Want to know whether it is legal to speculate in foreign exchange in China? First of all, you need to know what foreign exchange speculation is. Foreign exchange speculation is a common foreign exchange margin transaction. Foreign exchange margin trading means that investors use the trust provided by banks or brokers to conduct foreign exchange transactions. It makes full use of the principle of leveraged investment, and it is a long-term foreign exchange transaction between financial institutions and between financial institutions and investors.

In this regard, the state has not promulgated any laws on foreign exchange speculation, so it belongs to the gray area of the law, and the state has neither allowed nor forcibly prohibited it. However, it also shows that foreign exchange speculation in China is not protected by national laws, so traders need to choose a formal regulated foreign exchange platform if they want to continue to participate in foreign exchange trading.

At present, the recognized regulatory agencies are the Australian Securities Regulatory Commission (ASIC), the National Futures Association (NFA) and the British Monetary Authority (FSA). I suggest that you don't need to read more information about other regulatory agencies. These regulators will strictly supervise those foreign exchange platforms to ensure the safety of foreign exchange investors' funds.

At present, there are two main channels for China investors to invest in the foreign exchange market. One is to make a firm offer for foreign exchange opened by domestic banks, and the other is to directly open an account abroad for foreign exchange margin business through the domestic agent of overseas dealers (that is, to speculate in foreign exchange).

Due to many factors, such as the large spread of foreign exchange firm offer (which can be understood as high transaction cost) and no leverage, the general rate of return is difficult to meet except for the large fluctuation of exchange rate. Foreign exchange margin business is sought after by many investors, because it can be traded in two directions, both long and short, and because of its leverage ratio, it can be made small or wide. At present, businesses opened in mature foreign exchange trading markets are basically in the form of foreign exchange deposits, rather than foreign exchange firm offers. 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. Being a mainstream platform abroad has great advantages.