Booming Forex Trading in Thailand
The global market place where individuals and companies exchange currencies is the Currency Exchange Market or more widely known as Forex trading. These financial institutions and even individuals participate in this currency exchange at floating rates, meaning the market can go up and down at any given time.
After World War II, our current floating rate systems were adopted. But before our current system, the Bretton Woods Agreement was in place. The Bretton Woods Agreement is a system in which the rate of the currency exchange is in correlation to the gold reserves of the two countries in a currency exchange transaction. Today, our current floating rate system that we adopted is based on the market’s demand and supply.
Nowadays, with our technological advances and modern developments of travel and transactions, the forex trading marketplace has become the world’s most liquid and largest market. Creating transactions over the internet and fast and easy communication in any part of the world has truly made the world within our reach. Today, there is almost no place in the world where you cannot access or transact with modern-day technology.
People are more reachable, goods are more affordable and accessible, services can reach any part of the globe more easily and efficiently. The whole world has become an open market which means that each country’s respective currency is in a transaction with one another. This large demand for trading and buying over different countries and continents has determined a growing forex trading marketplace. At the rate of the global market’s consumption, the greater forex trading marketplace is inevitable.
Travelers and investors alike are often markets of the forex trading system. Countries in Asia are starting to be well versed in the forex trading marketplace. One example is the Kingdom of Thailand. Forex Trading Thailand is booming due to the country’s growing economy. In 2018, Thailand’s gross domestic product is $504.9 million. It is one of the biggest economies in Southeast Asia that attracts more international foreign exchange brokers.
Forex Trading Thailand is legal under the regulations of the Bank of Thailand and the SEC or the Securities and Exchange Commission of Thailand.
Forex Trading Thailand was legalized in 2017. The local authorities began a more lenient regulation for financial instruments such as derivatives and securities. It aims to facilitate the in and outflow of capital from the country and hopes to strengthen their local currency the Thai Baht.
In November 2019, these amendments became official and were introduced by the Bank of Thailand. The start of Forex Trading Thailand ensued, with retail investors now able to transfer funds offshore and trade in different financial venues, whereas before, the system only allowed certain individuals to make direct investments and transactions in foreign venues. These individuals are mostly institutional investors or individuals who have ฿50 million or higher worth of investments.
Since today, the forex trading Thailand is open to all individuals there are several things traders should be mindful about. This includes knowledge of the local regulations and restrictions on forex trading, the payment methods and trading platforms that are friendly to forex trading Thailand.