Forex trading has become increasingly popular in China, offering individuals and institutions access to the world’s largest financial market. As a global hub for financial activities, China provides various opportunities for traders to engage in the foreign exchange (forex) market. However, strict regulations and unique legal frameworks govern forex trading in the country. This guide explores the regulatory environment, legal forms of forex trading, and how to identify reliable brokers operating in China, ensuring safe and informed trading practices.
Top 10 Forex Brokers in China
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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FP Markets
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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ActivTrades
- Winner of 20+ Global Awards
- MT4/MT5, TradingView
- Leverage up to 1:400
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
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Eightcap
- Traders can enjoy competitive trading conditions through different account types
- Offers access to over 800 CFD markets through TradingView
- Platforms like MT4 and MT5 enable multi-device trading
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
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BlackBull Markets
- Broker boasting lightning-fast execution speed
- ECN brokers with tight spreads from 0.0 pips
- $0 minimum deposit requirement
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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eToro
- Popular broker for social trading
- Trading is conducted on innovative in-house platform
- Offers both investing and trading products
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
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GO Markets
- Segregated client funds
- Excellent support
- Free TradingView subscription
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- ETFs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Treasuries
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Iron FX
- IronFX offers more than 300 trading instruments.
- Access to MetaTrader 4 (MT4), along with proprietary features and trading tools to enhance user experience.
- Multiple instruments available for trading, including Forex, Indices, Commodities.
Trading InstrumentsDeposit Methods- Commodities CFDs
- Commodity Futures
- Crypto CFDs
- Currency Futures
- Forex CFDs
- Indices CFDs
- Metal Futures
- Metals CFDs
- Share CFDs
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Trade Nation
- Access to a wide range of trading instruments, including 46 currency pairs.
- Trade Nation offers low-cost fixed spreads.
- Traders can user MT4, as well as a proprietary platform .
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
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FBS
- Multiple banking options
- Great education section
- 300+ trading instruments
Trading InstrumentsDeposit Methods- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
Brokers Compared by Spread
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| ActivTrades | |
$0 |
| Eightcap | |
$100 |
| BlackBull Markets |  |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
| eToro | |
$50 or $100 based on country ($10 for the UK) |
| GO Markets | |
$0 |
| Iron FX | |
$100 |
| Trade Nation | |
$0 |
| FBS | |
Cent accounts: $10; AU$50 (ASIC accounts) |
Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| ActivTrades | |
1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB) |
| Eightcap | |
1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SCB | Retail Account) |
| BlackBull Markets | |
1:500 (FMA), 1:500 (FSAS) |
| eToro | |
1:400 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:400 (FSAS | Retail Account) |
| GO Markets | |
1:30 (ASIC), 1:30 (CySEC), 1:500 (FSAS), 1:500 (FSCM), 1:500 (SVGFSA) |
| Iron FX | |
1:30 (CySEC), 1:30 (FCA), 1:1000 (FSCA) |
| Trade Nation | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Standard Account), 1:30 (FCA | Standard Account) |
| FBS | |
1:30 (ASIC), 1:30 (CySEC), 1:3000 (FSC), 1:500 (Pro Account), 1:30 (Retail Account) |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| FP Markets | |
cTrader, TradingView |
| ActivTrades | |
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView |
| Eightcap | |
MetaTrader 4, MetaTrader 5, TradingView |
| BlackBull Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| eToro | |
Proprietary |
| GO Markets | |
cTrader, MetaTrader 4, MetaTrader 5 |
| Iron FX | |
MetaTrader 4 |
| Trade Nation | |
MetaTrader 4, TradingView |
| FBS | |
MetaTrader 5 |
Comprehensive Comparison of the Best Chinese Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.93 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0.5 pips |
|
|
 |
$100 |
|
AVG 1.1 pips |
|
|
 |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
|
AVG 0.3 pips |
|
|
 |
$50 or $100 based on country ($10 for the UK) |
|
AVG 1 pips |
|
|
 |
$0 |
|
AVG 1 pips |
|
|
 |
$100 |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0 pips |
|
|
 |
Cent accounts: $10; AU$50 (ASIC accounts) |
|
AVG 0.7 pips |
|
Legal Forms of Forex Trading in China
Forex trading in China operates under strict regulations to safeguard the financial system and control capital flows. The primary legal forms of forex trading include:
- Spot Trading
Spot trading involves the direct exchange of currencies at prevailing market rates. In China, this is typically conducted through authorized banks and financial institutions. Such transactions are regulated by the State Administration of Foreign Exchange (SAFE), primarily to support trade and investment needs. - Futures Contracts
Futures contracts allow traders to buy or sell currencies at a predetermined price on a future date. Governed by China’s Futures and Derivatives Law (FDL), which came into effect in 2022, these contracts are traded on licensed exchanges under the supervision of the China Securities Regulatory Commission (CSRC). This law promotes transparency and financial stability in the derivatives market. - Options and Forwards
Options provide the right, but not the obligation, to trade currencies at a set price before a specified date, while forward contracts are customized agreements for future currency exchanges. These derivatives are offered by licensed institutions, with regulations designed to limit excessive speculation. - Margin Trading
Forex margin trading, allowing leveraged positions, is permitted under strict conditions. Individual traders may engage in RMB-to-forex trading through authorized financial institutions. Unauthorized forex margin trading or forex-to-forex transactions are considered illegal and may incur penalties. - Restricted Instruments
Speculative tools like spread betting and CFDs are not widely accepted in China due to regulatory constraints. Authorities maintain a cautious stance to reduce market risks.
