Cambodia is a small Southeast Asian nation famous for its rich culture and food. This is one of the most famous tourist destinations, especially amongst youngsters because it does not put a huge burden on the pocket.
Cambodia has a small but flourishing economy. If you are planning to trade here, there are a few things that you must keep in mind.
Before you begin trading in Cambodia, you need to know about the options that will be available to you.
You can go ahead with trading in stocks, Forex, Indices and ETFs, cryptocurrencies, CFDs, and other commodities. Irrespective of what you choose, you will need a broker in Cambodia to assist you.
The top Broker in Combodia is Hotforex, a broker that has more than 2 million traders.
Is forex trading legal in Cambodia?
Forex trading is legal in Cambodia as same as equities, commodity trading. Domestic brokers need to be regulated at the National Bank of Cambodia as main financial regulation body in this country.
The Cambodian economy is still in its formative stage. Its population is also increasing which means that there will be a growing demand in terms of infrastructure and food. A growing consumer base always leads to increased business and financial opportunities. The young generation of this Southeast Asian nation is adept in technology. Investors can easily find educated and skilled professionals here.
Disadvantages of Trading in Cambodia
One of the main concerns of trading in Cambodia is that offline trades are not seriously regulated. Thailand and Cambodia share notorious trade links where most of the import and exports are not recorded. Unrecorded trades adversely affect the economy of any nation.
Along with this, there is always the threat of getting conned by fake brokers. Cambodia has also digitized its trade which means that unregulated brokers in Cambodia can easily defraud an investor who isn’t mindful. Keep yourself updated and do thorough research before finalizing anything. Ask your shortlisted brokers if you could open a demo account with them. Regulated brokers will never hesitate in offering you a demo account. If someone is being dubious, this could be your clue.
Forex Trading in Cambodia
Forex trading is gaining popularity all over the world, including Cambodia. It has seen tremendous growth in the last five years. Advancement in technology and better internet coverage are other contributing factors that have made Forex trading cheaper and more accessible. Now you can trade in Forex with just an internet-enabled device.
Even though Forex trading has become more popular than stocks and futures, some countries have put a lot of restrictions on it. Countries like Saudi Arabia, Pakistan, India, Canada, Belarus, China, South Korea, and Turkey, only allow forex trading through licensed domestic brokers.
Fortunately, such is not the case with Cambodia. Forex trading is not restricted here. You can go ahead with a local broker in Cambodia or with international brokers as well. The final call is of the investor. Forex trading in Cambodia is very active and liberal.
Currency exchange plays an important role in businesses as well. If you want to take advantage of this freedom, find yourself a broker in Cambodia who is regulated and has a clear track record. If your broker is reliable then you only need to focus on your strategy. Therefore, finding a trusted and established Forex broker in Cambodia should be your first priority.
Pay Taxes for Forex Trading in Cambodia
Whether you are a citizen of Cambodia or not, you are required to pay taxes to the government you are using their platform for your personal income. Understanding the taxation system is in itself a taxing task. It becomes more complicated when you have to go through the tax policies of a different nation.
If you are not a native, we would advise you to discuss with your broker and find a professional for the tax. You need to file for taxes irrespective of whether you have made more profits or more losses. It needs to be done for every financial year.
You must file your taxes at the right authority. If you have decided o hire someone, they will take care of it. There are no additional restrictions on trade for Islamic accounts.
Trade of Cryptocurrency in Cambodia
Cambodia is lenient with cryptocurrency trade as compared to other Asian countries like India where cryptocurrency like Bitcoins has been completely banned. Yes, cryptocurrency trade is a relatively new concept in Cambodia but its young generation is embracing it quite well. With the advent of technology and better internet coverage, this trade is gaining popularity. If stats are to be believed, around $6 billion USD worth of Bitcoins are traded every day around the world.
Cryptocurrencies work on decentralized assets. This means that they are not affected by government policies or the rate of interest charged in a country. Thus, if at all there is political or economical stability in Cambodia, it will not have a ricocheting effect on the Cryptocurrency trade.
Commodity Trading in Cambodia
Until the late 1990s, Cambodia used to reexport goods like motor vehicles, gold, and electronics. It was also famous for its Sawn timber, rubber, and logs. These are the things of the past but Cambodia still has a positive trade balance.
This is due to the growing demand of its fellow Asian countries like China and India. These countries are expanding rapidly and need precious metals and food for their infrastructure and to feed the population. Cambodia trades precious metals for machinery and food to these countries and keeps the exports high.
Islamic Accounts in Cambodia
Islamic accounts also referred to as swap-free accounts, are supported by brokers in Cambodia. They lay no rollover interest on overnight positions on these accounts, respecting the Muslim faith. Islam forbids paying interest. Therefore, Cambodian brokers only offer suitable accounts to Muslims to comply with the Sharia law.
Questions to Ask Before Hiring a Broker in Cambodia?
One can never be too cautious when it comes to choosing a broker, especially when it is an overseas broker. If you are unsure about the broker that you have shortlisted, then, ask them the following questions to overcome any doubts:
Q1. What is their history?
Trading is not a new thing and if you are new to it, teaming up with a novice broker will be a horrible idea. You should look for more established brokers like eToro and IC Markets. They have been around for more than 10 years. If you think that they are not the right fit for you, look for a broker with a proven track record of atleast two years. Anything less than that will not be an ideal situation.
Q2. Which commodities are they trading?
Not every broker deals in stocks, futures, Forex, CFDs, Indices, and other commodities. Ask them about their expertise. If you are planning to venture out into trading other commodities, look for a versatile broker.
Q3. What is their reputation worldwide?
A broker with a worldwide reputation is always a better option. When it comes to choosing a broker, it is the reputation that proceeds. If the broker has offices in various parts of the world, it makes dealings smoother and easier. It also gives you the opportunity to trade beyond your current geographical preference in the future.
Q4. How established is there customer support?
The first thing that you need to do is to check if your broker is eligible for hiring people in different parts of the world. If he can, there are higher chances that you will get better customer support. Brokers and investors often live in different time zones and speak different languages. If your broker has a good customer support system, you can expect easy dealings with them.
Q5. Are they regulated?
If your broker is not regulated, simply don’t proceed with them. No matter how many great reviews they have received or the years that they have spent in this industry, if they are not regulated, no government will be able to help you in case of a dispute. They can defraud you if it serves the purpose and you will be left with nothing at all.
Q6. How will they manage your funds?
Established and professional brokers always keep your funds separate from their deposits. If you are unsure, ask them before giving them even a penny. Brokers should not have easy access to your money as they can exploit your deposit in case of bankruptcy.
Q7. What will be their commission or fees?
Your broker will not work for free! Now the question is, how much will their fees or commission. This can be a thing of a dispute later on if not settled in advance. Be transparent with your broker about it before you start dealing with them.
Our Comparative Table for Your Guidance
We have prepared a comprehensive table of the leading brokers in Combodia for your understanding. You can find in list below top forex broker in Cambodia. You can see where each broker stands:
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