This article is about trading platforms, spreads and accounts available from Singapore forex brokers.
The trading provided by Singapore forex brokers is your portal to the trading market. This means that you should ensure that the trading platform and any other software offered by your forex broker are easy to use, pleasing to the eye and comes with a range of analysis tools.
The most important aspect of the trading platforms should be that you can enter and exit trades with ease. A trading platform with clear ‘buy’ and ‘sell’ buttons would be the ideal. Some trading platforms offer a ‘panic’ button which can be used to close all your open trades immediately. An interface that is badly designed could lead to mistakes. You may add to a position instead of closing it or you may go short rather than long.
Brokers normally make their money on the spread which is the variance between the ask and the bid price. You may receive a quote from your broker for the EUR/USD pair that reads 1.3911/1.3914. This indicates a 3 pip spread. As soon as you purchase the pair at 1.3914, your trade has already lost three pips of its value as you can now only sell it for 1.3911. The major currencies are normally more liquid and generally offer tighter spreads, but the spread for each pair is at your broker’s discretion. The EUR/USD generally attains spreads of one to two pips if you are trading in a standard account. There are many brokers who reward their clients who trade through standard accounts by offering tighter spreads. The brokers who offer premium accounts reward those clients with even tighter spreads.
Micro accounts are the smallest account types and brokers may use a wider spread in this account to try and earn some extra money. The spreads you are offered vary from broker to broker. On a micro account, you may be offered spreads of two to three for the EUR/USD pair, although there are brokers than do not differentiate between the account types. Some brokers may state that during periods of increased volatility in the market, the micro account spreads for particular currency pair could be increased.
You should check the fine print of your contract for information regarding spreads.
There are numerous available currencies for you to trade with, but only a handful is given any attention, hence they trade with more liquidity. The major currencies normally have more predictable ranges and movements. A forex broker may offer a massive range of currency pairs, but from your perspective, the most important factor is that they offer the currency pairs you are interested in.
Singapore Forex Brokers Demo Account
Most Singapore forex brokers offer demo account for you to test their trading platform before you open and fund a live account. Demo accounts are ideal to test if the platform is user-friendly or if it is too complicated for use. You can make use of a demo account to undertake trades and become familiar with the different order types. You will be able to learn little tricks related to the trading platform that will normally take time to discover. This saves time when you start trading live as you will already be familiar with the procedure and the software.