Investors turning to forex markets

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#1
Investors, or speculators? Another example where the media mixes up the two terms. Confused

The Straits Times
Apr 11, 2012
Investors turning to forex markets


THE search for better returns amid the low interest rates and high share market volatility is leading increasing numbers of investors here and across the world to the risky but potentially lucrative forex markets.

Foreign exchange looks to offer the best of both worlds - better returns than fixed income instruments like bank deposits but without the wild swings of stock markets.

The global forex market turned over an average US$4 trillion a day in 2010, 20 per cent more than in 2007, according to the Bank of International Settlements.

Singapore, the world's largest forex trading market, accounts for 5 per cent of the global turnover. The average daily turnover volume here in April 2010 was US$266 billion, up from US$242 billion in April 2007.

Mr Harmander Mahal, head of wealth and consumer assets at HSBC Singapore, said: 'HSBC Singapore has seen considerable growth in forex transactions.'

He expects the flow on GetRate, the bank's online forex currency conversion and transaction service, to continue to grow substantially.

GetRate allows users to obtain real-time exchange rates and carry out transactions such as transfers of money from one currency to another.

Mr Ronald Ip, director of Wealth Solutions Group at HSBC Global Markets, told The Straits Times yesterday that forex dealing can be carried out at any hour and on any day of the year, so the growth of online trading is no surprise.

'There is also no issue with insider trading, as with stocks. Sometimes when you trade in equities, you get information that is not reliable, or you don't get any. But the information that affects the forex markets are available to anyone,' added Mr Ip.

Some of his top currency picks for the next six months to nine months include the Chinese yuan and the Singapore dollar.

As the Chinese economy is still expected to grow at a fast clip this year, HSBC sees the yuan possibly appreciating to 6.12 to the US dollar by the fourth quarter of this year from 6.3091 now.

The Singdollar, now at $1.2615 against the greenback, is expected to appreciate to $1.20.

'The fundamentals in Singapore are very strong, and it is one of my favourites. Inflation is still relatively high, so the central bank is likely to maintain its appreciation stance,' said Mr Ip.

MAGDALEN NG
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#2
(11-04-2012, 07:43 AM)Musicwhiz Wrote: Investors, or speculators? Another example where the media mixes up the two terms. Confused

Just call them Specuvestors - an oxymoron term. Tongue
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------
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#3
(11-04-2012, 08:22 AM)KopiKat Wrote: Just call them Specuvestors - an oxymoron term. Tongue

Sounds better than Investulators! Tongue
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#4
".....Singapore, the world's largest forex trading market, accounts for 5 per cent of the global turnover....."

The Bank of International Settlements publish the report every 3 years, the latest in 2010. According to the 2010 report at http://www.bis.org/publ/rpfx10.pdf, the ranking of the global foreign exchange market turnover by geographical distribution was as follows :
United Kingdom (37%), United States (18%), Japan (6%), Singapore (5%), Switzerland (5%), Hong Kong SAR (5%) and Australia (4%)

I wonder how the reporter got her fact that Singapore is the world's largest forex trading market ?
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#5
The turnover in Forex trading is phenomenal - and keeps on growing. Seems to be many out there selling courses in how to gain expertise yourself.

Specuvestors, I like that term.
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#6
Quote:He expects the flow on GetRate, the bank's online forex currency conversion and transaction service, to continue to grow substantially.

GetRate allows users to obtain real-time exchange rates and carry out transactions such as transfers of money from one currency to another.

This GetRate facility caught my attention. I have been looking for a cheaper means to convert my SGD to USD to make investments in USD. The currency conversion rate charged by our local banks is near daylight robbery. Unfortunately, GetRate does not seem to be open to retail investors.

Anyway, does anyone know of ways to get a cheap conversion rate? Thank you.
------------------------------------
Trust yourself only with your money
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#7
hyom,

I think you read too fast Smile

GetRate is also available to retail - minimum transaction starts from $1,000

See: http://www.hsbc.com.sg/1/2/personal/serv...static#top

There's another similar on-line option is POEMS FXInvest where the minimum transaction is $1:

http://www.phillipfutures.com.sg/en/prod...index.html

I am using it currently for my USD conversion for US counters.


Actually, the rates are similar to the rates offered by Money Changers to their "best customers".

It helps to stick with one money changer if you change money often or in bigger amounts.

My problem is that my regular money changer in Arcade for 10 over years has gone belly-up... He must have speculated instead of being content with earning the spread...
Just google singapore man of leisure
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#8
Hi Jared,

Thank you for checking up for me. This is really wonderful!! Thanks a lot. I googled GetRate and the first page hit was GetRate for Business customers. Didn't know such wonderful products are also available for small-timers like me.
------------------------------------
Trust yourself only with your money
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#9
Forex for investors ?
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#10
Ya lol! Forex for investors???
How about for speculators & hedgers?
If GM NICK LEESON bankrupted Barings Bank through his trading and many more professional rogue traders that made the banks lost millions or even billions of $, do retail speculators have a chance?
Maybe 1 out of 100,1000 or hit and run, hit and run.
If got caught, most probably it's the end of your capital.
Hopefully not also the end of you.
i try to understand what's FOREX all about but i couldn't.
It's too complex for me or i have not see the light.
i may try to understand again.
i am SWAKOO as far as Forex is concern.
How many ways you can play with FOREX? TongueBig Grin
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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