Best Forex brokers in Taiwan

Brief History of Forex Trading in Taiwan

Taiwan’s currency is the Taiwanese dollar which was reissued in 1949 by the Bank of Taiwan after the colony was taken over by the Republic of China from the Japanese Empire. This ushered in what is today referred to as the New Taiwan dollar which is currently the currency in circulation in the country because the “old dollar’’ had suffered hyperinflation during the second half of the 1940s. Up till the year 1991, the Republic of China did not have a legal tender till July 2000 when the Central Bank of the Republic of China (CBC) took over the Bank of Taiwan’s role of issuing new Taiwanese bills after which the New Taiwan dollar officially became the Taiwanese legal tender.

Currently, the New Taiwanese dollar exchange is at a rate of NT $30.56 per US dollar. Before 1979, Fx trade in the Republic of China was regulated using a centralized clearing and settlement scheme.  After the establishment of the Taipei Forex Market in February 1979  a better and more flexible Forex system was put in place. Following these developments, the exchange rate for the NT dollar depends on the market.

Sometimes, however, the market becomes irregular and there the Central Bank of China takes the necessary measures to stabilize it and ensure smooth forex trading in the market. The CBC has over the years promoted a policy in favor of financial liberalization and internationalization. Forex exchange rates in Taiwan are based on the international forex market. Generally, currency transactions in Taiwan flow freely into and outside of the country as well. The CBC’s centers its philosophy on the management of forex reserves centers around liquidity, security, and profitability. This has seen to it that there’s is a growth of the economy and development of the Fx industry in Taiwan.

Regulation of Forex Trading in Taiwan

The Taiwanese forex is solely regulated by the Central Bank of China (Taiwan) which is responsible for controlling the official Taiwan currency (NT$). The official currency used in Taiwan is Taiwan Dollar (TWD) and the country’s economy has reportedly around 1.8 trillion Taiwan Dollars in circulation. Every business day in the Taiwanese Forex market sees an average of 24 billion US dollars exchanging hands.

Role of the Central Bank of China (Taiwan) in Forex Trading

The Central Bank of China (Taiwan) is the central bank in Taiwan. The regulator first allowed local brokers to handle forex exchange in the year 2013. In addition to it controlling the national currency in Taiwan, it is also tasked with drafting and implementing Forex trading rules and regulations in Taiwan. In addition to this, it has also played an integral role in utilizing foreign market profits in helping to grow the economy. The bank does this by ensuring that Forex market returns are available to local investors who wish to purchase equipment that can be used to improve or start industries that have the potential to influence the economy. It has also set up mechanisms to help aid the Taipei foreign currency call loan market. In addition to these measures, the bank has also put in place regulations to help in controlling the Forex market in Taiwan.

In 2016, Taiwan’s central bank ordered that all high-risk Forex derivative instruments must be approved by the regulator before letting the banks sell these products to their clients. By then financial products were being sold to banks’ clients under quite relaxed conditions and no regulations on them. This was put in place after the currency suffered a series of defaults. Taiwan has been working continually along with other Asian countries to improve the regulatory framework in place to safeguard the interests of future investors. Events in the economic sphere in recent years such as the bankruptcy of the Lehman brothers have made the regulator and players in Asian forex markets cautious.

However, forex brokers with the requisite licensing and qualifications in prime forex trading jurisdictions such as the US and UK find it easy to gain entry into Asian countries more so if they have a good reputation to accompany their license. However, the country’s regulations on Forex trading are seen as complicated and difficult to work with, especially for foreign brokering firms.

Forex regulations in Taiwan

Over the years, there have been several changes made to the foreign exchange rules in Taiwan. These changes have been made to attract investments from foreign Forex firms by trying to change the unpopular regulations that had been initially laid down. Some of the important reforms include;

It has set in place measures to protect banks involved in Forex trading

To save these institutions from exchange rate risks, the bank has allowed the banks to determine the sales volumes themselves. They now determine if they have oversold or overbought in the Forex market.  This will be subject to approval by the Taiwan Central Bank.

It has helped improve the Derivatives market

Dealing with futures has now become easier in Taiwan. The banks in the country were given the green light to engage in the derivatives that the Taiwan Dollar has a strong hold over and trade them against foreign currencies.

