Thai Traders Guide
Thailand is a great place to live if you want to trade binary options and make money.
Many Thai binary traders turn to online brokers to conduct their trading because of the strength of their platforms and services. When it comes to helping you choose which broker is right for you, we always recommend testing out a demo account first. Whether you want to trade on desktop or your mobile, you can choose from many different brokers.
In this article, you will learn:
- The brokers best suited to your needs
- What local payment methods are accepted
- Taxes and fees that apply to TH residents
Traders in Thailand
Thailand is much like other Asian countries including Singapore and the Philippines. If you are looking for a broker that is local to Thailand, then you will struggle, especially when it comes to finding a legitimate one. Binary options trading seems to be a grey area with no apparent rules or regulation, and you will find lots of conflicting reports as to the legality due to Thailand's gambling laws.
If you do find a Thai broker, then we would advise that you stay well clear. Do not invest your money with a broker unless they have approved licensing. Instead, you are better off investing with a foreign broker that will accept Thai traders but what should you know before acting?
Licensing And Rules
As there are no regulated local brokers, you need to find a foreign broker that is licensed. Many of the best ones tend to be European which means they will have a license from some of the best regulatory bodies which include CySEC, MiFID or the UK FCA.
Demo Account Features
A demo account is excellent for both new and experienced traders. Many brokers offer a reloadable demo account, or you can open more than one demo account. They are perfect for practising trading and testing the platform before you commit your funds.
Trade Types And Assets
The number of trade types and the number of assets offered by brokers can vary quite extensively. Some brokers will provide a limited number of assets and a few option types. Others will give a choice of hundreds of assets across the common types such as commodities, indices, stocks, crypto markets and currencies. Backed up by a wide range of trade types including the more complicated ones.
Welcome Bonuses And Deals
If you are looking for a broker that offers a no deposit bonus there are lots available out there. A no deposit bonus allows new traders to practise trading without committing any funds. For those who have more experience, there are many deposit bonuses available as well as added incentives like loyalty programmes and tournaments.
The top brokers offer their websites in multiple languages and accept many forms of currencies across the world. Why do they do this? Well everyone is competing to get into the emerging markets around the globe, the more they have to offer the more likely that you will open an account with them. What that means is that you have a great deal of choice when it comes to choosing your broker and we are here to help you make that choice.
Broker Fees And Tax
There is a tiered tax system for income tax in Thailand, and binary options profits are defined as income. If this is your only income or indeed a second income you will be subject to the tax rules of Thailand. You will have your system of declaring income, and you will need to ensure that to do this you keep an accurate record of your trading. Your files need to include any losses as well as wins as this will be offset against your overall profit. You may want to check that you can see an accurate record of your transaction history on the site and how long the files go back.
In terms of other fees, there are a few to consider. In addition to the commission fees for successful trades there are the following, smaller fees:
While these fees tend to be smaller, it is still vital to ensure that you account for them. It is worth investigating how you can minimise these fees. Perhaps you can choose a method of funding your account that doesn't make the charges that others do. Making fewer withdrawals and deposits will reduce the fixed fee charges.
As binary options appear to have no regulation or concise laws in Thailand, then you can assume it is unregulated and that your only option, if you want to trade, is to choose a broker that is regulated. Now the reputable brokers that offer their services are very meticulous when it comes to operating under their licensing terms and won't solicit business from anywhere that might jeopardise their license.
As some of the best in the world offer their services in Thailand, you can be assured that your money is safe. European brokers have some of the best licensing from around the world in the form of CySEC and other recognised entities. CySEC is always a good one to look out for when choosing your broker.
If you are trading in more substantial amounts, you may want to check out your countries laws on off-shore trading and if there are any penalties attached or processes that you need to adhere to before you trade. Before you can withdraw funds from any binary options, account you will have to prove your identity and go through a verification process to ensure that you are not committing any fraudulent activity. You may also become restricted with the payment methods you can use for international transactions.
Unlike Europe with its licensed, regulated and reputable brokers it is hard to know which local brokers are legitimate.
How we Recommend Brokers
Our job is to make your trading experience easier. We do this by providing you with reviews of the best Thailand binary options brokers available. We don't just look at whether they are regulated and under which licensing they operate. No, we do our research to ensure that the information we provide to you is the best and most accurate that it can be. Our team will review a broker on several different aspects from how easy it is to open an account and start trading to the type of mobile offering they have.
If you are unsure as to how to choose the best broker for you then make a list of all of the things that are important to you. Do you want to be able to trade on the move? Are you looking for a broker that offers demo accounts so that you can try it out with no risk? Perhaps you are looking for a broker that offers good bonuses.
Everyone has different criteria which is why we award a star rating for each of these aspects. These star ratings enable you to draw up a shortlist of those that meet your standards before deciding on the one that you will eventually choose. With a lack of brokers local to Thailand, you will want to ensure that you are comfortable with your chosen broker and that your funds are going to be safe.
Frequently Asked Questions
Is binary trading in Thailand legal and safe?
Many of the top foreign brokers offer their services to Thai traders with translated websites and the option to trade in the relevant currency. You need to ensure you choose a legitimate and licensed broker.
Do I need to pay fees and taxes on my profits?
There are three tiers of income tax in Thailand, and the tax that you pay will largely depend on whether this is your first or second income and the amount of profit you generate.
Can I test brokers before trading with real money?
By choosing a good broker, you will have the opportunity to use their demo account. Some brokers insist that you deposit before you use their demo account whereas some will offer their demo account for free.
Is it easy to make deposits and withdrawals?
Many of the large brokers accept several forms of payment like credit card, debit card, Paypal, Skrill and other forms of online payment. To make a withdrawal you may need to verify your identity.
Can I trade using my mobile or tablet device?
Many of the best brokers now offer an excellent mobile solution to those who want to trade on the go. Some of them even have apps designed for smartwatches.
Shelly is proud of her current position as Head of Brand for a well-known organisation that owns several brokerages in the trading sector. She’s consulted for us since 2015 and readers can benefit from her insider knowledge of how brokers work. Learn more.