6 minute read
Is JustMarkets Legal in China? A Comprehensive Review
from JustMarkets
by Exness_India
JustMarkets is not legally authorized to operate in Mainland China. Despite being a globally recognized online forex and CFD broker, the regulatory landscape in China does not permit foreign brokers like JustMarkets to offer trading services directly to Chinese residents. This article will provide a clear, comprehensive explanation of the legality status, regulatory barriers, enforcement policies, and what Chinese traders need to be aware of when considering using JustMarkets or similar platforms.
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China’s Regulatory Framework on Forex Trading
China has one of the strictest financial regulatory systems in the world. The main regulatory body overseeing the financial markets is the China Securities Regulatory Commission (CSRC). However, retail forex trading is not allowed under CSRC’s jurisdiction unless it is facilitated through government-approved banks or institutions operating under specific quotas and guidelines.
Foreign forex brokers—including JustMarkets—are not licensed or approved by the CSRC. In fact, there is no licensing pathway currently available that would allow non-Chinese brokers to legally serve retail clients in Mainland China. The only forex trading that is somewhat permitted is via the interbank market or through certain state-owned banks for institutional investors.
JustMarkets: A Brief Overview
JustMarkets is a global online brokerage firm offering services in:
Forex trading
CFDs on indices, metals, cryptocurrencies, and commodities
Various account types (Standard, Pro, Raw Spread)
MetaTrader 4 and 5 platforms
It is regulated in several offshore jurisdictions, such as Seychelles (by the Financial Services Authority) and St. Vincent and the Grenadines (SVG FSA). However, these licenses are not recognized in Mainland China, and they offer no legal protection for Chinese residents in case of disputes, fraud, or financial loss.
Can Chinese Residents Legally Trade with JustMarkets?
Technically, no. Chinese regulations do not allow local residents to engage in forex trading through foreign brokers. Even though some Chinese traders might still open accounts with JustMarkets using VPNs or foreign bank cards, this is done outside the bounds of legality and may expose them to several risks:
Violation of Chinese capital control laws
Difficulty repatriating profits or accessing funds
Risk of the platform being blocked by the Chinese firewall
No legal recourse in the event of broker misconduct
China has implemented capital controls to monitor and restrict the flow of funds across borders. Engaging in online forex trading with offshore brokers like JustMarkets may trigger scrutiny by Chinese financial regulators or banks. Traders found violating these rules may have their bank accounts frozen or investigated.
Enforcement Actions by Chinese Authorities
China has a long history of cracking down on illegal forex activities. The government has:
Blocked access to many foreign brokerage websites using the Great Firewall
Increased surveillance on international financial transactions
Shut down local offices of unlicensed foreign brokers
Prosecuted individuals who promote or facilitate illegal forex trading activities
Chinese authorities treat unauthorized online forex trading as a high-risk and illegal activity, often linking it to money laundering and financial fraud. Any promotional activity by unlicensed brokers or their affiliates within China is also considered illegal.
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What About Hong Kong or Offshore Access?
Some traders argue that since Hong Kong and Macau have different legal systems, they can legally access platforms like JustMarkets from there. While this may be true in theory, using such loopholes to circumvent Mainland regulations is legally risky.
Furthermore, if a Mainland Chinese resident accesses JustMarkets through a Hong Kong IP address or VPN, it does not legalize the activity. If funds are transferred from a Mainland bank account to a JustMarkets account, Chinese regulators may still view this as unlawful capital flight or unauthorized foreign trading.
Can JustMarkets Become Legal in China in the Future?
The possibility of JustMarkets becoming legal in China hinges on significant regulatory changes. As of now, the Chinese government shows no signs of liberalizing retail forex trading. Their emphasis remains on controlling capital outflows, limiting financial risk, and maintaining economic stability.
Unless China introduces a licensing scheme for foreign brokers—similar to what is seen in countries like Australia or the UK—JustMarkets cannot legally operate in the Chinese market. It is highly unlikely that China would loosen restrictions on retail forex trading in the near future due to concerns about:
High leverage and speculative losses
Money laundering and illegal fund transfers
Unregulated financial risk to the public
Risks of Trading with JustMarkets from China
Even if Chinese traders manage to access the platform using workarounds, there are serious risks:
Account Access Issues: The platform or its servers may be blocked at any time.
Withdrawals Delayed or Denied: Offshore brokers are not subject to Chinese banking laws.
No Legal Recourse: If there is a dispute, Chinese courts will not recognize claims against an unlicensed foreign entity.
Bank Account Freezing: Suspicious international transfers may trigger AML flags and investigations.
Criminal Liability: Promoting or profiting from referrals may constitute illegal financial activity.
Alternatives for Chinese Traders
For individuals in China who are interested in forex or similar investment instruments, legal alternatives include:
Forex-linked products offered by major Chinese banks (e.g., ICBC, Bank of China)
Trading foreign assets via the Qualified Domestic Institutional Investor (QDII) program
Investing in A-shares or domestic stock indices
Licensed mutual funds and ETFs that offer international exposure
These options, while less flexible and slower-paced than high-leverage forex trading, are legal and safer under Chinese law.
Final Verdict
JustMarkets is not legal in Mainland China.While it operates under international offshore licenses, these are not recognized by Chinese authorities, and using the platform from China constitutes a violation of local financial regulations. Traders doing so face serious legal, financial, and cybersecurity risks.
Chinese residents are strongly advised to avoid using foreign forex brokers like JustMarkets unless and until the regulatory environment changes. The potential risks far outweigh the benefits—especially when safer, legal alternatives exist through domestic financial institutions.
If you are in China and wish to engage in forex trading or international investment, consult a licensed financial advisor or your local bank to understand what’s allowed and how to remain compliant.
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