In Singapore, it is common to have a business and FX trading. In trading Forex, you need to know how Singapore financial regulators work and its payment methods. As Singapore is full of law, you need to consider how financial regulators work and its payment methods in Singapore.
Singapore Financial Systems
The Singapore Monetary Authority is the primary government agency responsible for monitoring and controlling the foreign-exchange sector in Singapore. The Authority is the country’s central bank, and the main financial system. It issues the Singapore dollar (SGD) and has authority to control all aspects of the country’s monetary policy, banking, and finance.
MAS was established in 1971, following the passage of the Singapore Monetary Authority Act by Parliament the previous year. Gradually, it has been assigned various duties and responsibilities. And today, it is almost unique among other central banks, even serving as the financial regulator of the country.
However, unlike many other central banks, it does not affect the liquidity through interest rates in the monetary system. Instead, it controls the financial services by intervention on the SGD sector.
The Authority has the power to revoke the Forex broker license. Since Parliament’s Act establishes it, then MAS can prosecute and enforce disciplinary action without the need to wait for a court ruling.
In fact, the regulator succeeds in preventing illegal brokers from operating in the country-it strongly advises investors only to trade through properly licensed brokers.
However, MAS regulates only Singapore-based firms and can not operate abroad, meaning it can not penalize offshore brokers who accept Singapore clients.
MAS does not in fact specifically ban unregulated and unlicensed brokerages. However, customers who plan to open an account with such a broker can not take advantage of MAS ‘s defense.
Singapore Forex Payment Methods
The majority of Singapore’s Forex brokers require their clients to open their accounts in SDG or USD only. Yet some brokers also endorse other currency pairs like EUR, GBP, CNY, HKD, AUD, CAD, or JPY.
Investors need to make sure that the firm processes payments in their preferred currency before choosing a broker.
Another critical matter to remember is the types of payment where Forex broker provides it. International brokers typically accept credit and debit cards. For instance, Visa, Maestro, and Mastercard.
Overall, these are very common in Singapore.
Deposits via a card are instantaneous, incredibly secure and normally free. Online banking is also a popular way to finance your trading account here, though there must be some fees.
Still, most brokers in the country allow their customers to connect an active online bank account when registering for security purposes.
