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Capitalising on opportunities in CFD and forex trading

The Edge Singapore
The Edge Singapore12/3/2021 03:07 PM GMT+08  • 5 min read
Capitalising on opportunities in CFD and forex trading
When it comes to trading CFDs and forex, traders know that finding the right broker makes a world of difference.
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In Singapore, there are a plethora of investment products and instruments that are available to investors, from low-risk exchange-traded funds to high-yield corporate bonds. Those who find the stock market to be too slow-paced and would like to take advantage of the market volatility may find success in trading contracts for differences (CFD) and foreign exchange (forex).

CFD trading allows investors to speculate on the price movement of a whole host of financial markets such as indices, shares, currencies and commodities, regardless of whether prices are rising or falling. Traders speculate on the price movement of their chosen asset rather than actually owning the underlying instrument. As CFDs are leveraged, traders only need to use a small amount of money to control a much larger value position.

Meanwhile, forex trading involves seeking profit by trading one currency for another. The forex market is the largest financial market in the world, much bigger than the stock market at a daily volume of over US$6.6 trillion.

Choosing the right broker

When it comes to trading CFDs and forex, traders know that finding the right broker makes a world of difference. The process, however, does involve a lot of factors to be considered. For example, whether the broker offers tight spreads without any hidden fees and whether it provides a reliable, fast and convenient trading platform with innovative tools and products.

It is also important to note whether the broker is trustworthy — traders need to ensure that the broker is reputable, fully-licensed and regulated. An added advantage would be if the broker has experience and longevity within the CFD trading space.

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One such broker with over 35 years’ of industry experience is City Index, the leading provider of CFD and forex trading with over 500,000 global retail clients. Established in the UK in 1983, City Index offers traders ultra-competitive spreads and pricing as well as access across thousands of global trading markets.

City Index is part of the Nasdaq-listed world-leading provider of trading services, StoneX Group Inc. The broker provides award-winning platforms and mobile apps that offer advanced tools, charting and seamless multi-device trading, ensuring a superior trading experience to fulfil traders’ needs.

Leverage on exclusive tools

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City Index offers traders a wide range of products and tools — its risk management tools, for example, includes Guaranteed Stop Loss Orders, Trailing Stops and Limit Orders. The broker also provides innovative and unique products such as SMART Signals, Performance Analytics and Knockout Options.

SMART Signals are algorithmically-generated, intra-day trading signals. City Index owns the trading engine that generates the SMART Signals, which is specially programmed to search for short-term trading opportunities across a range of liquid financial markets. Currently, SMART Signals are produced on 23 forex pairs, and 10 non-forex instruments (nine equity indices and gold).

The engine searches for the price action of over 850 different aspects of market behaviour such as sequences of moves, new highs followed by moves higher and more.

On average, about 200 SMART Signals are presented to City Index’s clients during the 5-day trading week, about half of which are triggered by the corresponding price action. Each SMART Signal is computer-generated based upon the identification of a live price pattern which historically has been associated with a successful trading outcome.

Meanwhile, Performance Analytics refers to the tool that gives insights on trading history based on four categories- strategy, timing, psychology and markets. It is available exclusively at City Index and powered by Chasing Returns, now part of StoneX Group Inc.

Performance Analytics uses software to analyse a trader’s history data and show them exactly where their unique strengths and weaknesses are. Rooted in behavioural science and focusing on the psychology of trading, the tool empowers a trader to make more confident and rational trading decisions.

Aside from helping beginner traders to establish good trading habits and behaviour, Performance Analytics is also beneficial to more advanced traders. It highlights weaknesses that traders may be blind to, as well as illustrating how much those weaknesses are costing them in number terms.

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If traders are looking for higher leverage, lower risk and smarter trading, they can explore Knockout Options — more information can be found here.

Getting the best out of the trade

City Index is equipped with a global research team which provides traders with regular coverage of breaking news, market analysis as well as insight that could help them forecast potential price movement and seize opportunities. Additionally, the broker provides new and experienced traders with an extensive range of educational materials.

City Index has a slew of ongoing rewards and benefits, which traders can learn more about here.

With the combination of news and insights, and a platform offered by City Index, traders are well-equipped to take advantage of the market. Experience superior trading by opening an account or try out City Index’s powerful platform by opening a demo account.



"City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement” in cityindex.com.sg. This advertisement has not been reviewed by the Monetary Authority of Singapore.”

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