With the great changes in technology and the widespread use of social media, foreign exchange trading has become a global phenomenon。For decades, the wild swings in currency markets have attracted many traders around the globe。Over the past few years, we've seen a sea change in the industry, making it more popular in many parts of the world。

While markets are more inclusive and connected than ever before, there are also many geographic inequalities.。Each trader's trading experience and ease of trading may vary depending on where they live。

In some countries, Forex trading is very easy and there are many trusted brokers to facilitate。In other countries, traders are subject to a large number of obstacles and strict regulations.。Many have published articles on the internet suggesting that all traders in the world have access to the same forex industry knowledge, techniques, tools and resources。But the truth is far from reality。

Geographical Distribution of Forex Brokers

The uneven distribution of Forex brokers can be said to be the main cause of the huge gap between traders.。Most Forex brokers are located in the US, Europe (especially UK and Cyprus), Asia (Australia, Japan and Singapore) and the Middle East。In contrast, the African region has almost no。

Therefore, traders residing in countries where there are no physical brokerage firms should trade with offshore brokerage firms and comply with the regulations of the institutions that regulate these brokerage firms.。Here is a detailed description of each region:

① United States

The United States is one of the world's largest online marketplaces.。In fact, the U.S. market is often seen as the center of the financial world, playing a vital role in balancing the global economy and peace.。

But since the 9 / 11 tragedy, particularly the 2008 financial crisis, the U.S. government has decided to enact stricter rules and revise policies on how U.S. companies do business with foreign entities.。This action led to the closure of accounts in a number of countries blacklisted by the Office of Foreign Assets Control (OFAC).。To this day, traders in these countries are still unable to open and register with U.S. forex brokers.。

Global brokers wishing to enter the US market must comply with strict regulations。They must meet a number of requirements, including a license issued by the National Futures Association (NFA) and a deposit of at least $20 million.。Many brokers consider these conditions costly and unworthy。

Another issue is the U.S. tax code or the Foreign Assets Tax Compliance Act (FATCA).。The Act essentially requires U.S. citizens to declare any income outside the United States, including any profits earned on foreign exchange transactions with foreign brokers.。FATCA also requires all foreign companies to report to the IRS about U.S. traders who have trading accounts with them.。This and the high NFA license fees are the main reasons why many European and Asian brokers simply close their doors to US traders.。

As a result, only a few global brokers operate in the US and accept US traders.。If you are from the US, you may not find many foreign brokers to choose from。Therefore, the best option for American traders is to trade with an American forex broker。

There's nothing to miss though, as many of the giant brokers are actually from the US。These brokers usually have advanced technology。The regulatory environment in which brokers operate is also very good.。Not only that, but as we all know, the U.S. market is also very robust.。In fact, New York is often recognized as one of the major trading centers。Virtual private servers and data centers are also well-built and in place。

That said, although the options for U.S. traders are limited to U.S. brokers, they are still good enough to catch up with the rest of the world and make a decent profit from forex trading.。

② Europe

Europe is another important hub for foreign exchange trading。Europe's two main trading centres are in London and Cyprus.。In Central and Eastern Europe, several other major centres, including Malta, Russia, Bulgaria and Romania, are also emerging。

As we all know, the UK has a good regulatory environment。The most important body responsible for regulating forex brokers is the Financial Conduct Authority (FCA).。The FCA has proven to have stringent regulations designed to ensure fair conditions for traders, ensuring their funds are not subject to fraud and scams.。

Cyprus is another major trading centre in Europe because its investment-friendly policy has attracted many forex brokers to register here.。One of its advantages is that there are no restrictions on the number of traders that each broker can accept (except that U.S. traders are prohibited to avoid mandatory reporting to the IRS)。The Cyprus Securities and Exchange Commission (CySEC), one of the top regulators, is also based in the country.。However, there have also been criticisms that CySEC enforcement is too lax, but the regulator has made some strategic adjustments to strengthen regulation.。

