FOREX & CFD BROKERS IN SINGAPORE: WHICH FX TRADING PLATFORMS ARE THE BEST AND WHY?

Choosing the Best FX Broker in Singapore

Here is a look at some criteria we test all the best Forex Brokers against.

• First things first: Does the Broker accept clients from Singapore? As we have mentioned previously, there are so many websites out there offering Brokers to local clients without having fact-checked whether the broker accepts locals. We have confirmed with the Brokers we present here that they do open FX accounts to clients from Singapore.

• A reliable, secure, and mobile-optimized platform: We live in the 21st century, and that means we need an FX broker to offer an equally (if not more) high-quality experience on mobile devices. You never know if the next major FX alert will catch you while having pizza or at the toilet.

• Spreads, Commissions, and other fees: Currency pairs are priced through the interbank market, a communications system big banks and financial institutions use without a central exchange like a Stock Exchange. Forex brokers make revenues with fees and spreads arising from your trading transactions. They are not required to offer you the best interbank bid or ask prices, so they may intentionally display wider spreads with less favourable prices, adding to profits when they complete those trades through the system. So, spreads and commissions are the top priorities we consider when choosing the best brokers.

• A great FX Pair selection: We are not just looking for the major pairs but also minors and crosses. In general terms, the more diverse the brokers' offerings are, the better the trading conditions they offer overall (although this is not an exact science).

• Brokerage licenses: We only recommend licensed brokers to ensure the safety of our readers and fellow traders. If a new broker has not filed and approved their paperwork yet, you won't find them on our site.

• An efficient customer support team: As much as we would like to hope you will never need it, a customer support team is an important portion of a great trading experience. When things go wrong, you desire that your questions are answered quickly, fairly, and accurately.

How do you choose the right FX Broker for you?

Choosing a Forex broker requires deciding what type of trader you are, your goals, and how you will use the trading platform when investing in Forex.

When looking for a reliable forex broker, take your time to check for the one that will handle your trades and funds appropriately. The safety of your capital and private information is more important than any other consideration when opening a forex account because brokers can get hacked or bankrupt. Unlike stockbrokers, where clients' funds have (usually) a higher level of protection, some dodgy brokers provide no account protection at all.

Also, before you give a broker any money, review its funding and withdrawal procedures. Some require long waiting periods until you can trade when you fund through checks or wire transfers, while others will charge hefty fees when you withdraw funds or close the account.

And, of course, most importantly, check that the broker offers the best trading conditions for the instruments you will trade. It won't matter if they offer the tightest spread on the EURUSD pair if your most traded pair is the Dollar against the SGD.

The new Forex Trader Onboarding process

As a new Trader at any broker, you must go through a strict process before the ride begins. Forex Brokers are becoming increasingly concerned about things like responsible trading and anti-money laundering, and they’ll want to make sure they know a bit more about you before you get started.

It’s not difficult; it’s simply a matter of answering a few questions and possibly supplying some easy-to-find documents. Here’s a look at what to expect:

• Opening your account: This is the easy part. It just requires details like your name, age, address, email, and phone number. It should only take a few minutes.

• Identifying information: The broker will ask you to prove your identity by supplying them with a copy of a recent utility bill with your name and address (issued within three months), a copy of your passport or driver’s license, and proof that you own the debit card you’re operating with. It’s pretty easy to scan these documents in; all of the brokers on our top list are trusted and safe to share your information with.

• KYC (Know Your Customer): This process involves providing information to prove your source of funds or wealth. You may fulfil this task easily using payslips or bank statements. It is not as difficult as it sounds since it’s just for the broker to ensure you use legal funds to trade.

• Responsible Trading: To ensure that you are not trading above your means (leverage instruments are risky, and losses may exceed your deposit), some brokers may check in with you from time to time if your trading habits change (although this is very unusual).

Forex Risk Disclaimer

There is a very high degree of risk involved in trading securities. Concerning margin-based foreign exchange trading and off-exchange derivatives like Forex, there is considerable exposure to risk, including but not limited to leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. You should not expect that the methods, techniques, or indicators presented in these products will be profitable or will not result in losses.