Forex Trading In Bangladesh: A Comprehensive Guide

What is Forex trading?

Forex, short for foreign exchange, refers to the global decentralized market where currencies are bought, sold, and exchanged. It is the largest and most liquid financial market in the world, with participants including banks, financial institutions, corporations, governments, and individual traders. Forex trading involves speculating on the price movements of currency pairs, aiming to profit from fluctuations in exchange rates.

How much money do I need to begin?

Starting forex trading doesn't necessarily require a hefty sum. While it's true that higher investments can potentially yield higher returns, it's possible to begin with as little as $10. Brokers like Roboforex even offer a minimum deposit of $10. Additionally, many brokers provide demo accounts, micro lot trading, and cent accounts, allowing novices to understand the market without significant risks.

How to begin to trade Forex in Bangladesh? A step-by-step guide

Embarking on the Forex trading journey in Bangladesh requires meticulous steps to ensure a seamless experience. Traders Union has prepared a comprehensive guide to walk you through the process:

• 1

  Broker selection. Begin by researching and identifying a trustworthy Forex broker authorized to function in Bangladesh. They must adhere to local regulatory standards

• 2

  Regulatory assurance. Double-check the broker's credentials. They should be under the oversight of a recognized body, like the Bangladesh Securities and Exchange Commission (BSEC)

• 3

  Broker's online presence. Navigate to the broker's official online portal. Typically, you'll find options such as "Open an Account" or "Register"

• 4

  Registration process. Engage in the sign-up procedure by providing the necessary details. This encompasses personal data, communication channels, and possibly some financial specifics

• 5

  Identity confirmation. Brokers usually mandate proof of identity. This involves submitting digital versions of official documents like passports, national IDs, or driving licenses

• 6

  Address validation. To corroborate your address, you might be asked to present a recent utility bill or a bank statement that displays your name and residence

• 7

  Further documentation. Occasionally, brokers might seek more documents, perhaps a detailed bank statement, to better understand your financial standing

• 8

  Account preference. Decide the trading account that aligns with your trading preferences. Options might range from standard and mini accounts to specialized ones like Islamic accounts

• 9

  Capital injection. Post-verification, you must channel funds into your trading account. Common methods include bank transfers, card transactions, or digital payment gateways

• 10

  Platform setup. Procure and set up the broker's trading software. This tool will be your gateway to executing trades. Once installed, log in using the provided details, acquaint yourself with its features, delve into market analysis, and embark on your trading journey

Best time to trade Forex in Bangladesh

Forex trading sessions are crucial for traders. The best time to trade depends on the currency pairs and market sessions. Key points include:

• 24/7 market dynamics. The Forex market is a continuous operation, running 24 hours daily from Monday to Friday. It's segmented into four primary sessions: Sydney, Tokyo, London, and New York

• Overlapping periods. Peak trading often aligns with session overlaps. Notably, the intersection of the London and New York sessions (from 8:00 AM to 12:00 PM EST) is renowned for its heightened activity and fluidity, making it a prime trading window

• London's influence. Kicking off at 3:00 PM Bangladesh Standard Time, the London session is a hub of activity. Pairs with the British Pound (GBP) frequently see surges in movement during this period

• Asian market hours. The Tokyo and Sydney sessions, with their overlapping times, offer unique trading prospects. Pairs tethered to the Japanese Yen (JPY) and Australian Dollar (AUD) are particularly active. For reference, Tokyo begins at 6:00 AM BST, while Sydney starts an hour earlier at 5:00 AM BST

• Economic indicators. Currency values are often swayed by economic announcements. Staying updated with an economic calendar helps traders anticipate market shifts. Key events like central bank decisions or employment statistics can induce significant market turbulence

• Personalized trading. Your individual routine and trading approach play a role in determining optimal trading times. Active traders might lean towards times of high market volatility, while those with a laid-back, long-term strategy might not be as time-sensitive

Best Forex brokers in Bangladesh

Forex trading in Bangladesh is a popular option for traders and investors. As one of the pertinent financial centers in the serve as a base for many forex traders.

RoboForex

RoboForex Review

Open an account

Your capital is at risk.

RoboForex is a good choice for traders from Bangladesh. The broker complies with all the requirements of the local regulator and offers attractive trading conditions for clients.

The company is responsible for fulfilling its tasks by offering its clients: the latest trading products, unique developments in data transmission, and trading functionality. The company has won numerous prestigious awards. The RoboForex group of companies has an international license to provide services from FSC Belize (license No. 000138/437).

The FSC Belize is one of the most reputable regulators. Additionally, RoboForex is a member of The Financial Commission with a guaranteed compensation fund of 20,000 euros, which guarantees reliability for a trader.

IC Markets

IC Markets Review

Open an account

Your capital is at risk.
Up to 75.93% of the broker’s non-professional clients incur losses when trading CFDs.

IC Markets Trading Company has been operating on the Forex Market for over 10 years and during this time managed to gain its well-deserved reputation as one of the most reliable platforms on the Forex Market. The broker aims to provide its customers with the best market conditions and they achieve their goals by constantly developing its tools and technology to provide traders with the most reliable analysis tools, upgraded versions of trading platforms, and the highest quality connection.

IC Markets is regulated by CySEC (Cyprus), ASIC (Australia), SFSA (Seychelles). The broker uses the services of H Savy Insurance Co Ltd for financial liability insurance.

Exness

Exness Review

Open an account

Your capital is at risk.
You can lose your money.

