If you want to try trading in this country, the Forex market is an optimal place to start. But, before you make a final decision, be sure to learn more about the local status of this activity, its regulation, related taxes, and brokers you can safely entrust your funds to.
Trading foreign currencies, i.e. speculating on their price fluctuations, is fully legitimate and easy to access for Singaporeans. There are no legal limitations. As a local trader, you will get access to the global Forex market, which means you will hardly face any problems with liquidity and will be able to execute deals 24/7.
The sphere is controlled and regulated by the Monetary Authority of Singapore, which issues licenses for brokers serving local traders. Sure, to feel 100% safe and protected from fraud, you should turn to a broker or exchange licensed by the authority mentioned.
Furthermore, unlike the situation in most other countries, Forex trading in Singapore is not subject to taxation unless such an investor leaves his major job and chooses to make his living from foreign currency speculation. If your income comes from abroad, there are no taxes as well. So, you can use trading as a side gig without paying any duties.
In general, becoming a trader in this country is quick and fuss-free:
1. Sign up for a brokerage platform. Again, it is preferable to choose a service approved by the MAS. When your search is narrowed, scrutinize all the terms, assets, and features offered by your favorites. The main focus must be placed on their fees as they have a direct impact on the size of your pure income. For newbies, we would recommend collaborating with eToro, Interactive Brokers, or AvaTrade.
2. Try demo trading. This feature is meant for beginners in the first place as it allows practicing in conditions close to market ones without making any deposits and risking real funds. Yet, even if you’ve already obtained certain knowledge and experience, testing the broker before depositing real money will not go amiss.
3. Develop your personal strategy. Decide how much time you are ready to devote to trading, how much money you can afford to risk at a time, and what your risk tolerance degree is. When exploring strategies offered by experts, avoid those that promise to make you rich overnight. Forex is not about gambling and risking huge sums. It is about consistent and systemic daily work which allows building financial independence in the long run.
4. Consider passive investments. Making efficient trading decisions is a real challenge, especially when you lack knowledge and experience. Hence, many beginners start from passive earning ― by entrusting their funds to managers via PAMM accounts or by subscribing to other traders’ profiles and mimicking their positions (copy trading).
In sum, if you want to try trading foreign currencies in Singapore, do not hesitate and open a demo account with one of the brokers mentioned above. In this country, this sphere is fully open and protected by the local authorities.