Forex Brokers China

Forex trading in China is a significant and active part of the country’s financial system. As the world’s second-largest economy, China forex market plays a crucial role in facilitating international trade, investment, and financial transactions. The country’s official currency is Yan, which is used in worldwide commercial activities.

Platform for Forex Trading in China

So is Forex trading legal in China? Yes it is but subject to certain regulations and restrictions imposed by the Chinese government. The government closely monitors and regulates currency trading to maintain financial stability and control capital flows, therefore some limitations for the choice of Forex Platform or Trading are in place.

  • Forex trading platforms that operate within China are required to be licensed and regulated by the relevant authorities, such as the People’s Bank of China (PBOC) or the State Administration of Foreign Exchange (SAFE).
  •  International brokerages can enter the domestic Forex market in China by establishing partnerships with local foreign exchange companies. These local companies serve as introductory brokers (IB), facilitating the establishment of a network of traders that operate mainly Internationally.
  • Due to China’s strict monitoring of the forex market and its prohibition on brokers offering offshore services, instances of forex scams are relatively low. Nevertheless, it is still advisable to verify brokers’ compliance with regulations and avoid unscrupulous entities.

For further information, visit Wikipedia page about forex market.

China Trading Pros China Trading Cons
Huge market and opportunitiesCapital Controls
Well-regulated marketLimited broker Choices
Government RegulationsLanguage and Cultural Barrier
Technological AdvancementsLeverage prohibition

Forex Regulation in China

The foreign exchange market in China is controlled and regulated by two main bodies – the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE).

For more info, here is the official website of the People’s Bank of China is www.boc.cn also the official website of the State Administration of Foreign Exchange is www.safe.gov.cn.

Read some important information regarding Forex regulators in China with conditions of Trading or state of the market:

  • State Administration of Foreign Exchange (SAFE) requires range of transactions to have direct approval, therefore many of Forex Trading operations are controled by SAFE.
  • While The People’s Bank of China provides its customers with a comprehensive range of financial services in direct investment, securities, insurance, funds, aircraft leasing, and other areas.
  • For Forex Brokers and Platforms many respected brokerages (like regulated by FCA or ASIC, etc.) establish operations in China typically by partnering with fully Chinese-owned companies or through direct ownership. This arrangement enables foreign Forex brokers to operate using Chinese infrastructure, yet subjects them to internet surveillance by the local government, so all operations are closely monitored
  • All companies operating within China, including forex brokerages, are required to report all overseas payments within the specified time frames. Failure to comply with these reporting requirements or other regulations Broker will be banned.
  • China prohibits brokers from offering offshore services within its territory. While there are some designated Free Trade Zones (FTZs) where offshore brokers can operate, it is important to verify the legitimacy of brokers before engaging.
  • However, Chinese residents are also restricted in terms of the amount of foreign currency they can exchange or remit overseas. Therefore some restrictions towards retail or professional traders are in place too
  • Individuals or entities found to be in violation of the restrictions in China may face a range of administrative and criminal penalties as outlined in the Administrative Regulations on Forex Exchange.
  • Chinese traders frequently opt to fund their live trading accounts using China UnionPay, WeChat Pay, or Alipay. These payment options are popular among traders in China however not many Brokers may accept them as deposit or withdrawals
  • Lastly, China implemented strict regulations on leverage in the forex. As a result, high leverage trading is completely banned in the country.

China regulator

Top 5 Best Broker Forex in China

Our list of brokers in China exclusively features regulated brokers that are recommended and deemed safe for investment. These brokers have been carefully evaluated based on specific criteria and their Trust Scores, also ranked by us as good for Traders from China:

  • HFM — Best Overall Broker in China 2024
  • BlackBull Markets — Best China Lowest Spreads Broker 2024
  • FP Markets — Best MT5 Platform in China 2024
  • Eightcap — Best China Social Trading Broker 2024
  • BDSwiss — Best Currency Trading Broker in China 2024

How to Start Trading in China?

Since Forex trading is available in China the most important part is choosing the right broker to get started trading suitable for beginners. First is important to verify if broker is trustworthy, then check all the trading conditions including the range of offered Instruments, accepted strategies, platforms, fees, better with good education and tools also customer support available in your native language.

List of Trading Brokers in China

This is the list of the internationally regulated brokers that are allowed to operate in China or accept clients from China:

Broker Detail
HFM Logo HFM
Min. Deposit: 0 US$
Max. Leverage: 1:2000
Trading Platforms: MT4, MT5, HFM Trading App
Regulation: CySEC, FCA, DFSA, FSCA, FSA, CMA
1
HFM Review
BlackBull Markets logo BlackBull Markets
Min. Deposit: 0 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5, cTrader, BlackBull Trade, Trading View
Regulation: FMA, FSA
2
BlackBull Markets Review
FPM logo FP Markets
Min. Deposit: 100 US$
Max. Leverage: 1:30
Trading Platforms: IRESS, MT4, MT5, cTrader
Regulation: ASIC, CySEC, St. Vincent and the Grenadines, FSP, CMA
3
FP Markets Review
Eightcap
Min. Deposit: 100 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5, TradingView
Regulation: ASIC, SCB, CySEC, FCA
4
Eightcap Review
BDSwiss Review BDSwiss
Min. Deposit: 10 US$
Max. Leverage: 1:400 | 1:2000
Trading Platforms: MT4, MT5, BDSwiss Webtrader, and BDSwiss Mobile App
Regulation: FSC, FSA, FSCA, MISA
5
BDSwiss Review
Pepperstone Review Pepperstone
Min. Deposit: 200 US$
Max. Leverage: 1:30 to 1:400
Trading Platforms: MT4, MT5, cTrader, TradingView
Regulation: ASIC, FCA, DFSA, SCB, CMA, CySEC, BaFIN
Pepperstone Review
KCM Trade Review KCM Trade
Min. Deposit: 500 US
Max. Leverage: 1:400
Trading Platforms: MT4, MT5, KCM Trade WebTrader
Regulation: ASIC, FSA
KCM Trade Review
Saxo Bank
Min. Deposit: $5,000
Max. Leverage: 1:30
Trading Platforms: SaxoTraderGo, SaxoTraderPRO
Regulation: DFSA, FCA, ASIC, CBUAE, JFSA, MAS, SFC
Saxo Bank Review
Instaforex Review InstaForex
Min. Deposit: 0 $
Max. Leverage: 1:30 | 1:1000
Trading Platforms: MT4, MT5, WebTrader, MobileTrader
Regulation: CySEC, FSC BVI, FSC
InstaForex Review
OCBC Securities Review Logo OCBC Securities
Min. Deposit: $1,000
Max. Leverage: 1:20
Trading Platforms: iOCBC Proprietary Trading Platforms
Regulation: MAS
OCBC Securities Review