Trading EUR/SGD
The EUR/SGD is an exotic forex pair with an interesting history. While the Euro is the official currency of 19 member states of the European Union, the Singapore Dollar is controlled by the country’s central bank and is one of the most stable currencies in the world.
In this tutorial, we review the advantages and disadvantages of trading EUR/SGD, investing strategies, plus key events that influence the forex pair’s exchange rate. We have also compiled a list of the best EUR/SGD brokers below.
EUR/SGD Trading Brokers
-
1
FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2
NinjaTrader
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:50NFA, CFTCForex, Stocks, Options, Commodities, Futures, CryptoNinjaTrader Desktop, Web & Mobile, eSignalACH Transfer, Debit Card, Wire TransferUSD -
3
OANDA USCFDs are not available to residents in the United States.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:50NFA, CFTCForex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)OANDA Trade, MT4, TradingView, AutoChartistWire Transfer, Visa, Mastercard, Debit Card, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD -
4
IGForex trading involves risk. Losses can exceed deposits.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:30 (Retail), 1:250 (Pro)FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOBCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread BettingWeb, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentralPayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit CardUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD -
5
Interactive Brokers
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$0$1001:50FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMAStocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, CryptocurrenciesTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentralCheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit CardUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF -
6
Videforex20% to 200% Deposit Bonus
$250$0.011:500Binary Options, CFDs, Forex, Indices, Commodities, CryptoTradingViewSkrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
7
Plexytrade120% Cash Welcome Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$500.011:2000UnregulatedCFDs, Forex, Indices, Stocks, Commodities, CryptoMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD, EUR -
8
Coinexx100% Deposit Welcome Bonus
0.001 BTC0.01 Lots1:500Forex, Commodities, Indices, CryptocurrenciesMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD -
9
Axofa10% Deposit Bonus
$10.01 Lots1:1000SVGFSAForex, CFDs, Stocks, Indices, CommoditiesMT5Debit Card, Credit Card, Visa, Mastercard, Neteller, Skrill, Bitcoin Payments, Wire TransferUSD, IDR -
10
xChief$100 No Deposit Bonus
$100.01 Lots1:1000VFSCCFDs, Forex, Metals, Commodities, Stocks, IndicesMT4, MT5Wire Transfer, Bitcoin Payments, Credit Card, UnionPay, Skrill, Neteller, WebMoney, Perfect Money, Debit Card, Ethereum Payments, FasaPay, VoletUSD, EUR, GBP, JPY, CHF
Here is a short summary of why we think each broker belongs in this top list:
- FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
- NinjaTrader - NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).
- OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
- IG - IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.
- Interactive Brokers - IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.
- Videforex - Trade 35 major, minor and exotic forex pairs through CFDs with floating spreads from 0.1 pips. Alternatively, binary options allow you to speculate on rising and falling prices with a fixed stake and payout.
- Plexytrade - Plexytrade presents major, minor, and exotic forex pairs for trading, with leverage reaching 1:2000 and raw spreads starting from 0.0 - an enticing proposition for advanced traders seeking gains from minor price shifts. However, the downside lies in the limited selection, with only 41 currency pairs available, significantly fewer than the 100+ forex assets at IG.
- Coinexx - Trade 70 major, minor and exotic forex pairs with ultra-low ECN spreads and fast execution via the MT4 or MT5 platforms. There are also zero SL/TP limits and automated forex trading is well catered for.
- Axofa - Axofa offers a decent range of 50+ forex pairs with raw spreads from 0.0 pips. Very high leverage up to 1:1000 and commission-free forex trading is available. With that said, the broker is not particularly transparent when it comes to account conditions and fees.
- xChief - ForexChief supports spot foreign exchange trading on all account types for 40+ major, minor and exotic currency pairs. Trading takes place on the leading MT4 and MT5 platforms, which offer dozens of in-built technical tools for short-term forex strategies.
