Comprehensive guide to Forex trading in Thailand for beginners
Being one of the largest economies in Asia, Thailand represents a great place for Forex trading. The country is home to almost 70 million people and it ranks as the second-biggest economy in Southeast Asia after Indonesia.
Forex trading is legal in the country and is regulated by the Bank of Thailand and the Securities and Exchange Commission of the country. SEC and Bank of Thailand work together to create a Forex trading market that is safe and secure for traders.
Although Forex trading in the country is completely legal, there still are several things that beginners should know before they start trading Forex in Thailand. This includes local regulations and restrictions imposed for Forex brokers.
In today’s guide to Forex trading in Thailand, we will discuss every detail that might be important for beginner and experienced Thaialndese traders. So, follow our guide and find the best Forex brokers in Thailand today!
Best Forex Brokers to Trade With in Thailand
Broker of the Month
Discover our best broker for October and start trading today
When you are looking for a Forex broker, one of the most important things you have to keep in mind is the regulatory framework. When trading Forex in Thailand, it is very important to use brokers that are regulated locally.
Forex trading does not have a long history in Thailand. In fact, it was not legal to trade Forex in Thailand up until 2017. In 2017, the country adopted regulations and restrictions that gave traders from the country the ability to safely invest in Forex.
The new rules regarding Forex trading were officially adopted in the country in 2019 and were presented by the National Bank of Thailand. However, although the regulations are in place, local traders are still able to trade with international brokers that have no presence in the country.
Before the new trading laws, only certain people were able to trade Forex. Thanks to the new set of rules, local retail traders can easily access the international Forex trading market.
Although Forex trading is legal in the country, there still are some restrictions that are important for the safety and security of the traders. Below, we will discuss the local Forex trading regulations in effect in Thailand.
Regulatory bodies of Thailand
As we have already said, two bodies are responsible for the Forex trading market in the country. They are:
The Bank of Thailand
The Securities and Exchange Commission of Thailand, SEC
Both of these bodies shape their own objectives. The Central Bank is responsible to centralize the foreign exchange sector of the country, monitor the flow, and maintain the stability of the local currency.
As for the Thailand Securities and Exchange Commission, the main role of this body is to regulate capital and securities trading in the country. When it comes to licensing financial entities, the Bank of Thailand is the body that has this responsibility.
Although the central bank gives out licenses to financial companies, local traders in the country still have the ability to trade with brokers that are not locally regulated. According to the local laws adopted by the Central Bank of Thailand, transactions of THB, the local currency of the country, are restricted for non-residents in Thailand.
On the other hand, the Thailand Securities and Exchange Commission is responsible for regulating the capital and securities market in the country. The Securities and Exchange Commission of the country is an independent entity.
It was established back in 1992 and since then, it has been working to make sure that the capital market of the country is transparent and efficient. As we have already said, Thailand allows its citizens to trade with offshore brokers.
There are many internationally acclaimed Forex brokers that offer traders of Thailand their services. This includes brokers that are licensed by top-tier regulatory bodies, like CySEC, FCA, ASIC, and many others.
Forex trading rules in Thailand
The new Forex trading laws adopted in the country give retail traders the ability to easily invest in the Forex trading market. Until very recently, only qualified investors were able to trade Forex.
Before the new regulatory framework was adopted in the country in 2019, people were only able to trade by using Thailand intermediaries, now they have the chance to trade Forex directly with service providers. However, the traders must make sure to comply with a yearly cap of $200,000 per trader.
A very important thing to keep in mind about the Forex Thailand market is that speculation with the Thai baht, the country’s national currency, is strictly prohibited by the laws of the country. The main regulatory agency of the country, the Central Bank, has taken many measures to fight against speculations with the currency of Thailand.
The country decided to adopt the new regulatory laws after the trading activity in the country increased drastically. The regulatory agency of the country has many times noted that there is a need for stricter oversight in the country in order to challenge the speculative activities with the local currency of the country.
There are various penalties that apply to the companies that are facilitating speculative activities regarding Thai Baht, which includes regular formal warnings, fines, and even taking away the operation license.
Most popular trading platforms in Thailand
To be able to trade Forex, no matter where you are, you will need access to the trading platform. There are numerous platforms available in the market and most of them are offered to traders in Thailand. When you are looking for the best Forex trading platform in Thailand, there are certain things you should keep in mind.
First of all, depending on the Forex broker that you are using, you might not have access to some of the trading platforms that are popular around the world. Some of the most popular trading platforms among Forex traders in Thailand are platforms like, MetaTrader 4, MetaTrader 5, cTrader, and many others.
There even are some brokers that offer traders custom trading platforms. Mobile trading is also available in the country, offering people access to the market no matter where they are. Probably the most popular platform both in Thailand and around the world is the MetaTrader 4, which was created in 2005.
This platform is known to be the leading platform around the world and is used by the majority of traders. It is a very user-friendly platform, which means that it can be very easy to use for beginners. Another very popular platform is MetaTrader 5, which was created by the same company that released MT4.
These two are very similar in terms of visuals and design, however, the major difference between them is that MT4 was created mostly for Forex trading, while MT5 also offers traders access to numerous other markets, like stocks, CFDs, commodities, and so on.
Both of the trading platforms are very easy to use and offer traders access to numerous trading indicators to make trading easier. Both of them are also available for mobile devices, which makes Forex trading even more accessible. In addition, some brokers also offer web-based versions of these trading platforms.