The ultimate checklist for choosing a Forex broker in Singapore
Choosing a reliable broker to invest with isn’t always easy. Singapore financial experts have outlined eight tips on how to find a trustworthy broker to start trading Forex.
Forex trading is getting bigger every day. With so many brokers offering their services, finding the right one can be difficult. What should one look for in a broker to get the best out of trading in the Forex market and feel safe? There is a checklist that should help find one. But first—the essentials of Forex market every trader should know.
What is Forex?
In a sense, Forex is a dynamic basket of foreign currencies and exchange. The full description reads as ‘Foreign exchange’ and houses the process of changing one currency into another. The Foreign Exchange market is decentralised by nature. It lives completely online and uses a great variety of different countries, currencies, and commodities.
The Forex sphere—who is it composed of?
The main actors of the Forex industry are far and foremost the broker itself, who provides the trading services, and its clients, who use them and are regular people. Also, Forex services rely on the essential relationship with liquidity providers. They function as mediators who are highly required to give traders access to the Forex market, offering the most accurate value estimation for the traded currencies.
There are global and local Forex brokers—the bigger the reach and regulatory scope, the bigger the Forex broker.
Trading in a global, decentralised market
Foreign exchange trading is happening twenty-four hours a day, five days a week, on various exchanges around the world. Decentralisation is vital for the Forex market due to the globalised world economy’s need for fast, easy flow of currencies.
International Forex brokers—as opposed to local ones—operate in a multitude of countries. They are allowed to operate globally through multiple international documents. Not being extensively regulated locally and not having to implement restrictions that often limit trading opportunities for traders, international Forex brokers can therefore offer more favourable conditions to their clients.
As discussed above, decentralisation for the Forex market is vital. It operates—without exception—online and utilises a wide variety of different regions and even continents, national currencies, and commodities. Even local brokers must use some features and advantages of international partners, such as payment systems and other services. So, it sounds like it can’t be limited to one particular country entirely.
Choosing a trustworthy Forex broker
When it comes to choosing a reliable international Forex broker to invest with, there is a checklist that will help traders and investors.
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The broker is long-established. Any broker with at least ten years of work in the financial markets (such as XM, eToro, OctaFX) is worth a try.
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The information about the broker can be found online.
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The reviews are overwhelmingly positive (you can find them on trustpilot.com).
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The broker has received industry awards for its services in Asia, and Malaysia in particular.
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The broker publishes its own educational content. A reliable broker is always interested in its clients being better prepared for trading in the financial markets.
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The broker provides multilingual support.
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The broker is otherwise present in Singapore, for instance, invests in charitable initiatives across the country to give back to the society it works in and be closer to its clients.
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The last—and the most important. The broker that showed itself well in all other respects: has the lowest spreads, no additional commissions, and no swaps.
Using the checklist above, a trader can find a trusted broker that would accelerate—and not stymie—one’s efforts in achieving financial goals. Besides, it will help protect traders against fraudsters posing as Forex brokers as they will never be able to fake a reputation garnered over many years of work in the financial markets.
