Forex trading has become particularly popular among traders in the last several years. Compared to other types of trading, forex is distinguished by the low barrier of entry and the fact that it is far more volatile than the stock market.
Each country has unique regulations when it comes to forex trading. Thailand is one of the top countries with a forex emerging market in Asia. The Securities and Exchanges Commission (SEC), alongside the Bank of Thailand, regulates the Thai forex market.
We’ve created this simple and complete guide to learn more about these regulations and everything you may need to trade in Thailand’s forex market in 2022.
Is Forex Trading Legal in Thailand?
Considering that the Bank of Thailand and SEC regulate this matter, forex trading is completely legal in Thailand. Both bodies pay close attention to the transactions happening on the forex market, allowing for a seamless and legal flow.
Since 2017, investors and forex traders can enter the forex exchange and trade, knowing that government bodies guarantee their safety. Adding another layer of security is that some Thai brokers have additional offshore licenses. You can compare forex brokers in Thailand via Brokersview and see which ones have such securities.
The legal basis, i.e., the laws which regulate exchange control in Thailand, are the Exchange Control Act (B.E. 2485) and the Ministerial Regulation No. 13 (B.E. 2497).
Start Forex Trading in Thailand in 5 Simple Steps
Trading on the Thai forex market requires the same level of expertise as you would need to trade anywhere else. There are five simple steps for entering the Thai forex market. Those are the following:
- Choose a good broker – see that the broker, whether from Thailand or international, checks all your boxes regarding licenses, fees, security, etc.
- Open a trading account – to be able to trade on the forex market; you’d first need to open an account with the broker.
- Fund your trading account – once you open your account, you need to verify it by connecting a payment method, i.e., connecting your bank to it so that you can easily fund it. Most brokers allow credit/debit card funding as well as other options. You can check with them for the available methods.
- Get a forex trading platform – forex trading is all about staying on top of the fluctuating market. Every broker supports some trading platform, so you will need to download the software or get access to it.
- Get trading – when you’ve finished all previous steps, the final one is entering the trade. We advise starting with a demo account or trying a trading simulator if you’re a beginner.
Top Forex Brokers in Thailand
Thai-based brokers are bound by law to provide services in accordance with it. However, finding a forex trader in Thailand may be more complicated than it seems, considering that the law is still not concise. Nonetheless, countless international brokerages accept traders from Thailand.
Below we’ve listed some forex brokers that Thais can use.
eToro
eToro is one of the best brokers in Thailand for several reasons. First, it has a simple platform and requires no deposit fee nor commission – only $200 for opening an account. Second, it has high-security measures- 3 licenses from the U.K., Australia, and Cyprus.
Finally, what makes it exceptional is the so-called copy trading method. You can copy a trading strategy that any other user on the platform has and add it to your account.
Capital.com
Capital.com is the best for beginner traders. There are no fees on the deposits and withdrawals, and you only need $20 to start trading immediately. Moreover, the platform is simple and user-friendly, with the chance to change from a mobile app.
VantageFX
This broker is the best for experienced traders. VantageFX allows trading directly on the interbank market without a middleman. It has 44 currency pairs and the chance to try out other markets like stocks, commodities, etc.
Forex Trading Strategies for Thai Forex Market
Forex trading strategies help you build a way into the forex market. There are many present; however, these are the best ones for the current Thai forex market:
- Trend trading – a slower way of trading where you analyze the development of the currency, follow the news and trends, and work around that to buy/sell.
- Day trading – a faster way of trading where the exchange happens within a day.
- Positional trading – a long-term trading strategy where you hold a trade for months or years, waiting for the right moment to profit.
Bottom Line
Trading on the forex market in Thailand may seem tricky, but once you understand its essence, you will see that it’s pretty simple. Find a broker, choose a strategy that fits your needs, and enter the forex exchange!
