What Laos is probably best known for, it the tourist destinations that attract thousands of visitors every year. This landlocked country located in Southeast Asia, at the very heart of the Indochinese Peninsula is also known as the “Land of a million elephants”, and this alternative title mirrors everything that is so attractive to the tourist from all over the world – the friendly giants that inhabit these lands, and the ancient history, such as the kingdom of Lan Xang that elephant used to be a symbol of.
Lao’s People’s Democratic Republic occupies a total territory of 237, 955 square kilometers, and borders Myanmar, China, Cambodia, Vietnam, and Thailand. With a population of only 7, 123, 205 people, Laos is ranked 105th country by population size.
The local economy is growing at a rapid speed, and the World Bank has already listed Laos as one of the fastest developing countries in Southeast Asia. Consequently, the field of Forex trading is also growing in popularity, although the market is still relatively young.
In this guide, we will have a closer look at how the Laotian Forex market is regulated, and discuss some other intricacies of trading Forex there. Moreover, we will provide you with some tips on finding the best Forex broker in Laos, and trading safely at all times.
No matter how much you have read about the Forex market, or how experienced you are, finding a brokerage to join will always be quite complicated. If hours upon hours of extensive research and nerve-wracking decision-making is not something that you are particularly looking forward to then you have come to the right place.
Since at some point we have all been in the position of the beginner, overwhelmed by the number of options available on the market and unsure where to start, we decided to help you out in this uneasy process.
In order to prevent you from trying to determine which Laotian brokerage can actually be trusted in a largely unregulated market full of fraud schemes, we have called upon our own team of experts to pick out the best from the best and present them to you. Thus, below you can find our own list of best Forex brokers in Laos, that you can easily refer to while looking for a broker to sign up with.
CySEC, IFSC, ASIC
CySEC, FCA, FSA
100 currency units
CIMA, FCA, NFA
The main regulatory body of the country is the Central Bank of Lao, established back in 1968. Since its establishment, the Central Bank of Lao has been responsible for overseeing the country’s reserves and money supply, as well as supervising the local commercial banks and the financial market in general.
According to the existing regulations, both ordinary people and investors in Laos have to use the national currency to purchase goods and services, although there are some loopholes that the international companies use to avoid the law.
Unfortunately, the country is yet to come up with an overarching regulatory mechanism for the local Forex market. Since the field of Forex trading is still relatively young in Laos, one should approach the local market with extra care, and only sign up with the licensed brokerages from the top Forex brokers list.
Many people, especially those with no solid understanding of how the Forex market operates, do not understand why the regulations are so important for the trader. That is, until they hear about the horror stories of the people trusting the wrong broker, or even come across one themselves.
By joining a licensed and regulated Forex broker you can ensure that you and your hard-earned funds will be safe at all times. Moreover, a license from a strong and reputable regulatory authority means that in case of any illicit activities against you, the regulatory body will step in on your behalf.
Thus, in order to stay safe while trading Forex in Laos, you should make sure that you sign up with one of the best Forex brokers in Laos in 2021, that possess a license from a reputable regulatory authority. Luckily, there are a lot of brokers licensed by the bodies such as CySEC or FCA, that offer their services to the Laotian traders.
One other thing that you should keep in mind is to always double-check the licensing information directly with the relevant regulatory authority. Unfortunately, just because the brokerage disclosed its licensing information on its website does not necessarily mean that it is accurate, which is why you should not just blindly trust everything you see.
The good news is – it is not very hard to join the field of Forex trading in Laos. The main legal requirement that you will come across is for a potential trader to be aged 18 or older. There is a good reason behind this – as it is the case for many other potentially risky enterprises, minors are kept safely away from the Forex trading and the threat of some devastating financial losses.
On top of that, you will probably find that your brokerage of choice will also have a few requirements for you to meet. They are mostly quite straight-forward and refer to whether or not you are employed and what is the approximate size of your monthly income.
Like many other beginners, you are probably wondering whether or not it is free to become a Forex trader, and the answer is – yes, it will not cost you a dime. But let us clarify that a little bit. Free is the process of signing up with one of the Forex trading brokers in Laos, and, possibly, using the free demo account, if your broker offers one.
However, as you already know, Forex trading is a form of a financial investment, which means that in order to access the actual market and trade to make a profit you will have to make a deposit. The minimum deposit requirements are very different and depend entirely on the broker that you will end up joining.
We do not recommend treating the size of the minimum deposit as an indicator of the broker’s quality. In fact, you will find that among the best Forex brokers presented above, such requirement varies from 5 to 500 USD. You should, however, choose the deposit size that suits you best, and only deposit what you would be comfortable losing.
Since there are a lot of international Forex brokers operating in Laos, you can easily find a variety of trading platforms to choose from. Some of the options that will be available to you include the popular cTrader, MetaTrader 4, and MetaTrader 5, as well as the software that brokers have custom-made for them and that is available exclusively to their clients.
There is a reason why MetaTrader 4 and MetaTrader 5 are often recommended for beginners by professional traders from all over the world. Ever since it was first introduced in 2005 by the company based in Russia, called MetaQuotes, this software has managed to deliver on the two most important features that differentiate a good trading software from an ordinary one – it is both reliable and very simple to navigate.
On top of that, if you choose one of the best Laotian Forex brokers that use MT4 or MT5, you will be able to benefit from an extensive community of traders, who use it. With this community in hand, you will always be able to find a lot of educational material and useful tips on how best to use this piece of trading software.
In general, the trading platform that you will end up using will become a decisive factor that could make or break your trading career. You should, therefore, approach the choice of one carefully, and bear in mind that it will define your exposure to the various trading assets and the efficient execution of your orders.
The national currency of Laos is the Laos kip, coded as LAK. The currency has been in use since 1055 and it is regulated by the country’s Central Bank. Although the currency is not very popular among the Forex traders, both within and outside of the country, due to the existing regulations, international brokers operating in Laos have to accept payments in this currency.
Moreover, since the payments via direct wire transfers are very popular in this country, you will find that most of the online trading platforms in Laos offer much lower commission fees on such payments as opposed to anywhere else in the world.
Finally, you will also be able to utilize mobile payments, credit/ debit cards, and online payment solutions. Overall, it is recommended that you determine the payment method that best suits your needs and choose a broker that offers it as one of the options available to its clients.
As we have already mentioned, the field of Forex trading is relatively new in Laos, although the speed at which the country’s national economy is developing suggests that in safe few years, the Laotian Forex market has the potential to become one of the largest in the region.
If you are a citizen of Laos, we can easily recommend you to explore the local FX market further. Our only suggestion is to only sign up with the best Forex platforms in Laos, that possess a license from a reputable regulatory authority to make sure that you and your funds remain safe at all times.