Exness broker holds a leading position in the ratings of Forex brokers in New Zealand, South Africa, and EU countries. The company prioritizes the implementation of innovative technologies in order to meet customers needs. Each user has access to a complete set of tools, regardless of the type of account opened. Exness also introduces new trading tools that open up even more opportunities for traders to earn money. Today, on the Exness.com website, you can trade on currency pairs, cryptocurrencies, metals, stocks, and energy.

A few figures about Exness that may be of interest to traders when choosing a broker:

• The monthly turnover of trade transactions is more than 325 billion US dollars

• More than 414 000 active customers in 131 countries around the world

• More than 10 years working in the EU market

Best paper trading brokers in Bangladesh

Paper trading refers to a simulated platform that allows you to buy and sell stocks with virtual money.

eToro

eToro Review

Open an account

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

You can use eToro to invest in more than 3,000 stock assets, including at zero fee. The minimum deposit and leverage vary depending on the country of registration of a trader. Trading is available in mobile apps and on the web platform on any device. You can deposit and withdraw money via debit/credit cards, bank transfer and electronic payment systems. The broker offers margin trading, various bonuses and partner rewards.

Revolut

Revolut Review

Revolut offers commission-free trading with no minimum deposit requirements. Stocks, cryptocurrencies, and precious metals are available for trading. Client funds are kept on segregated accounts, which is a guarantee of their safety. Since fractional share trading is available at Revolut and there is no brokerage commission per transaction per month, you can start with a minimal investment. Deposits can be made in 28 currencies, but the broker translates them into USD since trading is only on the US stock market.

Interactive Brokers

IBKR Review

Interactive Brokers is militantly developing, offering services to investors regardless of their trading experience. For this purpose, the broker doesn’t ask for a fixed minimum deposit but has margin requirements for accounts of various structures to make trading financially safe. The size of the leverage and Margin call and Stop out levels depends directly on the asset that the client is trading.

Is Forex Halal?

If you’re concerned about how the exchange of currency associated with forex abides by Islamic law and beliefs, you don’t have to be. That’s because forex is halal, meaning that it’s acceptable within Islamic law.

However, many Muslims believe that forex is gambling. But whether or not forex is halal (acceptable) or haram (forbidden) depends on the intent and behaviour of the individual investor.

If you trade with a proper strategy and Islamic account, then the act is halal. On the other hand, if you trade with a regular interest charging account and no system, the act could be considered gambling and haram.

One way to understand whether or not forex is halal is to know the definition of gambling. Gambling in Islam is where individuals speculate on an event. And they have almost no control over the outcome. So, if you’re constantly making sure the odds are in your favour with forex trading, then you can avoid being a gambler.

Another way to ensure that you keep your activity halal is to use an Islamic forex account. These accounts allow Islamic traders to trade without interest. As a result, Muslim traders can follow Islamic law while trading forex. These Islamic accounts are known as swap-free accounts.

Brokers use the Musharakah (to share) Arrangement in Islam. This means that both parties will benefit from earnings and losses in trades.

Can I trade with internationally regulated Forex brokers in Bangladesh?

In Bangladesh, the landscape of forex trading has seen a significant evolution, especially concerning the participation of internationally regulated forex brokers. While the country is open to global forex trading platforms, there are specific criteria these platforms must meet to operate within its borders.

For a forex broker to be recognized and allowed to function in Bangladesh, even if it's not locally registered, it must possess a license from a globally recognized and reputable regulatory body. Notable among these are the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC) in Cyprus. These regulators are known for their stringent standards, ensuring that brokers under their purview maintain transparency fairness, and prioritize investor protection.

Highlighting this commitment to secure and transparent forex trading, the Bangladesh Bank, the country's central banking authority, has given its nod to several international forex brokers. These include Exness, XM, FBS, HotForex, IC Markets, Pepperstone, FXTM, AvaTrade, OANDA, and Saxo Bank. Their approval by the Bangladesh Bank is a testament to their adherence to the high regulatory standards set by the institution.

These approved brokers are not just reliable but also versatile in their offerings. They cater to various trading needs by providing various instruments and services. Apart from the primary forex trading, they also offer opportunities in Contract for Differences (CFDs) and metals trading, among others.

Can I trade Forex with minimum investment in Bangladesh?

The world of forex trading has evolved to become more inclusive and adaptable to the needs of various traders. Many brokers today provide diverse account types and trading options, ensuring that individuals can enter the market with ease and minimal financial strain.

One such offering is the “cent account”. This type of account is designed specifically for beginners and those who wish to start with a smaller capital. Instead of trading in larger amounts, traders can deal in cents, allowing them to understand the market dynamics without committing significant funds. Choose from the best forex cent account brokers for beginners in Bangladesh.

Another innovative feature that brokers offer is “copy trading”. This allows novice traders to replicate the trading strategies of experienced and successful traders. By doing so, they can learn the ropes while potentially earning profits. It's like having a mentor guide your trading decisions, providing a safety net for those still finding their footing in the forex world.

“PAMM” or Percentage Allocation Management Module accounts are also gaining traction. These accounts enable traders to pool their funds together. An experienced trader then manages this collective fund, and profits or losses are distributed based on individual contributions. It's a collaborative approach to trading, where risks and rewards are shared.

Lastly, 'demo accounts' are perhaps the most beneficial for beginners. These accounts allow traders to practice their strategies with virtual money, offering a risk-free environment to understand market movements and refine trading techniques.

How much can I earn in Bangladesh?

Forex trading returns are influenced by several factors, including expertise, the amount invested, and prevailing market conditions. The possibility of securing significant profits exists, but it's crucial to acknowledge that this venture isn't without its challenges.

Just as there's potential for high rewards, there's also a risk factor inherent in forex trading. It's always advisable for traders to be well-informed and cautious, ensuring they know both the opportunities and the pitfalls associated with the forex market.