Overall Rating: ★★☆☆☆ (2.6/5)

The Superintendencia del Mercado de Valores (SMV) is the securities market regulator in Panama, overseeing brokerage firms, investment advisers, and securities issuers. While it does issue licences to financial institutions, including forex and CFD brokers, SMV’s framework is relatively underdeveloped for retail forex trading, earning it a Tier-3 classification.

To operate legally under the SMV, brokers must obtain a Casa de Valores licence. Requirements include:

• Registration with the Panamanian Public Registry
• Minimum capital requirement (approx. $150,000 USD)
• Appointment of local compliance and risk officers
• Submission of operational manuals and business plans

However, the SMV’s rules:

• Do not include specific leverage restrictions
• Do not restrict marketing practices such as bonuses or incentives
• Lack strict mandates for client fund segregation
• Do not offer an investor compensation fund for retail clients

Enforcement actions are rare, and regulatory updates are infrequent. The SMV publishes a public register, but transparency around disciplinary actions and ongoing supervision is minimal.

Many offshore brokers register in Panama for ease of incorporation and tax neutrality, but without offering genuine regulatory protections to their retail clients. For traders, dealing with a Panama-registered broker is high risk unless the broker also holds Tier-1 licences with FCA, ASIC, or similar authorities.

In summary, SMV licensing provides legal recognition but not the security, enforcement, or transparency retail traders need for safe forex trading.