List of Countries where Forex Trading Legally Allowed, Restricted, or Banned?

forex is legal

A review of forex trading online can never be perfect without reviewing the state of forex trading crosswise the world. Where is forex trading online allowed? What countries have limitations on forex trading online and where is the trading of forex forbidden? Here is a shortlist of countries that fit these three classifications.

  1. Countries where forex trading is allowed legally.
  • United States
  • United Kingdom
  • Italy
  • Germany
  • Indonesia
  • Bulgaria
  • Switzerland
  • Romania
  • Cyprus
  • Australia
  • Canada
  • Japan
  • Malta
  • Most countries in Central and Eastern Europe

  1. Countries where forex trading is restricted

Forex trading is permitted in these countries, but with restrictions from the central governments. These limitations border on the amount of money that can be transferred to a broker for trading, how much can be kept in foreign currency in a domiciliary account, and how forex is accessed for trading purposes. These restrictions could also be due to anti-money laundering laws.

  • China
  • Nigeria
  • South Africa
  • Russia
  • Ukraine
  • Egypt

  1. Countries where forex trading is banned

Forex trading is banned completely in the following countries:

  • India – Restrictions on the way Indian citizens are allowed to trade in the Forex markets are being regulated by the Securities and Exchange Board of India (SEBI)
  • Belgium
  • North Korea
  • Malaysia
  • France
  • Bosnia Herzegovina
  • Israel
  • Countries with strict Sharia laws such as Pakistan

The Best Countries to Trade Forex

The best countries to trade forex are countries that fulfill the following criteria:

  • Have easy access to the major trading hubs, with the ability to open forex trading accounts with brokers in these hubs.
  • Countries with good internet systems.
  • Countries with a sound technology backbone that can support the placement of servers and systems required to enhance the forex trading experience.
  • Countries with easy and unlimited access to any payment system offered by the forex brokers.
  • Countries that have a solid financial technology presence.
  • Countries with no restrictions on forex trading activity.

Only very few countries can fulfill all the criteria spelled out. However, if a country can fulfill four out of the six listed criteria, it can still be classified as one of the best countries to trade forex.



As result, forex trading online is indeed a difficult business that goes ahead simply opening an account, funding it, and trading with a click of a few buttons on the computer. A lot of constituents come into play. These have to come together to provide the entire ecosystem that can help the forex brokerages, financial technology companies, and software providers that deliver access to the market on one hand, and the forex traders who constitute the end-users on the other.

Traders in some countries will find themselves powerless to compete at a special level with traders from well-developed countries due to gaps in technology, payment access, and support. But the situation can be endured as companies that have seen these gaps are creating solutions to fill these needs. For instance, the community of the forex virtual private server technology is allowing traders in technologically-challenged countries to get above the limitations and still trade as if they were in resource-rich countries.

The forex market is experiencing continuous evolution, and as the years go by, it is clear that the state of forex trading in countries will continue to undergo a change that will impact the markets.