| Updated: April 28, 2025If you need help locating the best Forex brokers operating in Colombia, there is no need to look further. Our team of experts has done the work of analyzing several online brokers and has selected the top brands that cater to the needs of Colombian traders. Our team has thoroughly tested each broker on our list, using real money to place orders and fully evaluating the trading conditions that each pick on our page offers to its clients from Colombia. The official body responsible for the regulation of the Forex sector in the country falls under the remit of the Financial Superintendence of Colombia (Superintendencia Financiera de Colombia, SFC). If you want to learn more about the regulator, you can visit its official website at www.superfinanciera.gov.co. Additionally, you can keep up with the latest SFC news and updates by following the authority on X by searching for the @SFCsupervisor handle.
Fusion Markets74-89% of retail's CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
ActivTrades73% of retail investor accounts lose money
BlackBull MarketsTrading leveraged products is risky
Pepperstone75.5% of retail investor accounts lose money
Eightcap81.96% of retail investor accounts lose money when trading CFDs with this provider.Colombian Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. FP Markets | 7,360 | 4.8 ⭐ |
| 2. BlackBull Markets | 1,063 | 4.8 ⭐ |
| 3. ActivTrades | 1,360 | 4.6 ⭐ |
| 4. Fusion Markets | 1,977 | 4.5 ⭐ |
| 5. Pepperstone | 2,901 | 4.5 ⭐ |
| 6. Global Prime | 171 | 4.5 ⭐ |
| 7. Eightcap | 2,791 | 4.2 ⭐ |
| 8. CMC Markets | 2,133 | 4.1 ⭐ |
| 9. Plus500 | 14,367 | 4.0 ⭐ |
| 10. IG | 7,393 | 3.9 ⭐ |
Colombian Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Fusion Markets | 0.93 avg (Classic) | 1.7 avg (Classic) | 1.09 avg (Classic) | 1 avg (Classic) |
| 2. FP Markets | 1.1 | 0.30 | 0.20 | 1.2 |
| 3. ActivTrades | 0.50 | 0.50 | 0.80 | 0.80 |
| 4. BlackBull Markets | 0.1 | 0.2 | 0.7 | 0.4 |
| 5. Pepperstone | 1.00 (min) | 1.0 | 1.2 | 1.00 (min) |
| 6. Plus500 | 1.2 | 1.5 | 1.5 | 1.5 |
| 7. IG | 0.86 av.spread | 0.97 av.spread | 1.83 av. spread | 1.84 av.spread |
| 8. Global Prime | 0.96 avg (Standard) | 1.47 avg (Standard) | 1.19 avg (Standard) | 1.12 avg (Standard) |
| 9. CMC Markets | 0.5 | 0.7 | 0.8 | 0.9 |
| 10. Eightcap | 1.00 (min) | 1.1 | 1 | 1 |
Colombian Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 2. FP Markets | $0 Standard Account; $6 round turn on Pro Account |
| 3. ActivTrades | $0 |
| 4. BlackBull Markets | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| 5. Pepperstone | $0 (Standard Account), $7 round-turn (Razor Account) |
| 6. Plus500 | $0 |
| 7. IG | $0 |
| 8. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 9. CMC Markets | $0.02 per share with a $10 minimum for US shares; 0.10% for other shares with a €/£9 minimum |
| 10. Eightcap | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts |
Top 10 FX Brokers in Colombia
Fusion Markets Broker Details Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView Trustpilot Rating 4.5 out of 1,977 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencie CFDs: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 0.93 avg (Classic)
USDJPY: 1.7 avg (Classic)
EURGBP: 1.09 avg (Classic)
GBPUSD: 1 avg (Classic)Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, MiFinity Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, DragonPay Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
- Has no FCA license
FP Markets Broker Details Regulators ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines) Min Deposit $50 (AU$100) Trading Platforms MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView Trustpilot Rating 4.8 out of 7,360 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: Up to 1:2 (Retail); Up to 1:5 (Pro)Spread EURUSD: 1.1
USDJPY: 0.30
EURGBP: 0.20
GBPUSD: 1.2Forex Commission per Lot per Trade $0 Standard Account; $6 round turn on Pro Account Deposit Methods Visa, Mastercard, Neteller, Bank Transfer, Skill, Sticpay, Fasapay, Virtual Pay, Perfect Money, Pagsmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker to Broker, PayPal, XPay, Rapyd Withdrawal Methods Visa, Mastercard, Bank Wire, Neteller, Skrill, Paytrust88, PayPal Key Pros
