Best Forex Brokers in Vietnam

Brief History of Forex Trading in Vietnam

At the time when the Vietnamese economy was flourishing due to its large crude oil reserves, a large number of Forex firms realized the potential of Forex trading in the Far East. Many international brokerage companies and even local FX firms set up shops in the country to take advantage of the opportunity. These firms set up a network of brokers and even representative offices that would allow Western companies access to the Asia Pacific market.

Several Forex brokers in the region are well versed with the strict capital control laws that have been instituted by the Chinese government about Forex trading. In China and other socialist countries, the government has shown a disdain for international firms that seek to lure the local population to trade with free market economies. Other nations in the region have not been largely encumbered by such barriers. Vietnam, on the other hand, has taken a strict and hostile step towards all local and international firms that are seeking to do Forex business in the country. According to the government of Vietnam, trading currencies via exchange floors is considered to be a form of speculation that does not meet the foreign exchange needs of the state. Only local businesses and individuals can make foreign exchange transactions but these will have to be done by SBV rules.

Regulation of Forex trading in Vietnam

Despite not being regarded as a legal activity, there are many local firms and even people that are engaged with Forex trading in the country. Those that are found to break this rule are set to be fined about VND50 to 100 million and also face the risk of paying transaction fees to trade floor owners. This is detrimental to the investment of the currency traders. It is worth noting that Vietnam only has jurisdiction over the country’s laws and banning trading floors does not curtail people from trading currencies. Instead, it just shows that the country is not committed to off-exchange Forex trading.

A lot of reasons have been given as to why Forex trading is largely considered illegal in the country. Some argue that trading currencies are speculations while others assert that there are little to no regulations that govern the trading of currencies in the country. All in all, the banning of FX trading floors has only made the Forex traders in the country look elsewhere in search of currency trading opportunities. It is because of this reason that there arose an opportunity for Western firms to tend to this market. Many Forex brokers have already had massive success in other Asian countries. Others also argue that the move has been a way for the Vietnamese government to prevent Forex trading among the locals even to foreign financial brokers. While it is not easy to say the impact of this ban both to the local economy and the foreign economies, this move is likely to increase the number of people that are looking for Forex brokers among the international brokerage entities.

The state bank of Vietnam is responsible for regulating Forex trading and other financial services in the country. Some of the functions that the bank has include

1. Promoting monetary stability- The SBV is responsible for ensuring there is monetary stability in the country by formulating the necessary monetary policies. This goes a long way to ensuring that the economy of Vietnam is well run.
2. Maintaining the stability of financial institutions- financial institutions play a key role in the country since they handle a lot of funds. To ensure that these entities do not collapse or become bankrupt, the SBV makes rules and supervises them.
3. Banking facilities- being the central bank of the country, SBV offers banking facilities to the government and other financial firms in the country.
4. Manage the reserves of the country- A country needs to have foreign financial reserves to boost its stability. The SBV ensures that the country’s Forex reserves are above the recommended limit.

Other functions of the SBV include:

1. The printing and issuance of banknotes
2. Issuing government and even corporate bonds
3. Supervising the health and activities of commercial banks activities in the country

Features of Forex Brokers in Vietnam

To participate in Forex trading even if you are in the country, a trader must find the best forest broker to do business with. Having an online trading account is a great way to place trades at any time of the day or night without seeking the approval of the relevant authorities. By having a reliable internet connection, day trading is easier than ever. With that being said, it is essential to keep several considerations in mind when you set out to choose a Forex broker.

Licenses and regulations

It is a no-brainer that trading with a Forex broker that is legally accepted in your country gives you an unbeatable form of protection. If you try trading with an unlicensed or unregulated financial broker that flouts the common rules and regulations then you are setting yourself up for some big risks. While Forex trading is not legal in Vietnam, it is still not recommendable to work with a Forex broker that is unregulated even if you have some good trading skills. You can choose to trade with highly acclaimed and popular international brokerage firms that have been regulated by other regulatory bodies. Working with an unlicensed broker is never an option regardless of the country that you stay in.

The reputation of the broker

It is also important that you know and understand the reputation of your broker. A brokerage firm with a good history and a nice reputation offers great services to their clients and you are unlikely to meet any troubles. With the help of the internet, it has become easy to determine the quality of services offered by a Forex broker. By easily checking the review of online brokers and finding comparison sites, you no longer have a reason to trade with an unscrupulous broker.

Spreads and Commissions

There are many types of Forex brokers. For example, some will charge you a fee, commission or even spread. The spread is the difference between the bid price and the asking price of a currency pair. This spread will be added to the price of the trade and the brokerage firm gets to keep it as their fee. Although different brokers charge differently, the spreads will vary a lot and it is necessary to choose a broker with the lowest spreads.

Trading Platforms

A trading platform is the interface that you will interact with when trading and you must choose one that you are familiar with. What are some of the good trading platforms? Well, MetaTrader4 is known to be one of the most popular trading platforms in the world. Other trading platforms include MT5 and WebTrader among others. Some Forex brokers also choose to develop their trading platforms.

Popular Forex BrokersIN VIETNAM

Easy Forex

This is an international Forex broker that has its main offices in Limassol, Sydney, Warsaw, and even Shanghai. The popular Forex broker offers its services to more than 160 countries while also allowing investors to trade in over 170 instruments. These include Forex, commodities, and options among others. On regulation, two main bodies regulate the Forex broker including the CySEC (Cyprus Securities and Exchange Commission) and the (ASIC) Australian Securities and Exchange Commission. The company also has great customer service that can be of assistance if you are having trouble or need some guidance.

AvaTrade

AvaTrade was founded in 2006 after a group of trading professionals sought to help more people join Forex trading. One of the main things that have made the company a success is that it places a lot of focus on its users. It has about 20,000 users who often reach about 2 million trades every month with a total trading volume of about $60 billion. With this award-winning Forex broker, you are sure to have a reliable partner.