| Updated: April 28, 2025While Mexico is not traditionally considered a major financial hub, the country still plays an important role in the global forex market due to its close trade relations with the United States. The Mexican peso (MXN) is a commonly traded emerging currency that accounted for roughly 1.5% ($114 billion) of daily foreign exchange turnover in 2022. While a considerable portion of peso trading takes place outside of Mexico, there has been a recent push to further develop the local onshore forex market.
Forex trading is becoming an increasingly popular activity in Mexico, with a growing number of brokers onboarding clients from the country. The Comisión Nacional Bancaria y de Valores (CNBV) oversees forex trading and the broader financial markets In Mexico, although most brokers accepting local traders are licensed in offshore jurisdictions.
Fusion Markets74-89% of retail's CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
ActivTrades72% of retail investor accounts lose money
BlackBull MarketsTrading leveraged products is risky
Pepperstone75.5% of retail investor accounts lose money
Plus50082% of retail investor accounts lose moneyOur team of experts prepared a ranking of the best forex brokers accepting customers from Mexico. We collected data across multiple parameters to create an unbiased list of recommendations that can guide you in the right direction. The team considered key aspects like pricing, software, tradable instruments, licensing, and overall reputation to single out the best Mexico-friendly brokers. More importantly, we tested each broker with a live account before recommending it to confirm it comes up to scratch.
Mexican 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. FxPro | 656 | 4.3 ⭐ |
| 8. Eightcap | 2,791 | 4.2 ⭐ |
| 9. eToro | 25,705 | 4.1 ⭐ |
| 10. Plus500 | 14,367 | 4.0 ⭐ |
Mexican 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. Plus500 | 1.2 | 1.5 | 1.5 | 1.5 |
| 6. Pepperstone | 1.00 (min) | 1.0 | 1.2 | 1.00 (min) |
| 7. Global Prime | 0.96 avg (Standard) | 1.47 avg (Standard) | 1.19 avg (Standard) | 1.12 avg (Standard) |
| 8. Eightcap | 1.00 (min) | 1.1 | 1 | 1 |
| 9. eToro | 1.0 | 1.0 | 1.5 | 2.0 |
| 10. FxPro | 0.25 | 0.38 |
| 0.37 |
Mexican 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. Plus500 | $0 |
| 6. Pepperstone | $0 (Standard Account), $7 round-turn (Razor Account) |
| 7. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 8. Eightcap | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts |
| 9. eToro | $1 or $2 (stocks only) |
| 10. FxPro | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts |
Top 10 FX Brokers in Mexico
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
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
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
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
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
eToro Broker Details Regulators FCA, CySEC, ASIC, MFSA, FSRA, FSA, FINRA/FinCEN, AMF, SEC, GFSC Min Deposit $50 or $100 based on country ($10 for the UK, $1 in the US) Trading Platforms eToro Investing, eToro App, TradingView, eToro CopyTrader, Proprietary Trustpilot Rating 4.1 out of 25,705 reviews Number of CFD Forex Pairs to Trade 55 Leverage Forex & Metals CFDs: 1:30 (1:400 advanced leverage at Seychelles entity)
Index CFDs: 1:20 (1:100 advanced leverage at Seychelles entity)
Cryptocurrencie CFDs: 1:2 (UK, CySEC, ASIC), 1:5 (Seychelles)Spread EURUSD: 1.0
USDJPY: 1.0
EURGBP: 1.5
GBPUSD: 2.0Forex Commission per Lot per Trade $1 or $2 (stocks only) Deposit Methods eToro Money, Visa, Mastercard, Neteller, PayPal, Skrill, iDeal, Klarna, Bank Transfer, Trustly, Przelewy24 Withdrawal Methods PayPal, Skrill, Visa, Mastercard, Neteller, Trustly, Bank Transfer Key Pros
- Offers trading with over 6,000 instruments
- Ideal for social and copy trading
- No commissions on forex trades
- Effortless registration process
- Offers negative balance protection
Key Cons
- Withdrawals are subject to additional processing fees ($5)
- USD is the only base account currency
- Charges inactivity fees on dormant accounts ($10 per month)
FxPro Broker Details Regulators FCA (No. 45052), CySEC (No. 078/07), SCB (No. SIA-F184), FSCA (No.45052) Min Deposit $100 Trading Platforms MetaTrader4, MetaTrader5, cTrader, FxPro Edge (proprietary), Proprietary Trustpilot Rating 4.3 out of 656 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.25
USDJPY: 0.38
EURGBP:- 0.1 (MT4)
- 1.3 (MT5)
GBPUSD: 0.37Forex Commission per Lot per Trade $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts Deposit Methods Visa, Mastercard, Maestro, Bank Transfer, Neteller, PayPal, Skrill, Union Pay Withdrawal Methods Bank Transfer, Mastercard, Visa, Union Pay, Maestro, PayPal, Skrill, Neteller Key Pros
- Over 2,100 CFDs across six asset classes
- Zero fees on deposits and withdrawals
- Floating spreads with no commissions on MT4 FX trades
- Winner of over 100 industry awards
- Fills orders within less than 13 milliseconds
Key Cons
- FX spreads are slightly higher than industry averages
- Charges maintenance fees after six months of inactivity
Is Forex Trading Legal in Mexico?