- Offers plenty of educational trading tools
- Broker with competitive spreads
- Allows easy trading on the go
- Regulated by reputable authorities
- Offers a decent number of currency pairs
Key Cons
- Supported trading platforms are a tad outdated
- Could expand selection of products
- No negative balance and investor protection for clients under ASIC
ActivTrades Broker Details Regulators FCA (UK), CMVM (Portugal), CVM (Brazil), SCB (Bahamas), FSC (Mauritius) Min Deposit $0 Trading Platforms Activtrader, TradingView, MT4, MT5 Trustpilot Rating 4.6 out of 1,360 reviews Number of CFD Forex Pairs to Trade 54 Leverage Forex & Metals CFDs: 1:30 (1:400 Bahamas)
Index CFDs: 1:20 (1:200 Bahamas)
Cryptocurrencie CFDs: 1:2 (1:20 Bahamas)Spread EURUSD: 0.50
USDJPY: 0.50
EURGBP: 0.80
GBPUSD: 0.80Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, PayPal, Apple Pay, Google Pay, Skrill, Neteller, Bank Transfer Withdrawal Methods Visa, Mastercard, PayPal, Skrill, Neteller, Bank Transfer Key Pros
- Holds an FCA license since 2009
- Safeguards all traders with negative balance protection
- Stores customer funds at first-tier banks like Barclays and Lloyd’s
- Supports free PayPal deposits and withdrawals
Key Cons
- Additional fees on deposits with cards
- Charges administrative fees after 50 weeks of inactivity
BlackBull Markets Broker Details Regulators SFSA (No. SD045), FMA (No. FSP403326), FSA Min Deposit $0 (Standard)$2,000 (Prime)$20,000 (Institutional) Trading Platforms MetaTrader4, MetaTrader5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade, BlackBull Invest, ZuluTrade Trustpilot Rating 4.8 out of 1,063 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:500
Index CFDs: 1:500
Cryptocurrencie CFDs: 1:500Spread EURUSD: 0.1
USDJPY: 0.2
EURGBP: 0.7
GBPUSD: 0.4Forex Commission per Lot per Trade $0 Standard; $6 per lot Prime; $4 per lot Institutional Deposit Methods Visa, Mastercard, Neteller, Airtm, Skrill, Bank Transfer, HexoPay, American Express, POLi, Payment Asia, Help2Pay, FXPay, Fasapay, China Union Pay, Boleto, AstroPay, Beeteller, Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Chainlink, USD Coin, Stellar Withdrawal Methods Visa, Mastercard, Bank Transfer, Airtm, Skrill, Neteller, American Express, POLi, HexoPay, Payment Asia, Help2Pay, FXPay, China Union Pay, Boleto, Fasapay, Beeteller, AstroPay, Bitcoin, Litecoin, Bitcoin Cash, Tether, Ripple, Stellar, Chainlink, Ethereum, USD Coin Key Pros
- Uses proprietary copy-trading platform
- Swap-free trading via ECN Standard and Prime accounts
- Multi-platform support
- Provides a 24/7 customer support service
- Great Education Hub for traders looking to hone their skills
Key Cons
- High commissions per lot on Prime and Institutional accounts
- Charges a $5 fee on withdrawals
Pepperstone Broker Details Regulators UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA, SCB (Bahamas) Min Deposit $0 Trading Platforms TradingView, MetaTrader4, MetaTrader5 Trustpilot Rating 4.5 out of 2,901 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.0
EURGBP: 1.2
GBPUSD: 1.00 (min)Forex Commission per Lot per Trade $0 (Standard Account), $7 round-turn (Razor Account) Deposit Methods Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill Withdrawal Methods Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill Key Pros
- Winner of multiple industry awards
- Commission-free FX trades via standard accounts
- Over 1,200 instruments across all major asset classes
- Competitive spreads on FX trades via Razor accounts
- Seamless withdrawals within 1 to 3 workdays
Key Cons
- A somewhat limited range of deposit and withdrawal options
- High swap rates on overnight positions
Plus500 Broker Details Regulators FSA (No.4.1-1/18), FCA (No. FRN 509909), CySEC (No.250/14), FMA (No.47546), SFSA (No. SD039), MAS (No. CMS100648), DFSA (No. F005651), ASIC (No. 417727), BaFin registration, SCB (SIA-F250) Min Deposit $100 Trading Platforms Proprietary, desktop and mobile platforms Trustpilot Rating 4.0 out of 14,367 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2 (1:5 via FSA)Spread EURUSD: 1.2
