Setting up a Forex Singapore Account

Forex trading involves buying and selling currencies. The forex market is among the most liquid markets in the world and offers great opportunities for making good profits with little investment. If you want to join the bandwagon, the first step is to open a forex Singapore account.

There are three types of accounts that you can choose to open with a forex Singapore broker – mini, standard and managed. The factors that can influence you decision are:

- Risk appetite.
- Initial investment.
- The amount of time that you can afford to devote on daily basis.

When we talk of standard and mini accounts, the reference is to lot size. Lot size in turn refers to units of currency. A standard lot is worth $100,000. However, that does not mean that you have to deposit SGD100, 000 in your account to be able to trade. Forex trading is done on the basis of leverage and margin. A typical forex Singapore broker offers 100:1 leverage, which means that your initial investment in the margin account is only SGD1, 000 for trading one standard lot.

A stand account with forex Singapore broker gets you better service and perks and also increases the profit potential. Each pip is worth 10 dollars and if the position moves up by 100 pips, you stand to gain SGD1, 000, something that is not possible in other accounts unless you trade more than one lot.

A mini lot is worth is worth 10, 000. It is one-tenth of a standard lot and so is the gain potential. In a managed forex Singapore account you simply put up the money and the trading is done by the broker on your behalf.

Forex Singapore Trading Account

If you are in Singapore and want to earn some money on the side, you may try and open an account with a forex Singapore broker. This however does not mean that you do not need any prior knowledge before you start trading. The fact is that the forex market is one of the most difficult markets to understand. It is also very popular because of the high potential of profit.

Opening an account with a forex Singapore broker will help in more than one way. For one, it will give you access to a demo account. A demo account with the forex Singapore broker will allow you to place virtual trades in the market at real-time currency rates without putting up any cash. The best way for an adult to learn is through participation. You can try your hand for as long as the broker allows you to. On expiry of the trial period you may be asked to deposit the minimum required amount in to your account.

Once there is money in your account the forex Singapore broker will probably not allow you to trade in the demo account. However, if you think you still do not have enough confidence, you can continue the learning process by creating small positions. You will see that your confidence increases with every profitable trade.

There will also be losing trades but that is part and parcel of trading in financial markets. A good forex Singapore broker will also provide the necessary resources that you may require for learning how to manage the risks associated with forex markets.