Forex trading is legal in Mexico and the country has a more lenient regulatory stance, especially when contrasted with regions like Europe and the United States. The Securities Market Law (Ley del Mercado de Valores) is the primary piece of legislation governing Mexico’s financial system, although it contains no specific provisions on forex trading regulations. Various amendments were introduced to the legislation in recent years. Said changes aim to simplify the listing process for companies seeking to trade their shares publicly on Mexican exchanges and increase the overall transparency of the financial system.
Local financial regulators have yet to introduce a specific framework for the regulation of forex brokers but still advise Mexican traders to refrain from using the services of unauthorized firms. Brokers interested in operating in the country must, respectively, obtain authorization from the Comisión Nacional Bancaria y de Valores (CNBV) and adhere to local financial laws.
Authorized brokers are expected to maintain sufficient minimum capital reserves and offer transparent trading conditions to customers from the country. With that said, many local traders prefer to do business with brokerage firms licensed in other jurisdictions as the latter offer a greater variety of tradable markets, including more currency pairs. There are no legal repercussions for traders onboarding to offshore brokers.
Forex Trading Regulators in Mexico
Two bodies oversee Mexico’s foreign exchange market, starting with the Banco de Mexico, responsible for the monetary and foreign exchange policies in the country. Established under the Banco de Mexico Law, the central bank has the mandate to determine interest rates, regulate currency issuance, and preserve the integrity of the country’s monetary system. It also maintains the stability of the local currency and is the sole issuer of the Mexican peso.
Working in conjunction with the Ministry of Finance, the central bank manages the country’s reserves of foreign currencies and gold. The peso’s value is largely determined by market conditions, geopolitics, and exchange rates since it operates under a free-floating exchange rate system. However, the central bank has the remit to intervene in exchange rates when needed to curb excessive volatility.
The Comisión Nacional Bancaria y de Valores (CNBV) monitors and regulates the operations of payment services providers, brokerage firms, stock exchanges, and other participants in the local financial market. Brokers must seek authorization from the CNBV to operate within the country. The regulator issues guidelines on proper market conduct and plays a pivotal role in protecting local traders from market abuse and other unethical practices.
When seeking authorization, brokerage firms must prove they have sufficient capital reserves to operate and fulfill their financial obligations to customers. Licensee applicants must provide estimates about their projected earnings and annual market share growth. Authorized companies must adhere to strict anti-money laundering and know-your-customer procedures.
Additionally, they must be transparent about their trading conditions, providing clear information about their fees and the financial risks associated with the services they offer. Interested firms must set up registered offices in the country and provide detailed business plans and financial statements, along with information about the qualifications of their key management personnel.
How to Identify Authorized Forex Brokers in Mexico?
Identifying authorized brokers catering to customers from Mexico is crucial if you insist on trading in a secure and transparent environment. The CNBV maintains a register of authorized entities where you can check the regulatory status of your broker. You can browse the supervised entities by category (such as brokerage houses, exchanges, derivative contract exchanges) or search the companies by name.
The list of brokers licensed in the country is quite limited, and many local traders resort to using the services of offshore firms as a result. These companies hold licenses from the authorities of the British Virgin Islands, Seychelles, Mauritius, Bermuda, and Vanuatu. We recommend you check the licensee database of the respective offshore regulator your broker claims to be licensed by to confirm its current licensing status.
