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Forex Trading in Guatemala

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Want to jump straight to the answer? The best forex broker for most people is definitely FOREX.com or IG.

Although Guatemala is the most populous Central American country, its financial sector leaves a lot to be desired. The largely unregulated forex market allows large transactions in a wide variety of currency pairs. This can present an opportunity for the disciplined forex trader, although they should be careful to avoid dealing with unregulated brokers.

The government of Guatemala offers no regulatory assistance to forex traders. Normally, this would attract unscrupulous brokers, but the laws governing financial transactions within the country are overly complicated. As a result, there are no local forex brokers in Guatemala. Traders must instead operate through a foreign broker that accepts clients from the country.

Get Started with Forex in Guatemala

Many forex brokers from Europe target clients from Latin America. If you choose the right broker, you can benefit from the relative safety of the European regulatory structure. Get started trading forex in Guatemala by following these tips.

  1. Your web connection: Sophisticated forex traders usually need a reliable internet connection. For best results, there can be no lag when you are accessing real-time news, charts or your trading interface. Make sure you are prepared.
  2. Your broker: There are no forex brokers based in Guatemala. Many traders instead use online brokers based in Cyprus. Make sure they have a Spanish version of their website and trading platform if that is your preferred language.
  3. Your bank: There are no restrictions on banking transfers in Guatemala, so you should be able to connect any bank to your broker. If you are using a Guatemalan bank, obtaining U.S. dollars (USD) to fund a trading account can be relatively easy. 
  4. Your trading account: Your broker will allow various account funding methods, so check to see that at least one suits you. If you deposit more than $3,000, you will have to self assert that the money comes from a legitimate source. This is the only requirement for moving money in Guatemala.
  5. Your trading interface: Make sure that any trading platform you choose does not slow down your execution. If it adds to your lag, then you probably should not use it. Forex is a fast-moving, liquid market that requires quick reaction and trade execution times.
  6. Your trades: With all of the above in place, you can begin to trade forex from Guatemala.

Guatemala Forex Trading Strategies

You need to know yourself before you try to trade the market. There are many different ways to trade forex, and what works for others may or may not work for you. Consider incorporating a comprehensive vision for your forex trading business into a trading plan that will include the individual trading strategies you intend to use to make money. 

The Day Trader

Successful day traders are typically very disciplined individuals who generally close out trading positions before the end of the day’s trading session. They often use technical analysis to inform their trading activities. 

The Swing Trader

If you’re a swing trader, then you usually employ momentum indicators to determine what markets are overbought or oversold and hence ripe for a correction. Swing trades may be open for longer times because they are generally based on significant shifts in market momentum that can take time to develop. 

The Position Trader

The position or trend trader typically benefits from analyzing long-term economic policy and trends in fundamental indicators that influence the prolonged directional movement of currency pairs. Charts become less important. Position traders may stay in a trade for months to years based on the confidence they have in their trading theories. Position traders should also avoid the temptation to become a swing or a day trader on a whim, a change that usually ends up with trading losses over time.

Forex Trading Example in Guatemala

The USD/GTQ bid/ask spread is 7.7100/10. You enter an order to purchase $100,000 USD versus the Guatemalan quetzal at 7.7110. Your broker allows you to use a leverage ratio of 30:1 when trading this pair. You can therefore control a position of  $100,000 with a deposit of $3,333.33 in your margin account. 

After 4 hours, the new USD/GTQ bid/ask spread is 7.7140/50, so you decide to sell your $100,000 USD/GTQ position at 7.7140. You have made a 30-pip profit that translates to  ($100,000 x 0.0030) or GTQ300.

Making Money with Forex in Guatemala

Your trading style will help you select the tools that best fit you. These are some of the more common.

  • Going short: To short a currency pair, you sell the base currency and buy the counter currency. This is the opposite of going long the currency pair. 
  • CFDs: These contracts for difference are derivative instruments whose value depends on that of their underlying asset. Many online brokers offer CFDs on a variety of assets that gives you a broader range of markets to trade. 
  • Binary options: Binary options are exotic derivatives that involve their holder paying out a fixed premium to earn a fixed return if some market condition is met at or before the option’s expiration. 

Best Online Forex Brokers in Guatemala

There are many foreign online forex brokers doing business in Guatemala despite being headquartered abroad. Here are just a few of the most reputable to get you started.

Best For
Forex Execution
Overall Rating
Get started securely through IG Group’s website
Best For
Forex Execution
N/A
1 Minute Review

IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.  

