Forex trading has a variety of strategies and provides a wide range of time, so you can find the right way for yourself, as well as free news, research and learning materials to help you complete the transaction。Some use fundamental analysis to give a medium- to long-term view of the relative strength of an economy (and its currency)。

Why Foreign Exchange Trading in Singapore？

Smooth trading channels

One of the main attractions of Forex trading is that it is very easy to open an account and trade。The sheer size of the market means there are thousands of online brokers backing forex market trading, and there is no central exchange or clearing house as the market is unregulated.。Instead, transactions are conducted in the purest form through a network of interconnected parties。

24 / 5 - Trade at any time

Another feature of the foreign exchange market is that it can be traded around the clock, and the absence of any central authority to supervise trading means no trading hours.。Instead, buying and selling will continue at certain times of the day, suitable for those who want to trade but will not affect their lives。

Markets are also less risky for "gaps," and the time between stock market closures and reopenings again makes risk management more difficult。If the market opens sharply lower, any stop loss on the position is invalid。

Liquidity and Pricing

Professionals estimate that about $33 billion of transactions were conducted in the Singapore dollar / US dollar currency pair.。S. dollar-to-dollar volume means that pricing is efficient。There are so many participants that it is impossible for any party to try to manipulate the market and the cash flow through the market will only overwhelm them。Huge levels of liquidity not only help keep traders honest, but also lead to competitive pricing。

The larger the market, the easier it is for brokers to offer smaller bid-ask spreads - a term used to describe the difference between the bid and ask prices。

Forex market offers some of the most cost-effective deals。There is no need to pay exchanges for trading rights, there is a lot of competition among brokers, and the market is large.。Taken together, these cost benefits make forex trading a low-cost proposition, which in turn means traders can keep more of their profits。

Market transparency

If you want to trade any major currency pair, you enter a market where you can get information for free。Trading in most stocks provides a similar degree of environment, but the prices of some small companies can be distorted by information that only insiders know。If liquidity dries up in these markets, not only will the bid-ask spread widen, but it may be difficult for you to close your position completely。

Low entry threshold

It only takes a few dollars to start Forex trading, and the minimum deposit accepted by most brokers is around $100。Small-scale trading is particularly useful for beginners and experienced traders trying new strategies。If something goes wrong, the financial impact can be minimized, and by trading small and eliminating emotions from trading, you can improve your chances of success。

Features of Forex Trading

One of the characteristics of Forex trading is that prices can fall and rise at any time, and all prices can fluctuate in both directions, but understanding the nature of the stock market helps explain how Forex pricing works。Historical data shows that stock prices are related to long-term price increases and sudden price collapses, which is how stocks traditionally work and is a function of stock prices based on potential future earnings。

The foreign exchange market can also experience sharp price fluctuations, but there is no potential bias in one direction。

Outstanding credibility

The long record of foreign exchange trading has seen operators develop additional services that cater to specific needs.。

The first is automation.。Many forex brokers allow clients to trade forex using algorithmic programs that can remove some of the emotions from trading, resulting in a more hands-off trading experience。You can design your own models using programming wizards or using models provided by others in the trading community, some of which are freely available。

Another way to approach the forex market is follow-up trading, which you have to study carefully and seriously, involving connecting your account to get signals from a third party。When they trade, you trade too。The process is automated and followers can break off relationships at their own discretion。It does not completely avoid trading risks, but for beginners, it is an increasingly popular way to enter the market。

It is important to make sure that you do not send funds to scam operators, some regulated brokers provide services through operating systems in which you are still responsible for your account and cash, but only accept signals。

What is a currency pair?？

Any currency can be traded with another currency。The volume of transactions is the result of historical and business relationships, and the most actively traded currency pairs are called "major currency pairs."。

• AUD AUD / USD USD - 'Aussie "
  NZD New Zealand Dollar / USD USD - "Kiwi"
  USD USD / JPY Japanese Yen - 'Gopher "
  EUR EUR / USD USD - 'Fiber "
  GBP GBP / USD USD - 'Cable "
  USD USD / CHF CHF - 'Swissie "
  USD USD / CAD CAD - 'Loonie "

The next category of pairings is "minor currency pairs" and includes:

• EUR / JPY - Euro / Japanese Yen
  CHF / JPY - Swiss Franc / Japanese Yen
  EUR / NZD - Euro / New Zealand Dollar
  EUR / AUD - EUR / AUD
  AUD / JPY - AUD / JPY
  NZD / JPY - New Zealand Dollar / Japanese Yen
  EUR / CHF - Euro / Swiss Franc
  EUR / GBP - EUR / GBP
  CAD / JPY - Canadian Dollar / Japanese Yen
  GBP / AUD - GBP / AUD
  GBP / JPY - British Pound / Japanese Yen
  GBP / CHF - GBP / CHF
  GBP / CAD - GBP / CAD
  EUR / CAD - EUR / CAD

The last group is called "exotic currency pairs."。SGD / USD is often considered part of this category, but the huge daily trading volume proves that even exotic currency pair markets can be liquid, easy to trade and inexpensive。

• USD / SGD - US Dollar / Singapore Dollar
  USD / HKD - USD / HKD
  EURTRY - Euro / Turkish Lira
  USD / SEK - USD / SEK

Each currency pair has its own characteristics。The dollar-yen has traditionally been a low-volatility market, reflecting the potential for the U.S. and Japanese central banks to raise or cut rates, and even has its own name - "carry trade."。

