Singapore is the third-largest Forex trader, second only to the UK and the United States. According to a study by Bank for International Settlements, Singapore holds 7.6% of global forex trading volumes.
Legality of forex
Forex in Singapore is a legal activity. Brokers are regulated by the Monetary Authority of Singapore (MAS). The Basic Law, Securities and Futures Act, is also relevant:
Securities and Futures (Recognized Securities Exchange) Order 2018
Exchanges (Demutualization and Merger) Act
Securities And Futures (Offers Of Investments) (Shares) (Exemption From Prospectus Requirements) Regulations 2008 (GN No. S 56/2008)
Monetary Authority of Singapore Act (Cap. 186)
Exchange Control Act (Chapter 99).
Legalized financial institutions that deal with forex online and derivatives must hold a Capital Markets Services (CMS) license. Each broker licensed by the MAS must maintain sufficient capital to cover losses in crises. The forex institute also has separate accounts for clients and the company itself - this protects against abuse as well as increases security in the event of a cyber attack.
Singapore forex trading - how to start
To start trading on forex SG, you need to choose a broker - preferably one that has received a license from MAS. Then register with the application or website of this broker. As a rule, each of them offers new traders instructions on how to create a profile, account, accounts and so on.
Brokers also offer different types of accounts - so that both beginners and professionals can get the best offers for them. For example, beginners may not pay a commission on transactions, and professionals get the necessary conditions for scalping and other complex techniques.
Forex is open 24 hours a day, five days a week - Saturday and Sunday are days off. That is, you can conclude transactions at any time of the day on working days if you are interested in long-term transactions.
And to increase the profitability of intraday trading, you should choose a certain time because the forex market is divided into several trading sessions: London, New York and so on. Traders usually take into account three trading periods with peak activity:
Asian session (Tokyo, 11 p.m. to 8 a.m. GMT) - the first to start trading at the beginning of the week.
European Session (London, 7 a.m. to 4 p.m. GMT)
North American (New York, noon to 8 p.m. GMT).
European and North American sessions overlap for 4 hours. At this time, the volatility of exchange rates increases greatly, and thus the number of opportunities for large profits.
Almost all brokers offer clients extensive libraries for self-education and free demo accounts with virtual currency. Demo accounts are no different from real accounts; there is the same market with all changes in rates. The difference is that a virtual coin cannot be withdrawn from the balance. And then after training, you can switch to accounts with real funds and profits.
Forex in Singapore is a fascinating and profitable activity!