Last Updated: 26th September 2021.
The amount of money traded daily in the forex market is about 6.6 trillion dollars. And that makes it a goldmine for everyone who wants to benefit from it.
And statistics.com confirmed that in December 2020 over 1.6 trillion dollars transactions of the forex exchange market were from China.
That is about 30% of the trading volume.
Getting a 0.0000001% share of this huge amount of money would really go on a very long way.
And that will have the ability to transform your standard of living more than your wild imagination.
Many people are currently running into the forex market because of its potential.
And Yes, what is traded daily is enough for everyone to take a share of.
But the problem here is that forex trading is totally banned in some countries and restricted in some other parts of the world.
However, in today’s article, we’ll be answering the popular question “Is Forex Trading Legal In China?”
Let’s get started…
Is Forex Trading Legal In China
Yes! Forex trading is legal in China but the government of China has disallowed margin trading but there is a massive demand for this such service among Chinese investors.
As a result, there have been illegal activities of this trade and the police are on a massive lookout, arresting those who are into it and confiscating computers and other hardware devices they are used for this trade.
What is margin trade?
Margin trade is the act of borrowing money from a broker platform in order to carry out trade activities in the forex market.
You can also say it is when individual investors buy more stocks than they can afford to pay and then borrow money to pay for it.
The way margin trade is done is that, investors first deposit cash and the cash would serve as collateral for the loan, and the investor pays ongoing interest payments on the money they borrow.
The Chinese securities regulation has discovered that margin trade is becoming more debt in China. As of the time of writing this article, the margin trade balance outstanding in China is about 1.8 trillion yuan which is about ($285 Billion).
Or about 3.6% of the total China market cap and approximately about 4% of the free-flow market cap.
The estimations above were reported by the Chinese securities regulatory.
Other reasons why forex may not be legal are:
- It is not legal if the trades are carried out by retail brokers
- It is not legal if carried out by the bank at the front end.
They are many platforms that carry out retail brokers in China, but it is not safe to buy from them because it is always doesn’t last and you stand yourself to be at risk by doing so.
History Of Forex Trading in China (Brief)
In the early 19th century, during the blind development of the future market in the year 1993.
Series of forex brokers mainly from Hong Kong, a formal colony of the British for more than 150 years before it was released back to China in the year 1997.
The forex brokers arrived in China to carry out forex futures trading.
As a result, it attracts many large numbers of domestic enterprises and individuals in China. Although, the majority of the participant doesn’t understand the domestic forex market.
The participation was majorly blind back then and it resulted in lots of losses.
During the end of the year 1993, the People’s Bank of China then allowed domestic banks to carry out the forex trading of the individual-oriented frim offers.
Nothing special actually happened when this event occurred, it is still much of a lot of loss in China trading history then.
In the year 1999, some investors began to enter the forex market in China, the domestic firm offer trading gas gradually become a new kind of investment and has been into the rapid development stage.
Forex market is more regulated in China compared to the stock market, as a result, firm trending ran by domestic banks has attracted more and more participants.
As of today, China’s reign reserves have reached a whooping of 2.12 trillion dollars. And it has also become the world’s largest reserve.
It was grown by 185.6 billion dollars in 6 months during the year 2009.
China’s real estate also got rebounded and attracts so many foreign investors who are allocating capital into the country.
China has become really attractive to investors around the world which results in a proper cash flow.
Its future is potentially promising.
Top Forex Brokers in China
We will explore the top 5 Brokers in china here but before that here are the things you need to look at before selecting a broker.
#1: Offers Demo Account Feature
A demo trading account is a virtual account offer by a forex broker. This account normally has money in it, the fund is normally within $5000-$100,000.
You can use this money to test the forex broker platform before investing real money into it. By testing the platform means you will be able to know if you can use the platform or not.
The demo account can also be used to learn how to trade if you are a beginner or you are still learning how to become an expert in forex trading.
It is important for a beginner or someone who is new to a broker platform to use the demo account first before being deposit real money into it.
This will save you from losing your investment as you start trading.
Note: The money in the demo account is not withdrawable even though you make a high turnover from it, the money is just there for you to test the platform or for the sake of learning.
#2: Offers Mobile Trading App
Smartphones have become our day to day lives activities that we can’t do without.
In fact, statistics show that internet users spent at least 4.2 hours of their time daily browsing mobile apps.
The reason is that it is very convenient to use and you can easily take it around anywhere you are going, both in-office and home.
A good broker platform would have a mobile app for trading, this will enable you to monitor your trade from time to time.
You will also agree with me that it’s pointless taking your laptop from one location to another all in the name of trading.
Another important thing while a broker platform should have a mobile app is that every Chinese forex trader needs to have access to the inter-bank market irrespective of the device they own.
In addition, the mobile app makes trading seamless and stress-free.
#3: Easy Deposit & Withdrawal
Becoming a Chinese forex trader might not be that hard but getting the right broker might be.
This is because not all payments options are available in China and you need to select a broker that allows you to deposit and at the same time makes withdrawal seamless.
In addition, the broker platform also needs to provide the lowest fee charges and can also process payments on time for both withdrawal and deposit.
