When traders across the globe think about investing in forex, brokers from developed countries such as the United States, United Kingdom, and Canada would usually be the go-to brokers. The reason for that is pretty simple and obvious – they have booming economies, high income per capita rate, and a whole lot more that can aid in financial growth.
Although these countries can certainly provide world-class services, you might miss out on other rising economies that can offer just as much. Vietnam is one of the fastest growing economies in the world, and it’s already starting to make its mark in the forex market.
The Vietnam Forex Brokers — Is Forex Trading Legal or Not?
Vietnam has become one of the most enticing prospects for forex trading due to its fast growth as an economy since 2000. Their market has become more open because of their reforms in their enterprises, trades, investment strategies, and overall financial activities and services. But don’t let their growth and development deceive you.
Before you invest with Vietnam Forex brokers, you have to consider the country’s rules and regulations. Lately, Vietnam has implemented strict policies when it comes to trading foreign currencies. One of Vietnam’s current problems is their lack of accountability and democracy in their court systems. They are overprotective of their intellectual properties, which can then hinder international trade relations.
Forex Trading Is Currently Illegal In Vietnam
Despite ongoing efforts in improving their financial services, Vietnam has decided to ban forex trading, mainly because a network of forex brokers around the Asia Pacific region – including China and Malaysia – have introduced draconian measures in their forex regulatory bodies.
Other than that, the Vietnamese government has restricted foreign investment in several sectors of the economy. The corruption in their communist-influenced government caused many economic and financial agencies to run with very minimal transparency and accountability. This can negatively affect the overall management of finances and accounts in forex trading.
Which Body Regulates Forex Trading in Vietnam?
The State Bank of Vietnam (SBV) is the central bank and regulatory body for forex trading in the country. It mainly aims to maintain the financial stability of the economy, supervise money management and monetary policies, provide banking facilities and banknotes, and organize government bond auctions.
If you’re interested in finding forex brokers in Vietnam, you can personally consult the SBV.
Choosing the Best Forex Brokers in Vietnam
Successful trade in Vietnam always begins with choosing the best Vietnam Forex brokers. Here are some factors that you need to consider.
- The Forex broker should be licensed and authorized in Vietnam. Of course, no country would allow you to trade with an unofficial broker. If you do so in Vietnam, then you would only be a victim of their strict policies.
- The Forex broker should have a good reputation (promotes accountability and transparency in financial management). Although it may be hard to find forex brokers with this quality in Vietnam, you can always find one through networking and connecting.
- Consider the cost of Forex trading. Try choosing forex brokers who charge through “spreads”, the money between the bid and ask price that brokers are willing to keep as their fee.
- Try a demo account. It will help you understand how the system works and how the platform can aid in your trading decisions.
Just because forex trading is currently illegal in Vietnam, it doesn’t mean that you can’t find decent forex brokers in the country. As long as you update yourself with their latest rules and regulations, Vietnam’s forex trading markets can eventually become favorable for your investments.