China is an ultra-competitive Forex market, with over 1.4 billion residents. The Chinese Yuan continues to increase its role in the global economy competing with the US Dollar in its aim to become a global reserve currency. China is also a challenging market to penetrate as an offshore retail Forex broker selling into the country as a new entrant. Given the opportunities Forex trading in China presents, we see more Forex brokers tailor their approach to compete locally, and we have conducted an in-depth review of brokers operating in China. Do you trade with the most competitive Forex brokers in China?
- Plus500, multi-asset and CFD broker.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- Eightcap, Competitive pricing + excellent daily videos.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- FP Markets, ECN trading with leverage up to 1:500.
Best China Brokers Comparison
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Regulators | ASIC, CySEC, FCA, FMA, FSCA, MAS | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CySEC, FCA, SCB | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CySEC, FSCA |
Year Established | 2008 | 2011 | 2009 | 2006 | 2005 |
Execution Type(s) | Market Maker | ECN/STP, Market Maker | ECN/STP, Market Maker | Market Maker | ECN/STP |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.3 pips | 0.1 pips | 1.0 pips | 0.9 pips | 1.1 pips |
Average Trading Cost GBP/USD | 1.7 pips | 0.2 pips | 1.2 pips | 1.5 pips | 1.4 pips |
Average Trading Cost Gold | $0.34 | $0.18 | $0.12 | $0.29 | $0.21 |
Trading Platform(s) | Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Trading View | Other, MetaTrader 4, MetaTrader 5, Web-based+ | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based |
Islamic Account | |||||
Negative Balance Protection | |||||
Get Started Visit Website82% of retail CFD accounts lose money | Visit Website | Visit Website | Visit Website | Visit Website |
Plus500
In Summary multi-asset and CFD brokerPlus500 is a global Forex broker founded in 2008. It maintains an excellent regulatory environment provided by the FCA in the UK, the CySEC in Cyprus, the ASIC in Australia, the FMA in New Zealand, the FSCA in South Africa, the FSA in Seychelles, and the MAS in Singapore. Plus500 offers traders a choice of more than 2,800 assets to trade, including nearly 900 options contracts, in a commission-free trading environment. This extremely wide range of choice can make Plus500 an appropriate choice for traders looking to pursue wide diversification of assets. Plus500 is licensed to offer CFDs through ASIC (AFSL #417727), and through the FMA (FSP #486026), for licensed CFDs in New Zealand. Plus500 trading services are also available in South Africa (Authorised Financial Services Provider #47546).
Pros & Cons
- Broad asset selection in equities and options
- Free and unlimited demo account
- Advanced free-of-charge analytical trading tools
- Global and regulated fintech platform
- Sub-standard trading platform without support for automated or social trading
FXTM
In Summary Best all-around broker with high floating leverage and fast executionWe have made FXTM one of our top-rated brokers because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap belongs on the Forex trading China list due to its cutting-edge trading tools. The availability of Capitalise AI elevates Eightcap into a highly exclusive league of Forex brokers, as it supports algorithmic trading in a code-free environment for MT4 traders. Eightcap added FlashTrader for MT5, and social traders can connect to the 50M+ active TradingView community. Traders also benefit from an AI-powered economic calendar and 24/5 support.
The Eightcap website is available in Chinese, and Eightcap offers China Union Pay supporting Chinese Yuan transactions. It is the most popular Chinese payment processor, fully approved by the Chinese central bank.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsChinese regulators highly prioritize heavily regulated Forex brokers with excellent reputations, making AvaTrade a standout choice on our list. The AvaTrade website is available in Chinese, and the choice of trading platforms and advanced trading tools landed AvaTrade on our Forex trading in China ranking. Besides Capitalise AI, which allows algorithmic trading in a code-free environment, AvaTrade offers its Guardian Angel MT4 plugin, ensuring a highly advanced MT4 trading environment.
Traders get access to numerous copy trading services, which remain in high demand across the Chinese Forex market. They include the proprietary AvaSocial and third-party provider DupliTrade, next to embedded MT4/MT5 solutions.
Pros & Cons
- High-quality educational offering via SharpTrader
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Forex Trading in China
The first thing our Forex trading China review analyzed was the legality of Forex trading in China. While leveraged Forex trading remains banned, Forex trading is legal and well-regulated in China. Chinese traders can open accounts with offshore brokers with a local presence, either via a partnership with a licensed Chinese financial firm or as a standalone subsidiary, which became an option after China loosened its ownership rules for financial firms.
