Officially the Republic of Panama, this country is located in Central America and borders Costa Rica and Colombia. The county is an interesting example of just how fast the transformation of the developing economy to one of the most competitive economies can happen.
With a total area of only 75 417 square kilometers and a population of a little over 4 million people, Panama is still considered to be a country with a high income and big economic potential. Nevertheless, the first thing that comes to the mind of many people when they think of Panama is not the impressive trade volumes, fast-growing financial sector, or developing of an industrial segment of the economy.
Most people think about hectares of jungles, dreamy beaches on the shore of the Pacific Ocean and the Caribbean Sea, and fascinating historical heritage sights. It is, indeed, true that the tourism sector in Panama is booming, however, it is definitely not the sole source of the country’s income.
When it comes to Forex trading in Panama, we can confirm that it is both legal and growing in popularity in the country. There is, of course, a long way to go until the Panamese FX market reaches the level of the major international Forex trading hubs, yet the potential is certainly there and cannot be overlooked.
It is common knowledge that trading Forex is a risky enterprise, and anyone who wished to get into the field is seeking every additional layer of security possible when looking for the brokerage to join. However, it is a nerve-wracking and time-consuming process in itself, and the failure to go through with it properly may result in some devastating losses and a lack of profit.
In order to make this task a little easier for you, we have called upon our team of experts to examine the Panamese FX market and come up with a complete top Forex brokers list. In doing that, we paid special attention to factors like licenses, regulatory measures, and the availability of a variety of trading instruments.
Without further ado, please find our list below. We do recommend that you get yourself acquainted with it, as you can both choose a brokerage to join on it, or use it as a point of reference, should you wish to conduct your own research.
CySEC, IFSC, ASIC
CySEC, FCA, FSA
100 currency units
CIMA, FCA, NFA
The Forex trading market in Panama is relatively young, and up until 2011, it was not regulated at all. However, with a sharp rise in cases of scams and fraud schemes, the government recognized the importance of having a working regulatory mechanism in place, and traders became much safer ever since.
Right now, the main regulatory body responsible for overseeing the smooth functioning and security of the Panamese Forex market is the Superintendence of Securities Market (SMV). If the broker wishes to offer their services in Panama, they are obliged to obtain an official license from this regulatory entity.
There are a number of requirements that the broker needs to meet in order to become the SMV’s official licensee. Among them is having to be physically based in Panama and maintain the minimum capital of 150 000 USD. On top of that, there are some additional standards to abide by, such as the full risk disclaimers, rules of price adjustment, and many more.
As one can tell, the regulations in place are quite strict, yet justified. However, does this mean that only the Panamese brokers physically based in the country can offer their services?
The answer is not at all. You are bound to find that some of the best Forex brokers in Panama are both stationed outside of the country and licensed by the regulatory bodies elsewhere. It does not at all mean that they cannot be trusted.
On the contrary, if the broker has received a license from a reputable European authority, such as CySEC, FCA, or BaFIN, you can be sure that the brokerage is both reputable, sufficiently qualified, and trustworthy.
Nevertheless, you should not just blindly trust what the broker claims about the license – it is always a good idea to double-check it with the regulatory body that supposedly issued it.
As with the overwhelming majority of the countries across the world, the legal age of adulthood in Panama is 18 years old – and that’s how old one should be to join the local FX market. On top of that, a potential trader will have to meet the requirements of the brokerage that they wish to join, which can range from the minimum income to the employment requirements.
Overall, the process of getting started with the field of Forex trading in Panama is fairly easy and straightforward for the local traders. Moreover, it is completely free of charge, as there is no additional fee charged for signing up with the broker.
You will be required to make the initial deposit to access the actual trading, and the minimum amount will be determined by your broker. You are bound to realize that even among the best Panamese Forex brokers in 2020 the requirements for the minimum deposit vary. Thus, you should always do your due research and choose one that you are most comfortable with.
As mentioned earlier, Panama is one of the fastest developing economies in the region, preceded only by Brazil, yet not by too much. Ever since the economy experienced a boom in 2006-2008, the growth never ceased to continue.
One of the main factors behind such success is the country’s favorable geographic location and the strong economic partnership that it enjoys with the world’s major economic players, such as the United States.
On top of the growing tourism sector and the successful export of agricultural products (especially coffee), Panama has managed to become the region’s financial center. The financial segment of the country is ever-growing, and local banking is providing the majority of the country’s employment opportunities.
Although Panama is also considered to be the region’s tax haven, it has currently implemented a policy of commitment to transparency and a struggle against money laundering. What it means for the local FX market is that some of the most regulated brokers in Panama are also the ones offering a variety of country-specific trading instruments that one can benefit from.
The official currency of Panama is the Panamian balboa, coded as PAB. However, the country does not print its own banknotes, and, instead, uses the US dollar ones. Thus, the USD can also be regarded as the country’s national currency with the exchange rate of 1 USD = 1 PAB.
The PAB itself is definitely regarded as an exotic currency, and we suggest that those who are only starting to explore the FX market resort to more popular pairs, such as the USD/EUR or the USD/GBP.
However, if you are confident in your trading skills and wish to trade the PAB, we suggest that in looking for the best online trading platforms in Panama you search for those that accept payments in the national currency.
Although this might seem like an additional hassle, in the long run, you will benefit from the lack of additional commissions, and your profits remaining intact.
For those of you who are specifically looking for brokers offering bonuses to their traders, we are happy to report that they are available in Panama.
You can expect two main kinds of bonuses there and for your convenience, we provide you with a brief overview of them below:
Since the best Panamese Forex brokers do offer bonuses, both the beginners and the experienced traders can benefit from the financial tokens that are bound to kickstart their respective trading sessions.
It is definitely quite safe to join the Panamese FX market. Ever since it started to grow in popularity, the local authorities were committed to customer protection, which is imperative to the market’s sustainable growth.
On top of that, with one of the largest financial sectors in the region, and one of the highest-income economy, Panama has a lot to offer to those seeking profits from trading Forex. With the best Forex platforms in Panama, one can enjoy trading in a safe environment and with a variety of country-specific trading tools in access.
Our overall advice is to explore the Panamese FX market, however, approach it carefully and double-check everything that the broker claims.