If you search about the best forex trading companies in Bangladesh, I suppose there are a lot of results. And several results can make you confused. In this article, I will tell you some of the best forex brokers in Bangladesh. Bangladesh is a rising country in terms of economy. They are the second best economic region in the South Asian area, after India. That’s the reason why forex trading has exploded in Bangladesh in the last few years.
In making the list of some of the best forex brokers in Bangladesh in 2023, we have taken the following factors into consideration:
- regulated brokers accepting Bengali traders
- local deposit and withdrawal methods
- costs and commissions
- the general quality of services offered
Regulation of Bangladesh Forex Brokers
For the safest experience possible, it is best to steer clear of any offshore regulated brokers. These choices may be more flexible when it comes to the trading environment and areas like increased leverage which can be suited to some, but for the most secure trading environment, brokers regulated by CySEC, the FCA, and ASIC are great choices.
Major regulators in the industry include DFSA, SCB, CySEC, FCA, FSB, MiFID, ASIC, IFSC, BaFin, and many others. Before creating our list of the best brokers for Bangladeshis, we had to make sure they were all regulated and trusted brokers.
Is forex trading taxable in Bangladesh?
Forex trading is taxable in Bangladesh with 15% CGT for stock-investing and trading incomes. All profits that exceed the taxable income threshold are taxable based on the income tax rate. Furthermore, it doesn’t matter whether the profits generated from forex are main income or not regarding the income tax law.
How Can I Open a Trading Account in Bangladesh?
Most Forex traders resident in Bangladesh can open an account with a domestic Forex broker by providing the following:
- Two passport-sized photos
- A photocopy of a government-issued ID (for example, a passport, a social security card, or a resident card)
- A local foreign currency bank account statement from a Bangladeshi bank (from where Forex traders deposit funds into their Forex trading account)
- A proof of earnings document (for example, an employment certificate, a work permit, or a tax return)
- Traders who will designate a nominee must submit one passport size photo of the nominee
- A Power of Attorney for the nominee
- International Forex brokers may only require a photocopy of the ID and one proof of residency document.
How to Learn Forex Trading in Bangladesh?
Forex trading is not as difficult as it seems to be. Newbies who want to learn Forex can easily learn for free online. If you want to be a good forex trader, you must study, know all kinds of analysis, computers, current news, etc.
You just need to have some basic understanding of the forex market and how it works. In Bangladesh, there are a few ways you can learn forex trading.
- You can attend a forex trading course offered by brokers or international registered financial institutions. These courses usually last for a few weeks, and you will learn about the basics of forex trading, including how to read charts and identify trends. You can do those for free.
- You can also find online courses that are offered by various online learning platforms such as Udemy, Skillshare, etc. These sites usually offer paid courses, but they offer a lot more flexibility because you can learn at your own pace.
- You can also learn forex by opening a demo account with any forex broker. It will help you to learn like the real forex world.
- Finally, you can also find free resources online that can help you learn about forex trading. This is probably one of the best options for beginners because it allows you to learn at your own pace, and it’s free! Whichever way you decide to take, make sure you do your research first and find a course that suits your needs.
If you are looking for an easy way to earn some extra cash on the side, forex trading is one of the best options out there. Forex currency trading or currency speculation is a way to earn money by dealing in currency markets. Anyone with internet access and a small amount of cash can start trading currencies by opening an account with any number of different forex brokers who provide this service.
Many Bangladesh residents are not familiar with the Forex market. They do not understand how it works or how to trade currencies. This makes it difficult for them to invest in Forex. Despite these obstacles, there are a few Bangladeshi traders who are successful in forex trading in Bangladesh. These traders have learned about forex by themselves with proper dedication. So, if you want to start forex trading in Bangladesh, make sure you learn first, and after that, pick the best forex broker in Bangladesh from the list we have given in this article.
Limitations and Comparison to Other Countries
Unlike in other countries, Bangladeshi citizens are not authorized to perform Forex transactions directly, rather only through brokerage companies.
The biggest local exchange is the Dhaka Stock Exchange (DSE). It was founded in 1986 and has reached more than $42 billion of capitalization. The second biggest exchange is the Chittagong Stock Exchange (CSE).
You will not find major brokers locally. So to trade online, it is necessary to find an international broker authorized to carry out Forex trading in Bangladesh.
Currently, the Bangladeshi government is working on the possibility to attract more FDI (foreign direct investments). They are working on a new draft of a 70-old Forex regulation to simplify opening a foreign currency account for end-users. Hopes are high that very soon the country will adopt an amended law on Forex currency and exchange management.
Forex broker fees
Forex brokers can charge commissions, spreads and financing fees.
When it comes to commissions, there are two different fee structures forex brokers normally use:
- All trading fees are included in the spread except the financing rate. Basically, think of it as the broker giving you a wider spread than it gets from the market.
- You get the market spread, but you pay a commission based on the traded amount. This model is usually used by ECN brokers.
The second version is more transparent, but this doesn’t always mean it’s more expensive.
When you trade forex on leverage and hold your position overnight, a fee will be charged. This is called financing cost. Financing costs change daily, and can add up if you hold your positions for a longer period.
Becoming a Forex Trader In Bangladesh
Forex is a global market for currency trading. Its daily turnover is estimated at trillions of US dollars (it reaches $5-7 trillion depending on the circumstances). Today, experts predict it will reach the $10 trillion mark within a couple of years. The most popular currency is the USD, as it participates in more than 85% of all global currency exchange transactions.
Online trading allows you to use almost all Forex trading tools. You can select any financial assets, analyze the market situation based on historical and current quotes, use margin trading, replenish a deposit and withdraw profits, apply different trading strategies and follow advice from professional traders.
Is Forex legal in Bangladesh?
Forex trading is legal in Bangladesh but there are some restrictions. Ordinary users cannot open a foreign currency account directly. They can trade only via brokers that have been officially approved by the Bangladesh Bank.
Which Forex broker has the best spreads in Bangladesh?
Many brokers offer excellent floating spreads to attract more traders to their platforms. It is important for a beginner to start with the brokers that offer the lowest spreads for the trades. If you are going to participate in Forex Bangla trading, pay attention to Pepperstone and Eightcap where the spreads start from 0.0 pips.
Which is the best Forex broker for beginners in Bangladesh?
Every beginner should select a broker that has the following features: a demo account, free training, and the lowest deposits and spreads. It is difficult to say which broker is the best. But if the company is ready to give you a chance to test its platform for free, it is definitely worth attention.
Is eToro available in Bangladesh?
eToro accepts traders from Bangladesh.
How can I do Forex in Bangladesh?
The most convenient and effective method is an international Forex broker offering a competitive core trading environment, including low trading costs.
Is Bitcoin available in Bangladesh?
Bitcoin is available in Bangladesh, which has an extensive peer-to-peer network. The popularity of cryptocurrencies has started to attract international cryptocurrency exchanges to Bangladesh. Traders can also take advantage of cryptocurrency CFDs provided by their Forex brokers.
Is trading available in Bangladesh?
Trading is available and legal in Bangladesh via domestic and international brokers.
How many stock exchanges are there in Bangladesh?
Bangladesh has two BSEC-regulated stock exchanges, the Dhaka Stock Exchange (DSE), founded in 1954, and the Chittagong Stock Exchange (CSE), founded in 1995. Both have a computerized automated trading system
Can I buy foreign stocks in Bangladesh?
The Dhaka Stock Exchange lists several foreign stocks, allowing traders exposure to foreign equities denominated in local currency.