With the advent and widespread use of the internet, Forex trading became available to everyone. To work in this financial market, you do not need to go anywhere. Physically, you can perform Forex trading from any location, even from home.
High floating leverage + fast execution
Daily market research and Autochartist access
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders
Most extensive crypto derivatives offering. Choice of 250+ Crypto CFDs
Multiple funding and swift withdrawal options
Ultra-low spreads across all Crypto derivatives
- 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.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- Eightcap, Competitive pricing + excellent daily videos.
5.0/5 in this category
Best all-around broker with high floating leverage and fast execution
FXTM is an incredibly fast-growing forex broker that is currently operating in various countries across the globe, including Indonesia, Malaysia, Bangladesh and Nigeria among other more popular and well-established countries. In addition to the above, the company has set up base in quite a few places across the world namely Mauritius, Cyprus, and the United Kingdom. FXTM is regulated by several countries and has received the very special and very coveted FCA license in the United Kingdom. Thanks to the UK’s Financial Services Compensation Scheme, deposits are protected up to amounts of £85,000. This can give users a sense of security when dealing with FXTM.
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
Proprietary copy trading platform, low minimum deposit, and high leverage
4.5/5 in this category
ECN trading with leverage up to 1:500.
fpmarkets 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.
FP Markets 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
4.5/5 in this category
Highly regulated, choice of fixed or floating spreads
This renowned Irish-based broker has spent the last 14 years developing itself in the trading market and has effectively become one of the world's top forex brokers. AvaTrade is licensed and governed in a number of countries across the world. Ireland, Australia, the British Virgin Islands, South Africa, the United Arab Emirates – or, more particularly, Abu Dhabi, Israel, and ultimately Japan is among these countries. In essence, AvaTrade has nearly taken over the world, and with so many official authorities, there is no denying that AvaTrade is a trusted and respected forex broker that acts legally and ethically.
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
4.5/5 in this category
Best ECN trading environment, with scalping and hedging
BlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
BlackBull Markets Pros & Cons
ECN/NDD execution model with deep liquidity
Institution-grade pricing for retail traders via proprietary price aggregation
ZuluTrade and Myfxbook for social trading
Leverage of up to 1:500
4.5/5 in this category
Competitive pricing + excellent daily videos
Eightcap is an international forex broker that is regulated and certified in 8 different countries across five continents. With this level of regulation, Eightcap is one of the most trusted trading service providers in the world. Eightcap is regulated by the Central Bank of Ireland in Ireland, the South African Financial Sector Conduct Authority in SA, the BVI Financial Services Commission in the British Virgin Islands, the ADGM and the FRSA in Abu Dhabi, the Financial Futures Association of Japan and the Financial Services Agency in Japan, the Cyprus Securities and Exchange Commission in Cyprus, ASIC in Australia and finally the Israel Securities Authority in Israel.
Low minimum deposit and high leverage of up to 1:500
Competitive cost structure
Excellent technology infrastructure and seasoned management team
Daily research and quality educational content
The concept of Forex trading is very simple. The trader buys a certain amount of the currency based on the assumption that a currency will rise in price and sells it at a higher price, making a profit on the rate difference. Of course, all currency deals are accompanied by more complex actions (minimization of risks, diversification, etc.), but we will talk a bit later about these.
It is mistakenly believed that Bangladesh is one of the countries in which Forex trading is prohibited. This is untrue; however, the foreign exchange regulation in Bangladesh has its rules and restrictions.
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
Foreign Exchange Reserves in Bangladesh are the foreign assets that are controlled by the central bank of the country. These consist primarily of gold, shares and foreign currencies. In October 2020, these assets increased to $40,816.30 million in Bangladesh. The average monthly transactions of the interbank market for the six months between July and December of 2000 was $1.5 billion.
All Forex transactions are monitored by the Bangladesh Bank (BB). Taka, national Bangladeshi currency, is convertible, but only Bangladeshi banks and their officially authorized dealers and money changers can make Forex transactions. The legislation allows licensed Forex brokers to operate in accordance with the Foreign Exchange Regulation Act of 1947.
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.
Authorized dealers should follow limits prescribed by the central bank of the country. The minimum transaction to be purchased from the BB bank is $50,000. Besides for authorized dealers, there are legal money changers in Bangladesh.
They are officially permitted to buy foreign currencies from tourists and sell them to Bangladeshi travelers as per entitlement. Excess amounts beyond the permitted limits are required to be retained with authorized dealers. Some other institutions like hotels and shops are allowed to accept foreign currencies from foreign tourists, but must then sell the currencies to authorized dealers.
The internet has fundamentally changed Forex trading by moving it to the online space. Today, it is easy to manage trading right from the broker's online platform. But the main question is how to choose a Forex broker when there are so many different options. It all comes down to finding a broker that best suits your needs.
There is no such notion as the best Forex broker. The key is to find a platform that offers the best trading terms. A broker is a partner to whom you can entrust your capital. The broker must provide you with the possibilities to increase it.
The broker is your hands and eyes in the market. Therefore, the question of choosing a broker should be approached responsibly and seriously. The following aspects are important for consideration:
It is advisable to choose only brokers who are authorized and regulated by the leading regulatory authorities. It is the most important criterion of the reliability of the broker.
A license from serious regulatory authorities indicates that the company is responsible for the quality of its services and is aimed at long-term work. Besides licensing, you should also check its terms and conditions, conflict management, and risk insurance policy.
A demo account uses the same trading principles and rules as a real account (quotes, indicators, charts). The only difference is that you are trading with virtual money, not real money/shares, and you do not risk losing your capital.