This act was seen as a move by the bank to decongest the now-crowded Forex trading market by giving traders another avenue to try and sustain the levels of profits in the Forex market. Traders now can enjoy higher trading volumes than they previously experienced in the domestic stock market.

Features of Forex Brokers in Taiwan

The various forex brokers operating in the Taiwan market have various features on their menu and these include the following.

Deposit Methods

There are several internationally known which operate on the global market and they avail a variety of deposit methods acceptable in Taiwan most of them accept popular credit and debit cards such as Visa, Visa Electron, Mastercard, Maestro, Neteller, Skrill, and Webmoney or wire transfer for deposits and payments. Transactions that are carried out with the traders are mostly secure thanks to the advancement of security features offered by the brokers. Depositing funds on trading accounts is reliable, easy, and quick which enables the trader to fund their accounts with little difficulty.

Trading platforms

Forex brokers in Taiwan offer a variety of trading platforms the most popular one being the MetaTrader MT4 platform which has several helpful features that include low pricing, rapid execution, and multiple language support among others. Other platforms used are Markets Mobile Trader and Markets Web Trader. Some brokering websites also have customized online platforms and mobile applications which can be used by traders these make do with web-optimized trading. These user-friendly tools can be accessed by any trader on their account and are uniquely customized with their extra features as well. The platforms avail what the traders need including multiple chart layouts, historical quotes, and technical and fundamental analyses.

Spreads, Commissions Bonuses, and other Special Offers

Brokers operating in Taiwan have a variety of special offers that vary from broker to broker. Some offer online trading competitions in which the traders registered by them can compete and win handsome amounts of money from time to time. Others offer bonuses for referrals through affiliate marketing whereby you get bonus cash for promoting or referring the broker’s site to a friend. If one is eligible for a novice trader bonus they get cash bonuses for their first deposit these deposits vary depending on the amount deposited by the new trader ranging from 5% to 50% of the initial deposit amount. For some trading sites, a trader can recall and reclaim money from a bad trade within a stipulated window. For all these offers terms and conditions that apply vary depending on the broker one chooses to trade with.

Customer Care Services

The brokers operating in Taiwan have customer care services which are very important for feedback and addressing customer complaints. Support options vary from email, live chat, and phone calls. The services are available for various regions and they have included the frequently asked question sections in their sites for the basic and commonly encountered issues. The customer care staff are equipped with training to handle and address the clients’ complaints according to their needs. The sites also provide legal and educational resources for clients on their sites.

Alternative To Local Taiwan Forex Brokers

According to most players in the forex market worldwide, Taiwan's forex industry has some of the most stringent regulations to get around. As much as it makes trading in the jurisdiction safe it also makes some brokers avoid operating in the country. Also, Taiwan is not a member state of the UN. This is where international brokering firms that are already licensed from the established forex economies and 22 other states that have trade agreements with them find an easy time to operate in the Taiwan market.

Popular forex brokers in Taiwan

Ava Trade

Ava Trade which was founded in 2006 is a revolutionary online trading firm that has a user-friendly and reliable trading platform and is ranked among the best globally. Ava has a great trading experience with good software that helps traders access their trading accounts with ease and is backed up by reputable banks. Ava has over 200,000 users globally and more than 2 million trades are done on their platform every month. Traders can utilize the resources available on their website and also on mobile. AvaTrade is a franchise of Ava Group which is licensed in several of the world’s leading markets and operates in Taiwan as well.

Markets.com

Markets.com is an internationally recognized brand and a trademark of Safecap Corp. and both are subsidiary companies of Playtech PLC. Markets.com is known globally for providing CFDs and Forex trading platforms. Traders using Markets.com can use various platforms for trading especially the renowned MetaTrader 4 .Markets.com offers among the best customer care services available in seven different languages. Being a CySEC-regulated broker, it has a big following and has also the licensing of FSB (South Africa). In the year 2014, the broker entered a deal with Arsenal FC to promote and market their brand to attain global support and clientele.
The broker has some of the most favorable prices in the market with a wide variety of resources both educational and training on their site.