Trading EUR/SGD Comparison
| Broker | Forex Assets | EUR/USD Spread | Forex App Rating | Minimum Deposit | Regulator |
|---|---|---|---|---|---|
|
|
80+ | 1.2 | / 5 | $100 | NFA, CFTC |
|
|
50+ | 1.3 | / 5 | $0 | NFA, CFTC |
|
|
65+ | 1.6 | / 5 | $0 | NFA, CFTC |
|
|
80+ | 0.8 | / 5 | $0 | FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB |
|
|
100+ | 0.08-0.20 bps x trade value | / 5 | $0 | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA |
|
|
35 | Floating from 0.1 pips | / 5 | $250 | - |
|
|
40+ | 0.7 | - | $50 | Unregulated |
|
|
60+ | From 0.0 pips | - | 0.001 BTC | - |
|
|
10+ | From 1.6 pips | - | $1 | SVGFSA |
|
|
40 | 0.4 | - | $10 | VFSC |
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
| Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
|---|---|
| GBPUSD Spread | 1.3 |
| EURUSD Spread | 1.2 |
| EURGBP Spread | 1.4 |
| Total Assets | 80+ |
| Leverage | 1:50 |
| Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
- There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
Cons
- Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
- There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
NinjaTrader
"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."
Tobias Robinson, Reviewer
NinjaTrader Quick Facts
| GBPUSD Spread | 1.6 |
|---|---|
| EURUSD Spread | 1.3 |
| EURGBP Spread | 1.6 |
| Total Assets | 50+ |
| Leverage | 1:50 |
| Platforms | NinjaTrader Desktop, Web & Mobile, eSignal |
| Account Currencies | USD |
Pros
- NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
- Traders can get free platform access and trade simulation capabilities in the unlimited demo
- NinjaTrader continues to deliver comprehensive charting software for active day traders with bespoke technical indicators and widgets
Cons
- Non forex and futures trading requires signing up with partner brokers
- The premium platform tools come with an extra charge
- There is a withdrawal fee on some funding methods
OANDA US
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
OANDA US Quick Facts
| GBPUSD Spread | 3.4 |
|---|---|
| EURUSD Spread | 1.6 |
| EURGBP Spread | 1.7 |
| Total Assets | 65+ |
| Leverage | 1:50 |
| Platforms | OANDA Trade, MT4, TradingView, AutoChartist |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD |
Pros
- Seasoned day traders can access industry-leading tools, including an MT4 premium upgrade and advanced charting provided by MotiveWave
- There's a strong selection of 68 currency pairs for dedicated short-term forex traders
- The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
Cons
- There's only a small range of payment methods available, with no e-wallets supported
- The range of day trading markets is limited to forex and cryptos only
- It's a shame that customer support is not available on weekends
IG
"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."
IG Quick Facts
| GBPUSD Spread | 0.9 |
|---|---|
| EURUSD Spread | 0.8 |
| EURGBP Spread | 0.9 |
| Total Assets | 80+ |
| Leverage | 1:30 (Retail), 1:250 (Pro) |
| Platforms | Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD |
Pros
- IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis
- IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, providing ample diversification opportunities
- The proprietary web-based platform continues to caters to traders of all levels, with advanced charting tools and real-time market data useful for day trading
Cons
- Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges
- While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients
- IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Interactive Brokers Quick Facts
| GBPUSD Spread | 0.08-0.20 bps x trade value |
|---|---|
| EURUSD Spread | 0.08-0.20 bps x trade value |
| EURGBP Spread | 0.08-0.20 bps x trade value |
| Total Assets | 100+ |
| Leverage | 1:50 |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries.
- While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
- The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.
Cons
- TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
Videforex
"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."
Videforex Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| GBPUSD Spread | Floating from 0.1 pips |
| EURUSD Spread | Floating from 0.1 pips |
| EURGBP Spread | Floating from 0.1 pips |
| Total Assets | 35 |
| Leverage | 1:500 |
| Platforms | TradingView |
| Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Videforex allows you to enter positions with just ¢0.01
- Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, which is in line with competing brands like IQCent
- Global clients can make free and fast transfers via a wide range of payment types, from credit cards to cryptocurrencies
Cons
- US clients aren’t accepted due to legal restrictions
- No MetaTrader 4 integration
- The broker isn’t overseen by a trusted regulatory agency
Plexytrade
"Plexytrade is a newcomer in the brokerage scene with attention-grabbing features like 1:2000 leverage, zero spreads on select instruments and fast execution speeds of less than 46 milliseconds. However, the absence of regulation is a significant concern, while the non-existent research and educational tools place it far behind industry frontrunners."
