There are several factors to determine if forex prop firms are legal in China. The best prop firms in China follow the local regulations while providing access to global financial markets and opportunities.
Since forex trading is legal in China, experienced traders can demonstrate their skills and leverage the prop firm’s funding, rather than personal funds. However, you should always consult a financial professional or local regulators before making your own decision.
Chinese traders can partner with prop funding firms – offering access to capital, expertise, and technology. Before choosing the best FX prop firm, do your research to ensure they follow the regulations of the government.
Funding Traders follows all FX guidelines to operate legally in China – offering traders a safe, trusted, and transparent platform. Plus, you can leverage:
- Up to $2M funded accounts
- No-commission prop firm challenges
- Up to 100% profit splits
- Rapid 7-day payouts
- Multi-instrument support
Here’s our guide to choosing legal prop firms in China.
Impact Of Government Policies On FX Trading
Government policies heavily impact legal forex prop firms in China. State Administration of Foreign Exchange (SAFE) has imposed strict regulations and restrictions on forex trading in China. These regulations allow traders to engage in forex trading activities legally – while limiting their leverage, annual purchase quota, and earnings. Additionally, FX trading policies are designed to protect the country’s rapidly growing economy.
A few significant forex trading policies in China include:
- Only licensed forex brokers, overseas prop firms, and the China Foreign Exchange Trade System (CFETS) can offer forex trading services
- All foreign brokers must obtain a license from the People’s Bank of China (PBOC)
- Leverage is capped at 1:10 for large currency pairs and 1:5 for regular pairs
- Traders get an annual quota of $50,000 to purchase foreign currency pairs
- Large transactions are directly reported to authorities
- Cryptocurrency trading is banned in China
>> Join Funding Traders to increase your leverage on your funded forex accounts. With the higher leverage, you are not limited by fixed caps.
These regulations impact your ability to close large positions and trade bigger. While you may trade legally, strict policies may limit your profits. Indeed, clearly understand government policies to join a legal prop firm in China.
Forex Trading Regulations In China
Are prop firms legal in China? It also depends on national trading regulations. With government policies still intact, Chinese authorities continue to release new forex prop firm regulations. These regulations target illegal prop firms working around loopholes to offer forex trading services in China. Plus, new policies also restrict non-regulated prop firms from expanding their operations in the country.
>> Funding Traders is a fully regulated forex prop firm – complying with global FX regulations for a transparent trading environment.
Forex regulations also limit margin services in the country – restricting traders from illegally leveraging a prop firm’s capital. Definitely, get familiar with trading regulations in China to find a legal prop firm.
Offshore Forex Prop Firms For Chinese Traders
Partner with offshore prop firms to legally trade forex in China. Offshore prop firms do not need to comply with the same regulations as China’s commercial banks. With these international prop firms, you can legally open an overseas account for forex trading. Of course, you should look for legitimate offshore prop firms with legal compliance with FX regulations. This way, you can avoid fraudulent activities and maximize your profits.
As a globally-regulated forex prop firm, open an overseas trading account with Funding Traders for a safe, transparent, and legal trading environment. You can open your trading account with transparent challenge fees:
- $10K funded account: $100
- $25K funded account: $200
- $50K funded account: $300
- $100K funded account: $550
- $200K funded account: $1,000
- $300K funded account: $1,500
- $500K funded account: $2,500
>> Experienced forex traders can also sign up for Elite and Apex funding programs to manage up to $2M capital.
With these premium overseas accounts, you are also eligible for a one-on-one consultation with our CEO. Indeed, join a legal offshore prop firm for forex trading in China.
Regulated Forex Brokers Operating In China
To trade with prop firms legally in China, check if the firm is using a regulated broker. To protect traders, legal prop firms in China use regulated brokers with a proven track record. Funding Traders has partnered with Blueberry Markets to offer competitive trading opportunities to traders in China. Blueberry Markets is internationally regulated by the Vanuatu Financial Services Commission (VFSC) – located southeast of China in the Pacific Ocean.
Blueberry Markets offer favorable trading conditions to forex traders in China, including:
- Competitive spreads on major forex pairs
- Multiple instruments – forex, shares, commodities, metals, etc.
- Transparent commissions per lot
With a wide range of currency pairs, low commissions, and competitive spreads, Blueberry Markets forex broker accepts prop firm traders in China. Choose your Chinese prop firm based on its broker’s history, regulatory requirements, and track record.
Supported FX Trading Platforms In China
Legal prop firms in China support multiple trading platforms for forex markets. With legal CFDs used for market access, top-rated prop firms support the most popular trading platforms. Whatever the account size, Funding Traders allow traders to leverage the following trading platforms:
- Meta Trader 4
- Meta Trader 5
With these trading platforms, you can use Expert Advisors (EA) and bots to streamline your trading strategies. To operate within our terms, Funding Traders does not support high-frequency trading (HFT) on these platforms. Additionally, multi-instrument traders can leverage available trading platforms to engage in different financial markets, including:
- FX (Forex)
- Crypto (Cryptocurrencies)
- Stocks
- Indices
- Metals
As a forex trader based in China, join legal prop firms that support multiple FX trading platforms.
There are several ways to evaluate if a prop firm is legal in China. The government policies for forex trading heavily impact trading activities – often restricting traders with limited leverage. Ideally, you should partner with a prop firm that complies with all national forex regulations.
For offshore partners, search for prop firms with overseas accounts to trade with a significantly larger capital. Plus, the prop firm should offer forex brokers complying with global regulations. Legal prop firms for retail traders in China also support multiple trading platforms – along with different financial instruments.
Click here to join a legal prop firm in China to start your forex trading journey.
