The Singapore Forex market is probably one of the biggest in Asia. This market has witnessed tremendous growth over the past 4-5 years along with the associated businesses like brokerages, IBs, trading software etc. Each and every day thousands of new traders are joining this business in the hope of making it big or in the hope that they can get a good supplementary income in addition to the income that they generate through their jobs.
The Singapore Forex market is big enough to accommodate all these growing number of people and others as well!! It is also noticed that in recent times, more and more hedge funds, institutional traders and other kinds of funds are also setting up shop in Singapore. Even those funds that have been concentrating purely on stocks for the past several years are now allocating some part of their funds for Forex trading. This shows the importance and the growth of Forex trading in the global market.
The Singapore Forex market involves small retail traders, big players, funds and banks as well and all of them depend a great deal on the excellent infrastructure and the financial/economic developments that have taken place here over the past decade or so. Recognizing the growth in the Forex industry, the government has also introduced several laws, rules and guidelines to regulate Forex trading in this country. These guidelines are very transparent and this ensures that the playing field is kept as level as possible for all the players who are involved in this business.
The Singapore Forex market is not only for traders who speculate but it is also for traders who do prop trading and hedging as well. There are a huge number of companies in Singapore which are involved in export and import and for them, the Forex rates are very important.
Considering the volume of export/import that they do, even minor changes in Forex rates could mean a profit or loss of thousands of dollars. So, such companies either employ traders or have a division within their offices which will be involved in hedging such Forex risks and also they trade on behalf of the company. The transactions that they do will generally be done through the banks and they are done in large lot sizes which are controlled and regulated by the banks. This kind of trading is done mainly to cut down on the Forex risks that are faced by the companies and not for the purpose of making any kinds of profits.
The Singapore Forex market continues to grow every day and experts are predicting further growth in the market in the coming years. With the economy continuing to grow and more and more new entrants coming into the market, equipped with better skills and better education, the Forex market in Singapore does have a very bright outlook in the coming years.