China’s regulatory environment is evolving, emphasizing legal compliance and financial safety. Traders are advised to work only with licensed entities to ensure adherence to local laws.
Restrictions on Forex Trading in China
China maintains stringent controls over currency trading to preserve financial stability and regulate capital flows. Key restrictions include:
- Cryptocurrency Trading
The Chinese government has implemented comprehensive bans on cryptocurrency-related activities. In 2017, initial coin offerings (ICOs) were prohibited, and domestic crypto exchanges were shut down. The crackdown intensified in 2021 with a ban on Bitcoin mining and a declaration that all crypto-related businesses were illegal. In January 2025, the State Administration of Foreign Exchange (SAFE) introduced new rules requiring banks to monitor and report risky foreign exchange trading behaviors, including those involving cryptocurrencies. These measures aim to prevent illegal cross-border financial activities and uphold the country’s financial stability.
- Binary Options
Binary options are financial instruments that allow traders to speculate on the price movement of assets within a specific timeframe. Due to their speculative nature and associated risks, binary options trading is heavily restricted in China. Regulatory authorities have not authorized any domestic platforms to offer binary options, and participation in such trading through overseas platforms is considered illegal.
- Leverage Limits
To mitigate financial risks, Chinese regulators impose strict leverage limits on forex trading. For individual traders, the permitted leverage ratios are significantly lower compared to international standards. This conservative approach aims to protect retail investors from substantial losses due to market volatility.
- Capital Controls
China enforces capital controls to manage the flow of funds across its borders. Individuals are subject to annual quotas for foreign currency purchases, and large transactions require regulatory approval. These controls are designed to prevent capital flight and maintain economic stability.
How is Forex Trading Regulated in China?
Forex trading in China is overseen by multiple regulatory bodies to ensure compliance, transparency, and stability in the financial market. The regulatory framework is designed to protect traders, control capital flows, and minimize financial risks. Key regulators include:
- State Administration of Foreign Exchange (SAFE)
SAFE is the primary authority responsible for managing China’s foreign exchange market. It regulates forex transactions, enforces capital controls, and oversees the legality of forex trading activities. SAFE also monitors currency flows to ensure adherence to the country’s strict economic policies.
- China Securities Regulatory Commission (CSRC)
The CSRC governs forex derivatives like futures and options traded on authorized exchanges. It enforces compliance with the Futures and Derivatives Law (FDL), which came into effect in 2022, setting standards for transparency, risk management, and market operations.
- People’s Bank of China (PBOC)
As China’s central bank, the PBOC plays a significant role in regulating monetary policy, including exchange rates. It works closely with SAFE to monitor forex market activities and ensure alignment with the nation’s financial objectives.
- Banking and Insurance Regulatory Commission (CBIRC)
The CBIRC oversees forex trading conducted through banks and other licensed financial institutions. It ensures that these entities comply with regulatory requirements, including offering forex services legally and transparently.
Key Regulatory Measures in Forex Trading
- Licensing Requirements: Only approved banks and institutions are authorized to offer forex services in China.
- Capital Controls: Individuals are limited to purchasing foreign currencies up to $50,000 annually without special approval.
- Monitoring and Reporting: Financial institutions must report large or suspicious forex transactions to SAFE.