USDJPY: 1.5
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Deposit Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Withdrawal Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Key Pros
- Trades publicly on the London Stock Exchange
- Commission-free CFD trading with tight spreads
- Great selection of analytical tools and educational materials
- Easy and quick account opening
- Provides real-time quotes
Key Cons
- Charges administrative fees on inactive accounts
- The platform could use more customization features
IG Broker Details Regulators ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, BMA (Bermuda) Min Deposit $0 Trading Platforms MetaTrader4, L2 Dealer, ProRealTime, IG proprietary software, TradingView, Proprietary Trustpilot Rating 3.9 out of 7,393 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.86 av.spread
USDJPY: 0.97 av.spread
EURGBP: 1.83 av. spread
GBPUSD: 1.84 av.spreadForex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bank Transfer, Wire Transfer, Visa Electron, Discover, PayPal, Apple Pay, BPAY Withdrawal Methods Visa, Visa Electron, Mastercard, Discover, Bank Transfer Key Pros
- Towering selection of over 17,000 tradable markets
- Listed on the FTSE 250 index
- Competitive pricing and low forex spreads
- No fees on deposits or withdrawals
- Demo accounts for risk-free forex trading practice
Key Cons
- Payment options are a bit limited
- Customer support is slow to respond during busy hours
Global Prime Broker Details Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MetaTrader4, MT4 Webtrader, MT4 Android, GP Copy Trustpilot Rating 4.5 out of 171 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencie CFDs: Up to 1:2 (ASIC); Up to 1:5 (Pro and VFSC)Spread EURUSD: 0.96 avg (Standard)
USDJPY: 1.47 avg (Standard)
EURGBP: 1.19 avg (Standard)
GBPUSD: 1.12 avg (Standard)Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
CMC Markets Broker Details Regulators ASIC, MAS, FCA, BaFin, CIRO Min Deposit $0 Trading Platforms Proprietary, Next Generation (proprietary), MetaTrader4 Trustpilot Rating 4.1 out of 2,133 reviews Number of CFD Forex Pairs to Trade 330+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.5
USDJPY: 0.7
EURGBP: 0.8
GBPUSD: 0.9Forex Commission per Lot per Trade $0.02 per share with a $10 minimum for US shares; 0.10% for other shares with a €/£9 minimum Deposit Methods Visa, Mastercard, Maestro, Online Banking, Bank Transfer, PayPal, PayID, Online Bill Payment, PayNow, Inward Telegraphic Transfer, Checks Withdrawal Methods Visa, Mastercard, PayPal, Bank Transfer, Electronic Funds Transfer (EFT) Key Pros
- A reputable brand publicly listed on the LSE
- One of the first online forex brokers
- Covers an extensive selection of currency pairs (330+)
- Offers a proprietary trading platform (Next Generation)
- Enables smooth mobile trading
Key Cons
- Automated trading available only on MetaTrader4
- Fees on stock CFDs can be high
- Supports a limited number of withdrawal methods
Eightcap Broker Details Regulators SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296) Min Deposit $100 Trading Platforms MetaTrader4, MetaTrader5, WebTrader, TradingView, Capitalise.ai, FlashTrader Trustpilot Rating 4.2 out of 2,791 reviews Number of CFD Forex Pairs to Trade 50+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.1
EURGBP: 1
GBPUSD: 1Forex Commission per Lot per Trade $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix, UnionPay Withdrawal Methods Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac, UnionPay Key Pros
- Commission-free FX trading via standard accounts
- Spreads from 0 pips on major currency pairs
- Accepts cryptocurrency deposits
- Fantastic variety of deposit and withdrawal methods
- Insights section with webinars, trade ideas, and weekly forecasts
Key Cons
- Below-average range of tradable instruments
- Crypto withdrawals incur transaction fees
Is Forex Trading Legal in Colombia?
