As one of the most competitive economies in Latin America, Panama has established itself as a significant offshore banking centre.
The country's young and tech-savvy population plays a crucial role in driving demand for Forex trading. To assist traders resident in Panama, I have conducted comprehensive research to create a list of the most suitable Forex brokers for trading in Panama. Our guide includes information on how beginners can start Forex trading, an overview of the pros and cons of Forex trading in Panama, and a broker checklist to help Panamanian-resident traders make informed decisions about which Forex broker to use.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- FP Markets, ECN trading with leverage up to 1:500.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- Eightcap, 1:500 maximum leverage and cutting-edge trading tools.
- BlackBull Markets, 1:500 maximum leverage with ultra-low trading fees and deep liquidity.
Best Panama Brokers Comparison
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Regulators | CMA, FCA, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CySEC, FCA, SCB | FMA, FSA |
Year Established | 2011 | 2005 | 2006 | 2009 | 2014 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP | Market Maker | ECN/STP, Market Maker | ECN/STP, No Dealing Desk |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.1 pips | 1.2 pips | 0.9 pips | 1.0 pips | 1.3 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.4 pips | 1.5 pips | 1.2 pips | 2.0 pips |
Average Trading Cost Gold | $0.18 | $0.16 | $0.29 | $0.12 | $0.90 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, cTrader, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionAccording to our research FXTM is the leading broker when it comes to cost effectiveness for Panamanian residents. With a minimum deposit of $500, traders can access the Advantage account featuring raw spreads from 0.0 pips for a commission between $0.80 and $4.00 per 1.0 lot. FXTM also boasts exceptional order execution statistics, including an average execution speed of 0.071 seconds and a price improvement of 0.30 pips or $3.00 per lot on 97.18% of orders filled. These factors make FXTM and ideal choice for traders looking for cost efficient and reliable Forex trading in Panama.
In addition to its cost effectiveness FXTM also provides traders with access to the widely used MetaTrader MT4/MT5 platforms, FXTM also developed its own in-house mobile app FXTM Trader.
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
- Limited choice of commodities
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets, another reputable Forex broker in Panama, has made our ranking due to its cutting-edge trading tools. FP Markets offers a competitive commission-based pricing environment of raw spreads from 0.0 pips for a commission of $6.00 per round lot.
Copy traders can use the proprietary FP Markets Copy Trading solution, Myfxbook Autotrade, Signal Start, and embedded MT4/MT5 copy trading services. Algorithmic traders benefit from VPS hosting for low latency executions, 24/5 market access, NDD order processing, lack of requotes, high leverage, and deep liquidity. MAM/PAMM accounts are available to those wanting traditional account management options.
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
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsI rank AvaTrade among the best Forex brokers in Panama for beginners, as they can benefit from an excellent educational offering, the MT4 Guardian Angel plugin, and the fee-based Ava Protect insurance policy protecting against trading losses. The well-balanced asset selection includes options, ETFs, and cryptocurrencies. AvaTrade also maintains a high-paying partnership program with 70,000+ registered partners with $250,000,000+ payouts.
AvaTrade offers traders its proprietary WebTrader and mobile app AvaTradeGO with embedded Trading Central, specialized platforms Ava Option and Ava Social, MT4/MT5 for algorithmic and copy traders, and third-party copy trading providers DupliTrade and ZuluTrade. VPS allows for 24/5 low-latency Forex trading.
Pros & Cons
- High quality educational offering via AvaAcademy
- 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
Eightcap
In Summary 1:500 maximum leverage and cutting-edge trading toolsEightcap is a leading Forex broker in Panama, offering a variety of tools and resources to help traders achieve their goals. One of its unique features is the ability to connect portfolios to the active TradingView community. Licensed account managers also have access to a MAM/PAMM module.
In addition to traditional Forex trading, Eightcap is also the leading cryptocurrency broker in Panama, offering over 250 cryptocurrency CFDs and our dedicated cryptocurrency solution, Cryptocrusher. The broker offers both MT4/MT5 for Forex traders and Capitalise AI, a tool that enables the automation of strategies in a code-free environment, providing a competitive edge.
Eightcap has a competitive commission-based cost structure with raw spreads from 0.0 pips for a commission of $7.00 per lot.
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
BlackBull Markets
In Summary 1:500 maximum leverage with ultra-low trading fees and deep liquidityBlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
Get Started with Forex in Panama
Before opening an account, traders should consider the guidance outlined below:
1. Forex trading is a high-skilled profession, and Forex traders in Panama should ensure they have the necessary education, which is often largely available online for free.
2. Traders should seek to master trading psychology, as it often separates losing traders from profitable ones. Don’t trade with excessive leverage, and its relationship to risk management is also a core aspects successful Forex traders should understand and execute carefully. Trading losses are part of the learning curve.
3. A trustworthy broker with a cutting-edge trading infrastructure can ensure a competitive edge in the execution of trades.
4. Identifying a suitable strategy, and executing it consistently, remains paramount to the success of Forex trading in Panama. This includes an appropriate risk management profile, using leverage intelligently, understanding the impact of trading fees, and approaching the Forex market with realistic expectations and annual goals.
5. Traders must follow, analyze, and study market events as they can create volatile price action, break trends, cause large swings in asset values and thus create great trading opportunities.
6. Due diligence and several months of demo account testing should precede committing capital to third-party signal providers, copy trading services, or managed accounts. Traders should also select strategies and risk tolerance that align with their own preferences, and never blindly trust third parties.
