Forex account Singapore
Forex trading account is a profile on the brokerage platform, through which a trader trades currencies. Recall that CFD trading is a risky activity. Most of the traders lose money, and there are not as many successful ones as it seems. To achieve success, a beginner needs a lot of education and practice.
How to open a forex trading account in Singapore
First of all, a trader chooses a reliable broker. In Singapore, the market is regulated by the state. So, you can select a company with a state license from MAS - the central bank and regulator of all financial markets of the country.
All trader transactions are made on the platform of a broker. The broker connects to the global financial market and provides access to traders through convenient terminals.
The client is registered in the application or on the website of a financial institution.
Verifies identity through passport or ID
Makes a minimum deposit. Its size depends on the broker's policy or the limits of the selected payment systems.
Brokers can be of different types. ECN/STP/DMA/Market Maker is some modern trading protocols:
STP means Straight Through Processing. STP broker sends trader's orders directly to liquidity providers (large banks).
ECN means Electronic Communication Network. Such a broker offers prices from several liquidity providers. It also displays market depth, order book and other information. The broker provides direct access to the interbank market.
DMA - direct market access. Usually, it's non-dealing desk brokers.
Dealing Desk is a department within a brokerage company, which buys large orders from liquidity providers, then divides them into parts and sells them to end-users. Such brokers are Market Maker - they create a market for retail clients. No Dealing Desk brokers redirect clients' orders directly to the interbank market.
Types of forex account
After a trader has chosen a company, he faces the question: what type of forex account to start? If a client has not worked with this broker before, there is only one answer - demo, regardless of the trader's experience. After testing the demo, you can make conclusions on whether to continue working with the brand or look for another one.
If the broker meets the requirements, then the trader considers the offered account types, compares their requirements and advantages. Let us further consider the general categories of forex accounts.
A Demo account provides some amount of virtual money. You do not need to make a deposit or even verify your identity to start a transaction. You cannot withdraw money from this account because it is not real.
The demo helps to evaluate how a broker works, what are the conditions, how convenient it is with him. Besides, a beginner trains in basic trading, and professional tests a new strategy - and all this without a single lost cent.
ECN account - with direct access to the interbank market.
Islamic Forex trading account - aka swap-free. It complies with the principles of Sharia, according to which Muslims have no right to take and pay interest on a loan. (Which is basically what forex trading is). The broker charges a fixed commission directly from the client's account.
The Segregated Forex account is used with reliable brokers. Here the client's money is kept separate from the company's funds.
Managed forex accounts are managed by managers appointed by the broker or client.
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