Trading futures online has become an increasingly popular investment strategy in Singapore. With the development of technology and the internet, anyone with a computer and an internet connection can easily access the financial market and trade futures from home. Futures are contracts that allow investors to buy or sell an underlying asset at a predetermined price on a specific date in the future. This type of trading can offer significant returns, but it also comes with a high level of risk. Therefore, it is crucial to understand how to trade futures online in Singapore before jumping into the market.

Choose a reputable online broker

The first step to trading futures online in Singapore is to choose a reputable online broker. With the increasing popularity of online trading, numerous brokers are now available, making it essential to research and select one that suits your needs.

When looking for a broker, consider their reputation, fees and commissions, trading platform, customer support, and regulations. A reputable broker should be licensed and regulated by the Monetary Authority of Singapore (MAS) to ensure the safety of your investments.

Consider the broker’s trading platform. It should be user-friendly, offer real-time market data and analysis tools, and fast execution speed. Fees and commissions are also crucial as they can significantly impact your potential returns. Look for a broker with competitive costs and transparent pricing structures. With Saxo Singapore, investors can access educational resources and excellent customer support.

Open an account with the chosen broker

Once you have selected a reputable online broker, the next step is to open an account. Most brokers offer a straightforward account opening process, requiring basic personal information and documents for verification purposes.

Some brokers may require a minimum deposit to open an account, so check this beforehand. Some brokers may offer different types of accounts with varying fees and minimum deposit requirements, so choose the one that best fits your budget and trading needs.

Choosing the appropriate account type based on your trading objectives is also crucial. For example, a standard account with lower minimum deposits and fees may suit a beginner.

Educate yourself on futures trading

Before starting to trade futures online in Singapore, educating yourself on how futures trading works and the risks involved is essential. You can find a wealth of information online, including articles, videos, and webinars from reputable sources.

It is crucial to understand the various factors that can affect the price of futures, such as supply and demand, economic indicators, and current events. Learning about technical analysis tools can help you make more informed trading decisions.

It would be best to familiarise yourself with different futures contracts, such as stock index futures, commodity futures, and currency futures. Each contract type has unique characteristics and factors that can affect their prices.

Develop a trading strategy

A meticulously crafted trading strategy is paramount for achieving success in futures trading. Before executing any trades, it is advisable to establish your risk tolerance, investment goals, and preferred trading style. By doing so, you lay the foundation for making informed decisions and potentially maximising your potential in the market.

A good trading strategy includes setting profit targets and stop-loss levels to manage risks and potentially maximisereturns. Diversifying your portfolio by investing in different futures contracts would also be helpful.

A plan for managing your emotions is also crucial, as trading can be emotionally challenging. Stick to any strategies you make and avoid making impulsive decisions based on market fluctuations.

Start trading

Once you have chosen a reputable broker, opened an account, educated yourself on futures trading and developed a trading strategy, it is time to start trading.

Most online brokers offer demo accounts that allow you to practice trading with virtual money before using real funds. It can help you get familiar with the trading platform and test your strategy without risking any capital.

When you are ready to trade with real money, start small and gradually increase your position sizes as you gain more experience. Keep track of your trades and regularly review your strategy to adapt to changing market conditions.

Monitor and manage your investments

Once you start trading futures online in Singapore, it is crucial to monitor and manage your investments regularly. Keep track of market trends and news that can affect your futures contracts’ price.

Set aside time daily to review your portfolio and adjust your trading strategy. Be prepared to cut losses or take profits when needed, and avoid holding onto losing positions, hoping for a turnaround.

Having a risk management plan in place would also be beneficial to minimise losses and protect your capital. With the right broker, platform, trading strategy, and risk management plan, you can confidently start trading futures online in Singapore.


Brando Herman