While trading with an offshore broker gives Mexican customers access to better prices and a wider range of currency pairs, it may also lead to fewer protections and a lack of legal recourse when something goes wrong. Furthermore, the CNBV typically does not deal with the complaints of locals experiencing issues with offshore brokers. If the worst comes to the worst, Mexican traders should seek assistance from the respective offshore regulator to resolve disputes with their brokers.
Mexico Brokers Security
The Mexico-friendly brokers recommended on this page prioritize customer security and uphold high standards of transparency. They implement various measures to ensure optimal trading conditions and prevent traders from running up debt. Here are some of the most common policies brokers follow to protect Mexican customers and their funds.
- Client Funds Segregation: Regulated brokers accepting customers from Mexico typically keep the deposited money of their clients in segregated bank accounts and never use it for their operating activities. This is a common practice among licensed brokerage firms preventing them from using customer funds to cover their operational expenses.
- Encryptions and Firewalls: The security of clients’ personal information is a top priority. Reputable brokers rely on advanced firewalls and encryptions to safeguard sensitive customer data. This protects your financial and personal information during transmission and prevents hackers and other malicious individuals from intercepting it.
- Customer Due Diligence: Regulated brokers must perform know-your-customer (KYC) checks to confirm the identities of all onboarding clients and ensure they are who they say they are. As per CNBV requirements, the brokers must follow strict procedures to verify that new clients are not politically exposed persons or individuals linked to terrorism. This helps prevent conflict of interest, money laundering, and terrorism financing.
Price Transparency: Licensed brokerage firms must act in the best interest of their customers, providing fair and transparent price quotes. Overnight funding rates, commissions, and non-trading fees must be clearly outlined on their websites so that clients can easily calculate their expenses.
The brokers must provide information about their pricing model and sources of income (spreads, commissions, market-making). Additionally, brokerage firms undergo regular audits by approved financial auditors and report their earnings to CNBV or the respective offshore regulator overseeing their operations.
- Compensation Schemes: Apart from offering negative balance protection (more on this in the next section), the best regulated brokers in Mexico often participate in investor compensation schemes. Participating firms contribute a predetermined amount annually to the schemes to use for client remuneration in the event of insolvency. It is important to confirm whether your broker participates in one such scheme beforehand as not all offshore-regulated companies offer investor compensation.
- Risk Disclaimers for Margin Trading: Reputable brokers publish disclaimers on their websites to warn Mexican retail customers about the financial risks of trading leveraged derivatives like contracts for difference. Here is an example of one such disclaimer from the Mexico-friendly broker Tickmill: Risk Warning: Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Losses can exceed the initial investment. Please ensure you fully understand the risks and take appropriate care to manage your risk.
Negative Balance Protection at Mexico Brokers
Mexican retail traders have access to leverage when trading contracts for difference, which allows them to control larger positions with a smaller capital outlay. Larger positions translate into greater profits from successful trades. On the downside, leverage can considerably amplify your losses during periods of high market volatility. What is worse, sudden and dramatic price fluctuations can result in losses that exceed traders’ initial deposits. To prevent this from happening, regulated brokers commonly implement a mechanism known as negative balance protection.
When the account balance of a retail trader starts declining rapidly due to adverse market movements, the broker intervenes with an automatic stop-out mechanism that closes losing positions to prevent further losses. If the balance goes briefly into the red despite this stop-out mechanism, the broker will still reset the account to zero and will not hold the client liable for the excess losses. We further elaborate on how this mechanism works in the example below.
Negative Balance Protection in Action with the USD/MXN Pair
- A trader deposits $1,000 into their live account and places a sell order for the USD/MXN pair with 1:100 leverage, effectively controlling a position worth $100,000 or one standard lot. One dollar is equal to 17.00 pesos according to the current exchange rates.
- The peso suddenly strengthens against the dollar due to unexpected economic news, causing the trader’s position in the pair to decline rapidly. One dollar is now equal to 16.90 pesos and the trader’s balance declines by $592 to $408.
- The peso continues to strengthen as its price against the dollar reaches $16.80 shortly after. This is bad news for the trader as their balance drops by another $592 and is now in the red zone at -$184.
