Vietnam continuously ranks among the fastest-growing economies this millennium, after receiving a significant boost following the July 13th, 2000 bilateral trade agreement with the US. We have compiled a list of the best Forex brokers in Vietnam, which will offer traders a competitive edge.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- Exness, Tight spreads + leverage up to 1:2000.
- Pepperstone, Great ECN execution on MT4 platform.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- FP Markets, ECN trading with leverage up to 1:500.
Best Vietnam Brokers Comparison
| | | | | |
Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | CBSC, CMA, CySEC, FCA, FSA, FSC Belize, FSC Mauritius, FSCA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | FMA, FSA | ASIC, CySEC, FSCA |
Year Established | 2011 | 2008 | 2010 | 2014 | 2005 |
Execution Type(s) | ECN/STP, Market Maker | Market Maker | No Dealing Desk, NDD | ECN/STP, No Dealing Desk | ECN/STP |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.1 pips | 0.6 pips | 1.1 pips | 1.3 pips | 1.1 pips |
Average Trading Cost GBP/USD | 0.2 pips | 0.7 pips | 1.6 pips | 2.0 pips | 1.4 pips |
Average Trading Cost Gold | $0.18 | 12.5 pips | $0.20 | $0.90 | $0.21 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Trading View | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionForex trading in Vietnam with FXTM presents an excellent start for most traders. An outstanding educational section awaits new traders, for which FXTM received an award in 2020 as the Best Education Provider. This broker is also well-regulated and compliant with the FSC in Mauritius, where Vietnamese clients will trade, the FCA in the UK, and the CySEC in Cyprus. The superior execution statistics remain confirmed by Big Four accountancy PricewaterhouseCoopers Limited (PwC), and FXTM maintains a transparent trading environment, and offers its website in Vietnamese. FXTM established itself as one of the leading Forex brokers for emerging and frontier markets. More than 2,000,000 traders trust FXTM, and the 30% deposit bonus up to $250 provides an additional benefit.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
Exness
In Summary Tight spreads + leverage up to 1:2000Forex trading in Vietnam with Exness ensures a competitive trading environment with ultra-low trading fees. Algorithmic traders get VPS hosting and the MT4/MT5 trading platforms, and copy traders can either use the integrated MT4/MT5 services or the proprietary Exness copy trading platform. Beginners can learn how to trade in live trading conditions in the Exness Standard Cent account, while Exness also provides trading signals from Trading Central.
Exness ensures Vietnamese Forex traders can access its trading services. Traders can fund their accounts with $10, including five cryptocurrencies. Forex traders get 100+ currency pairs, and cryptocurrency traders get 34 cryptocurrency pairs.
Pros & Cons
- Instant withdrawals, based on the payment system, from a trusted broker with numerous payment methods
- High level of transparency and financial audits by a Big Four accountancy firm, Deloitte
- Multi-regulated broker
- 24/7 multi-lingual customer service
- No education for beginners
Pepperstone
In Summary Great ECN execution on MT4 platformPepperstone, founded in 2010 and headquartered and regulated in Australia, the U.K., and Dubai, is probably the most well-known ECN Forex broker in the world. As an ECN broker, Pepperstone offer raw spreads and low commissions. Taken together, Pepperstone’s “Razor” account offers one of the most competitive costs of trading in Forex that you will find anywhere. In addition to their global headquarters in Australia, Pepperstone also have presences in London, England, where they enjoy full regulation by the Financial Conduct Authority (FCA), and in Dubai, where they are regulated by the Dubai Financial Services Authority (DFSA).
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, and cTrader
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade
- Leverage of up to 1:30 and superb trade execution
- Demo accounts have 30-day time limits
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Is Forex Trading Legal in Vietnam?
The government continues to privatize or partially privatize thousands of state-owned enterprises, including all five commercial banks. The most defining Vietnamese membership is with the Association of Southeast Asian Nations (ASEAN), a Shanghai Cooperation Organisation (SCO) participant. The ASEAN member plus five additional countries in the region created the world's largest trade bloc on November 15th, 2020, with the signing of the Regional Comprehensive Economic Partnership (RCEP) in Hanoi, Vietnam, which was the virtual host of the ceremony.
Despite the economic success story, the Vietnamese financial sector is lagging while trying to cover ground swiftly. The primary stock exchange, the Ho Chi Minh City Stock Exchange, was not founded until July 2000. A faster-growing sector is Forex trading, but the State Bank of Vietnam (SBV) labeled Forex floor trading as illegal in 2014. As of December 2020, local authorities have not issued a single license for it. Therefore, Vietnamese Forex traders rely on international Forex brokers to satisfy the growing demand for it in a nation approaching 100 million citizens. There are no restrictions from international brokers in accepting Forex traders from Vietnam. Many maintain a website in Vietnamese to ease the entry of new traders.
