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Singapore Online Trading Articles

We are pleased to welcome you to these Online Trading Articles, this is the reference website for online trading in Singapore. On this site you will understand what online trading is, what you need to get started, as well as which platforms you should choose to access stocks or other financial instruments (for example, IQ Option gives you the opportunity to open a free demo account).

However, we could think that online trading is a way to earn easy money given that today the market is available to more people. Therefore, in this introductory article to our site, we will look at the different types of online trading, how to identify online brokers, how to trade, and how to protect yourself against scams.

In addition to explaining what online trading is and how it works and the tools that are needed for a person to start this business, we will analyse how to become a trader. In fact, the essence of trading is in the trader himself and for this you do not need too many tools. So what does a person need to trade online? On this page you will find some guides and useful articles to get started. If you are a more intermediate online trader, you will also find useful articles for more advanced trading techniques.

Trading online What is it?

The word “trading” in English is equivalent to “trade” or “negotiation” in Spanish. In this context, it is used to name the profession of “trading financial instruments” (such as stocks, Forex, indices, commodities, cryptocurrencies, etc.).

The buying and selling of financial assets has become one of the fastest growing professions in recent years mainly due to the enormous advances in information technology. For this reason, today we talk about online trading, since trading operations are carried out through the Internet and by sending buy and sell orders with computer terminals.

Sure, you already know what a financial market is. In the financial markets, stocks are traded, but also currencies, commodity futures and stock indices, bonds, fund units, etc. So how can you trade these instruments from home or your phone?

How to trade online with CFDs

In today’s informed world, many more people have the opportunity to trade in the financial markets. In fact, thanks to the Internet, the world of trading has revolutionized, allowing easy access to information, as well as the execution of buy or sell orders from anywhere in the world and at the most convenient time.

In the mid-1990s, Contracts for Difference, also known as CFDs (Contracts for Difference), were introduced to the market. These instruments allow you to trade up or down the price of a financial instrument, that is, instead of trading directly with the financial instrument, you trade with its value.

Indeed, trading through CFDs (Contracts for Difference) means obtaining an economic profit both when the market rises and when it falls. All a trader needs is for the market to fluctuate or move in some direction, thus changing the price of the financial asset.

CFD investment on IQ Option

What does it mean? That instead of buying an asset (such as stocks), rather it is negotiated with its price. For example, if you want to buy euros against dollars, you trade with the euro-dollar exchange rate. Likewise, instead of buying futures in gold or oil, you trade with the price of those futures, etc. Try the IQ Option demo and get familiar with trading online using CFDs (click here).

Note: CFDs are contracts with which a financial asset is bought or sold. The asset itself does not become the property of the trader. In addition, CFDs allow you to trade short in a simple way as in the case of long operations or long trading (the traditional buy and sell operation) and are also characterised by leverage (expanding our capital to open operations with a higher volume of purchase or sale).

The best way to start Trading Online: Copying

If you are at the beginning of your trading career, and you want to understand how online trading works, you should consider the following aspects:

Practice with a demo
That is, open a practice account with a regulated broker and start trading with virtual money, without any risk.

Use a simple platform
Indeed, especially for beginners it is better to use simple and intuitive platforms. For example, brokers like IQ Option offer these types of instruments.

Copy other Traders who have performed well
In this way, it is possible to avoid wasting money without having results. Studying how other traders trade and understanding their strategies is a good way to gain experience and reduce risk. However, it does not mean that you will be able to earn money immediately.

Studying the best IQ Option investors
All this is possible thanks to the IQ Option platform that allows you to use the CopyTrader function (the opportunity to configure the automatic copy of other traders) and Social Trading (ideas and analysis are shared with other traders).

If you are a beginner, we advise you to try these IQ Option features for free by clicking here.

Differences between trading and investment

But is there a difference between online trading and investing? Actually, yes.

Once you’ve understood what online trading is, it might be easy to think that it’s just about investing in the financial markets. However, although in a way trading and investing have a lot in common, there are also some significant differences:

The investment. It involves buying financial assets. However, it is a type of operation that requires more effort. In fact, it is not a simple commercial operation, since investing consists of trying to obtain long-term returns thanks to the profit streams provided by the assets you acquired (for example, dividends from shares and interest on bonds). Yes, the investment is not made with the objective of obtaining a short-term profit with the difference in prices in the financial markets using your savings and wealth. Therefore, if you later decide to cancel your investment and sell the assets at a higher price (because the time seems right or you may need the money) you would make a profit from buying and selling similar to that obtained when trading. . But this is not the main objective of the investment.
Trading. Instead, trading is a pure speculation operation with short-term financial instruments (we’ll talk about this later). In general, leverage is used to compensate for the brevity of the operations, as well as the use of different strategies (both execution or analysis).
Note: although trading is mostly short term, there is also medium and long term trading. This type of operation is more like the same investment, but with the nuances of trading. We will see this in the section dedicated to how online trading works.

Online Trading Brokers in Singapore

Before trading online, you must select an online broker who will be the intermediary to execute your operations. Therefore, you should consider the following to choose the most suitable broker for you:

How much money do you plan to invest. Most brokers require investors to open a real account by making a minimum deposit (for example, IQ Option allows you to do so by depositing 200 euros). Also, there are many brokers that offer you the possibility to try a free demo account.

How often you plan to trade. Ask yourself: “Do I plan to trade little or rather do I plan to trade a lot? In addition to planning how long to use the account, you should consider the costs or whether there is any maintenance fee.

Your level of trading experience. Some of the cheaper brokers don’t offer much when it comes to customer support and training. On the other hand, others, at affordable prices, offer market analysis, trading signals or the opportunity to copy other traders.

Safety and reliability. Any site that asks for your personal and financial information should offer good security measures. And the same should apply to the online broker you choose, that is, one that offers automatic logoffs and encryption of data transmission. Also, make sure your broker is reliable and regulated by the competent authorities.

Therefore, would you like to know the best brokers in the market?
The following list contains some of the best regulated, safe and legal trading platforms that we have selected from among the most popular and valued:

Demo platforms for online trading

Financial markets fluctuate continuously, of course, while they are open. For example, the foreign exchange market (this market is also known as Forex, short for Foreign Exchange) offers opportunities from Monday to Friday, 24 hours a day.

Financial intermediaries or online brokers offer a large number of markets and financial instruments with which it is possible to trade online.

Also, brokers specialize in CFDs and also provide their clients with platforms for trading (as mentioned before), that is, the software with which up and down orders can be placed, as well as other types that we will see. later.

Therefore, the trading platforms present the following elements:

  • List of negotiable instruments
  • Prices in real time
  • Real-time price charts
  • The functions for opening up or down positions
  • Account management features
  • Technical analysis tools
  • Customer Support.

In other words: everything you need to operate. Trading platforms differ from each other and that is why there are professional platforms, and others that are suitable for both beginners and experts, with the same functions or not, etc. In fact, the market is large and very competitive.

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