Preface

CONTENT

• Part I Overview of the Thai Financial Market

  1.1 Overview of the Thai Financial Market

  1.1.1 Development and Exchange Rate of the Thai Baht

  1.1.2 Overall Financial Environment in Thailand

  1.1.3 Overall Economic Environment in Thailand

  1.1.4 Overall Social Environment in Thailand

  1.1.5 Overall Technological Environment in Thailand

  1.1.6 Development Environment: Regional Economy

• Part II Current Development of Brokers in the Thai Forex Margin Industry

  2.1 Landscape of FX Brokers in Thailand

  2.1.1 Investment Products in Thailand’s Forex Margin Industry

  2.1.2 Risk Appetite in Thailand’s Forex Margin Industry

  2.1.3 Trading Tools in Thailand’s Forex Margin Industry

  2.2 Current Status of Cryptocurrencies in Thailand

  2.2.1 Continuous Growth of Cryptocurrency Users in Thailand

  2.2.2 Young Males are the Main Force in Cryptocurrency Investment

  2.2.3 Regulatory Development of Thailand’s Cryptocurrency Industry

  2.2.4 Brokers’ Views on Cryptocurrencies

  2.3 Business and Development Status of Forex Brokers in Thailand

  2.3.1 Market Promotion by Forex Brokers in Thailand

  2.3.2 Comparison of Local and International Brokers

• Part III Thai Forex Margin Investor Research

  3.1 Description of Survey Participants

  3.2 Age Distribution of Thai Forex Investors

  3.3 Leverage Usage Habit of Thai Forex Investors

  3.4 Trading Frequency of Thai Forex Investors

  3.5 Investment Behavior of Thai Forex Investors

  3.6 Investment Amount Scale and Profitability of Thai Forex Investors

  3.7 Attitude of Thai Forex Investors towards Brokers

  3.8 Main Factors for Thai Forex Investors in Choosing Brokers

  3.11 Attitude of Thai Forex Investors towards Investment Scams

  3.12 Risk Events for Thai Forex Margin Investors

• Part IV Outlook of the Thai Forex Margin Trading Industry

  4.2 Changing Potential Users’ Perception of Forex to Improve Conversion Rate

  4.3 Impact and Opportunities Brought by the Vast Cryptocurrency Market

  4.4 Advertising and Distribution on Video Media Platforms May Yield Unexpected Results

Part I Overview of the Thai Financial Market

• 1.1 Overview of the Thai Financial Market

• 1.1.1 Development and Exchange Rate of the Thai Baht

  The Thai Baht (THB), as the official currency of Thailand, has its basic unit as “Baht” and is commonly abbreviated as “THB.” The development and exchange rate of the Thai Baht are closely related to the Thai economy. During the Asian financial crisis in 1997, the Thai Baht experienced severe depreciation, leading Thailand to shift from a fixed exchange rate system to a floating exchange rate system, which enhanced its adaptability to fluctuations in the international market. This shift allowed the Baht to respond more flexibly to changes in major currencies, such as the US Dollar.

• 1.1.2 Overall Financial Environment in Thailand

  Thai banks announced a series of interest rate adjustment measures on April 30, 2024, to support small and medium-sized enterprises and the general public in reducing loan and living burdens. The Thai Bankers’ Association (TBA) reduced the six-month loan rate by 0.25%, effective from May 1, 2024. Subsequently, several banks in Thailand, including the Export-Import Bank of Thailand, the Government Housing Bank, Small Business Credit Guarantee Corporation, Agricultural Cooperatives Bank, Bangkok Bank, and Government Savings Bank, followed suit to lower their interest rates involving housing loans and other loan products.

  After the Asian financial crisis in 1997, the financial investment and wealth management environment in Thailand, as well as the investment behavior of its people, underwent significant changes. Prior to the crisis, Thailand experienced rapid economic growth, and people were optimistic about investment. However, inadequate regulation and the overvaluation of the Thai Baht were severe issues. The crisis resulted in the depreciation of the Thai Baht and economic recession, leading to a decline in people’s investment confidence and a shift towards risk aversion.

• 1.1.3 Overall Economic Environment in Thailand

  The Thai economy entered a period of rapid development in the 1980s and maintained an average GDP growth rate of 7-8% until the outbreak of the Asian financial crisis in 1997. After the crisis, the Thai economy quickly recovered, but the GDP growth rate stabilized at a moderate level of 3-5% per year. Currently, Thailand ranks fourth in per capita GDP among ASEAN countries, following Singapore, Brunei, and Malaysia.