Plexytrade Quick Facts
| Bonus Offer | 120% Cash Welcome Bonus |
|---|---|
| GBPUSD Spread | 0.8 |
| EURUSD Spread | 0.7 |
| EURGBP Spread | 1.1 |
| Total Assets | 40+ |
| Leverage | 1:2000 |
| Platforms | MT4, MT5 |
| Account Currencies | USD, EUR |
Pros
- Plexytrade accommodates a range of trading methods and short-term strategies, including scalping, hedging, and automated trading.
- US residents are accepted as clients, distinguishing Plexytrade as one of the rare offshore brokers that cater to US-based traders.
- Plexytrade offers among the highest leverage we’ve seen, up to 1:2000, catering to advanced traders willing to forego regulatory protections.
Cons
- Deposits and withdrawals are exclusively facilitated through cryptocurrencies, as Plexytrade does not support bank cards, bank wire transfers, or e-wallets.
- With around 100 instruments, Plexytrade restricts the flexibility of investors who prefer to trade across various assets, especially compared to Blackbull with its 26,000 securities.
- Plexytrade lacks regulation in major jurisdictions, significantly increasing the risks of opening an account and depositing funds.
Coinexx
"Traders seeking highly leveraged CFDs with a broker that uses crypto as a base account currency will find a good match in Coinexx. The ECN model also offer tight spreads from 0 pips. On the downside, traders should note the weak regulatory oversight."
Coinexx Quick Facts
| Bonus Offer | 100% Deposit Welcome Bonus |
|---|---|
| GBPUSD Spread | From 0.0 pips |
| EURUSD Spread | From 0.0 pips |
| EURGBP Spread | From 0.0 pips |
| Total Assets | 60+ |
| Leverage | 1:500 |
| Platforms | MT4, MT5 |
| Account Currencies | USD |
Pros
- Demo account available to prospective traders
- Free VPS for active traders
- Full range of investments including cryptos
Cons
- No fiat account funding options - crypto only
- No regulatory oversight reduces safety
- Limited educational materials for new traders
Axofa
"Axofa could be a good option for clients looking for social trading features alongside the MT5 platform. The low entry requirements and ECN spreads are particularly promising, but the lack of transparency and respected regulatory oversight raises security concerns."
Axofa Quick Facts
| Bonus Offer | 10% Deposit Bonus |
|---|---|
| GBPUSD Spread | From 1.6 pips |
| EURUSD Spread | From 1.6 pips |
| EURGBP Spread | From 1.6 pips |
| Total Assets | 10+ |
| Leverage | 1:1000 |
| Platforms | MT5 |
| Account Currencies | USD, IDR |
Pros
- Low ECN spreads are available from 0.0 pips, plus reasonable commissions at $3.50 per side
- There's a proprietary social/copy trading service for beginners looking to follow successful strategies and for experienced traders looking to sell their strategies
- The $1 minimum deposit across all 3 accounts will appeal to novices and those on a budget
Cons
- Our team found inconsistencies between international subsidiaries and website information
- The offshore operations and lack of any regulatory oversight is a major concern
- There is a lack of transparency around pricing and account conditions, which significantly reduces the trust score
xChief
"xChief continues to prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The broker's rebate scheme and investment accounts will particularly appeal to seasoned traders. However, the lack of top-tier regulatory oversight is a major drawback."
xChief Quick Facts
| Bonus Offer | $100 No Deposit Bonus |
|---|---|
| GBPUSD Spread | 0.9 |
| EURUSD Spread | 0.4 |
| EURGBP Spread | 0.9 |
| Total Assets | 40 |
| Leverage | 1:1000 |
| Platforms | MT4, MT5 |
| Account Currencies | USD, EUR, GBP, JPY, CHF |
Pros
- xChief delivers a high-quality day trading environment via the MT4 and MT5 platforms, with market-leading charts, indicators and tools
- The broker offers several account types to suit different traders, including a Cent account for beginners and pro-level hedging/netting accounts
- Traders can access a copy trading solution via the MetaQuotes Signals service
Cons
- The Classic+ and Cent accounts provide access to fewer instruments than the other account types, at 50+ and 35+, respectively
- xChief is an offshore broker with weak regulatory oversight from the VFSC, so traders will receive limited safeguards
- The total range of 150+ assets is much lower than most competitors who typically offer hundreds
Live Chart
Note, the EUR/SGD live chart shows the current Euro to SGD conversion rate.
