The Best Forex Brokers in Vietnam – Is Forex Trading Illegal or Legal?
Vietnam, or the Socialist Republic of Vietnam, is the easternmost country on the Indochina Peninsula in Southeast Asia. There are an estimated 90 million inhabitants, which makes it the 14th most populated country in the world. To the north Vietnam is bordered by China, to the southwest is Cambodia, Malaysia is to the southeast across the South China Sea. Since the reunification of North and South Vietnam in 1975, the capital has been Hanoi.
Vietnam’s economy has been growing since 2000, and its growth rate is one of the highest in the world. Which of course makes it a very attractive proposition for Forex traders. However, there are very strict rules in place regarding Forex trading and Forex brokers in Vietnam, and before you consider this country as a base from which to trade in foreign currencies, you would be wise to check out the latest rules and regulations.
Forex trading in Vietnam is currently illegal
As far as we can tell, when undertaking the research for this page, Forex trading in Vietnam is currently illegal. A number of large FX firms considered countries in the Far East to be the land of milk and honey, and established a large network of Forex brokers in Vietnam, as well as their own representative offices. All of which provided western brokers with a number of clients from the Asia Pacific region. China was the obvious starting point, but other countries were looked at in the region, including Indonesia, Malaysia and Vietnam. Which has led to regulatory bodies in these countries introducing draconian measures. In Vietnam it was decided to ban FX trading floors.
Who is the regulatory body for Forex trading in Vietnam?
The State Bank of Vietnam (SBV) is the central bank of Vietnam, and is responsible for:
- Promoting monetary stability and formulating monetary policies
- Promoting the stability of financial institutions and their supervision
- Providing banking facilities for the country’s financial institutions
- Managing the country’s financial reserves
- Printing and issuing banknotes
- Supervising the commercial activities of banks in Vietnam
- Issuing government bonds, and organizing bond auctions
- Being in charge of other roles in money management and foreign exchange rates
If you want to know the latest rules and regulations regarding trading Forex in Vietnam, and using a Forex broker in Vietnam, we would advise you to contact this regulatory body. As they will have all the latest information at their fingertips, and be able to offer the most trustworthy and reliable details.
Here at topratedfporexbrokers.com, we by no means condone Forex trading in Vietnam, as long as it remains to be illegal. But to prepare the market for when the rules and regulations are more favorable, let’s look at how to choose the best Forex brokers in Vietnam.
Recommended Forex Brokers for Vietnam Traders
|Broker||Min Deposit||Regulation||Bonus||Read More||Visit Site|
|XTrade||$100||CySEC||$20 Free||Read Review||Visit Broker|
|XM||$5||FSA, CySec||$30 Free||Read Review||Visit Broker|
|HY Markets||$50||FSA, CySec||Up to $5000||Read Review||Visit Broker|
Choosing the best Forex brokers in Vietnam
In order to participate in the Forex trading market, investors will need to find the right Forex broker in Vietnam to do business with. Having a trading account with an online Forex broker gives a certain amount of freedom, and means trades can be placed any time of the night or day, provided there is a reliable internet connection. There are, however, a number of considerations to bear in mind.
- Is the Forex broker licensed and regulated to operate in Vietnam? – When trading with a licensed Forex broker in Vietnam, the protection offered by the rules and regulations is unbeatable. Trade with a broker who has no license and one that doesn’t abide to relevant rules and regulations, means you’re leaving yourself open to big risks. On no account would we recommend you do any kind of business with an unlicensed Forex broker, whatever country you reside in.
- The Forex brokers reputation – This is the next consideration, and you’ll be able to find heaps of information by doing some online research. There are a number of Forex forums where you can check whether a Vietnamese Forex broker has a good reputation, as well as a number of comparison sites like this one.
- Think about the cost of Forex trading – Forex traders usually don’t charge any fees or commission, choosing instead to make a charge through the ‘spread’. Basically, this is the difference between the bid and ask price. The spread is added onto the price of the trade and the brokers keep this as their fee. Different brokers charge different spreads, and they can vary considerably.
- Consider trading with a demo account in the first instance – Before signing up for a real money forex trading account we’d advise everyone to try a demo account. This is because it allows you to see how the spreads are calculated, how the platform works, and the type of information available to help make trading decisions
While Forex trading is currently illegal in Vietnam, it may not be long before the market is open for the ordinary investor. Before you start trading with Forex brokers in Vietnam be sure to investigate the legal position of such an investment.