How to create a business around forex trading in Singapore?
If you’re looking to build a successful business around the concept of forex trading, there’s plenty of reason why you should target the Asian markets and entities such as Singapore.
After all, Singapore itself is now home to the third-largest foreign exchange in the world, accounting for 7.6% the global market share. Hong Kong (7.6%) and Japan (4.5%) also make up the top five, meaning that Asia now drives 19.7% of all activity on the global forex market.
But how do you create a viable business around forex trading in Singapore and similar regions, and what are the key considerations in this regard?
Remember that Knowledge is Power
Even though you may be scaling upwards from retail to institutional or commercial trading, the rules of engagement within the market remain largely unchanged.
For example, knowledge remains the single most important weapon in any successful forex trader’s armoury, while demo accounts offer an ideal way of translating this into practical market experience and testing higher-volume investment strategies.
Of course, concepts such as margin and leverage are particularly important when trading in higher volumes, as you may be required to borrow larger sums from your chosen broker in order to open and sustain the requisite number of positions.
Open a Demo Account and Utilise Mobile Trading Platforms
As we’ve already touched on, demo accounts can be worth their weight in gold when bridging the often cavernous gap between theoretical knowledge and practical market experience.
Similarly, such a tool can help retail traders to scale their efforts and establish a viable forex business model, particularly as they adapt their investment outlook and strive to create larger-scale trading strategies.
At the same time, tools such as the MetaTrader 4 may also prove crucial when creating an effective forex trading business model.
After all, this provides real-time access to the market wherever you are in the world, creating a seamless way of accessing the Asian marketplace while based in Europe or the US. It also offers you access to a vast array of technical indicators and analytical tools, alongside valuable metrics such as economic calendars and online calendars.
Realise the Full Potential of the Market
Unofficially, the Asian marketplace and exchanges in regions such as Singapore run between the hours of 11pm and 8am GMT.
During this time, the market sees a deceptively large array of currencies traded in high volumes, outside of dominant Asian derivatives such as the Japanese Yen.
Make no mistake; currencies such as the Australian Dollar, New Zealand Dollar and the Russian Ruble are also prominent at this time, and understanding this can help you to realise the full value of the market.
Similarly, there’s a one-hour crossover between the Asian and European markets, with this occurring between 7am and 8am GMT. This triggers a noticeable spike in trading volumes, creating volatility that can be leveraged to the advantage of traders.