EUR/SGD Explained
EUR/SGD is defined as exotic because it is a large currency (the Euro) paired with the currency of a smaller economy (Singapore). The exchange rate represents how much of the quote currency, the Singapore Dollar, is needed to get one unit of the base currency, the Euro. Another way to put it is the amount of Singapore Dollars that you would receive for a conversion of 1 Euro to SGD. SGD to EUR would show the inverse.
Graphs and exchange rate tools for EUR/SGD can be found on currency converter websites such as xe.com. Simpler websites such as Coinmill also provide current conversion rates for 1 EUR into SGD.
The EUR/SGD pair set an all-time high of 2.23 in December 2004 and an all-time low of 1.43 in April 2015.
Why Trade EUR/SGD?
There are several reasons why investing in EUR/SGD is a good option:
- Potential profits – While the Singapore Dollar is a stable currency with a long-term growth trend, the Euro is more volatile, so the EUR/SGD offers interesting dynamics for traders with a decent risk appetite.
- Economy knowledge – As this currency pair is often analyzed using fundamental analysis (evaluating external events and influences) rather than technical analysis (identifying trends and patterns based on historical data), a deep macroeconomic understanding of the EU and Singapore could provide a trading advantage. Because of this, exotic pairs like EUR vs. SGD can sometimes be easier to forecast than major forex pairs.
- Trading costs – Generally, forex has low trading costs compared with other instruments such as stocks and shares. Most brokers don’t charge a commission for investing in forex, making their money from spreads instead. With that said, spreads widen and costs increase during periods of unexpected volatility.
Risks Of Trading EUR/SGD
There are also disadvantages to investing in EUR/SGD:
- Technical analysis – Because there isn’t a direct correlation between the two currencies, EUR vs. SGD predictions are difficult and technical analysis is often complicated.
- Availability of information – There is less information available about the Singapore Dollar as it is not a major currency, making the EUR to SGD rate more difficult to forecast.
- Liquidity – EUR/SGD has less liquidity than major forex pairs such as EUR/USD. Liquidity can be translated as buying power.
- Wider spreads – Because of the reduced liquidity, forex trading platforms tend to charge more for exotic pairs.
EUR/SGD Trading Strategy
Below are key factors to consider when trading EUR/SGD:
Forex Brokers
To invest in EUR/SGD, the first thing you will need to do is set up a trading account. It is important to select a good broker here, and there are several things to consider:
- Regulation – Where is the broker regulated, and what standards do they comply with? Find out if your funds are protected, for example, if the broker becomes insolvent.
- Platform – Brokers may offer their own proprietary platforms or license other platforms such as MetaTrader 4. Check platform reviews to ensure they meet your investing and live charting needs, including suitable indicators to enable Euro versus SGD trend analysis.
- Spreads, commission, and additional fees – Brokers will often make money from spreads on forex, the difference between the EUR/SGD buy and sell price. These spreads can be fixed or variable. Check if spreads are competitive and if any additional fees apply, such as account charges or commissions. Note, ECN accounts tend to offer ultra-low spreads.
- Demo account – Some firms offer a free demo account option. This is a great way to practice strategies with virtual funds before investing with a real account. Brokers often offer demo accounts that reflect the same environment as their live account, giving clients the opportunity to get familiar with the platform before depositing real funds.
- Withdrawal of money – Ensure you have easy access to funds. In particular, look out for long withdrawal times, minimum requirements, and fees.
For EUR/SGD trading in Singapore, among the most popular forex brokers are CMC, IG, and Oanda, all of whom are regulated by the Singapore Central Bank, MAS. However, a maximum forex leverage of 1:50 is offered due to Singapore regulations, which isn’t as high as can be found elsewhere.
Due to the relative stability of currency in comparison with equities, leverage is often used to increase potential profits. However, traders should also be aware of the risks involved with using leverage, which can increase losses as well as profits.
Risk Management
Ensure you have a strategy for how much you’re willing to risk on each trade. It is advised that traders keep this low to reduce losses; it is uncommon for successful investors, for example, to risk more than 2% of their total capital on a single trade.
Economic News
It is particularly important for the EUR/SGD FX pair that traders keep up to date with economic news. Many online resources offer regular updates for EUR/SGD, including Yahoo Finance, Google Finance, Channel News Asia, and the Financial Times.
Additionally, investors should be aware of when key financial reports are released to react accordingly. Refer to the rest of this article to understand specific factors that influence the Euro and Singapore Dollar and key dates to look out for.
