Singapore is an excellent choice if you’re looking for a place to trade futures. The city-state has a long history as a global financial centre, and its well-regulated markets offer many advantages for traders.
What are futures?
They are financial contracts that obligate the buyer to purchase an asset or the seller to sell an asset at a predetermined price at a future date. Exchanges standardise futures contracts, and they are traded on futures exchanges worldwide.
Singapore is home to the Singapore Exchange (SGX), which offers trading in various futures contracts through futures broker Singapore. The most popular contract traded on the SGX is the Nikkei 225 Futures contract, which tracks the performance of Japan’s Nikkei 225 stock index. Other popular contracts include the SGX MSCI Singapore Index Futures and the SGX S&P 500 Futures.
Why trade futures?
There are many reasons why traders choose to trade futures. Some of the most popular reasons include:
Futures contracts offer high leverage levels, which means traders can control prominent positions with relatively little capital. It makes futures trading an attractive proposition for many traders.
Futures markets are typically very volatile, providing opportunities for short-term and long-term traders alike.
3. 24-hour trading
Many futures exchanges offer 24-hour trading, which means that traders can take advantage of market movements anytime.
4. Risk management
You can use futures contracts to hedge against risk in other markets. For example, a trader who is long on the Nikkei 225 index can use Nikkei 225 Futures contracts to hedge against a decline in the Japanese stock market.
5. Access to global markets
Futures contracts offer access to a wide range of global markets. It means that traders can take advantage of opportunities in both developed and emerging markets.
Reasons to consider living and trading futures in Singapore:
1. Access to global markets
Singapore is centrally located in Asia, making it easy to access many of its major markets. The city-state is also home to some regional exchanges, including the Singapore Exchange (SGX), which offers trading in various financial instruments, including futures contracts.
2. Low taxes
Singapore has a very favourable tax regime for traders. Income from trading is taxed at a flat rate of 20%, and there are no capital gains taxes. It makes Singapore an attractive destination for both professional and retail traders alike.
3. Efficient infrastructure
Singapore boasts an excellent infrastructure, both physical and digital. The city-state has a world-class airport and seaport, and its telecommunications network is among the most advanced in the world. It makes it easy to get around and do business in Singapore.
4. Multilingual environment
Singapore is a very cosmopolitan city, and English is widely spoken. It makes it easy to communicate with both local businesses and international counterparts. Many other languages are spoken in Singapore, including Mandarin, Malay, and Tamil.
5. Safe and secure
Singapore is a safe and secure place to live and work. The crime rate is meagre, and the government has a good track record of maintaining political stability. It makes Singapore an ideal place to do business.
6. Supportive government
The Singapore government is very supportive of the financial sector, and it has been working hard to promote the city-state as a global financial centre. The government has also put many initiatives to support traders, such as the Singapore Trading Hub and the Singapore Exchange Derivatives Trading Facility.
7. Excellent weather
Singapore has a tropical climate, which means it’s warm and humid all year round. It makes it a great place to live and work, and it’s also one of the reasons why so many businesses are headquartered in Singapore.
8. Friendly people
Singaporeans are known for being friendly and helpful. It makes it easy to get around and do business in the city-state. You’ll find that most people you meet are happy to help you if you need directions or assistance with anything.