Forex Trading Basics in Singapore
Surely you do have a lot of questions about Singapore forex trading. Unless you know the answers to all or a lot of them, it will be difficult for you to be convinced to go for it as well as to be confident as the other traders. That may be dangerous, as forex trading in general is very risky. If you do not have the guts, you cannot find the glory.
Here are some pieces of information about forex trading, especially in Singapore:
It is not as different as the rest of the world.
It is always one of the first questions people ask: is there a difference between Singapore forex trading and other trading sessions in the world? The answer is actually no. If there are differences, there are only very minor. For example, Singapore dollars would be more salable during the Tokyo trading sessions because of the market hours. Of course, there is the difference in currency and its value in the market. Other than that, the procedure in doing forex is basically the same.
For you to do forex in Singapore, you need to have a forex account. You can open one in a bank, through an automated forex broker, or with the help of a professional forex broker (the one that works in a brokerage firm). You need to deposit money into your account, so you can trade (buy and sell currencies).
The main currency used is Singapore dollars.
There are many different dollar currencies you will see in the forex market. Singapore dollars is just one of them. You have Hong Kong dollars, Canadian dollars, Australian dollars, and the popular U.S. dollars. To differentiate this, though, from the rest it has a symbol of “S$” instead of the regular “$.” It also comes with a nickname, which is Sing. “Sing” is not used in the real forex trading world. However, you will come across it when you are going to read forex trading news. That is why it is also essential you are aware of its nickname.
Singapore’s economy has been doing well for the past few years, and this paved the way for the Singapore dollars to be one of the most sought-after Asian currencies in the world.
Forex trading is one of the biggest investment industries in the world.
The forex trading market is one of the biggest industries in the world. Trillions of dollars every day go in and out of it. Just imagine how many banks are participating in the trade. You will know it just by looking at their desks. If they have foreign accounts services, there is a very huge chance that they offer foreign exchange services. The mere changing of your Singapore dollars to other currencies such as U.S. dollars is already a way of participating in the market. There are hundreds of banks in Singapore today, and a lot of them can help you join the forex trading market.
You also have international businesses that are opening offices and headquarters in Singapore. For them to do business they need to exchange their own currencies into Singapore dollars. They can utilize their money to pay off labor and other expenses, to name a few.
It is not as regulated as those of other countries.
Forex trading in Singapore has been around for some time, but it is only around 2007 when more people become interested in it. Thus, it is not as regulated or as carefully watched as that of other countries, especially those in Europe and North America. Needless to say, forex brokerage firms are regulated in the country. If you do not want to be a victim of a scam, then you need to choose brokers that are regulated. There are only a few of them.
You can look for a forex broker or use the automated system.
There are two popular ways of doing forex trading in the country. You can hire a professional, or you can make use of an automated forex broker. The advantage of the latter is it works 24/7 and can be tracked even if you are out of the country. You also have more control over your account.
However, it does not provide you with sound advice but only tools to help you come up with good decisions. That is why there are times when hiring a professional forex broker is a good idea too.
It does not guarantee anything.
It does not matter where you do forex. There is still one sure thing: there are no guarantees. The forex trading strategies are there to ensure you can minimize your losses and perhaps look forward to greater profits, but they are not fool-proof plans. There are even times when they do not work at all.
Nevertheless, you can greatly reduce the chances of losing a lot as you learn forex trading more each day.