e-Margin Trading

At a Glance

Foreign Exchange Market

The foreign exchange ("FX") market, unlike other financial markets, has no physical location or central exchange. It is a worldwide decentralised over-the-counter market which is open 24 hours a day, 5 days a week for market participants such as banks, other financial institutions, corporations, and institutional and individual investors to trade. As a result, it is the largest, most liquid market in the world with an average daily turnover of approximately $3.2 trillion, according to the BIS. (as of April 2007)

Characteristics of FX Market

Trading Hours
Other financial markets' trading hours are dictated by the market hours of the exchanges and time zone which they are located, whereas the FX market is open 24 hours a day, 5 days a week, making it a liquid market throughout the day. Therefore, traders will always have a choice of when to enter or exit the market. Furthermore, individual investors in Asia who usually may not be able to trade during their working hours will have a chance to trade after work, which are the hours when the US and UK markets are open and the greatest trading volume and liquidity is seen.

Liquidity
The FX market is the world's most liquid market, giving investors the confidence to know that market activities remain constant and there are much fewer price gaps and erratic spikes as seen in lower-volume markets.

Lower Transaction Cost
Trades on the FX market are free from a variety of fees,such as administrative fees, clearing fees, exchange fees and government fees. Only a commission is charged on per trade basis.

No Restrictions on Short Selling
While stock markets have restrictions on short sellings (placing a sell order when you think the market is bearish without the underlying) and investors can mostly only profit in rising market, the FX market does not have such restrictions and provide investors the opportunities to profit from both rising and falling markets.

Please be aware, however, that investors may also sustain substantial losses in trading FX in both rising and falling markets and therefore investors should carefully consider the risks before participating in the FX market.

Transparent Market
The best characteristic of the FX market is probably closest to the ideal fair market, notwithstanding occasional market interventions by some central banks. In the FX market, the vast volume and liquidity virtually make it impossible for even the biggest players to interfere with the general trend in the market.

FX Leveraged Margin Trading

Characteristics of Leveraged Trading

Although the FX market is an attractive place to trade FX, as with any other financial products, the initial investment can be relatively high to begin with. However, leveraged margin trading available in the FX market enables investors to increase the size of their positions by putting up a small percentage of the full value of the positions. With leverage, investors have the freedom to control a large position while utilising less capital to trade.

[Example] A buy order of 100,000 USDJPY at an exchange rate of 90.50.

Without Leverage
USD $100,000 is required.

UOB FX Margin Trading Account
Initial margin of USD $5,000 is all you need. (100,000 × 5% =5,000)
(subject to a minimum deposit of SGD $30,000)

Our Services

e-Trading with FXLT

Below are product specifications for an e-Trading Foreign Exchange Margin Account. Our user-friendly online trading system FXLT, provides you with a competitive rates in the market for 24 hours a day, 5days a week to trade your way.

Requirements

  • You must be at least 21 years old.
  • A minimum initial deposit of SGD30,000 or its equivalent in any currency.
  • A copy of IC (locals) or a recent copy of passport (foreigners).

Apply Now

  • Visit us at any UOB Group branch to open an account.
  • Visit us at:

    United Overseas Bank Limited
    FX Margin Desk
    80 Raffles Place
    5th Floor, UOB Plaza 1
    Singapore 048624

RISKS

Trading foreign exchange involves a high degree of risk. UOBBF offers trading on margin. The leverage created by trading on margin can work for you as well as against you, and losses can exceed your entire investment. Before opening an account, be sure that you understand the risks and can withstand the losses and that you seek advice from your advisors as appropriate.

More Information

  • Call us at +65 6233 6020
  • Fax to us at +65 6534 3028
  • Contact Us
This product is not a deposit and is not covered under the Singapore Government's guarantee on all Singapore Dollar and foreign currency deposits of individuals and non-bank customers in banks, finance companies and merchant banks licensed by the MAS (which is in effect until 31 December 2010).