This part of the world is famous for its abundant productive age population which constructs an exciting field for retail forex brokers. However, they may face a unique market where maneuvers are needed.

As US and European countries closed in on forex trading regulation, many brokers turn to Asia to expand their market, including Southeast Asia. This part of the world is famous for its abundant productive age population which constructs an exciting field for retail forex brokers. However, they may face a unique market where maneuvers are needed, as local governments are trying to limit their citizen involvement with foreign exchange trading.

legality

 

Vietnam Ban On Forex Trading

On Friday last week, leaprate reported that State Bank of Vietnam (SBV) banned retail forex trading. Not only it is forbidden to engage in forex trading, those who dare to defy it will be fined up to 50-100 Dong. The argument is, as SBV official Nguyen Quang Huy said, Forex trading via exchange floors is not a kind of trading activity intended to satisfy the foreign exchange needs of a nation, but it is purely a speculation. In addition, the risk of losses is very high because Vietnamese have limited access to related information.

We applaud SBV spirit to protect unsuspecting civilians, although we do think that anyone who trades forex should have known already what is there to know about. Still, there are many scams that defraud people, and it could be easier to ban forex trading altogether. In addition, it is undeniable that most people in Southeast Asia, not excepting Vietnam, received only delayed news and information about things that moved the financial market. In this regard, other parties may take advantage of them.

Other countries in Southeast Asia also seemed hesitant to welcome forex trading. It is profitable, but there are many other consideration for the governments to think about before they give the green light, and for people to accept it as it is.

 

Is It Necessary?

Some questions has been asked about sharia compliance of forex trading in Muslim majority countries Malaysia and Indonesia. It is rather wicked of forex brokers to call non-swap account as Islamic Account when there are many other variables beside swaps that some said have to be considered before declaring a financial instrument or transaction as sharia or Islamic. It's speculative nature and gambling tendencies often seen as reasons why forex trading might not pass muster.

In Indonesia, a country that's as secular as Turkey, such questions only asked by religious-oriented individuals. While the government itself although does not forbid forex trading (and even have their own regulating body), but limit the movement of foreign forex brokers. On November 2013, Indonesian regulation body, Bappebti, blocked internet access of almost all foreign brokers. Nevertheless, forex traders are quite crafty. Indonesian traders who deal with foreign brokers soon found ways to retrieve access.

The incident taught us one thing, the government may say nay, but as long as people say yay, then who's going to prevent them from trading forex anyway!? The same could be said about other countries in Southeast Asia, among them there are some who have tried to forbid it but then strive with limiting foreign brokers, and there are also those who welcome happily. Regardless, the main objectives of forex brokers should be how to capture traders' hearts. Legality is important, but that will be only of use if people also regard it as important.