Before we get any deeper into the topic of Forex trading in Colombia, we must start by covering the legality of this type of financial activity on the territory of the Latin American country. Forex trading falls under the list of financial services that are legal in Colombia and are regulated by the Financial Superintendence of Colombia (officially abbreviated SFC). The local regulator ensures the stability of the financial sector in Colombia and protects all actors involved in the provision and use of financial services, including Forex trading.
To operate legally in Colombia, online brokers must be regulated and comply with financial regulations imposed by the SFC. Authorization from the local regulator is received only after online brokers meet certain criteria and prove they are ready to comply with the SFC regulatory guidelines. Since the SFC is responsible for the stability of the financial sector in Colombia, it creates fair competition for both local and offshore brokerages that wish to cater to Colombian traders.
The current regulatory framework in Colombia has not imposed any restraints on trading with offshore brokers. However, it is recommended that Colombian traders register and trade real money only with brokers that have been authorized and regulated by reputable offshore authorities such as the FCA, ASIC, or CySEC, to name a few. Compliance with Colombian laws and financial service regulations is also required, ensuring protection for traders and a fair and transparent trading environment for brokers to operate in.
SFC Regulation Info
As already mentioned, online Forex brokers who wish to launch their operations in Colombia are required to get permission from the local regulator, the SFC. The main piece of legislation that highlights the regulatory duties of this authority as well as outlines the guidelines for safe, fair, and transparent operations of financial organizations in Colombia is Decree 2555 of 2010.
In order to receive permission to operate from the SFC, Forex brokers are required to fulfill several conditions that show their willingness to comply with regulatory guidelines, ensuring a fair and secure trading environment for Colombian traders.
While licensing of Forex operators in Colombia is one of the responsibilities of SFC, the regulator is also continuously monitoring the operations of regulated entities, ensuring they are compliant with AML (anti-money laundering) guidelines and offer proper investor protection to Colombian traders.
In addition to AML compliance, to be eligible to operate in Colombia, Forex brokers must meet a list of additional criteria to prove they are eligible to operate in the Latin American country. During the license application process, brokers must meet a minimum operational capital requirement to ensure they are capable of offering financial services in the country. The exact minimum capital depends on the scope of operations carried out by the broker.
Transparency, risk management, and funds segregation are also some of the criteria Colombian Forex brokers are asked to meet to receive the SFC stamp of approval. It is important to note that the Colombian regulator has the authority to impose financial fines as well as to revoke licenses and permissions if brokers fail to meet SFC compliance requirements.
Provided brokers have submitted the correct documents and have shown compliance with the SFC registration requirements, the regulator has four months to review and approve a license application.
How Can Colombian Traders Verify SFC Authorization?
While the number of well-known and reputable brokers licensed by the SFC is still very small, more brands are looking to expand their presence in the LATAM regions, which is why it is useful to know how you can confirm an SFC authorization.
Forex brokers are required to be fully transparent with their customers, so you should start by checking the official website of the broker of your choice and looking for any official information about the licenses and permissions issued to the respective brand. While some brokers provide links that can directly take you to the official register of the respective regulators, others simply provide the registration number of the license they have received.
We also recommend visiting the official website of the SFC to confirm whether a brokerage company has been registered with the regulator and holds a valid license issued by the Colombian regulator. You can look up the register on the official website of the SFC regulator. Additionally, you can find more information on securities brokers in the section dedicated to the Registro Nacional de Agentes del Mercado de Valores (RNAMV), which translates to the National Registry of Securities Market Agents.
Are Colombian Traders’ Funds Safe with Forex Brokers Operating in Colombia?
The safety of Colombian traders and their funds depends on the integrity and regulatory compliance of the broker they have joined. Forex brokers regulated by the SFC are required to abide by strict AML and risk-management rules. These include mandatory Know Your Customer (KYC) check-ups as well as the implementation of investor protection tools like negative balance protection and compensation schemes. Such a safety net can also be secured by offshore brokers who have obtained licenses from ASIC, FCA, CySEC, or other reputable regulators.
Fund segregation is also a compliance step that Colombian Forex brokers must take toward regulated operations in the Latin American country. That ensures traders’ money is kept in a separate bank account, protecting clients’ funds in case of the company’s insolvency.