How to Choose a Forex Broker in Panama
Trading with a competitive and trustworthy broker is essential for successful Forex trading in Panama, however the task of selecting a suitable broker remains challenging. We have created a handy 12-point checklist below.
Panamanian resident Forex traders should ensure their brokers offer the following:
- Regulation - A broker with a clean operational track record exceeding ten years significantly reduces the risk of scams and fraud. Regulated brokers also segregate client deposits from corporate funds and offer negative balance protection, which is essential for leveraged trading.
- Local payment methods - Besides traditional bank wires and credit/debit card deposits, e-wallets Skrill and UnionPay rank amongst the most popular funding options in Panama. The cryptocurrency payment processor BitPay is also widely used, and many offshore brokers support it.
- Spreads - During the most liquid trading periods, major currency pairs should trade with spreads not exceeding 0.1 pips in a commission-based and 0.7 pips in a commission-free cost structure.
- Fees – Traders should look for brokers charging Forex commissions up to $6.00 per 1.0 standard lot, complemented by volume-based rebate programs that can significantly lower overall trading costs.
- Products – In order to achieve diversified portfolios, traders should expect brokers to offer 60+ currency pairs.
- Asset diversity - Forex traders usually diversify their portfolios with commodities, index CFDs, and cryptocurrencies.
- Account type diversity -There are two primary account types, commission-free, spread markup and commission-based, and their respective sub-account options.
- Demo account - Unlimited demo accounts allow beginners to test trading conditions. Demo accounts are necessary, but traders should understand their limitations.
- Mobile trading - Mobile trading is ideal for passive strategies that require portfolio management rather than trade placement. All brokers offer the MT4/MT5 mobile app, and the most competitive ones have developed high-quality proprietary alternatives.
- Competitive deposits/withdrawals - Traders may face withdrawal fees, including third-party payment processing. This is worth checking.
Forex Trading Licenses & Regulators in Panama
Panama does not have a central bank, but the government owns and operates two banks, which only conduct business in Panama. The Superintendency of Banks of Panama regulates the banking sector, and the Superintendency of Capital Markets oversees activities in investments and financial instruments, including Forex trading in Panama. Regulation 4-2013, dated May 29th, 2013, defines the operational, technological and personnel requirements licensed Forex brokers and advisors must satisfy. Operating without a license violates article 255 of the Securities Law.
The rules and regulations apply to physical Forex trading and Forex futures Forex options, while most government activities remain exempt with minor exceptions.
Requirements to obtain a Forex license in Panama are:
- Minimum paid-up capital of $150,000
- Offices in Panama, which can consist of virtual offices without physical presence, including staff.
- Board of non-executive directors with proven professional experience and business integrity, excluding corporate directors.
- At least 33% of the board of directors must have sufficient knowledge and experience in the financial sector for a minimum of two years, preferably as a principal director or in corporate roles related to finance.
- One executive must be licensed by the Superintendency of Capital Markets.
- Articles of Association must be filed outlining the activities of the Forex broker.
The above only applies to domestic Forex brokers in Panama. There are no requirements for offshore brokers to obtain a license from the Superintendency of Capital Markets to accept Panamanian Forex traders. The Superintendency of Capital Markets does not restrict Panamanian Forex traders from opening offshore Forex accounts.
What Trading Instruments May be Traded in Panama?
There are no restrictions or limitations on available trading instruments in Panama. Therefore, Panamanian traders can transact in all financial instruments their broker offers. The brokers from our Forex Brokers Panama review cover asset classes consisting of Forex, commodities, cryptocurrencies, indices, equities, ETFs, and bonds. Forex and cryptocurrency trading are the fastest-growing sectors, mirroring global trends. All asset types benefit from lower capital requirements, access to leverage trading and algorithmic and copy trading strategies being widely available.
Is Forex Trading Legal in Panama?
Forex trading is legal in Panama and supervised by the Superintendency of Capital Markets. Well-regulated and trustworthy international offshore brokers handle the bulk of retail Forex trading volume in Panama. The two government-owned Panamanian banks, and international bank branches, cater to physical Forex trading, primarily for institutional and business clients.
The Pros & Cons of Forex Trading in Panama
Pros:
- 24/5 market access to the decentralized Forex market
- Capital requirements are lower for Forex trading than other assets.
- The Forex market has passive income opportunities.
- Frictionless financial transactions due to low-cost deposit and withdrawal methods, including cryptocurrencies
- Portfolio diversification via copy trading and traditional account management services is available.
- Social trading and mobile trading are available in the Forex market.
Cons:
- Despite its availability, a lack of quality education can creates a fundamental misunderstanding of Forex trading, its requirements, and possibilities
- Questionable Forex brokers and affiliates can promote unrealistic trading expectations.
- The absence of adequate risk management by many traders often results in avoidable catastrophic leveraged trading losses
- Beginners who rely on demo trading as an educational tool may achieve a false sense of accomplishment amid the lack of exposure to trading psychology.
- Beginners may fall victim to scams and fraud mainly due to the lack of in-depth education and understanding of the potential risks.
Bottom Line
The Superintendency of Capital Markets regulates Forex trading in Panama. It does not require international brokers to obtain a license to accept Panamanian resident clients, nor restricts Panamanians from opening offshore accounts.
Traders new to trading should begin with in-depth education, as the risk of scams and frauds represents the most notable headwind, followed by insufficient capital and unrealistic trading expectations. Forex brokers in Panama support the most sought-after strategies, like algorithmic trading and copy trading, with cutting-edge technology, trading tools, and active trading communities.
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