My regular readers would know that I have been promoting various online and offline money-making products on this blog for the past six years. This includes products in the online currency trading segment (Read our beginners guide to online Forex trading here) as well.
I had also published a post on Forex FAQs to explain a few risks that come with Forex trading which included legality of the same and risk v/s reward aspects. However, I thought of writing this post on countries where Forex trading is totally banned by law so that people are aware of what they are attempting to do before signing up with any Forex trading sites. I thought, I have the responsibility to do so because I still promote these products via banners because I can’t selectively display them for certain countries.
Forex Trading Banned Countries
According to what I read on various forums and what I have seen from various financial fraud regulators sites, the following are the list of countries where online Forex trading is banned (read below for clarification on what’s meant by ‘ban’).
Bosnia & Herzegovina
British Columbia (Canada)
China (Strict regulations if not total ban)
Sri Lanka (Recently relaxed but not confirmed)
Further clarification on ban categories
The ban or inability to do Forex trading could be due to the following financial regulations:
- Some regulators ban any kind of overseas transactions via anti-money laundering laws
- Controlled and regulated forex transactions via stipulated guidelines – this is the case where Forex trading is still allowed under certain conditions
- Ban on using credit cards to fund or withdraw deposits in foreign currency
- Ban on using a domestic banking account to fund overseas transactions
- Inability to withdraw proceeds from online forex trading entities to your account
- Various anti-terrorism laws that curb forex transactions
Do your Homework first
When you sign up with the online forex trading websites, your agent will never assure you that it’s legal in your country. Instead, they may say that there’re a number of traders that we have got in your country. They will never ever take any responsibility for your transactions because the onus is on yours.
Hence please check your country’s laws before taking further steps. You could land up in jail if you run after some quick bucks without knowing the rules and regulations. Also, please note that a ban doesn’t mean that you can’t access a Forex site. You will still be able to do but it’s your duty to check if Forex trading is really banned by law in your country.
As an alternative to open online Forex trading, one could always consider mechanisms such as currency future trading as explained in a recent post. These are completely legal mechanisms within the financial laws of every country.