Anyone who is looking for a Singapore Forex broker is quite likely to be confused due to the variety of choices that is in front of him. Due to the free economy of Singapore where the rules and guidelines for trading are fairly liberal and also transparent, a lot of Forex brokers have set up their company in Singapore and so the traders have a big choice to make now. Also, it is very likely that a new Singapore trader will be overwhelmed by this process as almost everyone seems to be the same.
There are a few factors that need to be considered before you choose the right Singapore Forex broker. The first factor is reliability. It starts right from the team that manages the company to how many years they have been in this business. That will be a great indication of how safe your funds will be with them. You also need to understand where these brokers have registered their company in, so that you get an idea of the authority which regulates them and also whom you should be reporting to in case of problems. The 2 biggest authorities which regulate Forex brokers are the NFA in USA and FSA in the UK and it is ideal, though not necessary, that the broker is registered with either of them. If you are not sure, then you can seek advice from friends and fellow Singapore traders or even the Monetary Authority of Singapore in this aspect.
Once the safety of your funds is ensured, you then need to ensure that the customer service, fills, quotes and requites are as per the industry norms. For this, you need to speak with the brokers and also consult your friends and fellow traders to understand the services of the Singapore Forex broker. You can also search online for reviews. It may also be very useful if you can open a very small account with the Singapore Forex broker that you prefer and trade for some time and see how good/bad they are. Sometimes, there is quite a difference between the demo and real accounts and so it may not be a bad idea to do some testing on the real account as well.
The next thing that you need to watch out for is the spreads. There are a whole lot of Forex pairs to trade and each has its own spreads and though the difference between the spreads between the brokers might appear miniscule, as you take more and more trades, you will be losing a lot of money in the long run. So, the spreads are indeed a very important factor, though it may not be a deciding factor in choosing a Singapore Forex broker.
There are also other factors like the Forex trading platform that the broker provides, the customer support, the alternate options of trading, what other products/services that the Forex broker offers etc. but all these are secondary factors while the real keys are the reliability and the spreads. Take your time in making a decision and once made, get it out of your mind and concentrate on your trading. All said and done, the trading results depend a lot more on the trader than anyone else.
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