Chart 1: Performance of Singapore dollar against other major currencies
stance, if someone is trading on 10x leverage, the range would be between –70% to 170%.
The returns on forex trading are generally affected by macroeconomic factors, as currency movements are usually caused by governments.
Money market
This is a place where banks, brokers and financial institutions trade short-term funds. In Singapore, such funds invest in short-term fixed income instruments such as government and corporate bonds, commercial bills and deposits with financial instruments. Such short-term instruments usually mature within three to six months.
Savings account
Having a savings account has become so commonplace we do not often see it as a form of investment. Yet it is considered a form of investment
as your money accumulates some interest, even if the interest consists of a small amount per annum. Putting your money into a savings account may be low risk, but there are still certain risks involved, no matter how small.
In Singapore, there is the Singapore Deposit Insurance Corporation (SDIC) that covers individuals and other non-bank depositors who have placed deposits with a scheme member under the SDIC. Non-bank depositors include sole proprietorships, partnerships, companies and unincorporated entities like associations and societies.
The deposits insured by the SDIC are Singapore dollar denominated and placed in current, savings and fixed deposit accounts. Monies placed under the CPF Investment Scheme, the CPF Retirement Sum Scheme, the Supplementary Retirement Scheme and other prescribed products are also covered: Amounts are insured for up to $75,000.
Scheme members include all full banks and finance companies in Singapore such as the three local banks, DBS Group Holdings, Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank Limited (UOB).