Tuesday, 5 April 2016

What you need to trade SIP / CFD

Besides money that is. The most important one is...

KNOWLEDGE

SG brokerages may require clients to take tests before they are allowed to trade SIPs (specified investment products) or CFD (contract for difference) if they are not working finance-related field, do not have prior finance certifications or have no trading history of such instruments for at least 6 times in the preceding 3 years. It's basically the same idea as having to pass the driving theory tests before we could get into the driver's seat and start engine.
Maybe the next thing you know they would start making risk management course compulsory. Shhh.

\You could take the courses and tests at:

SGX e-learning (takes about 2-3 hours to complete)

and

http://sips.abs.org.sg/Default.aspx# (each course consists of about 60 slides with a 15-question quiz at the end of each set)

They would then send you a soft copy certificate. For POEMS account opening, you need to indicate your scores on the application form under the respective SIPs.

Model answers?

Sorry you are not gonna find cheat sheet here. Go and study!

Personally, I would not advise anyone to dabble in SIPs if you are not sure of what you could do with them and what they could do to you.


“Risk comes from not knowing what you’re doing.” - Warren Buffett

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