The main goal of a demo account is to be able to study all the features of the trading platform, as well as acquire basic trading skills. This approach will help you avoid mistakes when it comes to real trading.
The more trading tools brokers provide, the better. A good selection of trading assets allows you to diversify your risks in one market with the help of other markets. For example, you can trade currencies in the foreign exchange market and at the same time invest in shares. It will allow you to minimize the risks eventually.
Trading gradually migrates to modern gadgets. This migration allows you to trade without being tied to a specific location. All reputable brokers provide clients with the necessary conditions for convenient online trading, some even creating their own mobile applications. Choose platforms with mobile apps.
You should pay attention to the methods of depositing and withdrawing funds. Some brokerage companies may have restrictions regarding withdrawals to a credit card. It is crucial to find out which way is easiest to withdraw funds and processing times.
A reputable broker will provide a multi-channel support service. The ability to promptly contact a technical specialist will enable you to successfully resolve emerging difficulties.
In general, it is recommended to study the broker's website and read customer reviews on the internet. Pay attention to the history of the company and check whether its name was associated with financial scandals. Do not forget to follow financial news about your potential broker.
Nowadays, each Bangladeshi trader can easily become an active participant in the global exchange market. The first thing is to get some knowledge of Forex trading. Even a beginner should master the following basics:
- Trading terminology;
- Types and principles of work of exchanges;
- The functionality of trading terminals;
- Technical and fundamental analyses;
- Building individual trading strategies;
- Transaction management tactics;
- Financial risk management rules.
Once you cover the theoretical part of trading, it’s time to take the next steps in Forex trading in Bangladesh.
- Make sure you have a permanent internet connection. It is important to find a reliable internet provider to avoid forced outages.
- Select a broker. Your broker will act as the intermediary between you and Forex. You can choose from local brokers or foreign brokers regulated by international financial organizations. You need to select the one that offers the best trading terms for you.
- Create your account. To get access to the broker’s site, you need to register on its platform. Most brokers allow you to do it without an obligatory verification process. But you will have to pass this procedure when you are ready to trade using real money.
- Go through training. Today, almost every broker offers free training to anyone who wants to start their journey in the world of Forex trading. Even if you are already quite well-versed in the theoretical part, do not miss a chance to watch some free webinars. It is always beneficial to communicate with a professional trader who will act as your teacher.
- Test your skills on a demo account. This step is a must for any novice trader. You should not miss this stage, because the demo account gives you the opportunity to try your hand at risk-free trading, hone your skills and feel the market. You should know that even experienced professionals are actively using demo accounts to test trading strategies and new indicators and advisors.
- Replenish your deposit. If you feel you are ready to try real money trading, you should activate a trading account. For this, you need to top it up with the minimum amount. You will find all the necessary information on the broker’s official site.
- Install the trading terminal. Trading is conducted through a special terminal. Today, most brokers offer the MetaTrader platform for this purpose. It is a high-quality and convenient platform with a huge number of analytical tools. Every broker provides the download link and detailed instructions for installing and configuring the terminal.
- Start your trading. By opening a real account and entering the market, you become a full participant and can carry out any transactions. Now it is time to make your first official trade.
- Short selling: this is when a trader borrows from the broker for a quick sale. You actually do not not own the asset and hope to buy it soon at a lower price. In other words, the aim of the deal is to sell an asset for the subsequent buyback at a lower cost.
- CFDs: Contracts for Differences are simple deals that allow you to trade a wide range of financial instruments, speculating on the difference in the value of the underlying trading asset. A CFD deal lasts from the moment of its opening to the moment of closing.
- Binary options: This is a deal with two options for the outcome of trading: profit or loss. At the time of buying an option, the trader makes a forecast on the asset price change: whether it will fall or rise. If the forecast is correct, then the option will bring profit, and if not, then a loss. A trading asset for an option can be various trading instruments: securities, commodities, stocks, currencies, etc.
Without a clear-cut strategy, trading turns into a game of chance that is unlikely to bring profit. Therefore, pay attention to the following trading strategies to achieve success in Forex trading Bangla style:
Day trading. Day trading is buying and selling assets, but only within one day. Day trades can be done in any market, but this term is often used in the context of the Forex market, i.e., trading currency pairs or indices on the stock market.
To succeed as an intraday trader, you must have good capital and an excellent understanding of the market you are trading in. Even with that, you need to work hard to achieve success.
This is especially true when prices fluctuate dramatically during the day. This strategy allows you to save time and make a profit within the shortest time.
Trend trading. This strategy aims to make a profit by examining the momentum of an instrument in a specific direction. When the prevailing price movement shows a certain direction, up or down, it is called a trend. Trending traders enter long positions when an asset is moving up (the highest price is consistently rising), or short positions when security is falling (their highs are falling consistently).
Trend indicators are technical analysis tools needed to determine the general direction of the trend. These technical indicators can help you filter and confirm trend buy and sell signals. Trend indicators give a better understanding of the market trend.
Positional trading. This trading strategy means that traders buy and sell securities with the aim of holding them for weeks or months. The position trader typically uses a combination of daily, weekly and monthly charts, along with fundamental analyses when making trading decisions. In other words, this strategy belongs to long-term trading, and short-term market fluctuations do not have much importance here.
The main focus for the position trader is on reward. This process implies many small losing trades before one big profitable deal.
This allows the position trader to risk small amounts per trade in order to increase the frequency of trades required to diversify the portfolio.
The best approach is to combine different trading strategies, distributing your funds between them. Professional traders always use several trading styles. Try to follow the golden rule of diversification and put all your eggs in one basket.
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.