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.
- Exness, Tight spreads + leverage up to 1:2000.
- 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.
Best Bangladesh Brokers Comparison
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Regulators | CMA, CySEC, FCA, FSA, FSC Belize, FSC Mauritius, FSCA | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | FMA, FSA |
Year Established | 2008 | 2011 | 2005 | 2006 | 2014 |
Execution Type(s) | Market Maker | ECN/STP, Market Maker | ECN/STP | Market Maker | ECN/STP, No Dealing Desk |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.6 pips | 0.1 pips | 1.2 pips | 0.9 pips | 1.3 pips |
Average Trading Cost GBP/USD | 0.7 pips | 0.2 pips | 1.4 pips | 1.5 pips | 2.0 pips |
Average Trading Cost Gold | 11.3 pips | $0.18 | $0.16 | $0.29 | $0.90 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, cTrader, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
Exness
In Summary Tight spreads + leverage up to 1:2000Forex traders in Bangladesh get a proprietary copy trading platform at Exness, which works well with its user-friendly mobile app. Both are available next to the MT4/MT5 trading platforms, which have an integrated copy trading service and support algorithmic trading. Exness also ranks among the most accessible brokers for Forex trading in Bangladesh. There is no minimum deposit for the Standard and Standard Cent account, and Exness allows cryptocurrency deposits from $10.
The excellent operational statistics and low trading fees confirm a highly competitive trading environment with 100+ currency pairs and 34 cryptocurrency pairs, plus trading signals by Trading Central.
Pros & Cons
- Instant withdrawals, based on the payment system, from a trusted broker with numerous payment methods
- Multi-regulated broker
- 24/7 multi-lingual customer service
- No education for beginners
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM 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.
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 1:500FP Markets offers copy traders its proprietary FP Markets solution, embedded copy trading services in MT4, MT5, and cTrader, fee-based Signal Start, and the well-known Myfxbook Autotrade service. Therefore, I rank FP Markets among the best Forex brokers in Bangladesh for copy traders. MAM/PAMM accounts for licensed account managers enable traditional account management services.
Traders benefit from competitive, commission-based trading fees featuring raw spreads from 0.0 pips for a commission of $6.00 per 1.0 standard round lot. FP Markets also upgrades the MT4/MT5 trading platforms with 12 plugins, Trading Central and Autochartist, and offers a well-balanced asset selection.
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 spreadsI rank AvaTrade among the best Forex brokers in Bangladesh for beginners. They receive an industry-leading education via the spun-out Ava Academy, the MT4 Guardian Angel plugin, and the fee-based Ava Protect insurance policy protecting against trading losses. AvaTrade also maintains an excellent partnership program with 70,000+ registered partners from 150+ countries, and $250,000,000+ commission payouts cater to passive income seekers.
AvaTrade presents its proprietary WebTrader and mobile app AvaTradeGO, which includes Trading Central, specialized platforms Ava Option and Ava Social, and MT4/MT5. Third-party copy-trading provider DupliTrade is also available, making AvaTrade a leader among brokers for copy-trading strategies.
Pros & Cons
- High quality educational offering via AvaAcademy
- 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
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets upgrades the MT4/MT5 trading platforms with Autochartist and features data feeds from 66+ third-party providers. Traders benefit from competitively priced, commission-free, and commission-based ECN trading accounts with fees as low as $4.00 per lot, setting BlackBull Markets apart from most competitors. I rank BlackBull Markets among the best Forex brokers in Bangladesh for algorithmic and high-volume traders.
Copy traders get the BlackBull Markets CopyTrader, embedded copy trading services in MT4, MT5, cTrader, or ZuluTrade, and Myfxbook Autotrade, placing BlackBull Markets among the leaders in this category. It also connects social traders with 50M+ peers at TradingView.
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
- Limited deposit options
Regulation of Bangladesh Forex Brokers
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.
How Can I Open a Forex 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)
Noteworthy:
- 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
The Relationship Between Interbank Transaction in Forex and Foreign Exchange Reserve
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.
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.
Authorized Dealers and Money Changers
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.
What to Look for in a Forex Broker in Bangladesh
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:
Regulation
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.
Demo Account
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.
Asset Coverage
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.
Mobile Trading
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.
Deposit/Withdrawal Conditions
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.
Effective Customer Service
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.
Get Started with Forex in Bangladesh
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.
Making Money in Forex in Bangladesh
- 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.
Various Forex Trading Strategies in Bangladesh
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.
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.
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