The central bank of any country is solely responsible for all currency trading related issues and queries. The Federal Reserve, for example manages all trading based regulations for traders in US. Likewise Forex trading platform Singapore is controlled by Monetary Authority of Singapore. Take for example the case of a dispute that arose in 2012 and 2014 regarding CMC’s (Currency Management Corporation) decision to peg stop losses. The MAS issued reports of violation with regards to appropriate margin requirements which is the responsibility of CMC.
For any Singapore based Forex broker, it is mandatory to comply with MAS regulations. MAS take special care to ensure that nominal exchange rate of Singapore dollar remains within limits no matter how the currency trading in Singapore turns out. Financial authority of Singapore has to work within boundaries set by MAS which includes money market operations like regulating rates of interest.
MAS’ regulations that a Forex trading platform Singapore is bound to comply:
Potential Forex traders should deal with only those brokers who are affiliated to MAS. This is done for safeguarding a trader’s investments and making sure that only the most efficient professional’s deal with the investments and no scams crop up.
Traders dealing with offshore Forex trading platforms Singapore should make sure that financial institution of that particular country controls it. Failing this, MAS takes no responsibilities for the losses incurred.
The Financial Institutions Directory is the lexicon to all Forex trading platform Singapore. The regulatory authority makes it mandatory for each Forex trader to comply with the standards and agreements mentioned there.
The National financial education program aims to guide potential investors about the need to receive solicitations. They make list of unauthorized overseas brokers using Singapore based broker’s name.
Being able to produce a financial trading regime of over 300 billion per annum in the entire Asian market, MAS expresses all its finance related educational information in its official website. It agrees to take stern action against illegal or scam brokers who allegedly earn their trust. The Singapore Parliament has made it possible to minimize Forex trading platform Singapore scams thanks to its rapid action policies.
Some guidelines set by MAS for all Forex based clients and their brokers:
It is mandatory for all Forex brokers to get a valid license issued by the financial regulatory authorities. This is initiated only after a thorough study of the preset protocols set by MAS.
MAS have the supreme power to start or stop issuing new licenses to all Forex trading platform Singapore. It can also reward them for exceptional performance and contribution to Singapore economy keeping in mind the interests of client. Additionally it can also snatch their licenses in case something appears fishy.
Forex trading platforms Singapore requires periodic submission of their audit report for suspected client capital mingling. Failing which, brokers are may have to pay hefty fines and it may lead to cancellation of their trading licenses.
MAS sets an exceptional example of how a typical financial authority should work towards making it one of the best. Singapore based traders who intend to trade currencies should go through broker’s rules and agreements galore. Remember that a Forex trading platform Singapore is under constant surveillance and any breach in policies lead to severe consequences.