Traders worldwide are taking advantage of the low risk and high rewards that binary options trading offers and if you are living in Singapore, you too can be a part of this growing and exciting industry. Since options trading offers flexibility and fast-paced trading from as short as 60 seconds per trade, traders in Singapore have access to a wide selection of brokers who offer a cutting-edge trading interface and superior trading tools and features.
Is Options Trading in Singapore Legal?
The first question you might be asking yourself is, are you able to trade binary options in Singapore legally? The answer is yes. Options trading is regarded as a legitimate form of investment in Singapore and although the Monetary Authority of Singapore (MAS) has not yet regulated this form of online trading, traders can have peace of mind that their investments are legally recognized and accepted in the binary trading world.
Despite the fact that there are no regulated brokers within the country, brokers who are regulated in other countries, often allow traders in Singapore to use their services. For example, many brokers are regulated by the Cyprus Securities and Exchange Commission (CySEC) or by the Financial Conduct Authority (FCA) and the Financial Policy Committee (FPC) in the United Kingdom. These regulations allow brokers to operate as official financial service providers who are permitted to offer their services to traders in other countries based on the regulations of these countries.
In order to trade binary options online, you have to sign up and open an account with a broker as this will give you access to the trading interface. So you might be wondering how you select a binary options broker in Singapore.
Selecting a Top Binary Options Broker in Singapore
The first step in choosing a broker is to check if they are regulated. You may be able to find this information on the broker’s site or you can contact them directly to obtain this information. While there are many reputable brokers in the industry who are not regulated, it is best to select one who is in order to avoid any scams and unprofessional service. The next step is to establish if the broker accepts traders from Singapore. Most brokers will provide this information on their website and often, when you try and open a trading account, if they cannot accept traders from your country, you will receive an online message and you will not be able to register an account.
In order to select the right broker for you, you need to understand the type of trader you are. That is, if you are new to the options trading world and have no experience in trading online, then finding a broker who offers educational trading tools which can assist you in learning how to trade effectively, is important. On the other hand, if you are a professional trader who requires training on advanced trading strategies as well as 24/7 access to your account manager, you will need to find a broker that offers one-on-one coaching with a senior broker as well as a dedicated account manager who you can contact at any time.
Once you have found a broker who can meet your trading style and needs, there are other important elements you will need to check for.
Singapore Dollar and Assets
Many traders in Singapore prefer to trade in the currency of the country which is the Singapore Dollar and some brokers allow you to trade in this currency. The most common currencies though are usually the US Dollar, the Euro and the British Pound Sterling. Another important element is the assets you can trade in online. While most brokers offer a wide selection of stocks, currency pairs, commodities and indices, some offer assets related to Singapore such as, the USD/SGD currency pair or the Singapore Exchange (SGX). Having some knowledge of the asset you are trading in enables you to make more accurate predictions thereby increasing your trading success and profits.
Trading Interface and Trade Options
The core of trading options online is having access to a cutting-edge and easy to use trading platform. Most brokers offer a 100% web-based interface which means you will not need to download any software in order to trade. This interface needs to be simple to use and also reliable because often, you only have a few seconds to make your trade and you cannot afford to be wasting time looking for the asset you want to trade in or trying to work out how to make your investment. Most brokers also offer a variety of trade options to trade in such as the standard binary options trade option, 60 Seconds, One Touch, Pairs, Option Builder and more. If you are the type of trader who enjoys short-term trading, then selecting a broker who offers this type of trade option is important.
It’s All About the Money
No matter where you are based, trading online is all about making money and selecting a broker in Singapore who offers a competitive rate of return is important. Many brokers offer a return of up to 85% for successful trades or for trades that end in-the-money and they also offer a rebate of up to 15% on trades that end out-of-the-money. Brokers want to attract traders and in order to do so, they often offer welcome bonuses but be careful not to get hooked in. Many brokers offer up to 100% bonus on your initial deposit which means that if you make an initial deposit of $200, the broker will give you an additional $200 to trade with, in your trading account. While this sounds like an excellent deal, most of these bonuses come with strict terms and conditions and often, you will need to trade the bonus and your initial deposit over twenty times before you can make a withdrawal. Remember, you do have the choice not to accept the bonus.
Being able to deposit money into your account and withdraw your funds at any time is an important element of binary options trading. Most brokers offer a wide selection of banking options such as credit cards, wire transfer, MoneyBookers and more and since you are based in Singapore, it is important to check that these banking facilities are accepted and are readily available in the country.
Being able to make contact with your broker is vital and selecting a broker that offers a variety of contact options, is a good choice. Many brokers offer a live chat feature as well as contact via telephone and email. Some brokers, such as TraderXP, have a satellite office in Singapore which means you can contact them locally. The customer service should be professional and the support team should have the experience to answer your trading questions effectively.
Binary options trading is growing rapidly among Singapore traders and selecting a broker to partner with is the most important step in your trading journey. Despite the wide selection of brokers in the market today, it is important to choose a regulated broker that can meet your risk appetite and your trading needs while offering a state-of-the-art trading platform and top-notch trading tools and features.