Singapore’s economy is flourishing and it is very oriented towards international trade. It is the most open economy in the world according to statistics, with an emphasis on business and low taxes. The GDP is the 3rd highest on the global level in terms of Purchasing Power.
Ties to Government Companies
The economy depends on companies which are mostly linked to the government. Foreign Direct Investment goes both ways in Singapore: Singapore invests internationally, and is being invested in. It offers an ideal business environment with the low taxes, a healthy economy, and a stable political situation. It is no surprise that many Forex companies found their dream conditions in Singapore. The national currency is the Singapore dollar (SGD) and is somewhat weaker than the USD but not significantly, e.g. (1SGD equals 0.718445 USD). What makes Singapore different from other offshore locations is that the costs are not that low. The standard of living in Singapore is higher which means that the workforce has to be paid accordingly, and is not as affordable as in India or Malaysia. Singapore cannot even be directly called an offshore destination given that the Forex brokers’ clients mostly come from Singapore.
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Increased Interest in Forex Trading
Forex trading, together with other financial instruments and assets, is increasingly popular over the last five years in South-East Asia with thousands of new traders starting to actively trade. This has been recognized by many financial institutions and Forex broker companies are, of course, no different. We have thus seen an outburst of big brokers turning exclusively to Singaporean market and there are now more than 600 institutions and over 25 MAS regulated brokers. The daily Forex trading volume average is estimated to around $300 billion, which puts Singapore in the top five markets in the world. This has also stirred a need for strict regulation of the market in order to provide consistency as well as protection to the individual traders and institutions.
The MAS Regulation
The Monetary Authority of Singapore was founded in 1971 and it was authorized as Singapore’s central bank and a regulatory body of the financial sector including banking, insurance, and securities. The organization manages the country’s foreign reserve and serves as the prime regulatory body of Forex trading market, authorizing and constantly monitoring the Forex brokers in Singapore. Interestingly, as Singapore central bank MAS directly intervenes in the SGD market influencing the liquidity through the Forex mechanisms, rather than doing so via interest rates. The MAS’s goal is to promote sustainable economic growth and development. It actually acts as the central bank of Singapore and is in charge of the monetary policies, issuance of the SGD, and assumes the role of the financial advisor to the government. The MAS promotes professional conduct and behaviour and tries to keep the reputation of MAS. They also put an emphasis on integrity and sovereignty of the market by enabling fair conditions and a healthy competitive climate. They are committed to keep the documents confidential and secure from third parties. The MAS takes preventive measures to avoid conflict of interest if any should arise. Since Singapore is already one of the least corrupt governments and countries, it is only natural that the MAS fights corruption, fraud, and scammer companies with all their power.
MAS Forex Brokers in Singapore
Where a healthy environment for international companies exists, leading Forex companies are not far away. Forex companies are always the first ones in line when a country offers a competitive environment. Singapore is very well regulated as a country in general, which means that its institutions and bodies like the MAS have the necessary powers to enforce regulation and supress misconduct. This also means that Forex traders in Singapore are protected and safe from crooked brokers. Of course, no one can guarantee that there are no bad brokers in Singapore, but there are definitely less than in other offshore countries. Forex trading is a booming business in Singapore and there are many brokers offering services with exclusive customer care and executive offices there. While there are considerable differences for the Singaporean customer base with most of the prominent brokers, these can be easily listed with specific brokers’ support. For example, most of the brokers will not allow auto trading or trading via MetaTrader 4 to Singaporean clients, but the possibilities are expanded in other parts – with propriety trading platforms for example. With strict regulation and authorization, there are many positive and well-known Forex brokers in Singapore who provide diverse trading opportunities with great conditions. The traders seldom encounter software issues with market providers and the reviews for MAS regulated brokers are overwhelmingly positive. With the growth of the Forex trading community over the last decade, the opportunities have been continuously increasing for individual traders and the market looks as consistent as ever.
Excellent Conditions for International Forex Brokers in Singapore
Singapore provides almost ideal conditions for Forex companies who want to develop and expand their business. We have seen that the Forex brokers in Singapore have to adjust their service packages for the Singaporean clients. First of all, Meta Trader 4 platform enables auto-trading and hedging which is not legal everywhere like in Singapore. Because of hedging, the MT4 is not even allowed in the USA. If the brokers want a genuine opportunity for business, they are welcome to Singapore where they have a real shot to become very successful. On the other hand, the Singaporean market is not suitable for manipulative Forex brokers who are looking for an opportunity to empty the pockets of naive Singaporean traders. The government and MAS will react quickly and suspend such brokers, including charges.