We recommend Colombian traders opt for Forex brokers who have either received approval to operate from the SFC or have been licensed by tier-1 offshore regulators. That way, they can be certain they will have access to proper customer protection tools and risk-assessment instruments.
Do Colombian Brokers Provide Negative Balance Protection?
Since the majority of Colombian Forex traders are resorting to trading with offshore brokers, it is important to note that the availability of negative balance protection depends on the rules in the jurisdictions that regulate these brokers. We can say for certain that brokerages operating under the regulations of entities like the FCA, ASIC, CySEC, and many tier-1 regulators within the EU are most definitely offering mandatory negative balance protection.
It is worth noting that negative balance protection is often available only to retail customers as these are typically traders who have a lower tolerance towards high-risk trades. If Colombian traders apply for a professional account with an offshore broker, they might be asked to give up this additional balance protection, meaning they can potentially lose more than the amount available in their trading balances.
Colombian traders who wish to take advantage of negative balance protection will have to verify the respective broker’s policies and confirm whether they can add this additional layer of funds protection to their trading accounts.
Are Colombian Traders Required to Pay Tax on Forex Trading Income?
It is important to know if you are required to pay a capital gains (CG) tax if you have generated an income from trading Forex as a resident of Colombia. The country has a complex taxation system and there are quite a few specifics that Colombian traders must consider when determining whether their Forex trades are taxable.
While Colombians are required to pay a 15% CG tax on the sale of assets like shares, bonds, and others, the income from the sale is subject to a CG tax only if investors have held the said assets for two or more years. In that case, it can be concluded that Colombian Forex traders who are typically speculating on the price of a currency pair without actually holding any asset are not subjected to a CG tax.
We advise Colombian traders to consult a local tax specialist to make sure they are well informed about the current taxation system within their jurisdiction.
How Does Leverage Available at Colombian Brokers Compare to Leverage at Brokers Regulated Offshore?
Offshore online brokers are the predominant option for Forex trading in Colombia. That makes for rather vague rules on the maximum leverage available to Colombian traders. At the moment of writing this review, there are no specific rules introduced by the Colombian regulators when it comes to leverage offered to retail traders. That leads us to the conclusion that the cap on leverage that Colombian Forex traders may face will depend on the jurisdiction regulating the offshore broker they have joined.
It is important to highlight the perks and weaknesses of using leverage when trading Forex. While leveraged positions allow traders to use smaller amounts for bigger orders, this instrument can also lead to faster and bigger losses whenever trades are unsuccessful. That is why jurisdictions like the CySEC (Cyprus), ASIC (Australia), FCA (UK), and many European regulators, have imposed leverage limits on Forex and CFD instruments.
If Colombian traders decide to join offshore brokers regulated by any of the aforementioned regulators, then they will have a leverage cap of 1:30 on major currency pairs and 1:20 on minor pairs. The only way to access higher leverage ratios with entities regulated in Europe or Australia is to open a professional account.
While the leverage ratio in jurisdictions such as the UK, Australia, and many EU regions may seem rather low, Asian regulators seem to be even stricter with the leverage offered to retail traders. South Korean and Japanese brokers have reduced the leverage available to Forex traders to 1:10 and even 1:5 in some cases.
While the CFTC is also strictly regulating the Forex trading sector in the US, brokers who have been authorized to provide trading services to US traders may offer leverage of up to 1:50. Nevertheless, it is up to brokers to decide whether they will impose lower mandatory limits to protect traders from the risks that come along with higher leverage.
It is also worth noting that regulators like the FSC (British Virgin Islands), FSA (Seychelles), and FSCA (South Africa) offer significantly higher leverage ratios to Forex traders. Many brokers operating under licenses issued by these regulators may offer their customer leverage up to 1:200, 1:500, 1:1000, or even higher. While the opportunity to open much larger positions with higher leverage may sound tempting, we advise Colombian traders to be careful whenever choosing foreign brokers for their Forex trading sessions. Access to higher leverage significantly increases the risk of losing larger amounts in a rapid manner, making this type of trading lees suitable for low-volume and less experienced traders.
Professional Trading Account Requirements in Colombia
As already covered above, depending on the regulatory requirements, offshore brokers may impose leverage limits on retail Colombian traders. These restrictions are introduced by a number of regulatory bodies as a protective measure that reduces the risk associated with high-leverage trading. However, high-volume traders would rarely appreciate such caps, which is why many brokers offer their clients the professional account option.
