How to succeed in the Chinese FX market – an insiders point of view

China has rapidly become one of the “must go to” markets for many brokers in our industry. From being a great blue ocean market for the first moving brokers 8-10 years ago, it’s become a fiercely competitive space with foreign and domestic actors fighting for market share, yet despite this we still see new players entering the market every day.

So is the Chinese market still attractive to enter? What does it take to succeed there, and what should be expected? There is obviously no clear answer to these questions, but I’ll share some of my experiences and opinions on the market over the next few weeks in this blog.

At the core of everything is trust – or lack thereof. The Chinese market is overall still an immature market, where the bulk share of end-clients trade with little previous experience, and as a result you hear many examples of brokers, foreign and domestic, who take advantage of this fact with aggressive tactics and the clients ending up as the loser. This has emphasized an already strong mistrust towards foreign financial institutions, and the misdealings of certain actors has unfortunately hurt the entire industry’s credibility.

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