Western investors and Asians alike are in search of a good foreign exchange trading market. Aside from the obvious choices of US, UK, and Australian Forex trading markets, the rising economies from the East are capturing the business-eye of forex traders. Rising economies are a good market for investing forex market and competition is more likely to be few.
Countries like Thailand, China, and Malaysia have already joined the forex trading market and has put up a few local and global rules of their own. Brokers have set up their platforms and investors are searching for a reliable and stable market to put their money one.
The economy of Vietnam has been on the rise in the past years and it means one thing to forex traders. It implies another land for the Forex trading marketplace.
In 2014, the State Bank of Vietnam officially told the local media that trading in gold and foreign currencies via foreign exchange trading floors is illegal in the country. There were no regulations specific to activities through trading platforms.
According to the director of the State Bank of Vietnam, the forex needs of a nation is not intended to be satisfied by trading activities such as exchange floors.
This has put a strain on the local traders in Forex trading Vietnam. The director of the SBV said that forex transactions can only be done by organizations and individuals by the rules of SBV with an authorized credit institution.
For traders, it has been challenging to find the best-authorized forex brokers since the ban on foreign exchange trading floors in Vietnam.
The government discourages the trade through the legal risks and fines up to Vietnamese Dong of 50-100 million. The regulators can also intervene with the transaction process and cause traders to lose the transaction fees to illegal trading floor owners without protection from the law. It means that losses over illegal forex trading are not covered by the law therefore they could not get their investment back.
Despite the challenges in forex trading Vietnam, there are still a number of individuals and organizations that engage in forex trading Vietnam. There is also a wide operation of many underground exchange floors in the country.
The strict implementation of the law is pushed by the government due to the high risk of the fluctuating and unpredictable market of forex trading. It is also because of the limited access of information given to investors in Vietnam due to government policy, that their risk of investment loss is very high.
Fortunately for those still interested in Forex Trading Vietnam despite its rigorous regulations, there is still a number of great forex opportunities available.
Finding the very best forex brokers in Vietnam may come as a challenge. You should look out for regulation from other top Asian authorities, Vietnamese language options if you need, and efficient customer support.
Other things to know before engaging in Forex Trading Vietnam: legal situation surrounding forex trading in Vietnam (local rules and regulations implemented by the SBV), option to use an offshore broker, opening a forex account as a Vietnamese trader.
