Forex Trading in Vietnam

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Contributor, Benzinga
June 10, 2021

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

Vietnam is known for a lack of accountability in its financial sector, but that has not stopped many Vietnamese from moving into forex. Though the practice of forex trading is strictly regulated, you can easily find YouTube videos of forex conferences in Hanoi and a sizable community of traders continuing the practice.

Serious forex investors use offshore brokers to get around government regulation from the State Securities Commission of Vietnam (SSC). This activity seems to have convinced the SSC to backtrack some of its earlier policies — it recently lobbied the People Committees of Provinces and Cities to include trading as an essential activity. 

There’s never been a better time to invest in forex in Vietnam because public opinion and policy provide tailwinds for investors.

Get Started with Forex in Vietnam

Whether using an offshore broker or investing domestically, here are a few steps for you can follow to trade forex reliably in Vietnam.

  1. Get the best internet connection you can. You need a latency-free connection with guaranteed uptime. Forex trading is all about timing and you don’t want to miss your window because of a technical mishap.
  2. Choose a regulated broker. Vietnamese forex brokers still face constrictive policies so forex trading could be more difficult. Brokers from Singapore and other southeastern Asian countries do business in Vietnam frequently for this reason.
  3. Connect bank accounts. The broker you pick should take you through an ID verification process. You may then connect your accounts.
  4. Fund your trading account. The bank account you connect will fund your investments. You should also be able to use a debit or credit card depending on the broker.
  5. Pick your trading platform. The user interface that you trade on will change the way you trade. Pick a trading platform that matches your investment style and personality.
  6. Start investing. Now that your setup is stable, you’re ready to begin investing in the forex market.

Vietnam Forex Trading Strategies

It’s a good idea to become familiar with a few important strategies that help to create an investment style so you can trade forex in Vietnam.

Day Trading

Day traders are sophisticated high-frequency investors who know how to manipulate spreads and use indicators. You may only hold an investment for a few seconds, so you need to have a fast hand and a sure stomach to profit.

Day traders are extremely focused and extremely precise. The most successful day traders also have a knowledge of trading technology. Automated bots are often used to implement an investment strategy that could implement multiple trades per second.

Trend Trading

Trend investors know how to interpret the ranges and directional movement in charts. If you choose this type of trading, you may hold an investment for a few days to a few weeks. In that time, you may move partial positions in and out to take advantage of volatility as you manage the entire trade into a place of profitability.

If you trade the trends, you pay attention to the short term news cycle and long-term fundamentals. Although you aren’t too worried about day-to-day news, you understand how it affects the perception of a currency in the eyes of traders.

Positional Trading

Positional traders understand the fundamentals behind the long-term movement of currencies. The policies that drive the relationship of nations are of much greater importance for this type of investor. You may hold an investment for months or years to profit from a large change in pricing.

As a long term investor, you are not worried about the short term movements of a currency at all. You are more concerned with currencies that are out of place with their value. Over the long term, you are betting that the market will correct itself.

Forex Trading Example in Vietnam

Here’s an example of how a forex trade in Vietnam could work. Let’s say the Vietnamese dong is trading at 0.00210/0.00230. You want to buy 500,000 dong and wait for the price to go up. The currency pair has a margin rate of 4.12%. You will need 45.32 Vietnamese dong in your account to control 500,000 dong at this rate. 

The Vietnamese dong price does move up as you thought it would and it is now trading at 0.00250/0.00270. That move was a 2-point increase, and your final profit is (500,000 x 0.00250) - (500,000 x 0.00230), or 100 Vietnamese dong, on the trade.

Making Money with Forex in Vietnam

No matter what kind of an investor you are, you can profit using many kinds of financial vehicles. Here are some you may want to know:

  • Short selling: Short selling a currency means that you sell first and buy later. You want to profit from a drop in the currency’s price rather than a rise.
  • CFDs: Contracts for differences (CFDs) allow you to invest in the price of currencies without owning them. Brokers that use CFDs sometimes allow investors greater leverage than traditional forex brokers.
  • Binary options: The binary option does not follow the price of currencies directly. You’ll get a “yes or no” scenario that’s simpler to follow.

Best Online Forex Brokers in Vietnam

Choose from one of the regulated forex brokers to connect yourself to the market.

  • Moneta Markets
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    Best For
    Scalpers
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    securely through Moneta Markets's website
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  • Forex.com
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    Best For
    Forex Investing
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    securely through Forex.com's website
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  • eToro Forex
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    Best For
    Copy Traders
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    securely through eToro Forex's website
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    eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

  • AvaTrade
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    Best For
    Non US Forex Trading
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    securely through AvaTrade's website
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More on Moneta Markets

As a subsidiary of the industry leading Vantage Group of brands, all Moneta Markets clients can rest assured that they are trading with a secure, safe, transparent, regulated broker.

Traders can open an account with this leading, regulated FX broker in just minutes, and start trading with a minimum deposit of just $50, accessing 300+ forex pairs, commodities, indices, Share CFDs and Crypto CFDs on their next-gen WebTrader, MT4, and MT5 platforms.

Moneta Markets offer some of the industry’s lowest spreads on forex and Indices, starting at 0.0 pips on the TRUE ECN and PRIME accounts, as well as an STP account with razor sharp spreads across all their trading platforms.

Open an account today to access deposit bonuses, trading tools, forex signals and a range of educational tools.

Forex Terminology

These basic terms will become very important to you as you invest in forex:

  • Pip: The forex market’s smallest unit of measurement.
  • Lot size: The amount of currency that you are buying or selling.
  • Orders: The description of how you will enter or exit the market.
  • Calls: Another way of investing in a currency that forms a contract between 2 parties.

Building on Good Policy

Vietnam continues to showcase progressive financial policies to move its economy forward. Opportunistic investors are taking advantage and connecting the Vietnamese economy to the world. 

The world of forex can be complex, so bookmark our website for the latest tips and tricks. We look forward to providing you with the most up-to-date information on the market!

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