  The Thai government is actively promoting economic structural transformation, with a focus on developing high-value-added industries and the service sector, while attracting foreign investment and improving the business environment. Moreover, Thailand boasts stable prices, low CPI, and a highly diversified economy with foreign trade and tourism as its economic pillars. Despite challenges from global economic fluctuations and regional competition, the Thai economy remains relatively stable, with an average annual growth rate of around 3-4%.

• 1.1.4 Overall Social Environment in Thailand

  Thailand is known for its well-established Buddhist traditions and religious freedom. The estimated population of Thailand in 2023 is 66.05 million, ranking 20th in the list of countries in the world by population. The population growth rate in Thailand is projected to be 0.2% in 2023, and the population is expected to reach a stable growth of 70.2 million by 2025. The capital city, Bangkok, is the largest city in the country, with a population ranging from 8 million to 10 million. Buddhism is the dominant religion in Thailand, with 94.6% of the population practicing Buddhism, while 4.3% of the population practices Islam, and 1% practices Christianity. The remaining population follows other religions.

• 1.1.5 Overall Technological Environment in Thailand

  Thailand has achieved remarkable success in the field of cashless payments. According to World Bank statistics, Thailand ranked third in the world with 9.7 billion real-time payment transactions in 2022, following only India and China. This growth not only promoted a 2.08% increase in economic output but also demonstrated the rapid growth of electronic payment usage in Thailand. Domestic electronic payments increased five times from 2017 to 2021, with 20.7 billion transactions worth 460 trillion Thai Baht in 2017.

• 1.1.6 Development Environment: Regional Economy

  The Thai economy is centered around Bangkok and radiates to Chiang Mai, Nakhon Ratchasima, and Chonburi. Bangkok serves as the political, economic, cultural, and transportation hub. Chiang Mai excels in tourism and handicrafts. Nakhon Ratchasima and Chonburi are characterized by industrial and port economies, jointly promoting economic diversification and balanced development in Thailand.

Part II Current Development of Brokers in the Thai Forex Margin Industry

• 2.1 Landscape of FX Brokers in Thailand

  Bangkok, as Thailand’s largest political and economic hub, has drawn numerous forex margin brokers to set up offices here. According to research data from Wikiresearch, as of the end of 2023, there were over 50 brokers in Bangkok that had established branches or offices. Among these brokers, fewer than 10 are local, while more than 50 are international.

• 2.1.1 Investment Products in Thailand’s Forex Margin Industry

  According to Wikiresearch, over 90% of forex brokers not only operate forex margin businesses but also offer conventional derivatives such as gold, currencies, and commodities. More than half of these brokers also provide cryptocurrency products. Through this diversified product portfolio, brokers can attract different customer groups and facilitate conversions among various investment products. While exploring new markets for forex investment, they are also investigating the development potential of new investment products in Thailand. With the increasing attention to cryptocurrencies in recent years, more and more brokers are starting to offer cryptocurrency trading services. Some brokers believe that investors will favor both traditional products and cryptocurrencies.

• 2.1.2 Risk Appetite in Thailand’s Forex Margin Industry

  In Thailand, investors have a high risk appetite, especially those with low deposits who tend to choose high-leverage investment products above 500 times. To meet market demand, despite many brokers holding licenses from top regulatory agencies such as FCA and ASIC, they still offer high-leverage products by opening offshore accounts for clients. Many brokers are competing to obtain multiple regulatory licenses to increase investor choices and trust. According to most brokers, they believe that offering higher leverage can attract more investors. The leverage range of products offered in the market varies from 10 times to 3,000 times.

• 2.1.3 Trading Tools in Thailand’s Forex Margin Industry

  MT4, with its mature and stable trading performance, has become the most popular trading tool among local Thai investors. According to interviews, most of the surveyed brokers offer a variety of trading tools such as MT4/MT5, third-party tools, and proprietary tools to meet customer needs and enhance platform competitiveness, while a very small number of brokers only use third-party or proprietary tools.

• 2.2 Current Status of Cryptocurrencies in Thailand

  According to the <2022 Global Digital Overview Report> Thailand is one of the countries with the highest proportion of cryptocurrency ownership among internet users. Thailand performs well in terms of civilian adoption, ranking 10th in the “2023 Global Cryptocurrency Adoption Index” by Chainalysis.

