Singapore to Cut Down on FX Leverage to 1:20

Retail traders in the city-state nation of Singapore will have to abide by a new forex leverage change that cuts down the previously available leverage to more than half its original size. The official regulator of the forex market in the country, the Monetary Authority of Singapore or MAS, issued this new decree this Tuesday, claiming that the higher the leverage is, the riskier the situation becomes to retail traders. This move was long awaited by the majority of Singapore based brokerage firms, as the regulator has been playing around with the idea for some time.

Investors will now have to cope with a maxed out 1:20 leverage (https://deposit-withdraw.com/singapore-to-cut-down-on-fx-leverage-to-1-20/), quite the reduction from the previous 1:50 value.

In fact, a small leverage gives me a lot more confidence than when a company gives a huge leverage even for small amounts. After all, not all traders, and especially beginners, know how to make calculations correctly. This means that not everyone can understand how dangerous it is for the capital, because such a range can destroy your capital even in one trade. And people believe that they will get super profits, but it is very rare that our statistics contains dozens of deals in a row. More often than not, positive deals alternate with negative deals. And if you don't have enough free margin, you're just doomed to lose.

Great. So, with every step, Singapore becomes more and more like the United States. The Gov'ment knows better how to protect you. It is the Gov'ment's responsibility to protect traders from themselves.

Yet another blatant example of dwindling freedoms at the hands of a tyrannical government.

If the Trader does not know how to use leverage, it is up to the Trader to go learn. Restricting everyone else who knows how to properly account for leverage is not the answer.