Currency is needed around the world for international trade, by central banks and global businesses. Since 1971, central banks have particularly relied on foreign-exchange markets – when fixed-currency markets ceased to exist because the gold standard was dropped. Since that time, most international currencies have been “floated” rather than tied to the value of gold.
Economic and political instability and infinite other perpetual changes also affect the currency markets. Central banks seek to stabilize their country’s currency by trading it on the open market and to maintain a relative value compared to other world currencies.
Since the Forex Market became available to non-bank traders in 1999, its popularity in relation to other markets has exploded. This diagram highlights the sheer size of the forex market in comparison to the other markets, including the stock market.
The forex market is the largest capital market in the world and trades 5.3 trillion in a single day. To put this into perspective, it will take 30 days of trading at the New York stock exchange to equal one day of forex trading.
Forex Market Participants
The majority of trading on the foreign exchange market consists of currency transactions made between:
Banks, Major international corporations
Governments, Central banks
Hedgers, Speculators, High net worth individuals
Aside from being the biggest investment market in the financial industry, there are various other benefits in trading forex compared to stocks and other markets.
The forex market is open 24 hours a day, 5 days a week, in comparison to the US stock market, that is only open from 9.30 am to 4 pm (US time) and, for that reason, most people who trade the US stock market will have to stay up way past our bedtime here in Singapore. That probably isn’t really ideal for most of us.
However, given the 24-hour market, forex gives us the flexibility to be able to trade at a time that suits us. Be it in the morning, afternoon, evening or at night.
The reason why the forex market is open 24 hours a day is that it can be divided into three main regions: Australasia, Europe and North America, with several major financial centers within each of these main areas. For example, Europe comprises major financial centers such as London, Paris, Frankfurt and Zurich. Banks, institutions and dealers all conduct forex trading for themselves and their clients in each of these markets.
Each day of forex trading starts with the opening of the Australasia area, followed by Europe and then North America. As one region’s markets close, another’s opens, or has already opened, and continues to trade in the forex market. Therefore, the overall market is perpetually open and accounts for the biggest capital market in the world.
What is noteworthy for us living in Singapore is that our city state remains the largest foreign exchange center in the Asia-Pacific region and third-largest globally, after London and New York, according to the poll of global foreign exchange and over-the-counter (OTC) derivatives markets, which is held every 3 years by the Bank for International Settlements.
Another compelling reason behind trading forex is that retail traders can start with as little as $50. This is a drastic difference to the extensive capital required for the stock market.
Why learn the art of trading forex at a young age?
The benefits of learning to invest at a young age are abundant. But the main reason is the fact that they are learning the important lifelong skill of trading. This is a skill that, when mastered, will be able to feed them and their future families for life.
This skill of trading will enable them to enter into this highly lucrative industry of investment, hedge funds, bank traders, property traders, fund management, and many other professions besides.
To start off, learning to invest will increase their general knowledge of the economy. This will entail how a rise in the interest rate affects the market, how gold will be affected by the rise in employment rate, how the upcoming election will affect the market, and so on.
Your child will grow to be a well-versed and knowledgeable person, someone who can hold a conversation with an adult on the economy and investment. How interesting is that!
Here are some of the skills that they will learn through trading:
– Delayed gratification
– Emotional management
– Being a goal achiever and action taker
– Art of diversification
– The power of compounding
– Learning from mistakes
– Money management
– Thinking skills
– Analytical skills
– Cognitive thinking and developing their memory skills (similar to chess)
– Fund management
…and many more besides
The Difference of Singapore Forex Academy
Our expertly crafted weekly forex trading program for children aged 6-16 has been refined through 10 years of teaching. We understand what works, what doesn’t and how to express complex ideas so simply that even kids at the age of 6 are able to not just understand but to learn effectively.
As developing a passion and a love of investing is so important, we make learning to trade engaging for our children. There is nothing more dreadful than making it dry and boring for kids when it comes to learning. We are always challenging them to become a better version of themselves.
Every week, our children come to learn with passion as we engage them intellectually while igniting the love for learning.
With our expertly designed program, our children grow to develop the trading skillset which comes hand-in-hand with the competences described above that will accelerate their success in the real world.
The best part? When you learn trading from Singapore Forex Academy, you will not just be learning trading specifically for the forex market. Everything we teach can be applied to any financial market which involves technical and fundamental analysis, including stocks, commodities, derivatives, indexes, and many others.
A highly sought-after skill in today’s world.
At Singapore Forex Academy, we are fully focused on developing your child to join the next generation of leaders. Our curriculum and teaching methodology are at a world-class trading level.
Simply the best in the industry.
Click here to secure your child’s future in today’s world