• 2.2.1 Continuous Growth of Cryptocurrency Users in Thailand

  According to data from Statista.com on January 11, 2024, as of the end of 2023, there were about 13.02 million cryptocurrency users in Thailand, accounting for 18.1% of the total population. It is expected that this number will continue to grow, with a peak of 17.67 million users expected by 2028. In recent years, the Thai market has shown significant interest in cryptocurrencies, with the number of users growing rapidly.

• 2.2.2 Young Males are the Main Force in Cryptocurrency Investment

  According to a 2022 report by Datareportal in collaboration with Hootsuite and WeAreSocial, Thailand leads the world in the proportion of internet users who own cryptocurrencies, participate in online shopping, and purchase groceries online. Among Thai internet users aged 16 to 64, 20.1% own cryptocurrencies, the highest proportion globally. Cryptocurrency investors are mainly male, accounting for 52.9% of the total number of investors. For Thais, cryptocurrencies have become an urgently needed form of investment. About 75% of cryptocurrency investors are between the ages of 18 and 24, while only 1.1% of investors are 55 years or older.

• 2.2.3 Regulatory Development of Thailand’s Cryptocurrency Industry

  In 2017, the domestic ICO boom in Thailand attracted regulatory attention. The following year, the Thai Securities and Exchange Commission (SEC) introduced the “Digital Asset Business Emergency Decree,” becoming the official regulator of digital assets. At the same time, it published regulatory guidelines, initially allowing investors to trade mainstream cryptocurrencies and ICO issuers to apply for issuance, marking a shift from regulatory vacuum to actively embracing and regulating the cryptocurrency and ICO markets.

• 2.2.4 Brokers’ Views on Cryptocurrencies

  Cryptocurrencies are widely seen as a technology with dual aspects, the pros and cons of which vary depending on one’s understanding and research of their potential and uses. Cryptocurrencies are considered to have significant potential to reform the global financial system, promoting financial integration and enabling faster and more economical transactions. However, the development of the cryptocurrency market requires appropriate regulatory and legal frameworks to mitigate potential risks.

• 2.3 Business and Development Status of Forex Brokers in Thailand

  In Thailand, there are over 50 brokers operating, with their main offices concentrated in Bangkok. Currently, the regulatory landscape of Thailand’s forex margin industry is quite chaotic, and the development environment is not yet mature. Therefore, brokers with a good brand background have a significant attraction for investors.

• 2.3.1 Market Promotion by Forex Brokers in Thailand

  Depending on their business models, brokers choose different market promotion methods, mainly differing between local and international brokers. Local brokers have an advantage in direct sales due to their familiarity with the local market, while international brokers often choose KOLs or IBs for market promotion.

• 2.3.2 Comparison of Local and International Brokers

  According to Wikiresearch’s Thailand survey data, the brokers operating in Thailand are mainly international, with about 50-60, while local brokers are fewer than 10. In comparison, local brokers are more low-key in their promotions. Most international brokers offer a more diverse range of investment products, allowing investors to enjoy more choices and flexibility.

Part III Thai Forex Margin Investor Research

• 3.1 Description of Survey Participants

  WikiResearch Institute conducted a questionnaire survey targeting forex investors in Thailand from May 2024 to June 2024, aiming to understand the real perception and behavioral characteristics of Thai forex investors. A total of 560 questionnaires were distributed, and 516 valid responses were received. Additionally, 50 respondents were randomly selected for follow-up calls.

• 3.2 Age Distribution of Thai Forex Investors

• 3.3 Leverage Usage Habit of Thai Forex Investors

  According to the research conducted by WikiResearch, among Thai forex investors, the proportion of those choosing leverage below 100 times is 16.3%, the proportion choosing leverage between 100 and 500 times is 30.6%, the proportion choosing leverage between 500 and 1,000 times is 30.2%, and the proportion choosing leverage above 1,000 times is 22.9%. Overall, Thai investors exhibit significant diversification in leverage usage, but the utilization of high leverage is relatively high, indicating that some investors prefer high-risk, high-return investment strategies. This phenomenon suggests that there is considerable diversity among Thai forex investors in their investment behaviors, with some investors displaying high risk tolerance and speculative tendencies. In order to promote the healthy development of the market and provide investors with long-term stable returns, it is necessary to strengthen education for Thai investors and guide them to establish more rational and prudent investment habits.

• 3.4 Trading Frequency of Thai Forex Investors

  In terms of trading frequency, 81.0% of Thai forex investors engage in trading at least once a week or more. The sample group exhibits relatively high trading frequency.

