How to find the best Forex broker in Mexico

Mexico, officially known as the United Mexican States, is a country located in the Southern part of North America. Mexico borders the USA, Belize, and Guatemala, and is still undergoing some tension with the former. The country’s overall territory makes up 1 972 550 square kilometers, and, with a population of a little over 126 million people, is considered the world’s 13th largest country.

The economy of Mexico is quite strong, although still regarded as developing. The local financial sector is stable, and the field of Forex trading is both legal and regulated, although not particularly popular. The country is very rich in natural resources, and has a diverse economy, with industries such as manufacturing, petroleum, tourism, agriculture, and services. On top of that, Mexico is a big exporter of automobiles and electronics, with the main trading partners being the neighboring United States and Canada.

In our guide, you will find useful information on how to find the best Forex broker in Mexico, what you need to know as a trader starting the journey from Mexico, and more.

Top Forex and CFD (Contract for Difference) brokers list in Mexico

It is often highly energy and time-consuming to go through all the brokers and compare their trading conditions to pick the best one for your trading. Especially if you are a beginner and still not sure what to take into account. First, you need to think about what type of broker you are looking for. Our top list of brokers can save you time in this process, By clicking on broker’s icons, you can read detailed reviews on each broker.

Forex trading regulations in Mexico

Forex and CFD trading in Mexico is legal and regulated by the Central Bank of Mexico (Banxico) and the National Banking and Securities Commission (CNBV). When it comes to the Central Bank, it mostly focuses on the country’s monetary policy, ensuring the stability and strength of the national currency and maintaining the inflation stable. On the other hand, the CNBV is responsible for monitoring and regulating the financial sector, facilitating its growth, and eradicating fraud schemes and illicit activities.

The regulatory environment in Mexico is very efficient and attracts a lot of traders and brokers alike. However, it should be mentioned that the local regulators are not as experienced as some of the international ones, such as: the CySEC or the FCA. In addition, the number of local brokers is not significant, which is why residents of Mexico should consider international brokers. It is perfectly legal to open accounts with global brokers that are regulated internationally.

The national currency of Mexico

The country’s national currency is the Mexican Peso, coded as MXN. The most popular MXN pair in Forex is USD/MXN. However, the pair still lacks liquidity. It is difficult to trade MXN pairs profitably intraday due to increased spreads, however, many traders trade USD/MXN using medium and long term strategies. Mexican Peso is offered by most Forex brokers, and it falls into exotic currency’s category. In case you are planning to day-trade, you should consider more active pairs such as: EUR/USD, GBP/USD, JPY/USD, etc. High liquidity brings low spreads and more day trading opportunities.

Popular payment methods in Mexico

What’s great about trading Forex in Mexico is that the country is strong on digital development, and, consequently, e-commerce payments are well-developed. Thus, the payment methods that you will have access to range from credit/debit cards, and wire transfers to e-wallets and major payment systems such as PayPal. It is worth noting that deposits made by bank wire transfer to your trading account may take up to a couple of days, while typically, most online payment options are instant. In addition, it’s important to note that not all options are excepted by the brokers, and therefore, before starting an account opening process, check with your broker if your favorite payment option is available.

Popular trading platforms in Mexico

Choosing a right platform for your trading strategy is super important in trading. Your platform should be reliable, offer access to trading instruments that you are interested in, and have features and tools for market analysis and trade execution. Many brokers offer home-built platforms while others grant access to third party software, such as the most popular:

• MetaTrader 4 (MT4) – this platform is the most popular Forex trading platform developed in 2005.
• MetaTrader 5 (MT5) – MT5 is a bit more complex than the MT4, however, traders get enhanced features and access to more tradable instrument classes. MT5 is the most popular multi-asset platform.
• cTrader – This software was developed in 2010 and has been upgraded multiple times, which makes its interface slick and easy to use. The platform is popular among intraday traders that trade Forex. You will not find stocks, bonds or futures on this platform.

All the platforms mentioned above give traders access to trade automation and come with desktop, mobile and web-trading versions. These platforms are used by professional traders and include all the tools and features necessary for technical analysis.

Summary

To recap, Forex trading is legal and regulated in the country, however, the regulators are not highly experienced and the number of local brokers are limited. In our top-list, we have included international brokers that are globally regulated, highly reputable, and offer great trading conditions to the residents of Mexico. Traders should consider international brokers such as: XM, AvaTrade, and others.

FAQs on how to find the best Forex broker in Mexico