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Bangladesh, located in South Asia, is an emerging economy with a growing presence in global financial markets.
Its official currency is the Bangladeshi Taka, often represented as BDT. As the nation experiences consistent economic growth, it has integrated further with international capital and currency markets.
Retail forex trading in Bangladesh, which involves the exchange of currencies on a speculative basis by individual investors, is supervised by the BSEC (Bangladesh Securities and Exchange Commission).
In making the list of some of the best forex brokers in Bangladesh, 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
What are the best forex brokers in Bangladesh?
Below is our curated list of the best forex brokers for traders living in Bangladesh, with details and information about the country laws, the features, and the characteristics.
Is forex trading legal in Bangladesh?
Forex trading is legal in Bangladesh. Not only is it legal but it is also regulated by the BSEC (Bangladesh Securities and Exchange Commission).
With that said however, BSEC regulation is not mandatory for brokers in the country, and they can offer forex trading and CFDs if they are regulated within their own country. This is a positive in that it opens up the country a lot to well-regulated international forex brokers, and you will typically find that Bengali traders prefer to register with EU/UK brokers regulated by CySEC, and the FCA for their improved safety environment.
How to trade forex in Bangladesh
Similar to almost every other country, you will just have to upload a few documents to verify your account. These include a copy of your ID, and proof of your residence.
Typically, a passport, and a recent utility bill or bank statement will satisfy this requirement. You will then have to fund your account with the chosen broker after completing the verification process.
What should Bengali traders look for in a forex broker?
As a Bengali trader, you are able to select from all of the leading forex brokers from around the world since BSEC regulation is not mandatory. There are still a few tips and things that you should be mindful of when making your broker choice.
1. Try to avoid offshore regulated 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.
2. Look for brokers allowing Bengali payment methods
Even though VIsa and Mastercard payments are international, not every broker will accept payments in your local currency. Some may offer local internet banking, particularly in Asian countries, to help you deposit in your local currency, though if you cannot, you may need to pay a conversion fee since international brokers never feature the Bangladeshi Taka as a supported base currency.
3. Choose a broker with a great demo account if you are a beginner
Particularly if you are starting out in trading, get some practice through a demo account. Trading can be risky, and this risk is amplified when trading on leverage. Opening a demo account with one of these brokers gives you the chance to practice and improve your skills completely risk-free.
How to verify if a forex broker is regulated in Bangladesh
There are a few simple steps that you can take if you wish to verify that your broker is regulated in Bangladesh. The first of these is to go to the official BSEC website. But since this isn’t mandatory, we recommend you check if brokers are ESMA compliant, ASIC or FCA regulated.
You can do this through the following links depending on where your broker is regulated, noting that European brokers are typically registered under CySEC.
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.
We are not professional tax advisors, thus we strongly suggest you contacting local authorities if you don’t know how to manage this aspect.
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