You might have a signal that will take off and stopped within just 30 minutes and you need to enter the trade before it closes.
Having a slow payment processor can really mess things up.
The most widely and acceptable payments systems in China at the time of written this article are:
- Visa Card
- Master Card
The above-named lists are the best and perfect payments gateways in China. You just need to go with the money that meets your needs.
#4: Asset Coverage
Assets are financial instruments and these are the things that are traded daily in the forex market.
With assets being traded, they won’t be anything like the forex market because it is like you saying browsing the internet with Mobile Data.
Assets are the lifeblood of a forex market and that is what its breath is on.
The asset traded in the forex trading market include:
- Cryptocurrencies eg Bitcoin, Etheereum, etc.
In the real sense, most brokers cover all of these while some covers little range of it
The more the platform covers, the better it becomes for you to trade varieties of assets.
#5: Effective Customer Support
A platform having customer support should be a top priority in your mind and that is because you will be able to resolve any issue on time.
I recommend you go to the company website and search for their contact information.
The most platform now uses live chart support within the website although, ask as many questions as possible and look at how fast the responses are.
This will help you to judge how effective the platform is in attending to their customers.
Another reason you should do this is that your payments might be hanging, either deposit or withdrawal. Having people within the platform that can respond on time will help you resolve the issue on time.
Thus, making your trading experience better with the platform.
And that leads to the next chapter.
Top 5 Forex Brokers In China
We will be looking at the top 5 forex brokers in china and also talk about them in brief, you will also come to learn about its features and fees in processing payments.
Let us dive in!
XM is the best overall best broker platform in China with 5 stars rating. It was founded by Liberty Media in the year 2009 and it now has about 4,534 employees as of 2019.
The platform has received global recognition with so many reputable awards because of its industry achievement and that includes Best Forex Broker For Europe, Most Trusted Broker, Best Reliable Trusted broker, etc.
Because of the excellent industry achievements, the trading company has since ever grown to over 5 Million clients from 195 countries and still growing to date.
XM supports the most popular mobile trading platform Metal Trader 4 and 5 also known as MT4, MT5 with a $100,000 virtual balance that you can get started with.
The XM forex trading platform is user-friendly with different regulations guiding the platform with over 16 amazing features that make it stand out from its competition.
XM provides over 25 secure payments gateways which include, Bitcoin, Bank transfer, Visa and Master Card, Netteller, Skrill, etc.
The most interesting part about this platform is that it offers low fees for transactions. Thus, increasing the high profit margin.
It has over 30 different languages are supported on the platform, it also has a support staff speaking in over 30 languages to attend to its customers.
XM covers a very wide range of assets and has over 1.5 Million Traders and Investors. Different traders and investors also choose the platform because of this.
It provides trading in different currencies and provides 24/5 customer support. You can chart them on the best using the live chat support system or using email and phone numbers.
Its physical office addresses are also available on the platform.
XM Key Features
- Offers Demo Account
- Offers 5$ Minimum Deposit
- Covers Wide Range Of Asset
- Provides Excellent Customer Support
- Support Over 25 Payments Gateways.
#2: FXTM [Forex Time]
This is another great platform we will be having on the list today.
FXTM was founded by Andrey Dashin in the year 2011. The platform is rated 4.8 stars and it is also the owner of the Alpari trading platform.
Since the launch of the platform in the year 2011, over 2 Million traders and investors have joined them to date and thousands join every month.
The company has global and segregated funds protection. This ensures the safety of its investors and the safety of the platform itself.
FXTM is Great
FXTM has also built a well reputable global recognition that it has since received over 25 recognized awards for its industry achievements and innovations.
The platform offers free education courses and guides to beginner forex traders who want to build their trading career of both beginners and semi-expert who wants to further their learning.
The platform also makes it possible for you to copy up to 5,000 trades from forex traders experts. The way this is achieved is by using its innovative trading copy tool.
The benefit of this is that you can be learning while making a side income by leveraging on the copy and paste trade. This will help you to avoid the risk of losing your money while building your trading skills.
It also offers a very low fee on transactions and supports the popular trading platforms MT4, MT5. You can access it on both your Smartphone and Laptop.
It also offers you a demo account that you can use to test how the platform looks like before you finally venture into the real account.
The platform also provides an investment opportunity. The way it works is that you invest into the platforms and you profit whenever a manager profits. This idea is great if you don’t want to venture into the trading industry but leveraging on the experience of others.
It also supports so many payments gateways like Visa and Master Card, Skrill, Neteller, Skrill, etc. Depositing with your bank card is also possible.
However, the minimum deposit on this platform is $10 making it risk-free for you to get started trading.
FXMT Key Features
- Offers Excellent Customer Support
- Tiny Fees on Withdrawals ($3)
- Support Different Payments Gateways
- Offers Demo Account
- Courses & Guide to Build Your Trading Career.
InstaForex was founded by lldar Neilevich in the year 2007.
InstaForex is a well reputable platform and has you have known and learned that reputation is one of the most important factors while choosing a broker flatform.
The platform is well reputable that over 7,000,000 (7 Million) users choose them globally because of their efficient services.
