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Embarking on an Online Trading Life in Singapore

By Christopher Brankin, CEO of TD Ameritrade Asia

Embarking on an Online Trading Life in Singapore

As one looks to begin his/her journey of investing, the first step is to get educated in order to help achieve individual goals. There is a wealth of free education that is available online and it is important to know that investing in personal financial literacy will pay dividends for a lifetime.
One common pitfall of new investors is that they limit their opportunities because they don’t have a large trading account balance.

Having smaller account balances does not mean you cannot participate effectively in the markets. Utilizing capital efficiency means taking advantage of instruments like options on U.S. exchange-traded products, which can require less capital per trade. In fact we see our Singapore client base taking advantage of ETFs and their flexibility to diversify their portfolios across a wide range of stocks, sectors and geographies.  Some of the most active ETFs lately have been SPY and IWM which allow for diversified exposure to the S&P 500 and the Russell 2000 stock indexes. GLD and SLV have also been quite active among those looking for exposure to Gold and Silver. There are a variety of trades available in the market and can be easily accessed by investors in Singapore, such as stocks, ETFs (exchange-traded funds), options and futures. Trading to suit your profile — that’s the trick!  

Use risk-defined strategies; they are an effective way of utilizing capital and also offer you a clear understanding of risk-to-reward tradeoffs. Also, select high-probability trades, which you can easily view from your online trading platform.  The Singapore customer is very active in a couple large Asian based stocks– Alibaba (BABA) and Bidu (BIDU).  One thing the Singaporean and US customers have in common is that Apple (AAPL) is the number one traded equity and SPDR S&P 500 (SPY) is the number one traded ETF.

Lastly, trade products that trade on a centralized exchange that offer high liquidity and low execution costs.

Of the many trading tips you see for new investors, portfolio diversification is paramount. Quite plainly, diversification helps insulate you from volatility and over-exposure to major events in the market.

Having your fingers in many pies can help you spread your risk and your reward so you can benefit the most from your investing and weather any financial storms as they occur. Diversify your portfolio across asset classes, equities and geographies and rebalance your portfolio when market conditions dictate.

As you begin your investing efforts, keep a cool head, continue to educate yourself, and keep working and evaluating your strategies. The more you trade, the more you will learn!

Any securities or symbols listed are not a recommendation or solicitation to invest in any product or strategy.
All information is provided for educational purposes only.
TD Ameritrade Asia Pte. Ltd. (Reg. No. 200902152D) is licensed by the Monetary Authority of Singapore
and does not provide tax, legal or investment advice or recommendations. Products and services offered in
Singapore are provided by TD Ameritrade Asia Pte. Ltd. and nothing in the published material is an offer or
solicitation to conduct business in any other jurisdiction.

TD Ameritrade Asia

TD Ameritrade Asia enables retail investors in Asia to trade the U.S. markets by providing access to cutting edge trading technology, discount commission rates, free education, and excellent customer service. Our clients can trade stocks, ETFs, options, futures, and options on futures using the award-winning thinkorswim trading platform – an elite, downloadable platform built for serious traders – and thinkorswim Mobile – a powerful mobile app that allows clients to execute trades and stay connected to the market while on the go. Catering to traders with a variety of experience – from beginner to advanced – TD Ameritrade Asia offers a wealth of free education, including online as well as live-in-platform demonstrations where clients learn how to harness the power of the thinkorswim platform and how to best execute their trading strategies. TD Ameritrade Asia also provides accessible, credible, and knowledgeable support via phone, email, on-line, or in person. All clients have complimentary access to our experienced support associates, including former floor traders who specialized in trading derivatives on U.S. exchanges.

In an industry based on trust and confidence, TD Ameritrade Asia stands on the side of the client. We are fully licensed with the Monetary Authority of Singapore and backed by TD Ameritrade, a member of FINRA and SIPC, who has been empowering investors to take control of their financial lives for more than 40 years.