Be careful about trading in the stock exchange. As a small investor, you are at a disadvantage against the big traders that have access to high speed trading tools. More can be found in SGEP
The conditions for high-frequency trading in the Singapore exchange is still not ripe.
Brokerage commission fees have to fall first. If not, the costs of moving money in and out will be prohibitive. In order for the brokerage fees to drop, the contra system has to be dismantled. It is the contra system that is keeping brokerage fees up because brokerage firms have to be compensated for the risk they undertake in paying for their clients first before collecting payment after the 3rd day.
One advantage of high-frequency trading is that it can provide more liquidity to our stock market which is little when compared to the Hong Kong and US markets.
The conditions for high-frequency trading in the Singapore exchange is still not ripe.
ReplyDeleteBrokerage commission fees have to fall first. If not, the costs of moving money in and out will be prohibitive. In order for the brokerage fees to drop, the contra system has to be dismantled. It is the contra system that is keeping brokerage fees up because brokerage firms have to be compensated for the risk they undertake in paying for their clients first before collecting payment after the 3rd day.
One advantage of high-frequency trading is that it can provide more liquidity to our stock market which is little when compared to the Hong Kong and US markets.