EUR/SGD Timing
The best time of day to trade is generally considered to be 1 pm – 5 pm GMT, as this is when both the London and New York markets are open. These trading centers account for a huge proportion of forex trades, meaning that there is more liquidity in the market at this time. This usually results in tighter spreads, allowing for investing at a better price.
Forward rates should also be considered when trading EUR/SGD. Although ‘spot market’ refers to ‘on the spot’ investing, trades are executed on the settlement date. This is usually two business days after the agreement.
As a result, most brokers roll the position forward and charge a swap fee, an overnight interest rate. This means you will either earn a credit (if the long currency interest rate is higher than the short currency) or a debit (if the short currency interest rate is higher than the long). Triple swap rates are usually applied if investing on a Wednesday to account for the weekend after the two business days. Traders should keep an eye on EUR/SGD forward points, which are the points added to or subtracted from the FX rate to account for this.
Volatility
The volatility of an instrument determines how much potential profit or loss you could make. EUR/SGD is characterized by relatively minor fluctuations on charts and is more suited to medium-term trading strategies. The infrequent reporting from the Singapore Central bank compared with other central banks also supports this strategy.
Investors may, therefore, want to look at the history of the Euro vs. SGD, including historical exchange rate data forecasts. 5-year and 10-year EUR/SGD charts are good options for this analysis.
Euro Background
In this section, we look at the history of the Euro and key influences on its value to help you better understand how to forecast EUR/SGD.
The Euro was established by the Maastricht Treaty in 1992, where the original 12 member states created an economic union and associated currency. The Euro was issued in 1999 and is now the official currency of 19 of the 27 member states of the EU. The countries that have adopted the Euro are referred to as the Eurozone.
What Influences The Euro?
Individual Country Economies
Germany, France, Italy, and Spain combined represent three-quarters of the Eurozone’s GDP, with Germany and France accounting for over 40% alone. Investors should pay attention to these countries’ economies, in particular, when researching Euro performance. Keep on top of GDP, production, and unemployment rates.
Inflation
Inflation is a key factor for all currencies, with high inflation generally resulting in currency depreciation. The key measure of inflation in the Eurozone is the Consumer Price Index (CPI). This indicator calculates the price of a basket of goods and services likely to be purchased by an average household. Traders typically follow the Core CPI, which is the CPI but without energy and food. This is because energy and food prices are more volatile and can distort the CPI.
Sentiment Reports
One of the most widely followed reports is the monthly German ZEW Economic Sentiment. Up to 300 financial experts are interviewed about their expectations of the economy for the next six months, including exchange rates. From this, a single indicator is published, allowing for an easy-to-interpret outlook on the European economy, which is valuable when trading EUR/SGD.
Monetary Policy
The European Central Bank (ECB) has a large influence on the EUR, as it sets target interest rates and controls the supply of the Euro currency. Press conferences from the ECB often cause currency volatility, especially during the question period. With this in mind, review ECB announcements when online trading EUR/SGD.
GDP & Economic Growth
GDP and economic growth reports indicate the overall state of the Eurozone economy. GDP is a measure of the goods and services produced, so a high GDP is a positive sign for the Euro. As mentioned, Germany and France play the biggest role here.
Balance of Payments
The balance of payments for a country is made up of three accounts: current, financial, and capital. These provide a measure of its interaction with other countries, including income and trade.
A current account surplus means more exports than imports, which is positive for the currency. A current account deficit means the opposite. Again, it is worth focussing on the reports for Germany and France in particular.
Politics
The impact of politics on EUR to SGD has become especially relevant now. European Union politics and elections of key member states can have a large influence on the Euro. Keep up to date with trade deals and countries entering and leaving the EU, for example, the UK and Brexit.
Another important example is the Ukraine-Russia war. Even though Ukraine is not part of the EU, the conflict had a deep impact on the EUR/SGD price – the EUR weakened in face of the SGD.
Singapore Dollar Background
Singapore is a politically stable country with a small yet strong economy that attracts investors. Since the first prime minister was elected in 1959, there has been only one ruling party, the People’s Action Party (PAP).
Singapore is highly dependent on exports, including electronics, pharmaceuticals, and chemicals. This means the exchange rate has a much stronger influence from inflation versus interest rates. The Central Bank controls inflation through the Singapore Dollar.
