When talking about less famous countries in the world, Macau definitely needs to be mentioned. Officially the Macao Special Administrative Region of the People’s Republic of China, this corner of the world is a special administrative region of China that maintains its own political and economic systems.
Although not hugely known across the world, and, often, not heard of at all, Macau is interesting in many different ways. First of all, as mentioned earlier, it has managed to obtain a degree of independence from Mainland China, and exists under the principle of “one country, two systems”.
Secondly, with a total territory of 32.9 square kilometers, this country has a population of over 650,000 people, which makes it the most densely populated region in the world. The diversity of the ethnic groups that resides in this unique region is also astonishing and ranges from Han Chinese, Vietnamese, and Philipino to Portuguese.
Finally, the region is home to an impressively high GDP and a variety of very developed segments of the local economy. The field of Forex trading there is not yet fully developed there, however, its popularity among the local populace is growing by the day, despite the lack of proper regulatory mechanisms in place.
Nevertheless, many people tend to avoid trading in Macau due to the lack of a regulatory environment, which, without a doubt, makes the local FX market quite unsafe. However, it does not mean that trading in Macau should be avoided altogether.
In the guide below you will learn more about Forex trading in Macau, discover our top picks of the most reliable brokers to join there, and discover the state of the local economy, as well as the perks that it can offer to the local traders.
Finding a reliable broker to join in a market that is yet to be regulated is not an easy task. The amount of time and effort you will need to spend on carrying out a thorough assessment of the options that are available are double the time you would spend searching through the regulated market.
In order to make the task a little easier for you, we have called upon our own team of experts with an extensive background in Forex trading to carry out this assessment for you. What you will find below are the findings of hours upon hours of extensive research. What we finally came up with is a top Forex brokers list that only contains the creme de la creme of the brokers offering their services in Macau.
Regardless of your experience with the FX market, we suggest that you study the list below thoroughly before making the final decision. On top of the names of the best brokerages in Macau, it contains some useful information such as the minimum deposit requirements, brokers’ success rates, and tools of trading that they have to offer.
CySEC, IFSC, ASIC
CySEC, FCA, FSA
100 currency units
CIMA, FCA, NFA
The economy of Macau has undergone just as many changes as the region itself. From the Portuguese colony, that was leased out by China to a special administrative region of the country with one of the world’s largest economies, it is no surprise that the Macau economy has transformed quite a lot since 1999.
As of right now, this area is home to a GDP per capita of 40 billion USD. The local economy is listed as 83-rd largest in the world, and the Human Development Index in Macau is equally high. However, the wealth disparity in this special region is still very high and is yet to be reduced.
The largest and most profitable segment of the Macau local economy is gambling. The local gambling industry produces over 24 billion USD of revenues, which is 7 times more than the revenue of Las Vegas. Since gambling is illegal in China and Hong Kong, Macau has a full monopoly in this industry.
Since local gambling facilities are attracting thousands of visitors from mainland China and the region, the tourist sector is also quite developed in Macau. Nevertheless, the gambling industry in Macau is expected to lose its popularity in the years to come, which leaves the local economy in a state of uncertainty, as it lacks the diversity of the economy’s sectors.
Overall, the national economy in Macau is quite developed, and the successful and rapid development of its gambling industry could potentially be replicated by the local Forex market, making the country the home of some of the best Macanese Forex brokers in 2020.
The national currency of Macau is the Macanese pataca, coded as MOP. There is a currency board system in Macau, and MOP there is backed by the foreign currency – the Hong Kong dollar (HKD). The issue and monetary policies of the MOP are the direct responsibility of the Monetary Authority of Macau.
This currency is considered exotic and is rarely traded in the international Forex market. However, when it is traded, it is usually done in a pair with the USD. If you are an amateur trader, we recommend that you avoid trading this currency until you acquire enough knowledge and skills to do so. In turn, you could first focus on some of the more popular pairs – such as GBP/USD or USD/EUR.
If you wish to trade MOP anyways, we suggest that you pay special attention to the trading software that our broker of choice is offering, as it will directly determine whether or not you will have access to this particular currency. Furthermore, it would be ideal to find the best Forex broker in Macau that accepts payments in MOP, in order to avoid high commission fees.
Having discussed the intricacies of the Macau national economy, it is now necessary to address who is eligible to start trading Forex in this region. As in many other countries across the world, an individual needs to be of the age of 18 or older to be able to join the local FX market.
This requirement can easily be justified – Forex trading is a risky form of financial activity and has the potential to result in some devastating losses. Thus, it is no surprise that minors with no stable source of income are kept away from it.
