Digging Into Singapore’s Binary Options Trading Market
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Binary options traders in Singapore and elsewhere make money trading with price fluctuations in financial marketplaces worldwide. Globalization has had a significant effect on the way people see economic markets now. Advances in technology in the communication and information system fields have allowed people to evaluate and get access to local and global financial markets. And binary options has become one of the most popular avenues for trading in the financial sphere and continues to grow.
Similar to traders in other countries, people in Singapore find the idea of trading binary options appealing due to the ease and convenience of commerce exchange nowadays. Several options for trading exist and further the attractiveness of binaries, including the offer of services to people in their own homes. Because of greater technological advancement, most Singaporeans have access to the only tools needed to trade: a computer and the Internet.
However, since the world of binary options trading is still new in comparison to older trading avenues, concern still exists with regard to its legitimacy in Singapore. But should people worry or is it all blown out of proportion? This guide will help unravel the mystery and give you more information to evaluate binary options trading for yourself.
Binary Trading Proves Popular in Singapore
As a small city-state, Singapore sits in Asia divided into districts. Binary options trading comes in high demand and occurs in all of these districts, after being restricted previously to just two. Many credit the greater popularity over the years to better education and technological access.
Singaporeans can access a smartphone and Internet connection, making trading binaries simple. Most also know about the financial opportunities available in the markets and eagerly want to enjoy the benefits. While some binary options brokers remain mainly offshore, within the city-state exists the headquarters for its most popular broker platform IG regulated by Singapore’s Monetary Authority (MAS).
How does trading binary options work in Singapore? Not too differently than any other place in the world. Traders buy an underlying asset at a chosen price and for a chosen timeframe or expiry time (the time at which the trade closes). The basic method for trading binaries involves making a prediction based on two choices: up or down (often referred to as Call or Put in the industry). Will the price of the asset go up or down within the specified timeframe or by the expiry time?
While brokers have variations for timeframes and minimum prices for executing trades, you get to select how much or little you want to risk per trade as well as the timeframe or expiry time. Then you choose up/call or down/put.
For a winning trade (called “in the money” or ITM in industry terms), you get your wager back plus a percentage of it as profit. This percentage varies among the broker platforms as well but usually ranges between 65-85%. But for a losing trade (“out of the money” or OTM), then you generally lose all of the money you risked on it.
Singapore traders can seek out and learn methods for trading binary options successfully for themselves. Or they can seek the advice of their broker’s educational tools, platform, and representatives to help them learn and make trading decisions.
Experts advise for traders to become knowledgeable about binary options trading themselves, even if they do take information from their broker into consideration. With knowledge, you’ll be better able to discern whether or not information given to you seems plausible.
While it does take some time to master, thankfully you don’t have to have some massive knowledge of the assets you trade. You just need to understand how trends work, price movements, and combining that knowledge to guess whether or not an asset’s value will increase or decrease by the time the trade closes.
Many Singaporean traders have made profitable gains (even enough to comfortably live off of) without the need to spend hours sitting in front of a computer executing their trades. So you don’t need a huge time commitment, either. Greater knowledge comes with greater experience, like anything else. But you can take the time you want to gain it.
Customizing Options for Singaporean Traders
As mentioned above, different brokers have various ways of allowing traders like those in Singapore to customize their trading experience. You can choose timeframes for binary options that last only a minute or ones that last for several weeks. You also have a variety of assets to choose for trading purposes. Some like trading currencies, while others might prefer stocks or commodities. The wide range available with certain aspects of binary options trading makes it easier to find one to fit your strategy and style.
And many brokers also allow Singaporean traders to try out a demo account first before risking real money on trades. Instead, the broker funds your account with virtual funds which you can use to test out the platform and any trading strategy you want to try for free using real market conditions. This helps you learn the ropes and see if the platform can reliably perform when it’s time to make trades with real money.
Singapore’s Binary Options Regulation
Binary options have existed for some time. But traders had to conduct binary trades over the counter in person before their introduction into the digitized world. With the growing popularity of trading these options online, governments around the world face increasing pressure to properly legalize and regulate them for the financial safety of consumers.
Most traders in Singapore would rather trade international currency in the marketplace. And the foreign exchange makes up the largest and most popular market in binary options trading.
The Monetary Authority of Singapore takes on the responsibility of overseeing most commercial trading like forex in the city-state. It strives to guard Singapore’s financial markets against global monetary problems such as inflation, as well as shield citizens from brokers who’d otherwise deceive and exploit them.
Broker transparency proves vital for traders and regulatory bodies alike. And broker reviews, like the ones you’ll find on this site, help individuals discover regulation rules and activity and evaluate a company’s credibility. You also receive important knowledge allowing you to better detect whether or not a brokerage service is a scam.
Regulation plays an essential role in protecting people against brokers who’d otherwise cheat people out of their money and take advantage of their ignorance of the industry. And by taking on regulatory duties, the Monetary Authority of Singapore helps keep the binary trading market there robust and fair. Take it as a sign of quality if an individual brokerage firm does their own security checks in addition to undergoing regulation to an institution.
