However, foreign exchange trading institutions are relatively mature, and the business opened in the foreign exchange trading market basically exists in the form of foreign exchange margin, rather than foreign exchange firm offer. The main reason why China's financial institutions have not carried out margin trading and securities lending business is that they are not prepared. At present, the foreign exchange margin business has not been fully opened in China. However, at present, the state does not interfere with citizens' overseas investment, so at present, foreign mainstream platforms generally find agents in China to do customer development and service for them.
So, are those foreign exchange trading platforms appearing on the Internet formal?
2017110/0/010, internet society of china issued the "Risk Tips on Preventing Illegal Financial Transactions on Internet Platforms", proposing:
It is illegal for domestic institutions to trade foreign exchange, precious metals, futures, indexes and other products (including cross-border) through various network platforms such as Internet websites, mobile communication terminals and application software without the approval of China's financial regulatory authorities, while overseas institutions provide domestic customers with foreign exchange, precious metals, futures and indexes through various network platforms such as Internet websites, mobile communication terminals and application software without the approval of China's financial regulatory authorities.
I have seen such a statement that as long as it is a regulated formal platform, it is legal, because the government does not interfere with citizens' personal investment, and trading behavior has not occurred in China.
Today, domestic regulated exchanges include banks (including private enterprises), state-owned enterprises and enterprises authorized by trading agents. Of course, we can also not participate in domestic transactions. If we travel abroad, leave the mainland and then participate in foreign exchange transactions, it is legal. Foreign transactions are not subject to domestic financial supervision.
Can foreign exchange be legally traded in China in the future?
With the increasing influence of RMB in the international market, RMB is likely to be directly used as the mainstream currency of international transactions in the future, and foreign exchange transactions will also begin to take to the political stage.
First, we should face up to the international trend of economic globalization and financial transaction liberalization and understand the penetration and competitiveness of online transactions. In the statistics of the trading volume in the international foreign exchange market, we find that the trading volume of foreign exchange has increased significantly compared with the previous two years, with an average of nearly $6 trillion per day, far exceeding the growth of other virtual financial products.
Second, the foreign exchange market can be said to be the cleanest speculative market: investors do not have to worry about the performance of each stock, nor do they have to worry about insider trading between long and short futures. The huge daily turnover makes any institution have no courage to sit in the village. For domestic investors, the foreign exchange market is a new investment choice.
As an international capital market, the history of foreign exchange market is much shorter than that of stock, gold, futures and interest rate markets. However, it has developed rapidly at an alarming rate. The daily trading volume of the foreign exchange market has reached 6 trillion US dollars, which has far surpassed other financial commodity markets such as stocks and futures, and has become the largest market in the world today.