Singapore’s economy accelerated only after the independence from Britain in 1965. Now, Singapore is one of the fastest-growing economies, though the country has only 5.704 million as of 2019.
At the current time, the stock market in Singapore is handled through the Singapore Exchange (SGX) which operates through several international offices including Beijing, Hong Kong, Chicago, London, Mumbai, New York, San Francisco, Shanghai, and Tokyo.
The SGX was established in 1999 when the (SES) Stock Exchange of Singapore and the (SIMEX) Singapore International Monetary Exchange got merged.
The SGX deals in stocks and warrants, (ADRs) American Depository Receipts, trusts, (ETFs) Exchange Traded Funds, Real Estate Investment Trusts (REITs), and Business Trusts. Besides, the exchange also incorporates fixed income products, currencies commodities, derivatives, and indices.
The primary stock market index for the SGX is calculated through the FTSE Straits Times Index (STI). Here STI performs as the market benchmark. So, the value of SGX depends on the 30 top organizations listed on the exchange, how they performed in the chart.
Singapore’s domestic currency is called the Singapore dollar (SGD) which is further subdivided into hun units which are called cents. According to the report of 2016, the (BIS) Bank for International Settlements had ranked the SGD as the 12th most frequently traded currency.
Singapore has the MAS (Monetary Authority of Singapore) which ensures monetary and financial stability in the country. Besides, the MAS also oversees and manages the exchange rate movements through market intervention.
The MAS was created in 1971 and was operated based on the MAS Act of 1970. It is also considered the principal financial sector controller in the country that supervises as well as provides guidelines and assistance for financial organizations and insurance companies all over Singapore.
How to start stock trading in Singapore
Those who look for an online broker Singapore to operate Forex must find a foreign broker who can cater to their needs and who is authorized under MAS. The stock broker in Singapore who is under the supervision of MAS needs to possess a good relation with Singapore’s central bank. This way, the trader can easily access the broker if there are any disputes during the deal.
Besides, the foreign brokers should pay attention to the prevalent jurisdiction that helps the government to ensure that the trader or client’s assets are safe. The broker also needs to have a good reputation with the clients to run long-term relations.
For those who are beginners in trading, the brokers provide a demo account that is loaded with virtual money that helps clients practice trading. Once the clients are accomplished with an online platform with some trading knowledge can ask for real money-funded accounts and start trading live.
How to choose the best trading platform in Singapore?
Before you begin online stock trading in Singapore, you need to find a secured and helpful trading platform. For this, you can consider the following standards to ensure the platform is safe for trading.
Available markets and securities
Before you join any random platform, you need to make sure that the platform allows you to trade the securities according to your plan. Some platforms focus on CFDs while others specialize in stocks, bonds, or ETFs.
You’ll need a marginal account for leverage trading but each platform has its own restrictions and limitations for leverage transactions. Make sure that they can afford your plan.
The customer care service must be efficient and automated whenever there happens an issue with the client while trading.
Each platform has set its own cost depending on what you buy and sell. But most clients trade US stocks so, make sure what fees are set for trading US stock in Singapore.
Trading ideas don’t exist in isolation every time. You need to conduct research and collect information. But the research tools help you save time and make trading easier.
Investor Education & training materials
Types of orders
Interface and ease of use