposes you to scams and technical issues. You may also risk legal implications depending on your involvement with such unlicensed and unregulated brokers. This is because anti-money laundering compliance is required to gain MAS approval, and clients of unregulated brokers may risk money laundering offenses.
Check the Broker’s Trading Conditions
Although all brokers must meet specific conditions, such as margin limits (1:20 and 1:50 in Singapore), they have different trading conditions that may impact your trading experience. Some brokers, for instance, set minimum deposit and trading amounts, which affects the margin. Ensure you review and confirm the conditions offered by your chosen broker.
Check the margin and leverage, deposit and withdrawal limits, availability of swap-free accounts, and other conditions. Choose the broker that offers competitive standards and that fits your trading preferences. You could use a demo account to explore your broker and the conditions they offer before committing to them.
Check the Education and Research Tools of the Broker
Top brokers prioritize the success of their clients (traders), and one way to show this is by offering quality financial trading education and research tools to help traders. Your preferred broker should have a platform dedicated to trading education, covering fundamental topics such as navigating their platform to advanced topics such as analysis and trading psychology. You should also check for the available trading and research tools to find excellent trading setups, calculate profits, and make your trading more effective.
Choose a Supportive Broker
A broker that traders can reach 24/7 and during holidays, too, is highly supportive of clients. Choose a broker with various support channels such as live/video chat, emails, and phone. Multilingual support is also essential to give non-English speakers access to broker services. Ensure the broker has a strong reputation for customer support.
Choose a Secure Broker
The safety of your funds and account, from funding to trading and withdrawal, should be a top priority for any broker you choose. Your broker should protect your funds from online threats and also provide tools that help you manage your capital effectively. Check that the broker uses industry-standard security protocols and continuously updates their platform to fix bugs and maintain security.
How To Trade Forex in Singapore
Trading forex from Singapore is a straightforward process that only requires your skill and commitment. Here’s what to do:
- Ensure you’re over 18. Brokers are legally mandated to provide services to individuals 18 and above only.
- Learn forex trading and choose a strategy.
- Register with the broker of your choice.
- Receive your account and complete the verification process.
- Find your account and trade.
Brokers have changed the forex market by removing trade barriers for retail and individual traders. As companies offering financial services, brokers are essential in helping traders access and navigate the market from anywhere. Choosing a broker may look simple, but you should consider the tips in this article to help you select the correct broker that suits your needs. You can also switch from your old broker to a broker that offers the best advantages and conditions for you as a trader.
Featured image - Source: Hu Chen, via Unsplash