Discover top brokers in Panama with our guide

Officially, the Republic of Panama 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 over 4 million people, Panama is still considered to be a country with a high income and a great economic potential.

Panama is one of the fastest developing economies in the region. 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 a significant amount of employment opportunities.

As the country’s economy grows, so does the interest in investing and active trading financial markets. Forex in particular is becoming more and more popular in the country due to the fact that Forex is becoming more and more accessible as technology advances and there are low barriers for entry.

The full list of best Forex brokers in Panama

It is common knowledge that trading Forex is a risky enterprise, and anyone who wished to start their trading journey should look for regulated brokers and find the ones that offer the best trading conditions. Finding the best broker requires you to compare trading fees, customer support, trading platforms, available instruments, and trading accounts of various brokers. Which is highly time and energy-consuming when you take into account the fact that there are so many of them. To make this job easier for you, we have created a top brokers list that accept traders from Panama.

Forex market regulations in Panama

The Forex trading 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. The main regulatory body responsible for overseeing the smooth functioning and security of the Panamas Forex market is the Superintendence of Securities Market (SMV). If a broker wishes to operate from Panama, it’s obliged to obtain an official license from this regulatory entity.

There are a number of requirements that brokers needs to meet in order to become the SMV’s official licensees. 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.

It should be mentioned that the number of local brokers is small, and the SMV is not highly experienced when it comes to regulating Forex and CFD (Contracts for Difference) brokers. On the other hand, residents of Panama can open trading accounts with internationally regulated, reputable brokers.

The national currency of Panama

The official currency of Panama is the Panamanian Balboa, coded as PAB. However, the country does not print its own banknotes, instead, the PAB is pegged with the US Dollar. And therefore, you will not be able to find the currency on Forex market to trade.

In fact, the US Dollar is de facto currency in circulation in Panama. Which is the result of the Panama’s historical monetary agreements with the United States.

Popular trading platforms in Panama

Selecting the right trading platform is crucial for forex traders for several reasons, platforms help conduct technical analysis, develop strategies, and social trade. Traders need to take into consideration various factors in the process, such as: functionality and features, user-friendly interface, reliability, robot trading availability, and offered assets. The most popular Forex and CFD (Contract for Difference) platforms in Panama are:

• MetaTrader 4 (MT4) – MT4 is a highly popular platform mainly used by solely currency traders. The software was released in 2005 and instantly won the hearts of traders. Which is why there are so many custom-made indicators and trading robots available for MT4. The platform is highly reliable and offers user-friendly interface.
• MetaTrader 5 (MT5) – MT5 was released in 2010 and is a bit more complex than the MT4. MT5 is a multi-asset trading platform that enables traders to have access to not only FX and CFDs, but to stocks, bonds, and futures.
• cTrader – cTrader has very slick and modern design. The platform is easy to use and is popular among Forex day traders that enjoy raw spreads.

Summary

Overall, we can say that Forex is legal and well-regulated in Panama. However, there are not many local brokers to choose from. Which is why we recommend considering globally regulated and highly reputable brokers such as XM, EagleFX, Plus500, and others. Make sure to read more details on each broker from our list to pick the most suitable one for your strategy.

FAQs on top brokers in Panama