Best For
  • New forex traders who are still learning the ropes
  • Traders who prefer a simple, clean interface
  • Forex traders who trade primarily on a tablet
Pros
  • Easy-to-navigate platform is easy for beginners to master
  • Mobile and tablet platforms offer full functionality of the desktop version
  • Margin rates are easy to understand and affordable
  • Access to over 80 currency pairs
Cons
  • U.S. traders can currently only trade forex
  • Customer service options are lacking
  • No 2-factor authentication on mobile
Account Minimum
$50 USD
Pairs Offered
55
get started securely through CedarFX’s website
Account Minimum
$50 USD
Pairs Offered
55
1 Minute Review

Billing itself as the world’s 1st eco-friendly broker, CedarFX makes it easy to trade and give back to the planet. You can choose a 0% Commission Account or an Eco Account — or open multiple accounts to meet all your needs. 

CedarFX offers access to a wide range of tradable securities, including stocks, futures, major and exotic forex pairs, cryptocurrencies and more. Though CedarFX could introduce a few additional educational resources, the broker remains a unique option for traders invested in giving back.

Best For
  • Forex investors
  • Investors interested in 0% commission or eco conscious trading
  • Investors looking for 24/7 customer service
Pros
  • Allows users to offset their carbon footprint
  • 0% commission investing
  • Offers demo account access
  • 24/7 customer service available through live chat
  • Eco Account Option (10 trees planted for each lot traded)
  • Fast deposits/withdrawls with Bitcoin
Cons
  • Limited number of educational resources for new investors
Account Minimum
$100
Pairs Offered
80+
Get started securely through FOREX.com’s website
Account Minimum
$100
Pairs Offered
80+
1 Minute Review

FOREX.com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker.

Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
Cons
  • Cannot buy and sell other securities (like stocks and bonds)
Account Minimum
$50 USD
Pairs Offered
47
Get started securely through eToro’s website
Account Minimum
$50 USD
Pairs Offered
47
1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For
  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade
Account Minimum
$100 USD (or equivalent)
Pairs Offered
69
Get started securely through HYCM’s website
Account Minimum
$100 USD (or equivalent)
Pairs Offered
69
1 Minute Review

HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.

HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the United States, it can be a great choice for residents of the other 140 countries where it offers service. 

Best For
  • Investors who want a customizable fee schedule
  • Traders comfortable using the MetaTrader platform
  • Islamic traders who need swap-free accounts that don’t build interest
Pros
  • Wide range of currency pairs available
  • Excellent selection of educational tools
  • $0 deposit and withdrawal fees
Cons
  • Not currently available to traders based in the U.S.
Account Minimum
100 EURO
Pairs Offered
50+
Get started securely through AvaTrade’s website
Account Minimum
100 EURO
Pairs Offered
50+
1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For
  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio
Pros
  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets
Cons
  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days

Forex Terminology

The terms below are some of the fundamental concepts of forex.

  • Pip: The smallest exchange rate movement in a currency pair, typically 0.0001. 
  • Lot size: A standardized trading amount, typically 100,000 base currency units. 
  • Orders: Commands given to your broker to execute trades on your behalf.
  • Calls: A contract that gives the holder the right, but not the obligation, to buy an asset at a given price at or before its expiration date. The right to sell is known as a put. Each forex option is both a call and a put. 

Guatemalan Forex Traders Have Choices

Virtually every kind of forex trading vehicle is available to you in Guatemala. Not all of these financial products may be suitable for your level of expertise or market view. Remember that it is not your broker’s job to make you rich and that most retail forex traders lose money. Keep this in mind when you see ads from a foreign broker claiming to help you get rich easily trading forex.

Successful forex traders in Guatemala and around the world generally need access to relevant financial information. You can improve your chances of success by bookmarking this website. We have up-to-date information about forex trading you’ll benefit from.

Get a Forex Pro on Your Side

FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets plus spot metals with low pricing and fast, quality execution on every trade. 

You can also tap into:

  • EUR/USD as low as 0.2 with fixed $5 commissions per 100,000
  • Powerful, purpose-built currency trading platforms
  • Monthly cash rebates of up to $9 per million dollars traded with FOREX.com’s Active Trader Program

Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.

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ForexSignals.com offers a highly rated platform with mentors who have 80 years of combined experience in the trading pits. They’ll help you decode real-time daily live streams using market analysis, trade signals and more. ForexSignals.com doesn’t stop there. You can access hundreds of educational videos and workshops and even individualized private sessions with mentors. Never trade alone! Join ForexSignals.com now.