Beginner’s guide to top brokers in Guatemala

The Republic of Guatemala is a country located in Central America, with an overall territory of 108,889 square kilometers and a total population of over 17 million people, Guatemala is one of the most populated countries in the region.

Guatemala is the largest economy in the region of Central America. The main contributors to the country’s Growth Domestic Product (GDP) are agriculture, manufacturing, and services. It should be mentioned that there’s a high inequality in the country when it comes to wealth distribution. According to the World Bank, as of 2020, approximately 59.3% of Guatemalans lived below the national poverty line.

The country’s main exported goods are flowers, fruits, vegetables, clothes, and handicrafts, as well as the raw materials for biofuel production – such as palm oil and sugar cane.

The local economy is only beginning to establish itself, and the Forex market is still fresh to the residents of the country. Financial trading can offer Guatemalans an additional source of income or full-time employment opportunity that is not linked to the economic situation within the country.

In the guide below, you will find a lot of useful information on how to approach Forex trading in Guatemala, we’ll discuss most popular trading platforms, regulations, and more. Moreover, we will provide you with a complete list of the best Forex brokers to choose from.

List of best Forex brokers in Guatemala

Every trader who is at the beginnings of his journey is faced with the same task – finding a reliable brokerage. This process usually takes a long time since there are so many available options to choose from. To aid you in the process, we have inspected numerous brokers and came up with a top brokers list that enable residents of Guatemala to open live accounts.

Forex market regulation in Guatemala

Forex trading in Guatemala is completely legal and regulated by the Bank of Guatemala, which is the country’s central bank. However, the local authorities are yet to establish an efficient regulatory mechanism, which is why you might not be able to find many local brokerages to choose from.

On the other hand, a variety of international brokers are offering their services in Guatemala. In fact, all the brokers that we have in our recommended list are internationally regulated. There are a couple of reputable and trustworthy regulatory bodies that license global brokers, such as: Cyprus-based CySEC, UK’s FCA, etc. International brokers that are licensed can be trusted, and they often offer better trading conditions such as low trading fees, access to multiple asset classes, and more.

What is the national currency of Guatemala?

The national currency of Guatemala is the Guatemalan Quetzal, coded as GTQ.  The currency has first come into use in 1925 when it replaced the peso. The GTQ is not very popular with the traders, both within and outside the country. Guatemalan Quetzal is an exotic currency, and professional traders often recommend that the amateur traders should avoid them, and resort to the Major currency pairs instead. GTQ is highly illiquid in Forex and wide spreads. Which makes day trading the currency not profitable.

Starting the trading journey in Guatemala

To start a Forex trading journey, you need to of legal age, and have identification documents as well as residency status. Most brokers are offering access to not only Forex markets, but to stock, cryptos, indices and commodities through CFDs. CFDs stand for Contract For Difference and enable traders to speculate on the underlying asset price without owning them.

Its super easy to access different markets in this day and age as barriers for entry are low: there are low deposit requirements, high available leverage, widely available information and tools for research and analysis on the internet. However, starting a successful trader requires more than just account opening. Traders that make money consistently work hard to improve their trading strategies, and develop discipline to follow them. Talented traders can be hired by financial institutions such as commercial banks, hedge funds, wealth management companies, mutual funds, etc.

Popular trading platforms in Guatemala

Choosing a trading platform well can make or break a trader. These platforms are used not only for order placement, but for technical analysis and market research. The most well-known trading platforms in Guatemala are:

• MetaTrader 4 (MT4) – The most popular Forex trading platform that offers great reliability, simple interface, and algorithmic trading capabilities through Expert Advisors (EAs)
• MetaTrader 5 (MT5) – A multi asset trading platform that offered improved capabilities compared to its predecessor MT4. The platform offers more trading tools, more built-in indicators, built-in economic calendar and more time frames
• cTrader – cTrader is a modern looking trading platform that is popular among high frequency and ECN (Electronic Communications Network) traders
• TradingView – This platform was built for charting, and now it also is offered as a trading platform by many brokers. TradingView makes technical and fundamental analysis easier thanks to modern tools and graphics it offers.

Popular payment methods in Guatemala

There are a lot of different payment methods that you can use with your Forex trading brokers in Guatemala. The most popular ones include:

• Debit and Credit cards
• Bank Transfers
• Mobile payment methods
• Online payment platforms such as PayPal, Stripe, etc.

Pros and cons of trading Forex in Guatemala

Financial trading can offer many benefits to the residents of Guatemala. However, traders might also face various challenges. It’s best to learn about them before starting your journey as a trader to make an informed decision.

Pros: 

• In the absence of strong regulatory mechanisms, you will be able to trade with high leverage. Leverage increases your purchasing power. For instance, when the available leverage is 500:1, it means that you can manage 500 USD worth of assets per every USD that you deposit
• The national economy is recovering steadily, and has a potential of becoming one of the largest in the region, which can boost trading career opportunities for the locals
• Forex and CFD traders are not dependent on internal economic conditions. When you have an international source of income, you worry about local economy less

Cons: 

• Due to its unregulated nature, Forex trading can still be very dangerous for all the parties involved, which is why it’s recommended to choose a licensed international broker with good reputation
• The national economy is still struggling to overcome the income inequality and widespread poverty, this can lead to limited availability when looking for investors to fund your trading account

Summary

Forex and CFD trading in Guatemala is easily accessible. Trading is fully legal in the country and regulated by the Bank of Guatemala, which is the country’s central bank. The number of local brokerages is very low. In addition, rules and regulations that govern trading are not fully developed. Which is why we recommend you to consider opening accounts with international brokerages that accept clients from Guatemala.

FAQs on the beginner’s guide to top brokers in Guatemala