In contrast, the Australian dollar and the New Zealand dollar are more likely to experience sharp price fluctuations.。Geopolitical tensions, such as those between Australia and China, increase the risk of Australia losing access to key export markets.。A hint that demand for Australian products may suddenly fall will lead to a drop in demand for the Australian dollar.。

Deciding which market is better for you depends largely on how you deal with risk and how active you want to be as a trader.。One way to complete the process is to set up a demo account and practice trading。The demo account takes only a few seconds to set up and allows you to trade real prices with virtual funds。This is a great way to test the functionality of the trading platform until you find the platform you want to stick to, it also allows you to test trading strategies and speed up trading mechanisms。

How to trade Forex in Singapore

The online trading platform provided by brokers is the perfect combination of easy-to-use features and powerful software tools。The number of Forex markets offered by individual brokers varies, as do the exact terms and conditions of trading, but the process of conducting a trade usually follows a similar format。

Before depositing cash into any account, it is important to determine the credibility of the broker you are considering。If you don't, you could lose all your money to a scam。

1.Select Broker

have sufficient capital to limit the risk of insolvency。

When the Monetary Authority of Singapore (MAS) and other ways to evaluate brokers are to look at their operating hours。Brokers that have been around for five years or more are likely to have identified how to run viable businesses and have had time to develop their platforms to suit their clients.。You can also take into account the online feedback and trust ratings of your clients, and the best way to check whether your broker is legitimate is to confirm whether it is regulated by one of the following Tier 1 financial institutions。

• Monetary Authority of Singapore (MAS)
  Financial Conduct Authority (FCA)
  Australian Securities and Investments Commission (ASIC)
  Securities and Exchange Commission (SEC)
  Cyprus Securities and Exchange Commission (CySEC)

Although the Forex market itself is not regulated, using a regulated broker will show that the company you are using has met some strict requirements。Financial institutions such as MAS only issue licenses to brokers who agree to abide by expensive and time-consuming agreements, including the need to submit business plans that demonstrate the viability of the business.。They are also subject to independent audits and must ensure that brokers must comply when regulators on accounts decide to adjust rules and regulations, meaning threats to the financial system are constantly being addressed.。

2.Open an account and deposit funds

Opening an account can be done entirely online, even using mobile phones and computers。

The first step in opening a live account is to provide personal details and authentication, which will help you ensure that only you can use the funds in the account you have set up。The second stage involves answering a series of questions about your investment objectives and trading experience, which are designed to allow brokers to build a profile for you and comply with their Know Your Customer (KYC) agreements.。Registration takes only a few minutes to complete, and then you can transfer funds to your new account。

Anti-Money Laundering (AML) regulations provide additional security for broker clients, and rules designed to prevent international criminals from moving money through accounts stipulate that any funds paid into a brokerage account can only be returned to the account from which they originally originated.。Fighting international crime is obviously a good thing in itself, but one of the disadvantages is that regulated brokers cannot transfer your funds to scammers。

Transfer funds to your new brokerage account just like any other online transaction。Most brokers offer eight different payment methods in the region, with credit / debit cards and bank transfers being popular options。Please check the exact terms and conditions to ensure you are sure how long it may take to process the payment and whether any management fees will be incurred。Once the funds reach your account, you are ready to trade。

3.Open order and set position size

After registering an account, the next step is foreign exchange market monitoring。

Trade execution in the purest sense comes down to clicking on the market, entering your trade amount, and clicking on "buy" or "sell."。It can be as simple as this, but some risk management tools need to be installed before final use。

4.Set Stop and Limit

Stop loss orders and take profit orders are automatic orders that you can build into the system to trade on your behalf when the price reaches a certain level。You can set them up to trade with all or part of your position, and you can add them at the time of trading or at any time after trading。

Stop loss aimed at closing out a losing position。By reducing your losses, you can continue to trade and expect profits to repair the damage done to your P & L (profits and losses)。

Take profit orders lock in gains by closing out positions in your favor, you can use trailing stops, which are set at a certain time after a profitable trade。This would not return all earnings, but rather clear the way for profitable positions to continue to operate.。

"Stop Loss" and "Take Profit" are often recommended for beginners and are popular in short-term trading strategies。They can be an integral part of certain strategies, with stops set on the other side of the support or resistance price level。

Another way to manage risk is to size positions。If the price of the New Zealand dollar fluctuates significantly against the US dollar due to the upcoming announcement of the central bank, then you don't have to risk being stopped due to price fluctuations, small-scale trading allows you to remove your stop loss from the system until the market stabilizes。

One last type of order to mention is a "limit order," which allows you to specify the price at which you want to buy a particular stock。They are binding contracts that may not be "closed" if the price does not reach your target level。For example, if the US dollar is trading at S $1.$3,255, but you think it'll cut 1 before it goes up.At a price level of $3205, you can establish an order to trade at a lower level。There's no guarantee you won't miss out, but patience sometimes pays off and makes you fall in love with the deal。

5.Transaction

The final stage of the Forex trading process is to click on the "Buy" or "Sell" button。At that time, some of the cash in your account will be converted into other currencies.。If you buy Singapore dollars, you will be long Singapore dollars and short US dollars。The broker manages this part of the process, and if you trade with CFDs, your position will simply report a gain or loss based on market price movements.。

You can use the "Portfolio" section to track the continued performance of your positions, which is where you can trade positions when the time is right。It is highly recommended to check the portfolio and your trades immediately after the trade execution。Even experienced traders make mistakes, and the golden rule is to find and correct them as soon as possible.。