This article looks at the opening of an account with Singapore forex brokers.
In order to trade on the forex market you will need to open a trading account. This trading account will be with the Singapore forex brokers that you feel most comfortable working with. When you look at the accounts that you can open with the Singapore forex broker you have to consider all the different accounts that you can get. You should also consider what the account you are going to open has to offer you. There are a number of points that you should focus on when you look at the different accounts.
The Leverage Singapore Forex Brokers Offer
The forex market is different to other financial trading markets because of the amount of leverage that you can use. The other financial trading markets limit the leverage that is on offer. When you look at Singapore forex brokers you will find that there are no restrictions on the leverage that you can get. This means that you could get an account that offers you 20:1 leverage or 400:1 leverage.
When you look at opening a trading account you should ensure that you are getting the amount of leverage that you need. Most expert traders will state that 20:1 leverage is more than enough for any trade. However, there are some traders who look to trade with more than this.
You need to be careful when you look at the leverage that you can get with the account. You do not want to be tempted to use more leverage than you can buffer. If you use high amounts of leverage without the proper buffer you could easily deplete your trading account.
The Spreads You are Getting
While the spreads will not different from one account to another you do have to take them into account. The overall spreads that you can get from the broker will affect the way that you can trade. If you are getting wide spreads then you are not going to be making the same profit that you would with tight spreads. There are also certain trading strategies that call for the use of tight spreads in order to be profitable.
There are two ways that spreads are charged and they are through fixed and variable rates. The variable spreads are the most common on the retail market, but there are many traders who feel the fixed spreads are better because you will always know how much you are going to be charged.
The Other Factors
There are a number of other factors that you have to look at when you open a trading account with Singapore forex brokers. You need to look at the reputation of the broker and the minimum deposit that you need to open the trading account.
If you are new to trading then you will need to open the smallest account first and work your way up to the larger accounts. A mistake that traders make is thinking that they can go directly to the largest account. These accounts have the highest risks and you will not be ready to face the trading that you are going to complete on them.