Vietnamese Traders Guide
Vietnam is a country of diverse landscapes, ancient monuments and areas of outstanding natural beauty. Along with all that, its precision-planned cityscapes are not only a sight to behold, but are home to the majority of the banking and trading centres fundamental to the country’s finances. Economically speaking the standard of living in Vietnam has risen exponentially over the last 40 years and many citizens now have surplus income which they wisely choose to invest.
One consideration for many people is binary options. They are a popular trading choice due to the simplicity of their format and the vast number of options available. As a trader, you may opt to make a living solely from binary options, or you may choose to combine them with other forms of trading to create a diverse investment portfolio for yourself. Either way, the availability of binary options as a trading form is well-advertised by a seemingly endless list of brokers all vying for your custom.
However, having decided to invest in binary options, your most difficult (and essential) task will be to find a suitable and honest broker; this is where we hope to assist you. This guide will provide you with some useful basic knowledge about regulations in Vietnam, the fees you may expect to pay a broker and so on. We also carry out in-depth reviews of suitable brokers that operate in your country and aim to provide you with enough information about them to make the best selection for your individual needs.
In this article, you will learn:
- What regulation binary options have in Vietnam
- How to try out binary options trading for free
- The type of fees you may expect to pay to a broker
Traders in Vietnam
Modern Vietnam has a strong economy, especially within its two major cities, Hanoi and Ho Chi Minh. It is in these two places that most traders operate. Binary options trading in Vietnam is wholly legal and as a trader, you will enjoy some protection under the auspices of the State bank of Vietnam (SBV), which provides a supervisory framework to help keep your investment safe. The preference for Vietnam is brokers with a robust regulatory policy, such as those licensed in the UK and Australia.
The majority of binary options brokers who provide their services to Vietnamese citizens offer a demo account option where new traders can try out their skills before committing real money. Some brokers may charge a small subscription for this service, or in the case of a free account, there may be a time limit applied. Always take full advantage of these options, mainly if you are new to this type of trading.
Vietnam is a technologically advanced country and in recognition of this, binary options brokers offer great coverage for mobile device users. Generally speaking, the format will be a mobile-optimised version of the website rather than an App, but this will vary between brokers. You will need to own a relatively modern device and have a reliable, secure Internet connection to achieve the best results from mobile trading.
Asset And Trade Types
The quantity and type of binary options available can vary a great deal from broker to broker; with some offering around 500 variations. However, if you have specific ideas about the type of asset you prefer to trade, always make sure that there are adequate opportunities for you before committing. If you are a newcomer, it is also worth making yourself familiar with different trading formats and many good brokers will provide information, or even tutorials to help you.
Reliable customer support is always a plus-point when selecting a broker. Even experienced traders have queries or issues from time to time and it is always good to know that you can contact your broker with ease and receive a prompt response. Look out for those which offer a toll-free phone number and live chat if you like fast answers. Also, it is worth checking the availability of support. Binary options trading is a 24-hour activity, but customer service is often not.
Broker Fees And Tax
All binary options brokers will charge fees of some sort. Most importantly, the broker should make any fees fully transparent before you sign up. Some have a fixed-fee structure, while others levy a percentage commission on each transaction.
It is entirely your responsibility to establish the facts, so before signing up with any broker, you should first take time to discover its policies concerning the fees chargeable for services rendered. While the majority offer a free deposit facility, there may be a cost factor involved for specific methods of deposit, currency exchange, overnight options and withdrawals.
Beware any broker that suggests you can trade binary options tax-free. Tax laws in Vietnam dictate that any income you may receive is liable to taxation. For this reason, you should be prepared to keep thorough records of your binary options trading activity and ensure that you declare any profit you make. Always confirm current tax laws relating to your specific situation and please be aware that tax evasion in Vietnam, even if not deliberate, can attract harsh penalties.
At the time of writing, there is no specific licensing system for binary options brokers in Vietnam. However, the SBV (State Bank of Vietnam) is responsible for providing a regulatory framework to ensure a safe investment environment for traders. The general advice for Vietnamese citizens is that it is best only to use a broker which operates under one of the most stringent licensing authorities.
Any legitimate broker that is suitably licensed will display the logo for the authority it is regulated by and allow you access to view the licence or to confirm in some way that it is current.
Please take note that although you are not in any way forbidden to trade in binary options through any other country’s brokers, the level of protection you will have is far more limited and in the event of a problem, it may be complicated to achieve a resolution.
Vietnam does not have local brokers; therefore, our recommendations would cover reputable businesses that specialise in servicing the Vietnamese market.
How we Recommend Brokers
Vietnam does not have local brokers; therefore, our recommendations would cover reputable businesses that specialise in servicing the Vietnamese market for binary options traders. Any broker that we deem suitable would have a licence issued by a trusted regulatory authority, such as Cyprus or the UK amongst others that are equally stringent.
Also, we would check that the broker in question has adhered to regulations and can offer a safe and secure environment for you to trade in, as well as reasonable terms and conditions and transparency concerning fees. We also think that a high level of mobile functionality is crucial, as well as a customer support network of the highest quality. For new traders, we believe that being able to do a ‘test run’ before investing is essential, so that is something else we also look at closely.
To provide the information you will need to select a broker we use a team of expert reviewers. All of whom have long-term experience in the financial world and particularly within the binary options industry. Our aim is always to recommend brokers that will provide you with the best all-round experience and back up for your trading activities, whether they are part or full-time.
Frequently Asked Questions
Is binary trading in Vietnam legal and safe?
Yes, binary options trading is legal in Vietnam. However, as there are no local brokers, you must ensure that the one you select is suitably licensed, in the rare event you have any issues.
Do I need to pay fees and taxes on my trading profits?
Brokers’ fee structures vary, so always check the relevant T&Cs before signing up or depositing. In Vietnam, any income, however it is derived, must be declared and will be included in your annual tax liability.
Can I test brokers before trading with real money?
Any broker worthy of your consideration will have a ‘free’ platform where you can try your hand at binary options before investing any real money. Some will have only a short trial period, so always check before opting in.
Is it easy to make deposits and withdrawals?
Most significant brokers offer a good variety of payment options including credit/debit cards, bank transfer and e-payments via PayPal or a similar provider. A few also accept cryptocurrency. Some offer faster payouts than others, so if that is important to you, check first before depositing.
Can I trade using my mobile or tablet device?
The majority of brokers available to Vietnamese citizens will offer an excellent mobile service that is as good, or even better than the equivalent version for PC. Most will need a modern device and a stable Internet signal for full functionality.
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.