Professional accounts give access to higher leverage ratios on Forex pairs and other tradable instruments offered by the respective broker. However, traders are typically asked to meet a couple of criteria to qualify for professional trading accounts.
Typically conditions for professional account qualification involve traders’ experience, knowledge, and financial stability for higher-volume trades. Regulators like CySEC require at least 1 year of work experience in a relevant position in the financial sector, a portfolio with financial instruments worth at least €500,000, and a large trading activity in the last year. In most cases, you need to meet only two of the full set of requirements for a professional account. Below, you can see the professional account criteria across brokers regulated in different jurisdictions.
| Common Professional Account Requirements | |||
|---|---|---|---|
| Regulator | CySEC (Cyprus) | ASIC (Australia) | FCA (United Kingdom) |
| Criteria Overview | Traders must meet at least two of the following three criteria: | Traders must meet at least two of the following three criteria: | Traders must meet at least two of the following three criteria: |
| Sufficient Trading Activity | Average of 10 significant transactions per quarter over the previous four quarters. | Average of 20 large-volume trades per quarter; notional volume of AU$1,000,000 per 4 quarters in the last 2 years | Average of 10 significant transactions per quarter over the previous four quarters. |
| Financial Instrument Portfolio Size | Financial instrument portfolio exceeding €500,000. | Net assets of at least AU$ 2.5 million/ gross income of AU$250,000 per annum | Financial instrument portfolio exceeding €500,000. |
| Relevant Professional Experience | Work experience in the financial sector for at least one year, in a professional position requiring knowledge of the transactions or services 1 envisaged. | Work experience in the financial sector for at least one year, in a professional position requiring knowledge of the transactions or services 2 envisaged. | Work experience in the financial sector for at least one year, in a professional position requiring knowledge of the transactions or services 3 envisaged. |
Trading Platforms Available to Colombian Traders
Since offshore brokers are the main providers of Forex services for Colombians, traders from this Latin American country tend to have access to various trading conditions, which also include different trading platforms. While some offshore brokers offer their clients in-house trading platforms, we would like to list several common third-party trading software solutions that Colombian traders may resort to for their Forex trades:
MetaTrader 4 (MT4): Being one of the first trading platforms adopted by the majority of global Forex brokers, today, MT4 is still largely used by traders from different parts of the world. The platform is adopted by numerous Forex brokers catering to Colombian traders, offering a number of order types, a user-friendly design, access to different analytical tools, and even smooth integration of EAs for algorithmic trading.
MetaTrader 5 (MT5): Known for being the optimized version of MT4, MT5 still introduces seamless market analysis, a wide range of order types, and more advanced charting tools. Easy to use across multiple devices, MT5 is adopted by a number of Colombia-friendly Forex brokers. Algorithmic trading and better risk-assessment tools are some of the perks of the platform.
cTrader: Suitable for more experienced traders, cTrader is an innovative trading software that grants access to advanced charting instruments, including technical indicators and drawing tools. The Level 2 Pricing model allows traders to view the full range of prices offered directly from liquidity providers. Running automated trading bots is also one of the great features of cTrader, allowing Colombian traders to engage in smooth algorithmic trading.
TradingView: Adopted by a growing number of reputable brokers, TradingView is also a platform available to Colombian Forex traders. Offering an array of customizable charts, including drawing tools, TradingView allows accessible in-depth market analysis. Social trading is also one of the perks of this trading platform that many Colombian traders might appreciate as it enables an improved learning experience while communicating with fellow traders.
Below, we have provided links to official organizations that regulate the Forex market in Colombia and maintain a transparent and secure trading environment for all actors in the local Forex scene. Additionally, you can see links for official authorities regulating reputable offshore brokers that may also cater to Colombian traders:
- Superintendencia Financiera de Colombia (SFC) – the official financial services regulator in Colombia, responsible for the regulation of Forex brokers operating in the Latin American country.
- RNAMV – Official register of securities brokers authorized to operate in Colombia
- BVIFSC – Financial Service Commission of British Virgin Islands, one of the authorities regulating many offshore brokers welcoming Colombian traders.
- FSA (Seychelles) – Offshore brokers regulated by the Financial Services Authority of Seychelles are also commonly catering to Colombian traders.