Forex Trading in Thailand

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Contributor, Benzinga
February 22, 2024

Thailand continues to be one of the most exciting emerging markets of southeast Asia. The Thailand Securities and Exchange Commission and the Bank of Thailand (BOT) provide a solid regulatory structure that encourages retail investors to be confident in taking educated risks in the market.

With the surge in forex trading activity in recent years, many individuals and businesses are looking to capitalize on the fluctuations in currency values. Forex investors in Thailand enjoy regulation from The Thailand Bank (BB), which allows only licensed dealers to facilitate transactions. There are many reliable brokers and plenty of local support for people who want to get involved in the industry.

In this article, Benzinga explains the essentials of forex trading and provide tips for success in this dynamic and fast-paced market.

Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

How to Get Started with Forex in Thailand

Success in forex starts with a great foundation. Here are the steps you need to take to set yourself up for the best chance of profitability.

  • Set up a great Internet connection: Connecting your account to a broker and trading through software means you need a latency-free Internet connection. Strategy is only helpful if you have the execution to back it up.
  • Pick a broker you can trust: If you choose a broker from Thailand, make sure it adheres to regulatory standards. Reputable offshore brokers are regulated through international organizations.
  • Connect your bank: Move through the process of verification and connect your bank to the broker account.
  • Fund your account from your bank: Your account’s startup funding can usually come from your bank or a debit or credit card. Your broker will inform you of your options.
  • Download your trading software: The software that you use informs how you communicate with the forex market. You need a user interface you are comfortable with to minimize errors in your input.
  • Trade the market: You now have the ability to trade in the forex market whenever you want.
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Thailand Forex Trading Strategies

You can trade forex in Thailand with a higher chance of success using the following strategies:

Day Trading

If you want to profit within seconds of opening a trade, then day trading is for you. Be warned — you can only perform this kind of trading with a fast Internet connection. Invest in business class if you are truly serious. You’ll be trading against sophisticated forex traders with automated bots helping them, so you may want to start with a virtual account (real account, practice money).

To successfully day trade, you must understand indicators and the bid ask spread. These are only the basics — many people spend a lifetime learning how to move in the short term market.

Trend Trading

If you don’t mind holding a trade for days or weeks, then you may want to look at mid-term trend trading. Trends take longer to emerge, hence the longer trade time. You’ll have to understand how news cycles affect forex pricing as well as chart technicals.

Knowing when to buy and sell is essential in trend trading. Although the process is slower than day trading, timing is just as important. Don’t think that you can study less just because a trade takes a week to develop.

Positional Trading

If you’re more interested in the fundamentals of the forex market, then positional trading may be your style. You may hold a trade for a few years instead of a few weeks as a positional trader. You also pay very little attention to the daily news cycle unless it is something you believe will affect a currency price long term.

You may phase into a trade instead of putting all of your eggs in one basket at once. Because you have time to develop your trade, there are many tactics you can use, including options to hedge your position. 

Forex Trading Example in Thailand

฿/USD is trading at 0.03220/0.03420. You want to buy ฿350,000 and profit from a rise in the price. The currency pair has a margin rate of 6.55%, so you’ll need a total of $761.11 cash in your account to control a ฿350,000 investment — your broker will cover the rest.

As you predicted, the ฿/USD price does move up and trades at 0.03720/0.03920 after 2 hours. That corresponds to a 30 point increase, and your final profit is (฿350,000*0.03720)-(฿350,000*0.03420) or $1,050, on the trade.

Make Money with Forex in Thailand

Learn the methods below to increase your chances of profitability in the Thailand forex market.

  • Short selling: To short sell a currency, sell it 1st. You buy it back later and profit if you buy it back at a lower price.
  • Contract for Differences (CFD): These instruments track currencies, but you never actually own the currency that you track
  • Binary options: The binary option does not move exactly with the price of the currency it follows. Investors get a yes or no proposition and trade with or against it.

Best Online Forex Brokers in Thailand

You can start an account in Thailand with the forex brokers listed:

  • BlackBull Markets
    Best For:
    Lightning Fast Execution Speed
    securely through BlackBull Markets's website
  • Axi
    Best For:
    MT4 Traders
    securely through Axi's website

    Over-the-counter derivatives are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone and may result in you losing substantially more than your initial investment. You do not own, or have any rights to, the underlying assets. You should only trade with money you can afford to lose.

  • Pepperstone FX
    Best For:
    Trading Experience
    securely through Pepperstone FX's website

    Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.6% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

  • Forex.com NON US
    Best For:
    Forex Trading in and Outside the U.S.
    securely through Forex.com NON US's website

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

    The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account

  • AvaTrade
    Best For:
    Non U.S. Forex & CFD Traders
    securely through AvaTrade's website
  • IFC Markets
    Best For:
    Best for Leverage Trading with Many Instruments
    securely through IFC Markets's website
  • Exness
    Best For:
    International Forex and CFD Trading
    securely through Exness's website
  • eToro Forex
    Best For:
    Copy Trading
    securely through eToro Forex's website

    CFD trading is not available to U.S. users. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Forex Terminology

You must learn these basic terms when trading forex:

  • Pip: $0.0001 or the smallest movement in forex
  • Lot size: the size of your investment — the normal size lot is 100,000 units of currency
  • Orders: you order buys and sells in the same way you order a burger
  • Calls: a contract that moves with the price of the underlying currency, but not exactly

Grow with Emerging Markets

As an integral part of the domestic economy, forex will likely play a larger part in Thailand finance in the near future. Learning the market will help to ensure your financial stability even if you decide not to actively trade.

Bookmark our website for the most up to date tips and tricks you can use in the forex market. The world of global finance is always changing, and so are the strategies that will be successful in forex.

Frequently Asked Questions

Q

Can you forex trade in Thailand?

A

Yes, forex trading is legal in Thailand and there are several reputable brokers that offer trading services to Thai residents.

Q

Is forex trading legal in Bangkok?

A

Yes, forex trading is legal in Bangkok as it is regulated by the Securities and Exchange Commission of Thailand. Traders can participate in the forex market through licensed brokers in Thailand.

Q

Is forex taxable in Thailand?

A

Yes, forex trading is taxable in Thailand. Traders are required to report their forex trading profits as income and pay taxes on their earnings.

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 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.