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The days when we had to wait for hours to trade Forex are long gone. We all remember the times when we did not have online Forex brokers, and all we could do for trading was that we had to call a broker directly and tell them to make moves for us. Today, there are a number of online trading platforms around the world, and the market is reaching places it never was available before.
Today, you can trade Forex at any place in the world, as long as you have an internet connection. One of the countries that recently joined the world of Forex is Mongolia, Mongolia is a country bordering China and Russia, with over 3 million population, the country represents a developing economy that still has a lot of challenges to overcome.
For a very long time, the economy of the country was largely based on herding and agriculture, although recently the development of extensive minerals also emerged as a driver of industrial production. The country is ranked as a lower-middle-income economy by the World Bank, however, because of the boom in the mining sector, this emerging market can be very rewarding for many Forex traders and if you are one of those looking for Forex brokers in Mongolia, this guide will teach you everything about it.
What are the best Forex brokers in Mongolia?
Finding a broker that works perfectly for you is not an easy thing, there are so many things that you have to consider that sometimes it becomes impossible to find the right broker. While working on this guide, we have decided to do research, focusing on regulations, payment methods, available trading currency pairs, and many other things that can be important for Forex traders of Mongolia and finally came up with a list of some of the best Forex brokers, check it out below!
Licences
FCA, CySEC, IFSC, ASIC, DFSA
Min. depo
$5
Leverage
1:888
Platform
MT4, MT5, WebTrader
XM
Licences
ASIC, FSA, FSCA, FFAJ, FSRA, FSC
Min. depo
100 USD
Leverage
400:1
Platform
MT4, MT5
AvaTrade
Licences
FCA, ASIC, CySEC, FSCA, FMA, MAS
Min. depo
$100
Leverage
1:30
Platform
WebTrader, Windows 10 Trader
Plus500
What are the Forex regulations in Mongolia?
The main regulatory bodies of the field in Mongolia are the Financial Regulatory Commission, FRC, and the central bank of the country, the Bank of Mongolia. In Mongolia, the field of Forex is primarily regulated under the Law on Currency Settlement, which guides different types of brokers to conduct Forex trading. The Mongol Bank is allowed to buy any type of foreign currency and gold from domestic or foreign banks. Its primary purpose is to manage the currency and wealth reserves of the country, however, the bank has the right to sell foreign currency and gold to maintain the general stability of the national currency.
The bank also has the right to set different types of rules and regulations for the foreign exchange activities, including FX swaps, forward transactions, and even Forex auctions. Based on the market conditions, commercial banks also have the right to establish their own exchange rate for using the local currency and to buy and sell foreign currencies. Once commercial banks obtain a license from the Mongol Bank, they are allowed to facilitate non-cash transactions in foreign currency, buy and sell the currency in cash, establish and operate accounts in foreign currency, and provide credit in foreign currency.
If a non-banking company wishes to establish a Forex trading platform, they need to obtain a license from the Financial Regulatory Commission of Mongolia.
What is the Financial Regulatory Commission of Mongolia?
The Financial Regulatory Commission of Mongolia, FRC, was established under the Law on the Legal Status of Financial Regulatory Commission in 2006 by the Parliament of the country. To make sure that the commission does its job right, it is responsible to report its activities to the Parliament of the country every year. The company strives to ensure the stability of the financial market, regulate financial service institutions, monitor implementation of all relevant legislation, and protect the rights of investors in the country.
The commission also is responsible to oversee the field of Forex in the country, give out licenses and control the companies that own the license. The commission represents a specialized government body, it regulates and controls different parts of the financial system, which includes the insurance market, non-banking financial institutions, securities market, and Forex trading market.
Why are regulations so important?
Regulations are something that makes sure that you and your funds can stay safe. There are a number of regulatory bodies around the world, some of the controlling the field more than the others. However, the fact that these regulatory bodies exist, does not mean that every Forex broker is safe to trade with.
In reality, there are many scam companies that claim that they own some type of license from the official regulatory body and lie to people. To make sure that you won’t become one of those horror stories that we all have heard about, you should always try your best to double-check the information that was provided by the broker. You can do so by contacting the regulatory body directly, in most cases, they have a list of Forex brokers that they have authorized.
Is trading Forex in Mongolia safe?
If we look only at the regulatory bodies, on the paper, it sounds very safe. However, the implementation of these rules and laws is very important when it comes to the safety of your funds. We believe that if you make sure that you do good enough research, you will be able to find the trading companies that are offering safe experience in Mongolia.
