Retail Forex trading in Iraq is in its infancy but presents tremendous growth potential amid a young population seeking economic prosperity in a politically and economically unstable country.
To help Iraqi Forex traders identify the most competitive and trusted Forex platforms here are our choices for the two best Forex brokers in Iraq.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- FP Markets, ECN trading with leverage up to 1:500.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- MultiBank Group, Deep liquidity with no trading restrictions.
- XM, Exception range of assets + negative balance protection.
Comparison of the Best Forex Brokers in Iraq
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CySEC, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, AUSTRAC, BaFin, BVIFSC, CIMA, CySEC, ESCA, FMA, MAS, TFG, VFSC | ASIC, CySEC, DFSA, FSC Belize |
Year Established | 2011 | 2005 | 2006 | 2005 | 2009 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP | Market Maker | ECN/STP | Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.1 pips | 1.1 pips | 0.9 pips | 0.1 pips | 0.1 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.4 pips | 1.5 pips | 0.5 pips | 0.2 pips |
Average Trading Cost Gold | $0.18 | $0.21 | $0.29 | $0.02 | $0.19 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, Web-based+ | MetaTrader 4, MetaTrader 5, cTrader | MetaTrader 4, MetaTrader 5, Proprietary platform |
Islamic Account | |||||
Negative Balance Protection | N/A | N/A | |||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionWe have made FXTM one of our top-rated brokers because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade ranks among the best Forex brokers in Iraq due to its reasonable, commission-free fees, educational content, and choice of trading platforms. The well-balanced asset selection includes options, cryptos, and ETFs. Beginner traders get quality education on the AvaTrade website and industry-leading educational content via the spun-out Ava Academy.
Traders can use the proprietary WebTrader and AvaTradeGO with embedded Trading Central services. AvaTrade also has in-house developed specialized trading platforms, Ava Options and Ava Social. Algorithmic and copy traders get MT4/MT5 and VPS hosting for 24/5 low-latency trading. In addition, AvaTrade offers its Guardian Angel plugin for MT4.
Pros & Cons
- High-quality educational offering via SharpTrader
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
MultiBank Group
In Summary Deep liquidity with no trading restrictionsMultiBank offers Islamic accounts to residents in 36 countries on its Standard and Pro accounts. Forex traders have an unlimited swap-free allowance, joined by index and commodity futures, but exotic currency pairs have a 3-day limit. Shares, indexes, commodity spot instruments, and cryptocurrency CFDs have a 10-day swap-free allowance. MAM/PAMM accounts are available, and the well-regulated trading environment featuring ten licenses and 25+ global offices places MultiBank among the best Forex brokers in Iraq.
Besides MT4/MT5 for algorithmic and copy traders, MultiBank developed two proprietary web-based platform alternatives, MultiBank Trader 4 and 5, and its in-house copy trading service.
Pros & Cons
- 20,000 assets offering broad coverage of financial markets
- Raw spreads from 0 pips and maximum leverage of 1:500
- MAM/PAMM accounts and proprietary copy trading platform
- ECN trading with deep liquidity and no requotes
- Access to raw spreads requires a $5,000 minimum deposit on the ECN account
XM
In Summary Exception range of assets + negative balance protectionEstablished in 2009, XM (XM.com) is one of the largest trading platforms in the world, with over 5 million active clients trading from 196 countries. It is a market maker broker with a very low barrier to entry of only a $5 minimum deposit requirement. XM is regulated by the Cyprus Securities and Exchange Commission (CySEC 120/10), the Australian Securities and Investments Commission (ASIC 443670) and the Belize International Financial Services Commission (000261/158). XM offers a choice of over 1,000 tradable instruments with spreads as low as 0.6 pips on EUR/USD. XM offers an unusually wide range of European equities.
Pros & Cons
- Outstanding trading tools and loyalty program
- Low minimum deposit, high leverage*, and competitive trading cost
- Excellent research and education
- Trustworthy and transparent with generous bonuses and incentives
- Inactivity fee
Forex Trading in Iraq
Forex trading with one of the best Forex brokers in Iraq ensures Iraqi Forex traders have a trusted partner that segregates client deposits from corporate funds, offers negative balance protection, and low trading fees.
