Everything you need to know to trade Forex in Thailand

Thailand is one of the fastest-growing economies in Southern Asia, as well as in the world. Home to almost 70 million people, the country has become a popular tourist destination for international visitors from all across the globe. Thanks to tourism and the country’s appearance on the international market as an attractive destination, Thailand is experiencing a steady and rapid economic growth. The country has also become a prominent destination to move to for expatriates, particularly digital nomads. Exquisite sea resorts, long-stretching beaches, and almost transparent water attract a soaring number of super-rich individuals as well. They purchase expensive seaside properties and spend their holidays there every now and then. On the other hand, some are moving to establish their lives in this beautiful nation.

For the reasons listed above, Thailand has become a major forex trading hub, with the number of new Thailand forex brokers growing at a rapid pace. The activity has been legal across the nation for quite some time now. With the big influx of money, more and more Thai residents can afford to invest in forex training, hoping to receive returns. Therefore, the forex sector has been booming for the past few decades. There are more and more foreign firms investing in the country whilst the government is trying to prevent illegal activities within its jurisdiction.

The official and the only financial sector regulator in the country is the Bank of Thailand. The latter was established in 1942 and is one of the oldest continuously operational regulatory agencies in the region. The BOT is completely state-owned and is in charge of licensing, regulating, and monitoring the forex brokers in Thailand. Today, Forex training is extremely popular and completely legal across the whole of Thailand. The market environment is quite open and diverse with a growing number of different firms being represented within it. As the Thai economy keeps rapidly expanding, the size of its forex industry is also expected to grow along.

Best FX brokers in ThailandThe list

As mentioned above, the forex market in Thailand is highly saturated with competitive forex trading brokers. The past few decades have proven to be absolutely game-changing for the forex sector in Thailand, which practically was born from the ashes. The diverse market means many different options. Some Thailand forex brokers have exclusively focused on extremely high-income clients whilst others are keener on mid-income locals. Therefore, due to the diversity of options, doing proper research before starting any relations with a broker is of utmost importance.

Moreover, despite Thailand being a very well-regulated market, scams and dishonest forex firms are still present. Therefore, reading valid information about firms with which you might potentially do business is crucial. That is why we have gathered some of the best forex brokers in Thailand, accompanied by thoroughly researched information and relevant data. Companies on this list will meet the taste and needs of any potential clients.

XM

XM review – One of the best Forex brokers on the market

Minimum deposit

$5

Licences

ASiC

Maximum leverage

1:30

Platforms

MT4, MT5

Oinvest

Review of Oinvest FX broker – can it be trusted?

Minimum deposit

$250

Licences

FSC

Maximum leverage

1:500

Platforms

MT4, WebTrader

IQ Option

IQ Option FX broker review – should you use it?

Minimum deposit

$10

Licences

CySEC, FSA

Maximum leverage

1:30

Platforms

Web

BOT in detail – what are Thailand forex brokers?

Thailand has emerged from being a relatively poor country into a rapidly growing economy. Thanks to tourism and high-end immigration, the country is earning the status of a trustworthy and a prosperous nation. In general, for the forex sector to flourish in a country, it needs to have a stable environment and a promising long-term outlook. Traders and forex brokers in Thailand that are planning on opening up to the public should be certain that the situation in the future will remain calm and their investments will be wasted for nothing. As of now, Thailand has the ability to guarantee such an environment for investors and individuals considering moving to the nation.

Thailand Forex tradingDespite the almost perfect environment with a beautiful climate and cheap prices, Thailand is still not the biggest hub of forex trading at a global level. Its rivals are smaller, regional hubs within Asia, rather than global giants like London, New York, or Paris. This is understandable considering how new the industry is in Thailand whilst forex trading has been gaining momentum in the United Kingdom or the United States for many decades now. Nevertheless, keeping in mind the current stable outlook for the market, the anticipation is high that Thailand will soon establish itself as a leading forex trading destination not only in Asia but also in the entire world.

The regulator of the country’s financial sector is doing the most to make this come true with the Thailand forex brokers regulation being brought close to the best practices. The Bank of Thailand is the official regulatory authority of the nation, responsible for licensing, registering, monitoring, and regulating forex brokerage firms operating within the country. It was established back in 1942 and with almost 80 years of history and experience proudly holds the status of one of the oldest of such bodies in the region. The powers and responsibilities of the BOT are immense, granted by the general public and the government. The Thai regulator is completely state-owned and supervised. Its responsibilities do not start or end with forex brokerage firms. Rather, it is responsible for handling almost all financial institutions operating in Thailand, including commercial banks, stock exchanges. The bank also participates in manipulations to support the monetary policy of Thailand.

