Singapore aims to be APAC’s FX trading hub with rapid technological advancement

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In a recent analysis published by Finance Magnates, ‘over 50,000 retail investors speculated in the Singapore FX/CFD market in Q4 last year’. The analysis also concluded that Singaporean FX traders’ first trade deposit exceeds $1,743 per average transaction.

The continual development of technology is changing the way business is conducted, especially in the financial sector. One such change occurred when Integral, a technological provider, installed a cloud-based workflow program on Equinix’s SG1 data centre in Singapore.

It provides many financial institutions such as banks and brokers with an eFX structure that benefits external customers and internal traders. This is done while enhancing the eFX experience within Singapore and the broader APAC.

Forming a part of Integral’s operations further strengthens Singapore as a preferred global FX and CFD trading location. It’s currently the third-largest foreign exchange centre in the world. The cloud-based SaaS technology allows clients’ needs to be met in a way that best suits them, either by taking individual components or as a full-stack.

This development supports Integral’s plan to expand its existing infrastructure at the various data centres. It also reinforces the MAS’s (Monetary Authority of Singapore) strategy of establishing Singapore as an FX trading hub in the Asian Pacific. In addition, various banks worldwide are formalising FX e-trading and pricing engines within this country, and Singapore’s market regulator is fully supported.

Singapore has, through the years, experienced remarkable growth. It hasn’t been without turbulence, but it has resulted in them being ranked ninth globally by the UN Human Development Index. Its high annual economic growth and rapid industrialisation have also afforded it to be part of the ‘Four Asian Tigers’.

The symbolic reference to these tigers is due to the economies of South Korea, Taiwan, Hong Kong, and Singapore. Historically, Singapore has had the second-highest GDP per capita (PPP) globally. It also boasts as the only Asian country to have achieved an AAA rating by global foreign rating agencies.

Many foreign companies and investors find it hard to resist this pinnacle financial hub and tax haven. The MAS, which regulates the accreditation and licensing for CFD and FX trading, is highly respected. Many global brokerage brands have confirmed Singapore as an essential base of active client numbers and generated revenue.

According to a financial report by IG Group at the end of November 2021, Singapore was fifth in revenue for the first half of this 2022 fiscal period with £36.7milllion. This performance was remarkable compared to the first half of the 2020 fiscal when their revenue was £21.5million.

Easy access to the evolution of technology, especially artificial intelligence, has further permanently transformed the APAC forex market. AI-led solutions have lowered the risk of failure for traders while making it much easier to complete transactions by simplifying the processes.

Using machine learning, AI-driven FX tools combines complex algorithms and historical data to give traders accurate real-time analytics and predictions of the markets. It eradicates issues such as following incorrect data, deciding which data is relevant to your trade, and how to apply the data and make informed decisions.

In the latest Saxo Markets Money Matters campaign, which consists of a series of short films, the investment bank highlights our need for AI intervention, correctly saying, ‘The information in the world doubles every 13 months – our brainpower does not. It is time to use the power of technology to make the impact and decisions that matter. So, what matters to you?’ The video explores how AI and intelligent algorithms help us navigate a sensible path through this era of information overload.

As APAC traders gain more control over how their money is invested by applying AI, FX trading becomes more accessible and easier than ever. By embracing technology, you’re able to make data-driven choices that inch you closer to achieving your financial goals.