The major Swiss bank UBS is building an electronic forex trading platform in Singapore. UBS bank is now in the multi million dollar retail forex game, since Singapore is the main retail forex hub in South East Asia, no doubt the bank wants to jump on the gold rush as soon as they can.
US bank Citigroup is taking part in UBS’s planned electronic foreign exchange trading platform in Singapore, according to a statement. The major Swiss bank plans to commission the platform called eFX in the middle of this year.
It is a project initiated by the Singapore-based financial regulator MAS with the aim of increasing liquidity in trading Asian currencies. Citigroup which owns UBS is one of the five largest currency traders in the world!
At the moment, there is a dozen of regulated forex brokers in Singapore, the trusted fx source shows that there are many big players among them for example:
- Plus500
- IG Group
- AvaTrade
- Saxo Bank
- etc.
Forex trading is booming in Singapore. Nevertheless, forex trading carries certain risks, so attention should be paid to every detail when entering the Forex sector.
Forex trading as a supreme discipline in the financial market
Forex means Foreign Exchange. Basically, Forex trading is about exchanging different currencies. With foreign exchange trading, which is regarded as the ultimate discipline in the financial market, larger sums are implemented worldwide every day. Forex trading takes place exclusively virtually via various online platforms available 24 hours a day. Depending on whether the right decision has been made, the trader wins or loses. Speculating on currency rates is possible for most online traders for as much as five euros. Some providers first require you to deposit a certain minimum amount. Although there are generally high chances of winning in foreign exchange trading, there are risks in speculating that must not be ignored. One of the most important criteria when choosing an online broker is regulation. Without regulation, brokers can conduct their trading at their own discretion, so there is a very high risk to client funds. With a Forex broker with a Singaporean branch, customers can now benefit from the official regulation by MAS (Monetary Authority). The customer’s capital is then protected by the Singaporean laws guarantee.
FX Broker regulation by Singapore financial supervisory authorities
For a Forex broker, regulation by the relevant financial regulator is the most important prerequisite for being perceived as a reputable trader. In Singapore, any company wishing to conduct a financial services business requires a permit,
Forex brokers will only get a license if certain requirements are met. In addition to a viable business plan, this also includes an initial capital endowment of at least 730,000 USD. In addition, the company must be managed by at least two managing directors who can demonstrate professional competence. Before granting a licence, it is also carefully examined how reliable these persons are and who holds shareholdings in the company. More information about the regulation of Forex brokers can be found here .
In a Forex broker comparison, it is important to pay attention to criteria such as origin and history of the broker, the platform used by the service provider and the extras offered. A comparison guide in conjunction with assessments of independent comparison portals is an important support.
According to Bloomberg.com
“Regulated Forex brokers must submit regular financial reports to MAS”.
Unlike in Russia forex case, internal audits are conducted by third parties. Through its website, the Federal Financial Supervisory Authority offers an always updated list of all member companies. Circulars and press releases on legal cases against financial companies. Nevertheless, people interested in participating in Forex trading should also search their broker’s website for detailed information. Most financial companies make license details visible on their website. If this important detail is missing, it is worth asking the company directly. Possible risks that exist in Forex trading can be minimized by selecting the right Forex trading platform.
