Singapore FX and CFD Traders Keen on Crypto: Investment Trends

Investment Trends has just released results from the firm's latest annual survey of the Singapore retail trading market. The firm is aggregating information from over 5,700 investors and traders in the region between August and October earlier this year.

The findings in the 2017 Singapore CFD and FX Report show that trader numbers in the country are growing. In the past 12 months, total clients increased by 2,000 to about 30,000. A figure which is quite impressive considering that the total population of the country stands at 5.6 million.

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Increasingly low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term on the Singapore equities market might have been a factor for the shift to FX and CFDs during the period. Albeit moderate, the increase is underpinning that the main area of growth for brokers continues to be the Far East.

Commenting on the findings, the Research Director at Investment Trends, Dr Irene Guiamatsia, said: “Leverage trader numbers increased amid relatively stable equity markets.”

According to the report the number of consistently active traders over the past two years compared to existing traders was the highest on record.

Regulatory Jurisdiction Drives Broker Choice, Cryptos in Demand

Singaporean traders are strictly looking at regulation when choosing a brokerage. The local Monetary Authority of Singapore stands out as the most trusted watchdog in the industry.

The market is experiencing record high levels of switching activity with traders shifting between brokers.

One factor which might have contributed to this trend is the rise of Bitcoin. IG Group has been the only brokerage in the market that is offering CFDs on the top cryptocurrency. The demand from clients so far hasn’t driven brokers to take on risk onto their books.

“The trading of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term is still very niche in Singapore, but there is significant growth potential if traders’ current intentions are converted,” Mrs Guiamatsia explains.

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