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How to trade Forex in Singapore

How to trade Forex in Singapore? If you are a resident of this country, it is probably easiest to start trading with the Singapore Dollar (SGD). It is the official currency of the Asian country. The equivalent of 33 billion US dollars is traded in Forex every day.

Monetary Authority of Singapore (MAS) regulates the national currency and determines monetary policy at meetings every two weeks. Twice a year, government monetary policy statements are issued.

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SGD is traded in pairs with many currencies. The most popular currencies are USD, AUD, EUR. Often there are also PKR, BDT, BND. 

Fundamental analysis of SGD - basics

Singapore's economy is well developed and considered the third-largest hub of financial trading. State-owned companies play a crucial role. There are many foreign investors, as the country has a stable political climate and good conditions for investment.

Land and water are considered a valuable resource here. Singapore relies on processing technology - the country buys raw materials, purifies them and resells them at a higher price. The country also has a large seaport, the second largest in the world in terms of cargos. Singapore is known for its brilliant financial sector, biotechnologies and petrochemical industry.

Key factors affecting Singapore's currency:

  • Prices of raw materials and natural resources - their country buy for production

  • Prices for exported goods: chemicals, electronics, services

  • MAS policy

Singapore dollar technical analysis

There are some features of the Singapore dollar, namely the USDSGD pairs, which have been traceable for many years, since 1989. Economists believe that:

  • The size of bid-ask spreads is positively related to the underlying exchange rate volatility.

  • The magnitude of the dependence on underlying volatility as tick volume increases

  • The size of the bid-ask spreads may also be positively related to the directional movement of exchange rates.

In 2020, for the first time since 2010, core inflation in Singapore took a negative trend. The central bank is trying to minimize the impact of the pandemic, although SGD in pairs with significant currencies continues to fall. However, the rate of decline is not too fast due to the central bank's efforts. Forex traders are advised to pay attention to short-term trends and "take the cream off them" by selling the currency.

How to trade Forex

How to trade Forex? In the current environment, it is particularly important to choose a reliable broker that will honestly reflect market movements and provide adequate liquidity. It is best to pay attention to brokers licensed by MAS, the country's main financial regulator.

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Further, a beginner will need to learn the following basics of trading:

  • Philosophy of TA and markets and Dow theory

  • Con of trend: classical and new patterns

  • Candlesticks charting

  • Indicators: Moving Averages, Oscillators, setting their parameters 

  • How to combine trading methods and trade execution

  • Risk management: hedging and other methods

After proper training, you can register an account with a broker and train on a demo account. With the help of virtual currency, it is possible to practice the gained knowledge without losses.

Trade Forex Singapore is an exciting and potentially winning way to make money.