Are you interested in forex trading? Perhaps your friends have been trying their hand at forex, and they have been talking about how exciting it can be. You may also have watched a few TV programs or read a magazine article regarding the same topic.
One thing is for sure, though – it’s tough to find advice on how to get started from scratch, especially if you’re in Singapore. This article acts as a starting point for those who want to kick-start their forex trading journey in Singaporean dollars and aims to give you all the information you need to make sure that your first venture into this world is a success. Check out this page to get started.
What Is Forex?
Foreign exchange trading is one of the largest markets in the world. It deals with currencies, essentially units of value that can be exchanged for other value units at different prices. For example, 1 USD has an equivalent value of about 1.29 SGD; if I were to buy 10 USD today, then sell them at a later date when they are worth more than 11 USD each (assuming I manage to reach this higher price), then my investment would be profitable. It means there’s money for me to be made in that particular exchange rate.
Forex trading is the buying and selling of currencies to profit from changes in currency prices. While most people trade on this market through an online brokerage account, some actively buy/sell currencies in a physical environment. This article focuses on doing forex trading via an online platform.
How To Start Trading In Singaporean Dollars (SGD)
To start trading, you need two things: money and time.
You need money
In this day and age, most people rely heavily on credit cards for convenience’s sake; it is possible to make instant purchases through PayPal or other similar services. Usually, these transactions will incur extra charges that will eat into your profit margins. It is best to fund the account with actual cash. Of course, if you have no other choice but to turn to credit cards because all available funds are tied up in stocks or mutual funds, then go right ahead – remember that this will increase the transactional costs associated with forex trading.
It will help if you have time.
Another thing you need is time. It’s not advised that you use real-time data (which gives an updated exchange rate every few seconds) because the prices fluctuate too much and thus make accurate trades difficult; instead, use end-of-day data for better accuracy between trades.
You’ll be doing this when using end-of-day data to predict how much a currency will be worth at the end of the trading day (which is usually 5:00 PM in Singapore). You’ll then place a bet to see if your prediction comes true.
Open an account with a broker.
The final thing you need is an online forex trading account with a broker. There are many benefits to having such an account, but we should save that for later; for now, let’s look into how you can get started on this platform.
How To Open A Singaporean Brokerage Account?
First things first – open up a brokerage account. All brokers are regulated by The Monetary Authority of Singapore (MAS), so don’t worry about being scammed or defrauded by fly-by-night companies looking to make a quick buck. I recommend practising trading with a micro-account to familiarise yourself with the platform before you risk your actual money.
After all, it’s not the most innovative idea to invest real cash if you’ve never even used this type of platform before!
To open up an account, follow the steps below:
1. Visit any brokerage site that is regulated by MAS (see here )
2. Read through their terms & conditions document
3. Fill in their online application form
4. Receive an activation code via email
5. Activate your newly created account
6. Deposit some SGD into your new account
7. Start trading!