③ Asia and Australia

Foreign exchange transactions in Australia and Asia, particularly Japan and Singapore, have surged in recent years.。Recently, the Bank for International Settlements announced that Singapore has become another top global foreign exchange trading center after London and New York.。moreover, due to the large investment flows in the past few years, taiwan has become one of the countries with the largest foreign exchange reserves。

China's forex brokers have also stepped up their gaming efforts, with net monthly trading volume reaching 90,000 lots.。Some Asian regulators have begun to strengthen their foreign exchange markets in order to better adapt to the local environment within their regulatory framework.。

Regulators in Japan and Australia have also begun working together to ensure that forex brokers in both countries pay more attention to local markets, promoting better regulation and compliance with local practices.。

Payment methods in many countries

Another difference in making transactions in each country is the choice of payment method。Today, the number of payment methods has increased dramatically, ranging from credit cards and bank wire transfers to modern digital wallets.。These methods are designed to make it easier for forex traders to deposit and withdraw funds, faster and cheaper.。However, not all of these methods are available to all forex traders。

In many countries, traders are banned from using credit / debit cards as well as digital wallets due to their inclusion in financial blacklists.。As a result, they can only deposit or withdraw money through bank transfers, which are relatively more complex, slow, involve a lot of paperwork, and are inconvenient for many types of traders。

This issue shows a gap in equality, but the authorities have not formally addressed the issue。To solve this problem, there have been attempts to create country-specific e-wallets, but the scope is still very limited。With the continuous advancement of financial technology, it is hoped that there will be a quick and effective way to solve this problem, so as to minimize the gap。

Is Forex Trading Legal?？

To answer the above question, let's draw a map of the legality of global forex trading:

Countries that allow foreign exchange transactions

United States, United Kingdom, Italy, Cyprus, Australia, Canada, Indonesia, Japan, Malta, Bulgaria, Switzerland, Romania, Germany, most countries in Central and Eastern Europe

Countries that restrict foreign exchange transactions

Forex trading is technically legal in these countries, but the central government has certain restrictions。These restrictions set out the amount of funds that can be transferred to brokers, the amount of foreign currency that can be retained in domestic accounts, and the manner in which foreign currency can be obtained for trading purposes.。These restrictions also relate to anti-money laundering laws。

China, Nigeria, South Africa, Russia, Ukraine, Egypt

Countries that prohibit foreign exchange transactions

In these countries, foreign exchange trading is completely prohibited or illegal:

India, North Korea, Belgium, Malaysia, France, Bosnia and Herzegovina, Israel, Pakistan and other countries with strict Islamic law。

Where is the best place for Forex trading?？

Fundamentally, the overall trading experience depends on your place of residence or domicile。However, if we look at this issue objectively, there are several criteria for the best and ideal country for forex trading:

Convenient access to major trading centers。

Have fast internet connection and network system。

Have a strong technology base to support the deployment of servers and systems designed to enhance the Forex trading experience。

◇ Convenient and unlimited use of any payment system provided by the broker。

There are no restrictions on foreign exchange trading activities.。

Have strong financial technology availability。

There may be few countries that meet the criteria, but if a country can meet at least four of the above six aspects, then it is enough to be considered an ideal place for foreign exchange transactions。

In addition, it is always good to choose a country where you can easily get trade education and materials in your language。For example, if you are Indonesian and like mostLearn how to trade in Indonesianthen it might be a good idea to trade within the country。

SUMMARY

In conclusion, although the forex market seems to have matured a lot over the last decade and become more inclusive for any trader in the world, in fact, there are still some gaps in it。It is undeniable that living in some countries is much more convenient than living in other countries, because these countries fully support foreign exchange transactions, have strict regulations and advanced technology。As a result, traders in some countries may find that they cannot compete on the same level as traders in developed countries due to a lack of technology, knowledge, tools and government support.。

While this gap does affect a trader's trading performance, it can be minimized by choosing the right broker。For example, some brokers have developed forex virtual private server technology that allows traders in certain countries to go beyond the limit and still trade as if they were in a resource-rich country.。

Finally, it is best to acknowledge these issues while constantly improving your trading skills to achieve your trading goals and be successful。Train your skills in a demo account and try to apply these skills in a real account only after you have successfully made a stable virtual profit。