Requirements for Forex Brokers in China
Forex brokers operating in China are subject to strict regulatory requirements aimed at protecting investors and maintaining financial stability. These requirements ensure that brokers meet high standards of transparency, security, and operational integrity. Below are the key obligations for forex brokers in China:
- Licensing and Authorization
Brokers offering forex trading services in China must obtain approval from regulatory bodies such as the State Administration of Foreign Exchange (SAFE) and, where applicable, the China Securities Regulatory Commission (CSRC). Unauthorized brokers are prohibited from operating within China’s jurisdiction, and engaging with such entities can expose traders to legal and financial risks. - Capital Adequacy Standards
Forex brokers are required to maintain sufficient capital reserves to cover their operational risks and ensure stability. This requirement minimizes the chances of insolvency and protects clients’ funds in case of market turbulence. - Fund Segregation
To safeguard client funds, brokers must keep these separate from their own operating capital. Segregated accounts ensure that traders’ money is not used for the broker’s internal expenses or investment activities, providing an additional layer of protection in case of broker insolvency. - Leverage and Margin Controls
Leverage offered to retail forex traders in China is tightly controlled to prevent excessive risk-taking. These limits reduce the likelihood of traders incurring significant losses, especially in volatile market conditions. Additionally, brokers must implement automatic margin closeouts to protect traders from negative balances. - Risk Disclosure
Forex brokers are required to provide clear and comprehensive risk disclaimers to their clients. These disclosures must highlight the inherent risks associated with forex trading, including market volatility, leverage risks, and potential losses. - AML and Reporting Obligations
Brokers must comply with Anti-Money Laundering (AML) regulations and report suspicious transactions to the appropriate authorities. This helps combat illegal financial activities, such as money laundering and fraud. - Technology and Transparency
Brokers are expected to use secure trading platforms and provide transparent pricing without hidden fees. Regular audits of their systems and practices ensure that they operate ethically and efficiently.
Taxes on Forex Trading Profits in China
Forex trading profits in China are subject to taxation, as they are considered a form of income. Both individual traders and businesses must adhere to the country’s tax laws, ensuring proper reporting and payment of applicable taxes. Below are the key aspects of forex-related taxation in China:
- Taxable Forex Income
Profits generated from forex trading, including gains from spot trading, futures contracts, and other derivatives, are classified as taxable income. These earnings are typically categorized under “income from other sources” for individuals or as part of corporate income for businesses engaged in forex trading. - Individual Income Tax (IIT)
Forex trading profits earned by individuals are subject to Individual Income Tax (IIT).- Rates: China’s IIT system uses a progressive tax rate structure, with rates ranging from 3% to 45%, depending on the total taxable income.
- Filing Requirements: Traders must calculate their net forex trading income and report it in their annual tax filings. Deductions for losses are permitted but only if they comply with the specific rules outlined by tax authorities.
- Corporate Income Tax (CIT)
Businesses involved in forex trading are subject to the Corporate Income Tax (CIT), which is set at a standard rate of 25%. Enterprises must maintain accurate records of trading activities, including profits, losses, and expenses, to ensure compliance during tax audits. - Capital Gains Tax
Although forex trading is not explicitly categorized as capital gains in China, any profits derived from such activities may be treated as a form of investment income. As such, they may fall under general income tax rules rather than a distinct capital gains tax regime. - Cross-Border Considerations
China imposes strict controls on cross-border forex transactions. Traders earning profits from offshore brokers must report these earnings and ensure compliance with SAFE regulations. Failing to report foreign income can result in fines or legal penalties.
How to Identify a Reliable Forex Broker in China
Finding a reliable forex broker is essential for traders in China to ensure a secure and compliant trading experience. Below are the key factors to consider:
- Regulatory Compliance
Reliable brokers must be licensed by recognized authorities. In China, they should comply with the State Administration of Foreign Exchange (SAFE) regulations. It is best to check the website of the authority and find out if the broker is regulated there directly. - Fund Security
Trustworthy brokers keep client funds in segregated accounts, separate from their operating capital. This ensures traders’ money remains protected even during financial difficulties. - Transparent Fees
A reliable broker provides clear information on spreads, commissions, and any additional fees. Avoid brokers with hidden charges or unclear pricing structures. - Platform Reliability
Choose brokers offering secure, user-friendly trading platforms like MT4, MT5, or cTrader. These platforms are trusted for robust security and efficient trade execution. - Risk Management Tools
Look for brokers offering risk controls such as negative balance protection, automatic margin closeouts, and customizable stop-loss orders. These features safeguard against excessive losses. - Customer Support
Brokers should offer 24/7 support, ideally in Mandarin or Cantonese, to accommodate local clients effectively.
FAQs
Can foreign brokers accept Chinese clients?
Foreign brokers can accept Chinese clients, but they must comply with local regulations, such as offering services that align with China’s capital control rules and forex trading laws. It’s essential for traders to choose brokers that are properly licensed by international regulatory bodies.
What is the maximum leverage allowed in China?
The leverage available for retail traders in China is restricted by regulatory authorities to ensure financial stability. Typically, brokers can offer leverage up to 10:1 for retail forex traders, although this can vary depending on the asset and specific broker policies.
Can I trade forex with a foreign currency account in China?
Trading forex from a foreign currency account in China is subject to strict controls. While Chinese citizens are allowed to hold foreign currency accounts, there are annual limits on the amount of foreign currency that can be purchased. Traders should ensure they are compliant with capital controls when trading.
How does the Chinese government monitor forex transactions?
The Chinese government, through bodies like SAFE, closely monitors all forex transactions to prevent illegal capital flight and currency speculation. Financial institutions are required to report large forex transactions, and suspicious activities are investigated. This is part of China’s broader strategy to maintain economic stability.
Why You Should Trust RationalFX
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What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.