- On the bright side, the broker resets the account to $0 rather than holding the customer liable for the $184 they essentially owe. Had this not been the case, the trader would have suffered further losses if the peso continued to strengthen against the dollar.
There are multiple benefits to negative balance protection. The mechanism promotes responsible trading, mitigates risk by providing a safety net against crippling losses, and enables customers to trade with greater confidence. With that said, professional traders from Mexico or elsewhere are typically ineligible for negative balance protection under the assumption they are experienced and knowledgeable enough to manage their risk exposure.
Taxes on Forex Trading in Mexico
As is the case in many other countries, profits derived from trading activities are considered taxable income in Mexico. The country has adopted a progressive income tax system, which basically means tax rates increase proportionally to your income. The more you earn, the higher taxes you pay. Residents must file their tax returns by the end of April with the local revenue service, Servicio de Administración Tributaria (SAT).
The country has eleven income tax brackets as you can see in the table below, with tax rates fluctuating between 1.92% and 35% for residents of the country. Foreign nationals living in Mexico are subject to different tax rates, ranging from 15% to 30%. It is worth mentioning that the first MX$125,900 of the profits is exempt from taxation for non-residents, who also pay withholding taxes of up to 35% on income derived from Mexican sources.
| Income Brackets and Tax Rates in Mexico for 2025 | |
|---|---|
| Tax Bracket | Tax Rate Percentage |
| MX$0.01 to MX$8,952.49 | 1.92% |
| MX$8,952.50 to MX$75,984.55 | 6.40% |
| MX$75,984.56 to MX$133,536.07 | 10.88% |
| MX$133,536.08 to MX$155,229.80 | 16.00% |
| MX$155,229.81 to MX$185,852.57 | 17.92% |
| MX$185,852.58 to MX$374,837.88 | 21.36% |
| MX$374,837.89 to MX$590,795.99 | 23.52% |
| MX$590,796.00 to MX$1,127,926.84 | 30.00% |
| MX$1,127,926.85 to MX$1,503,902.46 | 32.00% |
| MX$1,503,902.47 to MX$4,511,707.37 | 34.00% |
| MX$4,511,707.38 or higher | 35.00% |
Leverage Comparison at Locally Regulated and Offshore Brokers
As we mentioned briefly, forex brokers welcoming traders from Mexico facilitate margin trading with leverage. Leverage enables customers to open larger positions in currency pairs with a relatively small capital outlay. It essentially involves using capital borrowed from the broker to increase your market exposure and potentially amplify your profits from successful trades. Leverage is commonly presented as a ratio, for example, 1:50, 1:100, or 1:500.
A ratio of 1:50 means you can control $50 in a given currency pair for every $1 of your own capital. Mexican customers must typically deposit a certain amount (margin) as collateral to become eligible for using a specific leverage ratio. If their balance drops below the margin required to maintain their leveraged positions open, the broker sends a margin call or automatically closes the positions.
Let’s assume you want to open a position of one standard lot ($100,000) in USD/MXN, which currently trades at a rate of US$ 1 for MX$17. You must deposit $2,000 ($100,000 / 50) to use leverage of 1:50. If the price increases to MX$17.10, or MX$0.10 per dollar, your profits will amount to 0.10 / 17.10 x 100,000 = 0.005847 x 100,0000 = $584.70. However, if the price decreases by MX$0.10 to MX$16.90, you will suffer losses of 0.10 / 16.90 x 100,000 = 0.005917 = $591.72.
Unlike other financial regulators, CNBV does not impose specific restrictions on the maximum leverage brokers can offer to retail traders from Mexico. This is not the case in Europe and Australia where financial watchdogs prohibit licensed brokers from offering leverage higher than 1:30 to retail forex traders.
