Lately, the foreign exchange market has expanded globally. Now, it is not only limited to certain areas but is available in various parts of the planet. This is good news for forex traders, who want to have as many opportunities as possible in terms of trading.
What about Singapore, though? Is forex trading legal there? Read on to learn more about Singapore forex trading.
Is Forex Trading Legal in Singapore?
There is good news for aspiring forex traders in Singapore because forex trading is legal in the country. People can now start trading foreign currencies without worrying about potential legal limitations.
In fact, Singapore has become one of the international hubs for forex trade. In the Asia Pacific region, trading has become significant and successful over the last few years, earning a high spot in the financial sector.
Therefore, there has been an increase in financial trading in Singapore, and traders can even take advantage of Singaporean forex brokers for transactions.
While legal, you should know that forex trading is often the topic of conversation as various countries have to restrict how much foreign currency they bring in and out of their territories. You will notice that foreign exchange trades are restricted in various countries that surround Singapore.
Nevertheless, the Singaporean government was able to make forex trading work in the country with the help of the MAS. In order to stay safe, traders must only settle for MAS-regulated brokers when trading in Singapore.
Forex Laws and Regulations in Singapore
The Central Bank of Singapore is the Monetary Authority of Singapore or MAS, and it was founded in 1970. It is the biggest financial regulatory body, and it’s the one monitoring Singapore forex trades. On top of that, it even has the authority to implement good policies in the fintech area.
Singapore wants forex traders to be safe at all times, and under the Monetary Authority of Singapore, they are prohibited from using unregulated companies for trading. There are many laws in place against corruption, which is why traders are very happy with the trading atmosphere in Singapore.
Here are some laws and regulations for forex trading in the country:
- All people in Singapore who want to get involved with Forex trading must know the laws and regulations in the country, and they must only seek licensed Singapore forex brokers for their trades.
- Some guidelines for forex have been established by the MAS, known as the Guidelines on Leveraged Foreign Exchange Trading. These guidelines focus on a firm’s regulatory requirements for providing leveraged foreign exchange trading services, including risk management, reporting requirements, and customer protection.
- The Securities and Futures Act mentions how any company in Singapore that has forex trading services available is bound to be a Singaporean MAS-regulated broker. In order to make sure all trading practices are fair and transparent, firms must follow very stringent regulations and rules.
- All Singapore rules and regulations for forex trading are governed by the Monetary Authority of Singapore. As such, the central bank of the country must take care of the financial sector by supervising and regulating it.
- Brokers will have to pass several examinations in order to obtain a license.
How Do You Trade Forex in Singapore?
Have you decided that it is time to get into forex trading in Singapore? The good news is that it won’t be difficult to get started.
You just need a bank account and access to a Forex broker’s services. This means you will have to register with a forex broker on a platform to be able to trade.
If you want any chances of success, keep in mind that the best time of the day for forex trading for Singaporeans is usually considered the time the London markets have the most activity.
In the October – March period, this is between 3 pm to 12 am, whereas in the March-October period, it is between 4 pm and 1 am. Also, the most profitable days for trades are Tuesdays, Wednesdays, and Thursdays.
Before your forex trading journey begins, you should make sure that you have done your research and that you are sure about your moves.
The Bottom Line
Forex trading in Singapore is legal, and also very safe. The country took all precautionary measures so that you can trade in safe conditions by only settling for regulated brokers. So, if you do your research and trade during the best times, forex trading can be extremely profitable in Singapore.