Beginner’s Guide to Start Forex Business in Singapore

“Singapore is one of best countries to live in.” If you work and live in Singapore, you can surely verify this statement!

But the rising costs of living, desire to upgrade the lifestyle and future plans urge people around the world to have a side hustle. And, people in Singapore are none too different!  

If you live in Singapore and looking to invest in a side business, you might already have come across various business ideas. Forex trading may seem one of the best among other!

Being the most liquid market in the world, there are a huge number of buyers and sellers seeking to make a trade at any one given time.  

If you’re looking at getting into the financial markets – and particularly the Forex trade in Singapore – there are definitely opportunities to successfully trade. Currencies across the globe are subject to significant changes in value – particularly in the current global Coronavirus pandemic – which makes for a good opportunity to trade these. 

But wait!

Forex trading business is not for everyone, and especially not for the faint of heart.

Forex trading is not a suitable choice if:

  • You are approaching retirement.
  • You are not ready to lose money.
  • You cannot keep up with the market trends on day to day basis.

Many times, online forex trading portals with catchy headlines attract your attention. But these campaigns are just to lure the potential investors whereby one might feel like their money will be doubled while they are sleeping.

Genuinely speaking, Forex business is very much of speculation, and therefore very risky!

So, consider getting into Forex trade only when:

  • You are ready to take high risks.
  • You can afford to lose money.
  • You are able to monitor the markets closely.

If you find yourself eligible to start a forex business, the next step is to find the plan of action. The three key steps below will guide you through the right process of starting a forex business and make it profitable.

Step 1- Learn the Basics 

It’s definitely worth your while to spend time with an expert before getting started, who can help you to understand how trading works. Read worthwhile content on the subject and try to attend webinars or seminars to broaden your knowledge.  

But that’s not enough!

Forex trading in Singapore must be conducted through a Forex broker. So, you should look for best brokers. Conduct a detailed analysis of different brokers to find the best one for you. Make sure to go through their terms and conditions properly to avoid disputes in the future.

You must also know that before any Forex broker in Singapore can accept traders as clients, they must become authorized by the Monetary Authority of Singapore (MAS), which is the financial regulatory body in Singapore. MAS’s website is mas.gov.sg. Make sure to verify the broker’s registration number from the MAS website to make sure you are dealing with an authorized entity.

Step 2- Set up a Plan 

Deciding when and how frequently you are going to trade, the size of trades you are going to make and at what point you should be selling a currency are all aspects you need to take into consideration when it comes to your plan. 

Ideally, the broker should help you with this. But, your active participation is crucial, not just to make sure you are rightly doing the business now, but also to learn the art of trading.

Step 3- Practice 

It’s true what they say: practice makes perfect. If you want to be in a position to buy and sell at the right time, you must train. Take the time to trade on a platform for a short while before you really get going, so that you can reduce the chance of suffering any losses. 

Ensure that you are utilising a trading platform that offers you a first-rate trading experience with various features and tools to suit your trading style. 

The Bottom Line:

Forex trading industry is huge and trillions of dollars change hands daily!

This makes it a lucrative opportunity for many new investors, but naturally, it does involve risks along with so many benefits, which is important to know and understand, especially if you are a beginner. There aren’t any formal requirements that you need to meet when starting a Forex trading business, which is probably one of the biggest advantages, but the above three steps which can help you move strategically.