In my opinion, such responsibility is big, and InstaForex claimed that they will always try their possible best to meet their client’s needs globally. That is a great assurance.
InstaForex also provides support in 17 different languages and different channels of supporting both live chat, calls, email, and physical office addresses are always on the website. The different languages solution makes them break language barriers between their client.
The trending platform is not only reliable but also profitable in terms of deposit bonuses because it offers deposit bonuses of up to 30%. This also makes InstaForex stand out among its competitors.
Trending is profitable but without proper market analysis, it is simply very hard. InstaForex has a fresh forecast and market analysis from different trading experts on their platform. This will help you to leverage the platform forecast itself.
InstaForex offers a wide range of assets for trading and as well cryptocurrency trading. This will enable you to trade different currencies at the same time.
The platform also offers the best conditions on the deposit and withdrawal of funds within their platform. They claimed the most seamless deposit and withdrawal, which sounds great.
However, the minimum deposit on this platform is $100 which might be a bit higher for some users. It all depends on where an individual falls.
InstaForex Key Features
- Easy Deposit & Withdrawal
- Market Analysis
- Offers Demo Account
- Good customer support
- 300+ Trading Instruments.
Alpari has been in the forex trading market for so long and that is over 20 years ago of experience in the trading industry.
The Alpari platform was founded in the year 1998 by the same person behind XM and it is the parent company of the XM trading platform.
This Alpari platform is currently operating in over 60 countries and its user database grows on a daily basis because it is very easy to use with a friendly interface.
The flatform overs flexible trading options to suit your need. This means that you can either trade independently or join Alpari invest meaning you will be able to join thousands of experienced traders.
With that, you will be able to make more money in the global market without doing much of the work from your own end.
Alpari also offers a demo account and powerful trading instruments on both your mobile and computer, whenever you are in the world. You will always trade with Alpari.
Alpari also provides high security in ensuring the safety of their client fund. With the platform, you can always be sure that your funds are saved and insured.
Generally, the platform is reliable and has been in the market for so long, it also has so many amazing features that can help both beginner and experienced forex traders.
The best part of this platform is that it offers 5$ as a minimum deposit which is very beginner-friendly for those just starting out and on a very tight budget.
Key Features Of Alpari
- A low Minimum Deposit Fee
- High Tech Solutions
- Excellent customer support
- Trusted by majority
- Offers so many great features like others.
FBS is another most widely used trading platform with over 17,000,000 (17 Million users and growing every day).
The platform was founded in the year 2009 by Meet Marrck and it has since then grown to over 17 million users, dominated by over 150 countries and over 400 thousand partners globally.
FBS has been recognized a lot and gains so many achievements with world-leading recognized awards being given to the platform and it has always maintained a position of excellence.
The platform do organizes special events and seminars providing its user’s training materials, cutting technology edges, and how to be a better trader.
And as a result, it is trusted by millions of people globally and it also gains more exposure on a daily basis.
FBS does record $500 000 000 annual profits of their clients and that grows yearly.
It offers all the great features other platforms offers.
What makes FBS stand out is that; minimum deposit is $1 and does organize a seminar for their client.
FBS Key Features
- 1$ Minimum Deposit
- Trusted by millions
- All the other platforms features.
The Future Of Forex Market In China
Since the year 2020, China has been on its way to a better improvement within the forex exchange market.
The state administrator of China recently announced that it would be opening a foreign exchange section in a bit to forge an open and competitive forex market.
China is known for its skills for adapting to the economic changes and then morphing them to fit its narrative.
With this, the open up of the forex market will likely give the country much-needed benefits to supercharge its economy while the governing bodies make sure that the process doesn’t get out of hand or put the entire government at risk.
Its official statement state that “China will steadily promote opening up in the capital account and it will encourage interconnectivity and the opening up two-way connections between the financial markets.”
Innovations have always been the main goal of China but it has been really different in the year 2020 because the government is more vocal about their goals and how to get there on time.
This and more is proof that China’s foreign exchange will become one of the best in the near future and that is potentially promising.
Frequently Asked Questions
This section covers the most frequently asked questions people ask about forex trading in China, you might find them interesting.
Yes, you can trade forex online in China while leveraging the top broker’s platform shared here.
The brokers listed here are fully interactive, you can either chart them on their website or by calling, either way, you can send them an email too to get answers to any questions you don’t understand.
There are so many trading Apps that are available out there it just depends on your desired broker platform. However, the most widely used trading App is Metal Trader 4 and MT5.
I hope I have been able to answer your question “Is Forex Trading Legal In China”?
As you have seen that forex trading in China is legal you just have to keep off from doing the margin trade that has been banned by the Chinese government.
Forex market future in China is also potentially promising.
This means you can get in and start profiting from it by leveraging the reliable broker platforms that are listed above.
You can also join the invest with us option that most of this flatform have, this will enable you to do less while you make more money online.
Now it is your turn, which of the broker’s trading platforms are you going to try first?
What did you think about China government barning margin trading?
What is your own opinion or what you think can be done?
Do you want me to update the platforms above and add anyone you think is good or just have any questions?.
Just make use of the comment section below provided in SmartForexHub and I’ll reply to you back as soon as possible.