Singaporean and other regulators around the globe have made improvements to help traders better understand new risky elements within trading markets. This opens up the possibility of accepting further opportunities in the future because of more technological advancements while simultaneously lessening the possibility of risks to compromise trading safety.
You can’t legally trade in Singapore with unregulated brokers. But the unregulated dealers are the ones who face prosecution, not the traders who use them. The Monetary Authority creates rules to make sure traders continue committing to fair trade. Failing to follow the rules will result in a temporary ban from trading.
Singapore’s vital market for international finance gets affected by outside factors, just like other important markets. It has attracted a lot of foreigners who’ve contributed to its growth, along with improved technology. Therefore, competition has grown as well which provides better platforms (and platform variety) for binary options traders.
As trading binaries continue to find growth, regulation will increase and further cement the trustworthiness, fairness, reputation, and sustainability of existing organizations there.
Singapore Binary Options Trading Industry Trends
Prior to the binary boom, too many scammers came to take advantage and threatened the entire market. As the number of traders and binary options brokers in Singapore increased, so too did regulation procedures designed to protect the marketplace. This, in turn, has increased reliability and security for traders when it comes to making money with binaries.
Many brokers have also taken it upon themselves to offer more information and education about binary options with courses, tutorials, and other guides. And software applications have made binary trading easier and more profitable than ever. With them available now, traders have the ability to use better technology that serves to improve trade results. All of this makes for a much-improved trading atmosphere than existed before for traders, credible brokers, and the marketplace as a whole.
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Despite these improvements and increased regulation, some flaws still exist within the system and can create inconsistencies in the Singaporean trading market. Individuals can get exposed to both reliable and illegal brokers through a list that the Monetary Authority creates to warn traders away from those too risky to do business with while steering them towards those they can trust. So people can trade with less fear of losing their funds through shady brokers and scammers which, of course, contributes to the improved reputation of the industry in the city-state.
You can expect for financial markets in Singapore to continue improving as:
- More honest brokers enter into the marketplace,
- Technology continues to advance and increase trading effectiveness,
- The cost of creating platforms for binary options lessens,
- The number of available platforms steadily grows,
- And competition pushes brokers to comply with regulation and provide plenty of opportunities on their platforms for traders.
Advances in tech, in particular, will drive more and more Singaporeans to get involved in the binary options trading business. It’s no longer necessary to go through traditional stockbroking services. People will gain even greater access to markets on their smartphones, get investment advice, and execute trades without the need for human interaction than already exists. And eventually, they’ll have access to even faster and cheaper choices as technology aids them in their decision-making process while trading binaries.
To aid in this, the Monetary Authority of Singapore has also begun increasing the technological skill level of people there. This way, their citizens will be better able to handle technology in the financial market.
Pros and Cons of Trading Binary Options
With binary options, you already know the risk and reward you can get before you make the trade. You only have two options when you execute as well, which makes the process pretty simple to determine. You either win or lose a certain fixed amount based on which way the market moves. This makes it easy enough to learn the basics.
You also don’t have to worry about obtaining complicated or expensive equipment in Singapore as long as you have access to a computer with an Internet connection. And since binary options trading occurs globally day and night on most days of the week, you can execute trades and watch the price action at any time…even at 3 a.m. in the morning local time.
But trading binaries in Singapore does have the same drawbacks as elsewhere. It’s simple to do, but not necessarily easy. In order to trade successfully, you have to acquire the skills to use technical indicators correctly and obtain the knowledge necessary about price trends to make better and more informed trading predictions.
And all brokers give you less money back for a winning trade than you’d lose in a trade that goes against you. Meaning that the reward you receive is less than the risk you take. So you must make correct predictions more often (and even perhaps at a higher percentage payout) to cover your losses. It doesn’t help that the payouts and risk levels differ from broker to broker and underlying asset to asset, either.
Finally, while brokers often face regulation, the binary options market itself doesn’t. And that can make for some inconsistencies in trading as well.
Singapore’s Best Binary Options Broker
Singaporeans with good English-speaking skills shouldn’t have too much of a problem finding a credible broker for trading binary options. Several brokers exist and are active within the city-state and have websites and support all ready to go. (Some of them have even translated their website into others languages like Mandarin and Malay). But despite the numerous options, one Singaporean broker, in particular, stands out as earning a credible reputation.
As the main binary broker in Singapore, IG gives market access directly to its traders. Traders can enjoy a range of services such as plenty of forex pair combinations and small currency spreads.
IG has kept their platform simple with accessibility via smartphone, tablet, and other mobile devices for trading and communication purposes. Traders in Singapore have access to currencies around the world and can make decisions and execute trades based on inflation level differences, governmental policies, and import/export demand.
More and more Singaporeans continue to turn to binary options as an alternative to hedging and speculative financial market trading. The barrier to entry barely exists with binaries and the market outweighs those of other markets for many people new to economic trading. With all the improvements made over the years and the prospects for growth for the future, those in Singapore can feel more comfortable dipping their toe into the water and opening an account with an honest broker.
Start trading now by opening a FREE account on one of our recommended brokers.
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