Now, usually, the biggest controversy with the regulators like the BOT begins when realizing that they are owned and controlled by the government. The immediate reaction is that they are certainly corrupt, biased, and controlled. However, top Thailand forex trading brokers would surely disagree. Thailand, along with many others, is a great example of how the state can be highly beneficial for the forex market. Thailand is not the only country where the forex sector regulation is conducted by a state-owned authority, which at a glance has almost too much power. There are countless countries with such regulators, including India and its Securities and Exchange Board. The latter, just like the BOT, was established by the government in efforts to curb the spread of illegal activities within the market whilst trying to foster the business cooperation in the field. In countries will high corruption rates that are not built on principles of democracy, having a state-owned forex regulator could really be extremely challenging. However, in nations where democracy is valued, state-owned regulators only benefit the industry. There has not been a recorder incident of a state-owned respected regulator illegally interfering with a forex firm anywhere to this date.  In fact, the BOT approved forex brokers are highly respectable and influential, highlighting that the state ownership does not impact the quality.

The BOT is proud to be owned and supervised by the government. This has given the regulator many rights that otherwise would have to be gained by navigating through the state bureaucracy. For instance, the BOT has the right to investigate, fine firms operating in Thailand whilst keeping the right to cancel the official license should the firm fail to comply with the high standards. Therefore, in the case of Thailand, being a state-owned regulator has not caused any substantial problems to firms, clients, or individuals established in the nation.

Trading Forex in Thailand

The Bank of Thailand, surprisingly, is not the only financial regulator in the country. The BOT was founded almost 8 decades ago when the Thai economy was going through an exceptionally bumpy path. Nothing was stable or certain, the chaos was dominating the economy and there was an urgent need to get things done freely. That was the prime reason why back then the Thai government decided to establish such an innovative governmental body, bringing novelty to the country’s financial industry. It truly worked and the BOT keeps bringing businesses, individuals, and state bodies together to this very date. Most of all, it is because of the BOT that forex brokers in Thailand exist and have future prospects.

However, the financial industry has also undergone a massive transformation. In 1992, the Thai government realized that the BOT alone was having a hard time tackling all the issues within the entire industry. That was when the idea was born to establish a separate authority responsible for certain types of institutions within Thailand. Shortly, the Securities Exchange Commission was established in Thailand, under the Securities and Exchange act published by the Thai government. As such, the BOT was no longer responsible for regulating, monitoring, and licensing firms related to capital and securities trading or anything that has to do with the area. The SEC is the regulator that keeps being in charge of this very specific but crucial area. Every entity on the Thailand forex brokers list falls entirely under the jurisdiction of the BOT.

So what does the BOT do? What are its prime duties, powers, and responsibilities? The main role of a forex regulator, in general, is to ensure a safe financial environment in the country. Investors should not be afraid to put money in a nation and the regulator should be the guarantee for that. These authorities make sure that no illegal activities take place under their scope at any time. If something that violates rules still happens, regulatory bodies have powerful tools and instruments to curb such events and fine rule offenders. This creates a safe environment for not only the Top forex brokers in Thailand but also for individuals, potential clients, and small, newly established firms.

Being a government-owned authority, the BOT has never-ending powers that it puts to good use. The authority is practically responsible for all parts of the operation of forex brokers within the country. In general, there are a few steps that an average firm goes through. The very first one is acquiring a license. This is extremely important for anyone who wants to operate in Thailand. According to national law, no financial company can operate in Thailand without being licensed by an official, relevant regulatory authority. In the case of forex firms, along with the vast majority of financial entities, this body is the BOT. The registration, or licensing process, is not lengthy but most certainly profound and thorough. The regulator cares about its reputation as much as a firm itself. That is why the staff from the regulator will do everything to find in compliance with its own standards. Every new forex broker in Thailand, along with the old ones, should meet a set of regulations before getting the BOT license, which is one of the most prestigious documents in the industry. After a thorough investigation, audit, and other procedures, the BOT will make a decision on whether to accept the application or not.

If the application is accepted, then the BOT starts monitoring the firm. The process is active at all times and through the immense powers granted to the authority by the Thai government, it can dive into the deepest of paperwork and documents. The authority tries its best to ensure a safe environment for everyone, that is why common checks and standard procedures are taken extremely seriously. Every BOT listed forex broker is asked to submit monthly and quarterly reviews to the regulator. Later, these reviews and reports are studied by the experts at the BOT, that make decisions about whether there is something suspicious worth investigating in a company or not.  The regulator has the power to launch an investigation in a firm operating within Thailand. This is an exclusive right that very few of the regulators globally have.

Forex regulations in Thailand

Licenses issued by the BOT are by no means permanent. They can be suspended at any given moment upon the decision by the regulator itself. The set of regulations and standards outlined within the key documents of the BOT should be met by license-owning firms at all times. If an entity fails to comply with those regulations even after receiving the license, they face the possibility of losing it. Moreover, the BOT has the right to impose a set of sanctions onto the forex brokers in Thailand that fall under its jurisdiction. Penalties, fines, and temporary bans are common with the BOT. The regulator tries to remain extremely objective, fair, and transparent in its actions. That is why disciplinary actions are taken commonly and against anyone that fails to comply with the standards.