The country has undergone massive economic growth since the introduction of the exchange rate system in 1981, mainly driven by the manufacturing industry. This has meant Singapore has rapidly developed from a low-income to a high-income country, despite the mid-80s recession and Asian financial crisis.
What Influences The SGD?
Monetary Policy & Economic Growth
The Singapore Central Bank (MAS) conducts monetary policy through exchange rate setting rather than interest rates. The MAS lets the Singapore Dollar rise or fall against a basket of currencies of major trading partners within a fixed band.
Each currency in the basket has a different weighting depending on the volume of trading with that country which is revised periodically to reflect the latest data. The band provides flexibility to accommodate short-term fluctuations. If the exchange rate falls outside the band, then MAS will buy or sell foreign exchange to guide the rate back into the band.
The aim is to promote price stability to generate economic growth. Because of this, volatility in the exchange rate is low. The standard deviation of the Singapore Dollar nominal effective exchange rate (S$NEER), which is a measure of variation, was 1.48% between Q1 81 and Q2 20, compared with 3.52% for the USD and 4.61% for JPY. The S$NEER has gained by 0.97% since mid-October 2021, and in April 2022, it has been recorded near the upper limit of the policy band.
Overall, the Singapore Dollar has seen a long-term appreciation trend due to economic progression and high current account surpluses. This is a key reason why many investors choose to sell EUR and buy SGD.
EUR/SGD Key Dates
Below are the key dates to be aware of when trading EUR/SGD, based on the external factors that influence this forex pair.
MAS policy announcements are usually released in April and October each year. This is less frequent than typical reporting from central banks, meaning EUR/SGD is arguably suited to longer-term trading strategies.
The Europe CPI report is released monthly, with flash estimates released at the end of the month and the official CPI released two weeks later. The effects of the flash report often dilute the EUR/SGD exchange rate impact of the official report.
The Eurozone GDP report is released approximately two months after the end of each quarter. Analysts usually estimate GDP prior to this, though the release of the report still tends to have an impact on the Euro, especially when results are different from predictions.
The Singapore current account balance is released approximately two months after the end of each quarter. The Euro current account report is released monthly, usually during the second week of each month.
EUR/SGD Correlation
The Euro and Singapore Dollar aren’t highly correlated, as the EU is not one of Singapore’s top export destinations. However, traders should be aware of relationships with other currencies.
The EUR/SGD rate is highly positively correlated with EUR/USD. This means that when EUR/USD increases, the EUR to SGD exchange rate is also likely to increase. Plotting EUR/USD and EUR/SGD on a live chart shows this clearly. This is because Singapore is highly influenced by exports to the US.
The EUR against SGD is also positively correlated with EUR/JPY due to a trading agreement that has resulted in a high level of imports and exports between Singapore and Japan.
Final Word On Trading EUR/SGD
EUR/SGD is a forex pair that is difficult to predict using technical analysis and, for this reason, is more suited to experienced traders. However, having a deep understanding of both economies and their influencing factors is valuable. Though EUR/SGD has a long-term declining trend due to Singapore’s economic growth, the Euro volatility means profits are possible in the short term.
While the EUR/SGD 2024 outlook is more difficult due to the effects of the war in Ukraine on both economies, this may open up opportunities for traders.
FAQs
What Is The Conversion Rate For 1 EUR In SGD?
The Euro to Singapore Dollar conversion rate moves continuously. Refer to a live chart to convert 1 EUR into Singapore Dollars.
What Is The Trend History Of The Euro Vs. The SGD?
Overall, the Euro versus SGD has seen a long-term declining trend due to Singapore’s advancing economy and the Eurozone’s decrease in GDP growth. Events such as the Asian financial crisis, Russian-Ukrainian war, and higher inflation rates in the EU are responsible for fluctuations within this overall trend.
Should I Invest In EUR/SGD?
EUR/SGD is an exotic forex pair suited to more experienced traders. It is important to understand the events that influence both the European and Singapore economies before trading this FX pair. See our guide for more information.
What Affects The EUR Vs. SGD Rate?
The EU and Singapore central bank monetary policies both affect the Euro to SGD rate. The Euro is also subject to greater political influence from EU member states, unlike Singapore, which has a more stable political background.
How Can I Trade EUR/SGD?
Investors will need to open a trading account with a forex trading platform that offers the EUR/SGD currency pair. Oanda, which is regulated by the Singapore central bank, is a popular choice.