A guide to finding the best Forex brokers in Chile

The Republic of Chile is a country in South America with an overall territory of 756, 096 square kilometers and a population of over 17.5 million people. The country borders Peru in the north, Bolivia to the northeast, and Argentina in the east.

Chile is considered to be one of the region’s most stable and prosperous economy, that is defined by both high income and high standards of living. The country’s main trading partners are the USA, China, Ecuador, Thailand, and South Korea. According to the latest figures, 21% of the total exports consist of copper. In addition, a large chunk of the country’s exports rely heavily on Chilean natural resources, such as 0res, slag, ash, and inorganic chemicals.

Due to its unique geographical location, Chile is able to enjoy a striving agricultural sector.  The country exports significant amounts of fruits, nuts, fish, wood, meat, and beverages. It should also be mentioned that the tourism sector has been developing at a rapid speed over the last few years and has now become a significant contributor to the country’s GDP.

As the country’s economy expands, so does the interest in investing and in active trading. In this guide, we will take a closer look at the main regulatory bodies in this country, as well as the top brokers list that accept traders from Chile. Moreover, we’ll examine what it will take for you to become a Forex trader in Chile.

A complete list of the best Forex brokers in Chile

Finding the best Forex broker in Chile is not an easy task due to various reasons. To begin with, there is a huge number of brokers to choose from. And secondly, there are many fraudulent brokers that operate without license. In addition, many brokers lack transparency when it comes to trading conditions. Going through all the brokers and analyzing them will take you ages. To aid our readers make the best decision, we have reviewed numerous Forex and CFD (Contract for Difference) brokers and came up with our own comprehensive list of the best brokerages that offer their services in Chile.

Forex market regulations in Chile

Forex trading in Chile is regulated by the Chilean Financial Market Commission (CMF). CHF is responsible for overseeing the Chile’s financial markets. The regulatory body ensures the integrity, transparency, and stability of the Chilean financial system. The Chilean regulator CMF has broad regulatory powers and responsibilities. CMF covers securities, insurance, pensions, and foreign exchange (Forex). The key functions and responsibilities of the regulatory body include:

• Regulatory oversight: the CMF creates and enforces regulations and standards for the financial intermediaries to protect the interest of traders and investors.
• Supervision and monitoring: the regulatory body conducts constant supervision and monitoring of financial institutions with aim to make sure that the rules and guidelines are being followed.
• Investor Protection: the CMF boosts investor protection by implementing rules and regulations that make the market more transparent and competitive, which benefits the traders.

It should be mentioned that while the residents of Chile can open trading accounts with locally regulated brokers, they can also access global brokers. In fact, all the brokers that we have recommended in this guide are international ones. Some international brokers are more strictly regulated and offer better trading conditions than the local brokers. For example, when you open an account under the Financial Conduct Authority (FCA) of the UK supervision, you can be sure that your funds are safe.

Becoming a Forex trader in Chile

Trading Forex and CFDs is easier now than it has ever been. There are very low barriers for entry. Some brokers do not even have minimum initial deposit requirements. Registration process typically takes less than a day and it’s fully digital. All that is required for you to register from Chile is to be a resident of the country, have identity documents, and be of legal age.

However, it should be noted that starting trading is one thing, and making money out of trading is another. Becoming a profitable trader requires a few steps:

• Choose a reliable broker: your broker is essential for your success. You need to make sure that your broker is licensed and trustworthy. In addition, an ideal broker should be offering trading conditions that best suits your needs.
• Educate yourself: high quality education is key to success in trading. Some traders learn from others, while many learn from their own mistakes. Those who fail to develop and repeat the same mistakes, lose money over and over again.
• Work hard to develop trading systems: once you learn trading terminology, use of trading platforms, and different strategies, it’s time to develop a strategy that best suits your personality. There are a million ways to make money in the markets, unfortunately, all of them are hard to find. You need to find an approach that works for you. Majority of beginners use back testing tools, demo trading and micro trading accounts in this phase.
• Develop discipline: after you have a tested strategy that works, you need to learn how to control your emotions not to over trade due to greed, and desire for revenge after a losing trade. In addition to these emotions, fear of trading and laziness to conduct a market research also impact trading balance in a bad way.
• Stay ahead of competitors: trading conditions often change, you also need to keep upgrading your strategies to stay ahead of your competitors.

National currency of Chile and Forex market

The national currency of Chile is the Chilean Peso, coded as CLP. This currency is very popular among the traders within the country, in the region of Latin America (especially Brazil), and elsewhere in the world. Such popularity of this trading currency can be attributed to the stability of the country’s economy.

It should be mentioned that trading CLP is available in the Forex market, however, not all the international brokers offer access to trading this currency. The most popular Peso pair is US Dollar against Chilean Peso (USD/CLP). However, be noted that CLP is an exotic currency and doesn’t have great liquidity, this means that intraday trading the currency is not particularly profitable due to large spreads. Swing and position traders will find more trading opportunities in this pair. It is generally recommended that beginners should avoid trading exotics and resort to Major currency pairs, such as GBP/USD, EUR/USD, USD/JPY, etc.

Popular trading platforms in Chile

Trading software that you end up using is one of the most important components of your trading success, as it will define how quickly, efficiently, and smoothly your orders will be executed, as well as how much exposure to the various trading instruments you will be able to have. It should be mentioned that while finding the best trading platforms is highly important for day traders, it’s less of a concern for swing and position traders. Many passive traders that place orders less frequently, can use two platforms, for instance, many such traders use TradingView for market analysis and place orders using MetaTrader 4. We’ll talk more about these platforms below.

• MetaTrader 4 (MT4) is a highly popular Forex trading platform not only in Chile, but worldwide. The platform was designed in 2005 and has an outdated appearance for most traders, however, the platform is highly capable, simple and reliable that keeps the platforms’ popularity sky-high even today.
• MetaTrader 5 (MT5) is a successor of the MT4. MT5 offered enhanced tools and capabilities, increased number of preinstalled indicators and more timeframes. It should be mentioned that MT5 is a bit more complex than MT4 as it offers access to not only Forex, but also shares, bonds, futures, etc. In short, MT5 is best known a multi-asset platform.
• TradingView was a purely charting platform, and recently expanded its services by offering trading capabilities. However, the platform is not as popular as MetaTrader platforms. As already mentioned, many traders use TradingView to conduct market research and place orders on MT4, or MT5.

Which payment methods can you use in Chile?

Chile has advanced payment systems. There are several payment methods available in the country, including online purchases, in-store transactions, bill payments, and more. The most commonly used payment methods in Chile include: Credit/Debit card payments, Bank transfers, Electronic Funds Transfer (EFT), Mobile Payments, PayPal, Online Banking, and Cryptocurrencies.

Summary

The Chilean financial markets are regulated by the Financial Market Commission (CMF), however, it should be mentioned that the regulator is not highly experienced in regulating Forex and CFD brokers. And there is a limited number of brokers that Chilean traders can trust. Our recommendation for the residents of Chile is to find an international broker that offers the most suitable conditions to a given trading strategy. The top brokers list in this guide is created by reviewing lots of Forex brokers and picking the best ones.

FAQs on finding the best Forex brokers in Chile