The lack of education is one of the most notable obstacles to Forex growth in Iraq, but the younger population drives the domestic industry forward. With an internet penetration of just below 75% and social media usage shy of 55%, social and copy trading rank among the most used Forex strategies. The mobile penetration exceeds 100%, placing mobile trading at the core of the Forex expansion across Iraq.
What to Look for in a Forex Broker from Iraq
Our best Forex brokers in Iraq review has focused on the below aspects.
All competitive Iraqi Forex brokers should offer the following:
- Regulation - Traders should look for 10+ years of operational experience and a clean regulatory track record.
- Low trading fees - Major currency pairs should not exceed 0.8 pips or $8.00 per 1.0 lot. Traders should also ensure positive swap rates exist on qualifying assets.
- Trading platforms - An algorithmic trading platform is crucial as 80%+ of Forex trading volume is algorithmic.
- Asset diversity - Iraqi traders should check that their Forex broker offers the assets they need to execute their strategy.
- Deposits/Withdrawals - Low to no minimum deposit and withdrawal amounts and no internal fees are paramount.
Forex Trading Regulations in Iraq
The Central Bank of Iraq (CBI) is the primary regulator of the Iraqi Forex market. Since Iraqi Forex traders primarily deal with international Forex traders, like the ones from our best Forex brokers in Iraq list, they trade outside CBI oversight.
How Much is the Maximum Forex Leverage in Iraq?
As available from the best Forex brokers in Iraq, the maximum Forex leverage usually maxes out at 1:500 with negative balance protection, but some Forex brokers may offer more. Iraqi resident traders must always use proper leverage risk management to avoid magnified trading losses.
How to Start Forex Trading in Iraq
Before opening an account with one of the best Forex brokers in Iraq, beginners should consider the tips below.
Here are some top tips on how to start Forex trading responsibly in Iraq:
- Start with gaining an in-depth education.
- Respect Forex trading as a profession requiring knowledge and skill.
- Trading psychology is a key separator between profitable traders and up to 90% of traders incurring losses.
- Understand the importance of leverage and its relationship to risk management.
- Leverage is an excellent and necessary tool if used properly.
- Risk management is critical to a trader’s success.
- Traders should create and execute a suitable trading strategy.
- Trading costs are the defining aspect of a competitive trading environment.
- Proper placement of take profit and stop loss levels is essential.
What is the Best Trading Platform in Iraq
The best trading platform in Iraq remains MT4 due to its versatility and upgradeability to create custom trading environments. The best Forex brokers in Iraq all offer MT4, which fully supports algorithmic, copy, and API trading.
Forex Trading Taxation in Iraq
All Forex profits generated with funds held inside Iraq are subject to taxation. The four-tier system has rates of 3%, 5%, 10% and 15%. Iraqi Forex traders should consult with a legal professional to seek tax advice in Iraq to ensure compliance with local rules and regulations.
Pros & Cons of Forex Trading in Iraq
Iraqi Forex traders should consider the pros and cons of Forex trading in Iraq before opening an account with one of the best Forex brokers in Iraq.
The pros of Forex trading in Iraq are:
- Lower capital requirements versus other assets
- 24/5 decentralized trading
- Passive income opportunities
- Frictionless financial transactions
- 80% of daily volume is algorithmic.
- Copy and social trading.
- PAMM/MAM accounts
The cons of Forex trading in Iraq are
- Traders fail to respect Forex trading as a skilled profession.
- Emotion-based decision-making
- A fundamental misunderstanding of Forex trading, its requirements, and possibilities
- Manual trading in an algo-dominated environment
- Disconnect between leverage and its relationship to risk management.
- Improper risk management
- A lack of sufficient trading capital and unrealistic trading expectations result in overtrading, frustration, and inefficient trading.
- A false sense of accomplishment from demo trading
- Abundance of scams and frauds
Bottom Line
Forex trading in Iraq remains in its infancy, but the growth potential is tremendous, and Forex brokers have taken notice. International Forex brokers handle all retail Forex trading activity in Iraq. We have conducted an in-depth review to determine the best Forex brokers in Iraq so Iraqi Forex traders can access the most competitive and trustworthy Forex trading environment.
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