How to become a successful Forex Trader, and how important is the strategy? In this article, we will provide steps to kick start your Forex trading journey in Costa Rica.
Getting into Forex trading can be intimidating in the beginning. Considering that the market is regulated differently in different countries, understanding the ins and outs like RSI buy signals and trends are necessary for safe trading. Like any business out there, Forex trading has proven to be a fast, adaptable industry and is accessible to both investors and entrepreneurs alike.
Is Forex Trading Legal in Costa Rica?
Many countries notoriously dislike Forex trading for its highly unstable speculative markets. However, Costa Ricans can rejoice; Forex Trading is 100% legal as a currency must be exchanged to conduct business. The country is economically stable. The agricultural and tourism sectors play major roles while sectors like pharmaceuticals and software development are soon gaining traction.
Who Is Regulating Forex Trading in Costa Rica?
Forex regulation helps ensure a safe marketplace for traders. There are checks set up that include fixing legal and financial standards. To make sure every broker and trader follows them, verified overseers are hired to monitor the activity of the industry players. These people are called the regulators, and their primary purpose is to protect investors from fraud.
In Costa Rica, there are two bodies responsible for regulating the trade.
1. Central Bank of Costa Rica (Banco Central de Costa Rica)
Established in January 1950, this is a state-owned institution, and its primary goals and objectives are as follows:
- To maintain the internal stability of the national currency,
- To maintain the external stability of the national currency and ensure free conversion to other currencies
- And to promote a stable, efficient, and competitive financial intermediation system.
2. The General Superintendency of Financial Entities (SUGEF)
Until 1995, this was a part of the Central Bank of Costa Rica. It was later declared under the same legal figure of maximum deconcentration but with more powers and administrative autonomy.
- It supervises the activities under its control which include the exchange market.
- Ensures the stability and functioning of the national financial system.
- Dictates general banking rules and practices to keep the economy from going into unpredictable overdrives.
Which Brokers Should You Consider?
There will be a thousand different Forex trading brokers you will come across on the internet who will assure you that they are the best for the job. This section will go through some of the best traders and brokers who will live up to the expectations set upon them and see you through to the finish line.
eToro is an institution that has been around for 14 years, bringing with it a sense of trust and recognition that only years of goodwill can bring. Based in the UK and Cyprus, it is regulated by the FCA and CySEC, the regulatory bodies in both countries, making it one of the safest options out there.
eToro offers two forms of trading: CFDs and social trading. It requires a minimum deposit of 200 USD to trade and gives traders the option to choose from over 100 instruments and 50 currency pairs. It is available as both a browser-based web application and an app for smartphones, meaning you can keep track of the market and make trades on the go!
Like eToro, ForexTime has been around for a while – ten years to be exact – and is regulated by financial bodies in the UK, Mauritius, Cyprus, and South Africa. This makes them very highly regulated and valued, and they offer you trades in the form of CFDs and Forex. For users, there are two kinds of accounts – standard and ECN. The perks of an ECN account are the availability of MetaTrader 4 and 5.
ForexTime is also compatible with Neteller and requires a minimum deposit of 100 USD to start a standard account. What’s more, it offers customer support in 17 different languages via live chat, Facebook, Twitter, Telegram, Phone, and Live Chat.
Pepperstone has been in business for 11 years, having been founded in Australia and regulated in its native country as well as in the UK. It has three kinds of trading accounts on offer – Razor, Standard, Swap-Free – and boasts the presence of three of the most well-beloved forex trading platforms out there – MetaTrader 4, MetaTrader 5, and cTrader.
It also gives users multiple avenues to deposit money – Neteller, PayPal, Visa, MasterCard, Skrill, QIWI, and bank transfers. Users also have access to 24/7 live customer support through phone, email, and live chat..
Forex trading might be legal in Costa Rica, but Costa Ricans aren’t immune to the unpredictable fluctuations of the market. Furthermore, a word of warning about the scamsters who will lure naive, unsuspecting traders into a world of disappointment. The only way to avoid this is to be precautionary and only invest after doing considerable research. It is, after all, one of the quickest ways to make money and all you need is for your gamble to pay off! Good Luck!