The legal situation regarding Forex trading in Vietnam is a bit more complicated. The State Bank of Vietnam (SBV) is the financial regulator, and it made Forex floor trading illegal. There are no licensed Forex brokers in Vietnam, and the SBV stresses that only authorized entities may provide Forex and derivatives trading. Since the SBV has not granted a license to date, there is no legal entity domestically. Vietnam has no domestic Forex trading infrastructure, as the SBV currently prevents it, to protect the national currency, the Vietnamese dong. On the other hand, there are no restrictions or laws prohibiting Vietnamese Forex traders from trading with international Forex brokers.
Most international brokers accept Forex traders from Vietnam without restrictions, and many maintain a Vietnamese website. Deposit and trading in the Vietnamese dong are generally not available. It would be counterproductive, as traders would face currency conversion costs at most brokers on each trade. Regrettably, Vietnam struggles with many pyramid schemes and multi-level marketing (MLM) scams and frauds. The SBV warned Vietnamese Forex traders against them and confirmed that Vietnamese law does not protect against losses, as it deems the entire sector illegal if operated from inside Vietnam. Forex trading in Vietnam is legal if traders use their capital and international Forex brokers. Our list of the best Forex brokers in Vietnam offers an excellent starting position.
Forex Trading in Vietnam: Pros & Cons
Before new traders consider Forex trading in Vietnam, we recommend evaluating the pros and cons listed below. It will help make an informed decision, especially with the wealth of misleading and wrong information available.
The Pros of Forex Trading in Vietnam
- The Forex market is operational 24/5, and some brokers introduced weekend currency pairs to enable 24/7 trading. It allows traders to implement Forex trading into their regular schedule.
- Low capital requirements make Forex trading accessible to all types of traders. I recommend creating a monthly deposit plan after learning how to trade. Treat Forex trading as a profession, and you can expect professional income.
- Leverage offers small portfolios to generate above-average income. I urge all traders to implement proper risk management before using leveraging accounts to avoid unnecessary losses.
- Vietnam has an abundance of high-quality coffee shops that allow work, and co-working spaces provide a cost-effective alternative for more demanding and professional traders.
- The availability and stability of high-speed internet across Vietnam ensure Forex traders always remain connected. Advanced traders can rely on VPS hosting to allow their automated trading solutions uninterrupted market access, even when their device is off-line. It does come at an extra cost, but many brokers offer it for free for high-volume traders.
- Forex trading in Vietnam offers previously unavailable opportunities together with direct and indirect revenue streams. It presents a means to supplement income or displace it entirely, creating an independent and tech-savvy consumer-base.
The Cons of Forex Trading in Vietnam
- The SBV, the central bank and financial regulator of Vietnam, does not allow a domestic Forex infrastructure to develop. Therefore, Vietnamese Forex traders rely entirely on international providers without local representation.
- Many pyramid schemes and multi-level-marketing scams and Forex frauds target Vietnamese Forex traders.
- New traders skip the educational process and chase high returns from leveraged accounts without risk management. It requires discipline and patience, which many fail to provide.
- Many ignore the less obvious aspects of Forex trading, like psychology, physical fitness for improved mental strength, time management, and a quiet trading environment.
- Most new traders underestimate the required time to earn sufficient income. They fail to respect trading is a demanding profession and suffer the consequences.
- Unrealistic profit expectations lead to counterproductive trading practices, discouragement, and financial loss.
How is Forex Trading Regulated in Vietnam?
Forex trading in Vietnam is not legal, but the financial regulator is the State Bank of Vietnam (SBV). The SBV is a ministerial agency of the government. One of its responsibilities is the stability of the Vietnamese dong. It is one reason it declared Forex floor trading illegal. The SBV manages fiscal and banking activities, remains the sole authority to issue money, and is the lender of last resort for commercial banks and credit institutions. It also advises the government on financial issues. Since Forex trading in Vietnam with Vietnamese entities is illegal, local Forex traders rely on international brokers, which the SBV permits. There is no domestic safety net for Vietnamese traders, and the SBV cautions against Forex trading. The SBV aims to maintain a stable currency, a secure and trustworthy Vietnamese financial system, and the national payment system. It seeks to contribute positively to the social and economic development of Vietnam.
Trading with an Offshore Forex Broker in Vietnam
Vietnamese Forex traders rely entirely on international Forex brokers. It grants them access to over 1,000 brokers, and the choices may overwhelm many new traders. We recommend narrowing the list down to multi-national Forex brokers with an operating license from one of the most trusted regulators. They include the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities & Investments Commission (ASIC), and the Monetary Authority of Singapore (MAS).
Vietnamese Forex traders will likely trade with one of the broker's subsidiaries, usually authorized in a more business-friendly jurisdiction. Among the favorites are the British Virgin Islands Financial Services Commission (BVIFSC), the Seychelles Financial Services Authority (FSA), Belize International Financial Services Commission (IFSC), and the Belize Financial Services Board (FSB). The South African Financial Sector Conduct Authority (FSCA) and the Dubai Financial Services Authority (DFSA) emerged as excellent choices, and both continue to gain the trust of brokers and traders. Many subsidiaries operate out of St. Vincent & the Grenadines, where they remain registered as an international business company (IBC) with the financial regulator, the Financial Services Authority (FSA), which does not regulate Forex brokers. One way to ensure greater security is to select a Forex broker with operating entities in a well-regulated environment and a trader-friendly jurisdiction. I recommend the brokers outlined above, which have established themselves as a trustworthy, secure, and reliable choice for millions of traders.