China is the largest mobile market globally, making activities like copy trading and traditional fund management favored trading strategies. It is also a leading global tech hub, and Chinese Forex traders embrace algorithmic trading. Since the Chinese Yuan is scarcely available, especially among retail Forex brokers, the AUD/USD became its favorite proxy currency pair to trade.
Forex Regulations in China
The People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) regulate the Forex market in China. All Forex brokers must satisfy strict requirements before obtaining a license, and all Forex brokers on our Forex trading China list adhere to these requirements. The rules and regulations remain dynamic, and Forex traders should be aware of developments that aim to maintain the safety of the Chinese Forex market while increasing its competitiveness, where it currently trails behind most other countries.
Chinese regulators are active and quick to close unlicensed market participants and expel them from China. For example, in 2018, 600+ Forex brokers were closed. Financial firms must report all overseas payments to maintain compliance.
Choosing the Right Forex Broker in China
Our Forex trading China checklist consists of attributes every Forex broker must offer to ensure competitive trading conditions:
Ensure your Forex broker in China features:
- Low trading fees
- Excellent order execution
- Algorithmic and copy trading support
- A clean regulatory track record spanning 10+ years
- A choice of low-cost payment processors
How to Start Trading Forex in China
Beginners must begin with in-depth education and master trading psychology, which requires investing time in live trading accounts, facing losses, managing your decision-making process, experiencing both fear, greed, and stress, and creating a plan to maneuver through all market conditions.
Here are more tips on how to start your Forex trading in China journey:
- Use a micro account to learn how to trade in live trading conditions.
- Have a deposit plan consisting of smaller monthly deposits.
- Use appropriate risk management.
- Trade from a quiet, clean place
- Increase your mental strength via regular workouts and a healthy diet.
- Follow your trading plan for a few months before adjusting.
- Keep a journal as you start to trade Forex.
- Find a Forex strategy that suits your personality.
- Avoid weekly or monthly profit targets and have realistic expectations.
Forex Trading Platforms in China
MT4 remains the most-used trading platform, despite its developer, MetaQuotes Software, stopping technical support and licensing in 2018 to force usage of MT5. Our Forex trading China review confirms the dominance of MT4 and its 25,000+ plugins, custom indicators, and EA’s (Expert advisors). Some brokers offer proprietary web-based alternatives and better mobile apps, catering to manual traders and copy trading strategies. China is the largest mobile phone market globally, making it a core focus point for Forex brokers.
Forex Payment Methods in China
During our Forex trading China analysis, China Union Pay emerged as the go-to payment processor across China. Besides full backing from the Chinese central bank, the PBOC, China Union Pay is the largest issuer of credit and debit cards, surpassing Visa and Mastercard. Alipay also ranks highly, with mobile payment volumes eclipsing PayPal and other e-wallets. WeChat Pay, ideal for mobile payments, and Perfect Money, a more traditional e-wallet with global reach, are two alternative payment processors Chinese Forex traders prefer.
Risks of Forex Trading in China
The risks of Forex trading in China are like other well-established markets, except for the gambling mentality, which is more dominant in Chinese culture according to behavioral economists.
Here are the primary risks of Forex trading in China our Forex trading China review revealed:
- Lack of respect for Forex trading as a high-skilled profession
- Poor approach to trading mentality
- Unrealistic expectations
- Insufficient trading capital – less of an issue in some regions like Hong Kong
- Trading frauds and unlicensed Forex brokers
- Failure to obtain a sufficient in-depth education before funding live Forex accounts.
Bottom Line
Following our Forex trading China review, we conclude that Forex trading in China continues to expand in a fast-changing regulatory environment aimed at increasing its competitiveness. The rules and regulations are strict, but China remains a core growth market for international Forex brokers that continue to strive to enter the Chinese Forex market.
Margin retail trading became illegal in 2008, and Chinese regulators tend to be very responsive. They act quickly to close Forex brokers violating rules and regulations but keep an open mind to swiftly implement changes. Copy trading from mobile phones and algorithmic trading rank amongst the most favored of trading strategies, followed by traditional account management. Since the Chinese Yuan is unavailable at most retail Forex brokers, the AUD/USD became its trading proxy currency pair of choice.
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