As we previously mentioned, many locals prefer to trade with offshore brokers where significantly higher leverage ratios are available to retail clients. The maximums depend on where you trade, but ratios commonly reach 1:500, 1:1000, and even 1:3000 in rare cases. The table below compares the maximum leverage ratios at three offshore brokers accepting Mexican customers with licenses from the Seychelles, Belize, and Vanuatu.
| Maximum Leverage at FX Offshore Brokers Accepting Mexican Traders | |||
|---|---|---|---|
| Asset Class | Tickmill (Seychelles) | XTB (Belize) | Fusion Markets (Vanuatu) |
| Major FX Pairs | 1:1000 | 1:200 | 1:500 |
| Gold | 1:1000 | 1:200 | 1:500 |
| Other Commodities | 1:100 | 1:67 | 1:100 |
| Indices | 1:100 | 1:200 | 1:100 |
| Shares | N/A | N/A | 1:20 |
| Cryptocurrencies | 1:200 | N/A | 1:10 |
Professional Trader Requirements in Mexico
Mexico’s regulatory framework does not distinguish between retail and professional traders, as is also the case in offshore jurisdictions like the Seychelles and Vanuatu. Mexican traders registered with offshore brokers have access to high leverage regardless of their experience level and expertise. Depending on their policies, brokers licensed by foreign regulators like Australia’s ASIC may sometimes onboard clients from Mexico.
Such brokers often classify customers as retail or professional traders. The latter can use considerably higher leverage than the former, although customers must satisfy certain criteria to qualify for professional trading accounts. One common requirement stipulates customers must have a substantial asset portfolio to qualify as professionals, usually at least $500,000.
Another requirement is to have at least one or two years of professional experience in the financial industry. Last but not least, traders should have a minimum of 10 to 20 large-volume trades per quarter. The exact conditions vary from broker to broker, but customers typically must cover at least two of the three criteria to qualify.
Trading Platforms at Mexico Brokers
When selecting a forex broker, Mexican traders should look up the platforms it supports, as these are crucial for their overall trading experience. Some factors that can influence your choice of a broker include usability, mobile compatibility, access to advanced charting tools, and language support. Most brokers doing business with customers from the country work with MetaTrader 4 (MT4) and/or MetaTrader 5 (MT5).
MT4 and MT5 are exceptionally popular worldwide, and Mexico is no exception. MT4 offers nine different timeframes, 30 built-in technician indicators, and multiple chart types, including candlesticks, bars, and lines. Users can additionally create custom indicators in the MQL4 coding language. The platform offers 31 graphical objects and facilitates automated trading through Expert Advisors.
MT5 is the more advanced version of the software, boasting a wider range of supported assets, including forex, cryptocurrencies, stocks, indices, commodities, and futures. The platform offers more tools for technical analysis, including 21 timeframes, 38 built-in technical indicators, and 44 graphical objects. The Depth of Market (DOM) feature delivers valuable insights into order flow and market liquidity.
The built-in economic calendar provides real-time information on major economic events that can influence forex prices. The platform relies on MQL5, a more complex yet efficient programming language that enables you to create better strategies and indicators for automated trading. Both platforms are compatible with mobile devices and support Spanish.
TradingView is becoming increasingly popular among Mexican traders as it facilitates social trading, allowing users to share their trading ideas, strategies, and analyses with other community members. The platform retains its usability despite being overloaded with features, including over 110 drawing tools, 400 built-in technical indicators, and tens of thousands of custom indicators. Users will also benefit from Bar Replay, a great feature that allows them to replay past price fluctuations over specific periods. TradingView is available in Spanish and 18 other languages.
Feel free to check the sources below if interested in learning more about forex trading regulations in Mexico. There you will find more detailed information about Mexico’s regulatory framework and the regulatory requirements in offshore jurisdictions like Seychelles, Vanuatu, and Belize.
- The CNBV (Comisión Nacional Bancaria y de Valores) oversees all financial institutions in the country, including brokerage firms. The watchdog observes for proper market conduct, provides guidelines on regulatory compliance, and protects local consumers from unethical practices. The website is available in English and Spanish.
- The CNBV database contains information about all financial institutions and brokers authorized to operate in the country. You can look up the companies by name or browse them by category.
- Visit the official website of Mexico’s Tax Administration Service (SAT) for further information on taxation, income brackets, and tax filing procedures.
- File complaints and report acts of corruption or administrative misconduct on behalf of licensed brokerage firms and other financial companies on the official CNBV complaints page.
- Stay abreast of the latest regulatory decisions and announcements by following the CNBV on social platforms like Facebook, X, Instagram, and YouTube.
- Visit the official websites of the financial regulators of Vanuatu, Belize, Seychelles, the Bahamas, and the British Virgin Islands to learn more about the regulatory requirements imposed on offshore brokers catering to traders from Mexico.