Having met the legal age requirement, you will also need to meet some requirements issued by the brokerage of your choice. Such requirements are usually pretty straight forward and often revolve around the minimum monthly income and the employment requirements.
Having met all of the requirements mentioned above you will be able to get into Forex trading in Macau in no time, and you will soon find that the process of getting started is both hassle-free and pretty straightforward.
Put simply, it will not cost you a dime – but let us elaborate on that a little. The signing up with a broker itself is free of charge, however, it does not mean that Forex trading will require no financial input on your side.
It is likely that most of the regulated Forex brokers in Macau will have some sort of requirement for the minimum initial deposit to be installed. Such requirements are in no way an indicator of the broker’s reliability and reputability, and you will find that on the list of best Forex brokers in Macau, the required amount of initial deposit varies from an equivalent of 5 USD all the way up to 500 USD.
We would recommend choosing the minimum deposit that is most comfortable for you, as when trading Forex, especially if you are a beginner, you should never deposit more than you are prepared to lose.
The efficient regulatory mechanism is often named as the single most important factor behind the success of Forex markets across the world. There is no “one-size-fits-all” strategy to making the FX market safe to all the parties involved, and it usually varies depending on the country and the unique features of trading in it.
When it comes to Macau, the main regulatory body that oversees the smooth functioning of the local financial sector is the Monetary Authority of Macau (AMCM). Although this body is also responsible for the Macanese Forex market, the local legislature does not specifically target this field. What this means is that the FX trading in Macau is left largely unsupervised, and is still quite unsafe for the local traders.
However, it does not mean that you have to completely avoid trading in Macau. One way to do it is by choosing licensed brokers to join, as the license obtained by the authoritative regulatory body ultimately means that the broker is qualified enough to offer its services.
Having said that, we should also note that scammers can also claim that they possess a license from an authoritative regulatory body, such as the CySEC or FCA. In order to avoid fraud schemes, we suggest that you always contact the relevant authority and inquire about whether the broker is truly an official licensee of this body.
Overall, by choosing regulated Forex brokers in Macau, you can be certain that your hard-earned funds are safe, and, in case there is an issue between you and your broker, the relevant regulatory authority will step in on your behalf.
As in many other Forex markets across the world, in Macau, you will be able to find a variety of trading software that local brokers use. Some choose popular solutions, such as the cTrader, MetaTrader4, or MetaTrader5, while others prefer the software that was developed specifically for them.
Nevertheless, some of the best online trading platforms in Macau are based on MT4 and MT5. Developed by Russia-based MetaQuotes 15 years ago, this trading software soon became extremely popular with brokers all over the world.
MetaTrader5 is an updated version of the original MT4 and is equally as smoothly functioning and reliable. Moreover, if you are only getting started with Forex trading, you will appreciate the number of educational guides and tutorials on how best to use MT4 and MT5 to get the most of the amazing features that it provides.
While choosing a Forex broker to join, the payment method options that it offers are always something you should keep in mind. In many cases, your overall trading experience will depend heavily on the payment method that you end up choosing, thus, you should always look for something that is efficient, reliable, and not too costly.
When it comes to Macau, the payment methods there are quite diverse. Most of the brokers that offer their services there accept credit/debit card payments, as well as direct bank transfers. Moreover, you will be able to access online payment systems such as the local MacauPay or China UnionPay.
If you are looking for the best Macanese Forex brokers in 2020, it would be a good idea to pick out those that allow depositing and withdrawals via the local payment methods, as it will allow you to reduce commission fees significantly and avoid losing more then you have earned.
One thing that many traders seek while choosing the brokerage to sign up with is whether or not it offers any bonuses and promotions. In Macau, the regulatory environment is quite permissive and the provision of such bonuses is not banned as a form of aggressive marketing.
But what are the bonuses that one can find among the best Forex platforms in Macau? In a nutshell, they can be divided into welcome and refill bonuses.
Before you make the final decision of whether or not to join the best trading platform in Macau, let us give you a simple breakdown of the main advantages and disadvantages of trading there.
Macau is home to some of the richest economies in the region, which means that the opportunities for profit there are plentiful. However, Forex trading is only just becoming popular among the Macanese people and the field still lacks efficient regulatory mechanisms.
Nevertheless, Forex trading in Macau can be very rewarding if approached carefully. If you end up choosing a reliable, regulated Forex broker there and double-check the information that it discloses, you will be able to trade without putting your funds at the risk.