Forex Brokers In Thailand

History Of Forex Trading In Thailand

 Despite the slow pace that the Thai financial trading sector has had in establishing itself as a great trading hub, it has been on the scene for quite some time. The foundations of the Forex trading sector were erected in the 1940s with the establishment of the bank of Thailand which as earlier indicated is the central bank of Thailand. The Bank of Thailand oversees all trading activities and serves to set a level ground for all participants in the trading exercise.

The Bank of Thailand ensured that the social responsibility of the government was upheld in trading activities in addition to ensuring that its currency was up to the best integrity. The Forex brokers in the scene had to follow the set rules and regulations to ensure that the trading exploits were up to the set standards.

In 1992, the Securities and Exchange Commission (SEC) was established as the main regulatory authority for financial activities in the region.  It was established under the Securities and exchange act and its task was to supervise the capital markets and ensure uttermost transparency. Working together with the Bank of Thailand, it has managed to set right the trading sector in Thailand making it a great trading model.

The Securities and Exchange Commission works under the Thai central bank. Its mode of operation in regulation and licensing has made it possible for many fore brokers to venture into the Thai scene making the financial market more active.

Requirements To Be A Broker And Associated Regulations In Thailand

For a broker to be able to run its operations efficiently in Thailand, there are some rules and regulations that it should be compliant with. The Bank of Thailand together with the Securities and Exchange Commission is tasked with regulating this sector and making it a fair marketplace. These two bodies work in tandem in making and implementing regulations in Forex trading and are recognized as the official capital markets regulatory bodies in Thailand.

The Securities And Exchange Commission

As earlier indicated, this body was established in 1992 with the main aim of providing a level and regulated ground to all trading activities in the capital markets. It works together with the central bank of Thailand and ensures that all brokers carrying out their operations in Thailand have met all the set rules and requirements.

Among the requirements that a broker needs to meet before carrying out its operations in Thailand are as seen below.

1. Provide all legal document that ascertains the Forex broker as a registered entity. This includes the company's profile and related documents such as the memorandum and articles of association.
2. Financial statements that show the proof of sustenance of the brokerage firm.
3. In case the broker is not native to Thailand, compliance licenses from its mother country should also be provided. This is to make sure that the broker is operating in ultimate goodwill, without a chance of engaging in fraud.
4. Ensure that the broker has put up proper measures that ensure clients' funds are kept safe and sound

With those requirements intact, the broker is going to apply for a license. The process is quite long and one needs to ensure he or she is conversant with the whole process before starting to avoid confusion.

These regulatory bodies also have to ensure that a smooth trading process ensues. The following are some of the reasons why the existence of these two bodies is important in the Forex sector

1. To monitor capital outflows and inflows in a bid to give a clear analysis of the performance of various sectors with entities in the stock market.
2. To centralize the foreign exchange sector of Thailand.
3. To prevent instances of fraud such as money laundering. This has been made possible by setting up transaction limits.
4. To help stabilize Thailand’s currency unit, the Thai baht.

The Thai baht’s integrity needs to be upheld as the country’s base currency. As such many measures have been put across to ensure that there is no speculation on this currency unit.

The role of the Forex regulatory bodies in Thailand cannot be ignored and they have played a major role in the gradually flourishing Forex sector. Its flexible regulations have allowed many Forex brokers to establish themselves in this country. The smooth operation and the level playing ground are other benefits that brokers and traders alike benefit courtesy of the Bank of Thailand and the Securities and Exchange Commission.

Features Of Thailand Forex Brokers

The Forex brokers that have set up shop in Thailand have a lot of features as seen below.

Trading Platforms

Financial brokers in Thailand utilize the services of some of the best trading platforms. These trading platforms come with a vast array of features that are going to enhance the trading experience of the traders. Among the most popular platforms featured by most brokerage sites are the Meta trader4 and Meta trader5 platforms.

 These two platforms are both mete trader platform versions that come from Metaquotes. They are preferred due to the features that they offer. Some of the features that these trading platforms offer include the automated trading concept, live news trade, and also a collection of charting and analysis tools.

Other brokers have their own customized trading platforms that serve individual trading needs.

