In Singapore there is stock market and there is foreign exchange market. There are more and more people go into Singapore Forex Trading nowadays, why? Is it purely because the forex market is the place to reap big profit?
To find the answer, let see the following prime reasons why the forex market is so hot today:
Consistent Profit
The No. 1 reason why so many Singaporeans or foreigners go into Singapore Forex trading is because of the chance of getting stable profit in forex market, compare to investment in Share. As your trading involves two currencies and not other commodities or stock, one always has the chance for profit. There is no need to worry about the bullish or bearish market as in share market, what really matter is that you pick the right currency to trade.
24 hours Singapore Forex Trading
Unlike stock market, the foreign exchange market is open 24 hours on weekdays. Forex market starts at 9am in Asia on Monday. While it closes at 5pm, Europe market will open around 4pm at Singapore time, and when Europe forex market ceases trading at around 10pm, US market will starts to trade. This enable traders in Singapore to trade at anytime they wants. This flexibility has attracted people from different lifestyles and classes to go into Singapore Forex Trading market.
Minimum Trading Cost
As the transactions are done in electronic way on-line, the fee resulted from the trading is much lesser. If you sign up for some foreign forex brokers, such as FOREX. Com, ETORO or EasyForex, you are even exempted from paying transaction fee. Furthermore ETORO is giving FREE 10,000 USD to your account for you to start. Basically you only need to pay for the pip different between the 2 currencies, which sometimes could be very small. This means Singapore forex trading is very profitable compare to trading share where you need to folk up at least SGD25 for transaction fee per trade.
The most liquid market in the world
Forex turnover is about 3 trillion per day. This makes it hard for speculator to manipulate the forex market, which is easily done by big investors in stock market. As such, Singapore Forex Trading is deem safe and investor are better protected from fall into the trap set up by big financing institution which is quite common in stock market.
Bigger Leverage Possible
Generally, Singapore Forex Trading allows for bigger leverages, which means you are able to trade up to a hundred times your investment. However, this could means a bigger risk of losing money if the market trend is against the direction that you are predicting. Therefore you must have some risk management skill in order to protect yourself from losing money. Most of the big forex trading brokers like FOREX.com or ETORO have comprehensive training for you when you sign up to use their trading platform.
Hassle free and risk protected trading
This is one of the elements that make Singapore forex trading becomes more and more attractive to investors. Being the trading market with largest liquidity as well as the use of electronic trading platform, it is easy for you to analyse and manage your account in front of your own computer screen. You can even set stop-loss to protect your capital or pre-set your exit position to cash in your profit. Basically you can just sit back as the system will execute the trade for you automatically.
Forex trading is considered the perfect competition for logical reasons. Everybody has the same fair piece of chance. Even if a currency is falling, it just means that another pair currency is rising and you could tap on this to gain profit. With so much flexibility coupled with unlimited earning potential, it is no doubt that more and more investors in Singapore has go into Singapore forex trading market to tap on this exciting opportunity.
