The Best and Trusted Forex Brokers in Singapore

The Best and Trusted Forex Brokers in SingaporeForex trading is a profitable option, but you should know that it is a risky affair as well. As a resident of Singapore, it is important to know as to how you can cut down risk and improve profits. One thing you should definitely do to achieve this end is to work with a very reliable broker. It is not an easy task but read on to know how you can choose the right forex broker for meeting your goals.

How to Choose Forex Brokers in Singapore

Singapore is a high tech country and it is probably one among the richest in the Asia Pacific region. Statistics reveal that the forex trading volumes are the highest in Singapore after New York and London. This shows that the thriving economy offers excellent opportunities to Singapore forex traders.

That said, some of the key aspects to be considered when choosing a broker in Singapore as follows:

  • Regulation
  • Trading platform software
  • Spreads and commissions
  • Account types
  • Customer service
  • Additional services

Regulation in Singapore

In Singapore, the agency responsible for regulating the currency market is the Monetary Authority of Singapore (MAS). Brokers wanting to provide financial services in Singapore have to be licensed by the agency. The MAS is the country’s Central Bank. Regulated forex brokers are required to keep theirs and clients’ money in segregated accounts. This is to limit clients’ risk in the event of the broker going bankrupt.

Other rules that MAS-regulated brokers are required to comply with include the complete disclosure of all products and services that are offered by them. The regulator provides a lot of educational material and a special program called MoneySENSE for investors. This is to enable Singapore traders to make rational as well as independent decisions related to investing. Therefore, Singapore traders must choose only a broker regulated by MAS.

Trading Platform Software

A trading professional works independently. As you are your own boss, you can decide the working hours on your own. However, it is important that you have technologically advanced and professional trading platform. All platforms out there are not the same. Some are good, but some not good for trading at all. If you can spare some time, the best way to choose a platform is by trying out many platforms. You should opt for an easy-to-use platform with several useful features.

When it comes to simplicity, you should be able to quickly determine the function of each button. Features include a good quality chart station that offers a variety of charts for comparing instruments and checking their values with respect to different time frames. Other features required are multiple indicators, the capability to write notes, ability to close the entire position in one click, strategy testing capability, news feed, and copy trades function.

Spreads and Commissions

The fee levied for transactions in the forex industry are different from that in other financial markets. Forex brokers make money through spreads which may be fixed or variable. In the case of fixed spreads, it will be approximately 1 to 4 pips and 5 to 15 pips for major currency pairs and crosses, respectively. In the case of variable spreads, they remain smaller during normal market conditions but become larger when some fundamental news causes volatility in the market. They remain at the higher level only for a couple of minutes. When the market returns to normalcy after absorbing the new information, the spreads come back to the original levels.

Types of Accounts

Reliable brokers often offer different accounts options to cater to the needs of different customers. They are as follows:

#1: Demo Account

If you are new to trading, you need to practice and do some testing. A demo account helps you to do that. It also helps you to find out as to how your trading strategies will work when used in real market trading conditions. You can do all these without risking your money.

#2: Micro Account

For trading currencies, you are not required to invest millions of dollars. Most brokers allow you to open a micro account and invest less than $100 in the market. This account option best suits beginners as they can test waters and the loss will not be much even if they make mistakes in the initial stages.

#3: Mini Account

A mini account is the successor of micro account. The lot size is 10,000 and depending on the leverage offered by the broker you can open an account with just $100 to $200. It is better to invest at least $1,000 to $2,000 if you want to trade with confidence without worrying about the margin call.

#4: Standard Account

The lot size for standard accounts is 100,000 and you need about $1,000 to $2,000 to open an account. Of course, it depends on the leverage that the broker offers as well. You need to make an initial deposit of $10,000 to $25,000 in order to trade comfortably.

Many brokers also offer VIP accounts, depending on your investment capability and trading style.

Customer Service

Customer service reflects the broker’s character. If the customer service department is not quick and efficient in dealing with your issues, it is better to look for another broker. As a Singapore resident, you should look for brokers that can provide customer service in the local language. Many foreign companies (some of them could be scammers) may not be able to provide customer service in the local language. Be wary of such brokers.

Special Services

Brokers often compete with one other to win customers. They offer a lot of special services for this purpose. Special services may include free webinars, daily and weekly analyses of different financial instruments, news feed from popular financial news providers such as Reuters, Bloomberg, etc. These are actually very helpful to novice forex traders.

Final Thoughts

Singapore traders must look into the various aspects discussed above when choosing a forex broker. You should evaluate each of the shortlisted brokers operating in Singapore on these lines to make sure that you are picking up the right one to associate with. This is because a forex broker can make or break your investment.

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