So what do the firms get out of the BOT license? First of all, they get the official name of one of the leading forex regulators in the region. Clients do not just approach any forex trading broker. They want someone with experience and high authority, able to deliver on promises. Most of all, the license is a guarantee of the aforementioned. It brings more clients to the firm, opening up whole new doors towards unique audiences. Most importantly, the regulator ensures a safe environment with healthy competition, restricted illegal activities, and scams.

Thailand Regulated Forex brokersHow to find Thailand registered brokers

Throughout the article, we have discussed how Thailand is gradually becoming a leading forex destination on a global scale. The market is not strictly regulated and it is emerging at a rapid pace. These two factors are what truly attract scammers and dishonest firms that try to make profits by lying to people in overseas markets. They often advertise themselves as the top Thailand forex brokers or the best ones in the country. Unfortunately, despite the BOT’s active fight against scammers within Thailand, they remain extremely active and present. There is only so much even a state-authority can do to prevent fraud and illegal activities. The BOT even holds some educational activities every now and then in efforts to raise awareness about the issue. Yet, doing so has proven to be more challenging than one can envision. However, what we can do collectively is being well-informed about how to find legit forex companies in Thailand that will not lie and betray customers.

First of all, we should all be aware that no matter what the firm’s website says, we should always double-check it. For instance, many forex trading firms proudly declare that they have certain regulator’s licenses. Oftentimes, they even have fake certificates clarifying their membership in certain networks. We should never believe websites without checking it with a trustworthy valid source. This is unfortunate, but such scammers often use the name of prominent regulators like the BOT for evil causes. By being aware and checking the information we will also support the legal action against liars.

Now, once you already have the name of a particular firm that you want to double-check, go to the BOT’s website. The address is bot.or.th and the webpage includes lots of useful and interesting material, information and guidelines. It features all pieces of legislation adopted by the authority throughout its history, along with the full list of forex brokers in Thailand. Being aware of the country’s legal framework is also crucial and that is why we highly advise going through the materials provided by the BOT online. Now, go to the search tool in the database within the BOT’s website and search for the firm’s name. The results should show immediately, displaying public information about the entity that is stored on the website. Usually, the public information available covers the full name of the firm, when it was founded, when it joined the BOT, and where its headquarters are located. Moreover, the firm information is usually accompanied by the contact info and further reading links.

Thailand's FX brokers

However, oftentimes, looking for a firm through the search tool on the database is simply impossible. We are all human and sometimes the database is not newly updated, especially considering that the BOT offices still use paper-based office practices. Therefore, if the firm you were looking for is not available on the website, make sure to hit the hotline of the authority. They work during working days but Thailand time. They are willing to answer any questions about the BOT regulated forex brokers. The latter can cause certain inconveniences for those living in farther time zones. But worry not, the BOT has you covered. They also offer a more convenient email service, which usually is highly responsive and helpful.

Last but most certainly not least, if you still struggle to find sufficient information about the firm, make sure to give them a ring. Sometimes, especially in Thailand, companies get licensed with different names. Often, these names are official titles of subsidiaries or business partner companies. Therefore, if you keep having a hard time with the search, give the firm a call and ask them questions directly.

How does the BOT prevent FX scams in Thailand?

We talked a lot about scams and their presence in Thailand. Fortunately, despite the issue remaining present, the number of scammers and dishonest firms has been falling significantly throughout the past years. This did not happen out of the blue but is a result of a carefully planned and executed campaign by the BOT. most commonly, scammers are firms that are not officially registered or licensed by the country’s regulator. However, if they operate in Thailand, the BOT still has tools to deal with it. According to national law, every financial entity should be licensed by the relevant authorities. This is why the BOT has practically immense power to impose sanctions on all Thailand forex brokers, whether they are licensed or not.

Moreover, the regulator makes sure to publish the list of dishonest firms. This helps them prevent further incidents in relation to other potential clients. This process has created a vast database that can be used by anyone at any time. The regulator also asks the licensed firms to present monthly and quarterly reports. This is a part of the audit process which aims to expose any illegal activities or scams within the licensed network of forex firms in Thailand.

What is the 2nd best option?

All in all the BOT is a great regulator. Is offers high guarantees, makes sure of the safety of the market and fights against illegal activities. Moreover, the country itself is very welcoming, cheap, and emerging. All of these make Thailand a dream destination for the new wave of forex traders. However, the BOT can just not be the right option for some people. It lacks precise and concrete regulation and falls behind some more accomplished regulators, like the UK’s FCA.

Do you need an alternative that is geographically close to the country while filling the gaps left by the Thailand forex brokers regulation? The Indian regulator Securities and Exchange Board of India should be just the right option for you. Similar to the BOT, it also is a state-owned body but offers more extensive regulations with a better-structured system. Therefore, if the BOT does not serve the purpose for you, make sure to check the SEBI up. The country’s geographical proximity also adds to the overall potential of SEBI as a substitute for the BOT.