In addition, keep in mind that there are a number of international FX brokers in Mongolia, that are regulated and authorized by companies such as FCA in the UK, CySEC in Cyprus, and many others. Most of these Forex brokers are licensed by both, international regulatory bodies and local ones, like Mongol Bank and the FRC.
The thing is, you can be very safe if you manage to find a perfect FX broker. While working on this guide, we managed to find some of the top FX brokers that will gladly offer you a market full of opportunities. We recommend the brokers that are listed below.
XM
Min. Depo
$5
Licences
FCA, CySEC, IFSC, ASIC, DFSA
Leverage
1:888
Platforms
MT4, MT5, WebTrader
AvaTrade
Min. Depo
100 USD
Licences
ASIC, FSA, FSCA, FFAJ, FSRA, FSC
Leverage
400:1
Platforms
MT4, MT5
Plus500
Min. Depo
$100
Licences
FCA, ASIC, CySEC, FSCA, FMA, MAS
Leverage
1:30
Platforms
WebTrader, Windows 10 Trader
Exness
Min. Depo
$10
Licences
CySEC, FCA, SFSA
Leverage
1:2000
Platforms
MT4, MT5
Forex.com
Min. Depo
$100
Licences
NFA, CFTC, FCA, FSA, IIROC and CIMA
Leverage
1:50
Platforms
WebTrader, MT4, MT5
CMTrading
Min. Depo
250 USD`
Licences
FSCA
Leverage
1:200
Platforms
MT4, WebTrader, Copykat
What is the national currency of Mongolia?
Mongolian tögrög, or tugrik, with an official code of MNT, is the national currency of Mongolia. The currency has a very interesting and unstable history, while it rose 15 percent against the US dollar in 2010 because of the growth of the mining industry in the county, it fell by 24 percent from early 2013 to 2014 due to the falling foreign investment.
The main regulator and issuer of the currency is the national bank of Mongolia, the bank also works to fix the official rate of the currency, and provides guidance. Also, in case the exchange rate increases or decreases by 5 percent or more from the previous day, it should be brought to the attention of the Prime Minister of Mongolia.
The currency is not that actively traded around the world, however, many Mongol Forex traders choose to do so. If you are one of those, you will be trading an exotic currency pair. In most cases, this currency is traded with USD. However, as a beginner, we would recommend for you to start Forex trading using major currency pairs since it is a lot easier to find relevant guidelines for FX traders who use these currency pairs.
Also, we would recommend to always start Forex trading with brokers that accept payments in the local currency, to avoid paying huge amounts of fees on currency exchanges.
What are the most popular trading platforms at Forex brokers in Mongolia?
Most of the brokers in the country have adopted many different trading platforms, such as MetaTrader 4, MetaTrader 5, and cTrader. However, the most popular trading software seems to be MT4, which is used by more than 90 percent of Forex brokers around the world.
The main reason for its popularity is the fact that it offers traders access to a huge trading market, with tens of different available trading currency pairs. It was created in 2005, 15 years ago, by a Russian company, known as MetaQuotes. Since then, MT4 was able to obtain a huge following, which allows people to find needed information that they need for Forex trading very easily.
MT5, a newer version of MT4, offers traders some advanced tools, however, it is mostly used by people who trade CFDs. Also, many Forex brokers actually have created and adopted their own trading platforms, while at the same time offering other popular platforms.
What payment methods are used by FX traders in Mongolia?
There are many different payment methods available in Mongolia. As an FX trader, you can use anything between bank transfers, credit/debit cards, E-Wallets, mobile payments, and online payment solutions. While choosing payment methods for Forex trading, we would recommend going with something that is very speedy and doesn’t cost much. It is very important for Forex trading to choose the right payment methods because you always need to be able to stay in touch with the trading market.
What are the pros and cons of trading FX in Mongolia
Trading in Mongolia has many different sides and we want to discuss everything that is possible in this guide.
Pros:
- The field is well regulated by the government of Mongolia, which creates a safe environment
- There are many international FX brokers in the country, which are authorized by both, local and international regulatory bodies
Cons:
- Even though there are many regulations, the market is still full of scams
- The national currency of the country is not strong at all
Should you start Forex trading in Mongolia?
As a citizen of the country, you can easily start Forex trading in the country. We believe that by following local guidelines, you can have a very successful and safe trading experience. As long as you are willing to do your research, learn as much as you can about a Forex broker, you will be able to find a platform that will offer you a safe and secure Forex trading experience.