Thursday, November 23, 2017

Advantages of Trading Forex in Singapore

October 3, 2010 by  
Filed under General Forex Information

We know that trading forex is a good way to make money. We also know that forex trading is extremely volatile. However, there are many ways to make money in Singapore. MLM, property, insurance, stock market, options trading. Some even resort to scam or use charity to earn millions. So, in Whizforex, why are we promoting forex instead of others? That is because there are some really good advantages trading forex in Singapore.

24 Hour Trading

You can trade forex anytime of the day expect Saturday, Sunday and the international holiday, which is Christmas and New Year. (Yes! You can trade during Chinese New Year! More Ang Bao! ) This is a wonderful idea for people who can’t afford to lose their jobs but have time at home. So just learn and trade during your spare time is wonderful.

Extreme Liquidity

The volume of the Forex market is USD$4.1 trillion. Under normal situation, you can do any trade at any point of time, regardless of the supply and demand of the market.

Shares on the other hand, does have limitation issue and you may not able to buy or sell that share price of your choosing. For example, Singpost has 1.9 million issued shares. So, among all the investors of those 1.9 million shares, no one wants to release the price you are offering, you are practically waiting, queuing to buy those shares.

However, in Forex, this has no issue. Because in the end, we are dealing with cash. And cash is really in abundant.

No one can Control the market

Thanks to the huge liquidity in the market, it is extremely hard for any one entity or financial institute to control the market. I mean, to control a market with USD$4.1 trillion. Who has even half of that kind of money? And even if someone has $1 trillion dollars, that entity is going against other central banks, commercial banks, hedge funds, many millionaires and billionaires plus retail traders.

No Fixed Lot Size

In forex, we can determine the contract size we want. This is an advantage because this allows traders to trade up to as little as USD$300 an account. This advantage helps anyone who does not have a lot of spare cash, but wish to earn extra income. Stock market, which require quite an extensive amount of capital, needs at least 1 lot size to transact.

Leverage

The factor that truly helps you make money. For anyone who wish to trade but has little capital, with a large leverage, it allows you to control a larger contract size.

For example, if you open a forex account with $300, you can control $30,000 contract size if you using 100:1 leverage.

However, although this is an advantage, this can backfire on you, causing you to lose all your money in your forex account if you do not use good money management.

Demo Account

To many, and I am one of the many, believe this is one of the most important advantage a forex market can give to anyone. An infinite chance to practice with virtual money. I love to call this maplestory money. 😛

Even though it can be treated like a game, the situation of the chart given to you are all real time. Allowing you to understand whether is this strategy you pick works for you or otherwise. Next, it allows you to familiarize the platform your broker gives you. The last thing we want to have is you don’t know where to click to create the order.

Practice, fine tune, create your trading plan all comes from here. Then you are ready to trade with your money.

But usually, you will face another set of problems. 😛

Last but not least, Tax Free

Yup, it is tax free. In Singapore, capital gain is tax free. You can get the IRAS Circular on the forex tax free here

Conclusion

Thanks to these advantages that forex provide to Singaporeans. More and more Singaporeans are choosing forex as a way of earning additional income, making Singapore the fourth largest trading center for forex in the world. Even when forex does not provide other forms of advantages, for example dividends, it does give a good boost of capital growth for you.

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Comments

One Response to “Advantages of Trading Forex in Singapore”
  1. Fabian Chiow says:

    Hi,

    Interested to know more about the Forex courses for Beginner.

    thanks

    Fabian

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