Your guide to trading with top brokers in Cambodia

Cambodia is located in the southern portion of the Indochina peninsula. The county occupies a total territory of 181, 035 square kilometers, and borders Vietnam in the east, Laos in the northeast, and Thailand in the northwest. The population of Cambodia is close to 17 million people, and a large chunk of it consists of more than 33 different ethnic groups and hill tribes.

Although the per capita income of Cambodia is significantly lower than that of the neighboring countries, the Cambodian national economy is still considered to be one of the fastest developing economies in the region of Southeast Asia, with the growth averaging 5-6 percent in the past few years. The growth is primarily driven by manufacturing, tourism, agriculture, and construction sectors, among which agriculture is dominant. Some of the country’s major exports include fish, timber, rice, and garments. The textile industry represents the largest portion of the country’s manufacturing sector, and it is currently accounting for 80% of the country’s total exports. As mentioned earlier, rice is the country’s principal commodity, and the secondary commodities include soybeans, dry beans, maize, cassava, sweet potatoes, and groundnuts. The second most important commodity of Cambodia is rubber. Rubber production is an important sector for the country’s economy.

As the country’s economy modernizes step-by-step, more and more people get interested in financial trading.

In this guide, we will take a closer look at the country’s regulations regarding Forex trading, payment methods available within the country, and more. In addition, we’ll give you top recommended brokers list. You can click on the broker’s logos to read further details on each. In our broker reviews we discuss all the important information, such as regulations, leverage, minimum deposit requirements, trading fees, and more.

List of the best Forex brokers in Cambodia

There are many types of traders, and they all have different requirements. For instance, traders that place orders frequently need brokers that can offer low spread markups. Position traders on the other hand prefer low commissions. In addition, algorithmic traders that aim to automate their trading need to find brokers that offer suitable trading platforms for this purpose. Selecting the broker that best fits your needs is not an easy task, as there are so many brokers to choose from. To make selection easy for you, we’ve reviewed lots of currency brokers and picked the best ones. It’s recommended to first think about your trading goals and select the broker accordingly. Our comprehensive reviews will aid you in the process.

Should you trade Cambodian currency in Forex?

The national currency of Cambodia is the Cambodian Riel, coded as KHR. The KHR is actively used in the rural areas of the country, but the USD is also quite popular in Cambodia. However, the currency is not very popular with the Forex traders, both within and outside the country.

The main reason behind this is the fact that the Cambodian Riel is falling into the Exotic currency category, which means that it is more subjected to volatility and higher spreads. Professional traders often recommend that the beginners should stay away from the Exotic currency pairs, and resort to trading Major currency pairs instead. The latter include USD/EUR, GBP/USD, and USD/JPY.

Fewer traders trade exotic pairs, and this leads to low liquidity. Low liquidity brings high spreads (difference between bid and ask price) and this makes trading highly expensive. In short, it is not recommended to trade exotic pairs in Forex, unless you feel that you have an advantage over other traders. For instance, if you feel that you can predict huge market moves that can justify trading with high spreads, you can give it a try.

Forex trading regulations in Cambodia

In Cambodia, currency trading is authorized and regulated by the National Bank of Cambodia (NBC). The NBC has implemented numerous policies to regulate Forex trading activity in the country.

• The NBC regulates and licenses financial institutions operating in Cambodia, including commercial banks, microfinance institutions, and Forex brokers.
• Financial institutions licensed in Cambodia are required to report forex transactions and provide information to the regulator. This helps the NBC monitor financial companies and ensure compliance with regulations.
• Financial institutions, including forex brokers, must comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures.

It should be noted that while many strict regulators throughout the world implement restrictions on leverage, there are no limitations on available leverage from the NBC. In addition, you can open trading accounts with locally regulated brokers, or with internationally regulated ones.

Trading platforms available in Cambodia

Trading platform is one of the most important components of your future trading success, as it will ultimately define how exposed you are to the various trading assets and how quickly and efficiently will your orders be executed. Thus, the trading software that a broker uses is definitely something to pay attention to when looking through the list of best Forex brokers in Cambodia.

There is a variety of trading software pieces that you can choose from. Some of the most popular ones include cTrader, MetaTrader 4 (MT4) and MetaTrader 5 (MT5), but you will also find brokerages that offer a custom-made software available exclusively to their clients.

MT4 and MT5 are currently used by almost 90% of the brokers from all over the world, and there is a good reason behind it. When MT4 trading platform was first introduced by the Russian company called MetaQuotes in 2005, the trading software has soon won over the brokers from all over the world due to its reliability and a user-friendly interface.

There are several reasons why you, as a beginner, can benefit from using MT4 or MT5 trading platforms. Firstly, this software is used by almost every other broker, which means that even if you decide to switch to another brokerage, you will probably be able to avoid learning to use a new trading platform from the scratch.

Secondly, MetaTrader platforms are quite easy to navigate, and you will be able to master it in no time. Finally, the large community of MetaTrader users means that you will always have access to the educational material and tips on how to make the most out of this best trading platform in Cambodia. And lastly, there are huge amounts of trading algorithms created for these platforms for trade automation.

As for the cTrader platform, the software was created by Spotware Systems in 2010. The platform is very intuitive and user-friendly, and offers multiple charting options, preinstalled indicators, and slick design. cTrader is popular among beginners and professionals alike, however, only a limited number of brokers offer this amazing platform to their clients.

Payment methods available in Cambodia

In Cambodia, cash is still very popular for the everyday transactions. However, when it comes to Forex trading, most of the local traders prefer using credit/debit cards and e-Wallets. Moreover, there are numerous local online payment solutions that you will be able to use for deposits and withdrawals. It should be mentioned that credit card and e-wallet options are generally instant, while transactions made using bank wire transfer will take a couple of working days.

What are the pros and cons of trading Forex in Cambodia?

Financial trading offers many benefits and drawbacks to traders, it’s important to carefully consider them before committing to the endeavor. Forex trading is a risky financial enterprise, and you should make sure that you are fully informed before you make the final decision.

Pros: 

• The country’s economy is developing fast, and has a lot to offer to the local successful traders
• The local FX market is relatively safe and regulated
• Financial trading offers opportunities to make and additional income or turn it into a full time job
• Retail trading brings flexibly and freedom to work from anywhere and whenever you wish to

Cons: 

• Trading is risky for unprepared individuals and can be costly. Successful trading requires training, having an edge, risk management and discipline
• The local market is still not completely safe, and there is a high chance of you coming across a fraud scheme. It’s best to avoid unregulated brokers and individuals that promise you to double your trading accounts overnight

Summary

To sum it up, financial trading in Cambodia is regulated by the National Bank of Cambodia (NBC). However, it should be mentioned that there are not many brokers that have the licence of the regulatory body. Instead, you can find internationally regulated broker with low trading fees, wide range of instruments and account types that best suits your needs. It’s perfectly safe and legal to open trading accounts with international brokers. Our top brokers list will aid you in selection process.

FAQs on trading with top brokers in Cambodia