Trading Accounts

Trading accounts are a necessity before one can engage in trading activities. The brokers offer a variety of trading account types and this is based on the traders’ preferences and qualities in expertise, stake amounts, and also the trading instrument chosen.

There is a demo account that is suitable for novice traders who still do not know their way through the Forex trading concept. It can also be used as a refresher tool by traders who have taken a long without engaging in financial trading. The standard account type is also offered by nearly all brokers and may also be referred to as the retail account or the real account. This account type is suitable for both novice and experienced traders.

There is also the professional account for high stakes as well the crypto account for traders who want to trade on various cryptocurrency units on offer by the various brokers.

Security Of Funds

Clients’ funds need the utmost protection as dictated by the various Forex regulatory bodies. All licensed brokers strive to do these and have come up with various measures to ensure this is made possible.

The use of segregated bank accounts is one way in which this has been ensured and separates the company's funds from clients' funds. Other measures include partnering up with credible banks and negative balance protection. Some brokers also employ strict site protection measures such as using a firewall and strong encryptions to prevent hacking attempts.

Customer Service

For a better customer experience, there needs to be a good customer support service that is going to ensure that all clients’ queries are sorted out. Many brokers have invested in the most qualified personnel. This personnel works round the clock to ensure that all clients are satisfied with the product being offered. The staff will also occasionally offer advisory services related to Forex trading to the clients for an enhanced trading experience.

Promotions

Many brokers, in a bid to improve customer relations and also to foster loyalty do offer various promotions. If a trader meets a set of laid out requirements, he or she is going to be considered for a chance to win some gifts or benefit from some perks.

Learning Resources

The Forex trader also offers learning facilities to its clients to help them keep track of the ever-changing Forex trading scene. Among the various trading learning resources that a trader can benefit from in the various brokerage, sites are not limited to the demo trading account, webinars, and also newsletters.

The Islamic Trading Feature

Thailand has several Muslim Forex traders and they are guided by the Sharia law in financial matters. The Sharia law prohibits the gain or charging of interest hence Muslim clients have the swap-free trading feature that does not allow for interest gain.

Limitation And Comparison To Other Countries

Thailand, as earlier indicated has taken a long to catch up with the Forex trading standards of other notable Forex trading hubs such as the united states of America and the united kingdom among others. It has, however, made strides in the last few years and has become one of the respectable Forex trading hubs.

Its strict rules and regulations help in bringing transparency as well as leveling up the ground for players, traders, and brokers. Also, its move to protect the integrity of its currency is a great move that preserves the prestigious status of the Thai baht.

Thai’s trading sector, however, ranks top when compared to countries such as India which has a lot of similarities to Thailand’s trading environment. The situation in Thailand is not that bad as in the last decade it has grown in leaps and bounds and with time it will be in the top tier level with other great Forex hubs.

Popular Forex Brokers In Thailand

Exness

Exness is a great Forex broker that was established in 2008 with its headquarters in Cyprus.it is a credit broker that has taken the decade-long stay in Forex to its advantage in expertise and experience hence offering unrivaled trading services to its clients. It has grown tremendously over the years and has expanded to many territories such as Thailand in this case. Thailand is a good hub for Exness to set shop due to the vibrant state of the country.

It has met all the rules and regulations set and is a very credible broker with all its relevant licenses up to date. This is one broker that is advisable to choose in a sea of many due to its legitimacy.

Forex 3D

Forex 3D is Thailand’s very own brokerage firm that was established in 2011 with offices in Bangkok. It is a very excellent broker that offers great trading conditions to its clients. It is compliant with all set rules and regulations that ensure clients’ funds are kept secure.

Over the years it has managed to grow immensely and has spread its wing to many other territories in Europe, Asia, and the Americas. Forex 3d being Thai-owned, has products specially designed to meet the needs of Thais in trading instruments, interfaces, and also language.

XM Forex

XM Forex is another Forex broker that is headquartered in Cyprus and was founded in 2009. It has managed to spread its wings over to Thailand where it has set shop and offers great trading conditions to its many clients.

It is regulated by the regulatory bodies and has all necessary updated licenses as proof of this. This is a great broker that is recommendable to any trader in Thailand.