Trading with well-established international Forex brokers will grant Vietnamese traders access to superior technology and order execution, a wide choice of assets, a trader-friendly cost structure, and competitive trading tools. Quality research and education support new traders. Generous bonus campaigns will provide a boost to all traders. I urge that everyone interested reads and understand the terms and conditions. Like high leverage, bonuses can represent an excellent trading tool if used properly.
Finding the Best Broker for Vietnamese Forex Trading
Finding the best Forex brokers in Vietnam is challenging, which is why we compiled our list of top choices. They offer a different mix of products and services to accommodate all types of traders and trading strategies. Our review evaluated hundreds of Forex brokers based on eleven criteria over 1,000 hours and 200,000 words of dedicated research. We identified the best Forex brokers in Vietnam so you can spend less time searching and more time learning how to trade Forex.
We recommend that Forex traders in Vietnam who wish to conduct their due diligence consider the following seven aspects:
- Regulation - Never trade with an unregulated broker, regardless of what type of offer you receive. Always decide on a regulated broker with a clean track record, a minimum of five years of operational experience, and a trustworthy reputation.
- Localized payment methods, commissions & fees - While all brokers support bank wires and credit/debit cards, we recommend keeping your Forex account transaction separate from your Vietnamese bank account. The reason is the legal situation concerning Forex trading in Vietnam. It is impossible to gauge developments. It is best to use third-party payment processors, and cryptocurrencies are another viable option. Some Forex brokers offer localized payment methods. Forex traders must also consider commissions and fees, as they will directly impact your profitability. The commission-based trading accounts from our list of the best Forex brokers in Vietnam offer a competitive and trader-friendly cost structure.
- Customer support - Trading with a Forex broker that offers 24/5 or 24/7 customer support ensures that clients have swift access in case of unexpected issues. Most traders never require customer support, and the best Forex brokers in Vietnam maintain a Vietnamese website, where they explain all products and services.
- Funding and withdrawal methods - We recommend that traders find a broker that supports funding and withdrawal methods suitable to their requirements. The most efficient and low-cost solutions remain online payment processors.
- Comprehensive trader resources - The best Forex brokers in Vietnam will offer excellent trading resources to provide a competitive edge to their clients. It also shows that brokers invest in their business to grant traders a platform for success.
- Demo account options - They are essential for the testing of automated trading Traders should ask for an unlimited demo account without restrictions to test strategies and debug their automated trading strategies.
- Mobile trading - It remains popular among millennial traders, and all brokers offer a mobile trading platform. We recommend that Forex traders only use it to check their portfolio. The computing power on smartphones is more than sufficient, but the screen size is not, which is why professional traders never engage in mobile trading.
Islamic Accounts for Vietnamese Forex Traders
The best Forex brokers in Vietnam on our list provide traders with swap-free Islamic accounts compliant with Sharia law. While there are no swap rates on leveraged overnight positions, Forex brokers implement additional daily costs, labeled “commissions”, rather than interest fees. Many brokers advertise 100% compliance but provide time-limited exemptions, and many do not fully comply with Sharia law. Traders must read the terms and conditions carefully.
Is Forex Trading Taxable in Vietnam?
Forex traders pay tax in Vietnam, and we recommend consulting a legal professional in Vietnam to gain clarity on how to file taxes. Forex traders should file their trading related profits and losses each year. Accountants and tax lawyers can advise on the most efficient form of filing taxes. Forex traders who earn a substantial amount of profits or use Forex trading as their primary income source may want to consider opening a corporation in a low-tax country or tax-free jurisdiction. Once again, we urge you to consult a legal professional in Vietnam. Traders can inquire about the laws, regulations, and options for an efficient tax structure with full legal compliance suitable for their needs.
Trading Cryptocurrencies in Vietnam
The young and tech-savvy population of Vietnam embraces cryptocurrency trading. Many view it as the future of currency and an attractive alternative to transacting in the Vietnamese dong, plagued by high inflation. The best Forex brokers in Vietnam offer cryptocurrency CFDs, and many prefer to trade them from their mobile devices based on social media activity. Cryptocurrencies will increase their market share unless global regulators crackdown and displace them with government-backed digital currencies. Both will likely coexist, but volatility will dominate trading until more clarity emerges. Trading cryptocurrencies in Vietnam is for traders with a high degree of risk appetite.
Commodity Trading in Vietnam
Commodity trading in Vietnam offers Forex traders an excellent cross-asset diversification opportunity. Demand for commodities will continue to soar, with China, India, Latin America, and Africa driving consumption. Massive infrastructure projects and modernization efforts require hard commodities and industrial metals. The growing population needs soft and agricultural commodities to feed the masses. Vietnam is in an ideal geographical location to cater to China and India, and commodity trading in Vietnam remains an attractive sector with rising potential. Our list of the best Forex brokers in Vietnam includes brokers with a competitive selection of commodity CFDs.