• 3.5 Investment Behavior of Thai Forex Investors

  According to the research conducted by WikiResearch, a significant proportion (75.2%) of Thai forex investors choose to trade independently, 9.7% choose to copy the positions of other traders according to their trading performance, and 12.4% choose to have others handle their trades. This indicates that the majority of Thai investors prefer independent trading, demonstrating their independence and confidence in forex investment. This preference may reflect Thai investors’ desire to control risks and returns through their own judgment and decision-making. In order to further improve overall investment proficiency, it is necessary to continue strengthening professional training and market education for Thai investors, guiding them to engage in forex trading more rationally and maturely based on their independent investment decisions.

• 3.6 Investment Amount Scale and Profitability of Thai Forex Investors

  According to WikiResearch’s survey data from 2023, 35.3% of Thai users were satisfied with their profits from forex trading in the past year, 45.0% considered it average, and 19.8% expressed dissatisfaction. This indicates that the majority of users hold a neutral or positive attitude towards their forex trading results in the past year.

• 3.7 Attitude of Thai Forex Investors towards Brokers

  According to the survey conducted by WikiResearch, as many as 74.4% of Thai forex investors have accounts and trade with two or more brokers, reflecting the common practice of Thai investors choosing multiple brokers for investment. In the satisfaction survey of brokers, 47.7% of investors expressed satisfaction, 47.3% considered the service average, and only 5.0% expressed dissatisfaction. By comparing investments with multiple brokers, investors can find brokers that better meet their needs in terms of service and products.

• 3.8 Main Factors for Thai Forex Investors in Choosing Brokers

  According to the research conducted by WikiResearch, the most important factors for Thai investors in choosing brokers are withdrawal/deposit speed, low spreads, and customer service response speed. Customer service and trading prices remain key factors for brokers to attract clients, while high-value gifts and offline events are not the primary considerations for respondents. The safety of regulation and licensing is also valued by Thai investors.

• 3.11 Attitude of Thai Forex Investors towards Investment Scams

  According to the survey data from WikiResearch, 77.5% of Thai investors stated that they have experienced losses from investment scams, while 22.5% of respondents claimed they have not been affected. This reflects the prevalence of investment scams in Thailand and their profound impact on investors. Despite being aware of the high risks associated with investment scams, many investors are lured into such investments due to the high returns. However, these experiences make Thai investors more cautious and rational in their future investment decisions.

• 3.12 Risk Events for Thai Forex Margin Investors

  According to the survey data from WikiResearch, 64% of investors have experienced risk events during their investment process, with withdrawal difficulties being the most common issue. However, it is concerning that the majority of investors choose not to seek remedies after encountering risk events, with only 14.3% eventually achieving success. This highlights the challenges in regulating and resolving forex investment risk events, requiring joint efforts from industry stakeholders worldwide to address them.

Part IV Outlook of the Thai Forex Margin Trading Industry

• 4.2 Changing Potential Users’ Perception of Forex to Improve Conversion Rate

  In recent years, due to the improper actions of some illegal brokers causing investor losses, coupled with the misconception of some potential investors equating forex margin trading with gambling, there has been controversy and negative perception surrounding the industry in Thailand. This has deterred potential investors from entering the market. Therefore, conducting industry education can help change potential investors’ misconceptions and encourage them to become actual investors, promoting the healthy development of the Thai forex margin trading industry.

• 4.3 Impact and Opportunities Brought by the Vast Cryptocurrency Market

  According to WikiResearch, the cryptocurrency market in Thailand is exceptionally vibrant, with over tens of millions of cryptocurrency traders, which is several times or even hundreds of times the number of users in the forex margin trading industry in Thailand. This cryptocurrency boom has brought some impact and opportunities to the Thai forex margin trading industry.

• 4.4 Advertising and Distribution on Video Media Platforms May Yield Unexpected Results

  Some brokers and forex education institutions have focused their advertising efforts on platforms like YouTube and TikTok, achieving significant results, particularly with TikTok showing surprising performance. According to the “DIGITAL 2024: THAILAND” report published by Datareportal, Google data shows that as of early 2024, YouTube had 44.2 million users in Thailand. This represents an advertising reach equivalent to 61.5% of the total population of Thailand and 69.9% of the total number of internet users in Thailand as of January 2024. Although YouTube’s potential advertising reach increased by only 0.7% from early 2023 to early 2024, the advertising audience remains substantial.