How to Trade Forex In Thailand Legally

Today, over 15 million people buy and sell currencies through the Internet. Forex platforms give easy access to the global exchange where immense volumes circulate between individuals and institutions.

In Thailand, retail traders are now enjoying benefits unavailable a few years ago. However, the system has its own distinctions.

The economy has several features in comparison with other developing states. Notably, speculation in the national currency is strictly prohibited. Other currency trades are legal.

The finance system is still in the early stages of development. At the moment, exchange operations are overseen by two state entities. These are the Bank of Thailand (BOT) and the Thai Securities and Exchange Commission.

Acceptable Forex Pairs

Despite the restrictions, there are still quite a few currencies to trade. Besides, the Thai baht ‎฿ (THB) is generally considered weak and illiquid. This means sellers would have difficulties finding buyers for their assets.

Accepted currency pairings are classified as ‘major’, ‘minor’, or ‘exotic’ depending on their elements. In any case, the first element is priced against the other. For instance, the value of EUR/USD combo shows how many US dollars one Euro costs. Even though Forex shares some of its features with other realms (e.g., stocks or commodities), trading has a certain learning curve.

This means that consistent success will rely on solid knowledge. Exchange rates are always changing, as they are influenced by multiple factors. From geopolitics to domestic monetary reforms, the range is extremely broad. Although platforms have embedded forecasting tools, traders need to understand the bigger picture.

Choosing a Broker

Since the recent amendment of financial regulations, international brokerage firms have started to engage the local audience. Forex websites are now often translated into the Thai language. Thanks to its digitized nature, Forex trading has little connection to the physical location.

As brokers handle all monetary flows, it is essential to check the company’s legal status. An international broker must be subject to oversight by reputable regulatory bodies. Such organizations include the Financial Conduct Authority (FCA) in the United Kingdom, the Cyprus Securities and Exchange Commission (CySEC), etc.

A responsible Forex Broker in Thailand will always keep all clients’ funds separate from the corporate capital. They will offer transparent terms and conditions, including spreads, withdrawals and any fees.

Brokers are divided into two categories based on their revenue model. Market makers set their own Ask and Bid prices, and benefit from the spreads. Rivals from the ECN group (electronic communication networks) do not influence the values but charge a commission per Forex trade. Generally, the latter type is seen as the most transparent.

Learning to Trade on Forex

Any rookie should begin by registering a demo account. This will unlock the trading platform (most commonly, MetaTrader 4 or 5) in a safe mode. No real money will be traded, gained or lost. However, a user may freely experiment with the available options. It is important to learn how to open and close positions, analyze charts and limit risks through ‘stop loss’ and ‘take profit’.

There are many strategies to choose from. Some users prefer quick day trading, while others opt for the longer swing mode. Take advantage of the abundant educational material on the subject. Simple googling reveals tonnes of tutorials, articles and other content on the subject. A reputable broker should also provide its clientele with expert guidance and links to learning materials.

Finally, novices and veterans alike may use copy trading. In essence, the scheme involves the delegation of financial decisions to an expert. This strategy manager is chosen by you. They will manage a portion of your funds and receive a fee if the trades bring profit.

A Few Final Words

The reasons for Forex growth in Thailand are clear. Despite the prohibition of operations with the Thai baht, local traders receive multiple opportunities through global brokers. As long as the company is licensed and controlled by international authorities, it is legal to access the global exchange and monetize financial knowledge.

Once you feel confident trading currencies, it is worth considering other instruments. Stocks of giant corporations and handy derivatives make sure your risk is spread across several assets. This way, losses sustained in one area may be offset by gains elsewhere.