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
Forex Trading in Bangladesh
Forex trading in Bangladesh continues to expand with the overall rise in the modernization economy and associated disposable income. It emerged as a growth market for offshore Forex brokers, as the young, educated population of 170M+ seeks to increase their economic standing. The availability of Forex trading, low entry requirements, profit potential, passive income opportunities, copy trading, and 24/5 trading make it the most sought-after financial market. While most Forex brokers do not offer their products or services in Bengali, Forex traders from Bangladesh speak English and Hindi, and the former is a recognized foreign language in Bangladesh.
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
Forex traders have various requirements and preferences that will determine the best Forex broker in Bangladesh for their requirements. Still, all competitive and trustworthy Forex brokers in Bangladesh will offer a similar core trading environment.
Traders should ensure their Forex broker in Bangladesh offers the following:
- Regulations & Licensing - Bengali Forex traders should trade with Forex brokers with a clean regulatory track record spanning 10+ years. They should avoid unregulated brokers, but not all regulators allow a competitive trading environment. Forex brokers regulated by the FSCA, the BVIFSA, the FSC, the IFSC, the DFSA, and the CIMA offer an excellent choice of regulatory security, trustworthiness, and competitiveness.
- Spreads & Fees - Trading fees directly impact each strategy and profitability. Forex traders should look for commission-based pricing environments with raw spreads between 0.0 and 0.01 pips on major currency pairs for a commission below $7.00 per round lot, plus a volume-based rebate program. Commission-free alternatives should have minimum spreads of 0.7 pips or less. Swap rates on leveraged overnight positions should include positive ones if applicable and within a reasonable range.
- Leverage - The best Forex brokers in Bangladesh offer 1:500 leverage on major currency pairs, negative balance protection to ensure traders cannot lose more than their deposit, and automatic stop-out levels to assist in risk management. Trading with smaller leverage does not decrease risk but lowers the portfolio competitiveness. Risk management manages the risk profile, and Bengali Forex traders must learn the relationship between leverage and risk before using leverage.
- Trading Platform - The MT4 platform, fully supportive of algorithmic and copy trading, remains the best choice for most Forex traders, as it comes with 25,000+ EAs, plugins, and custom indicators. It also remains the leading algorithmic trading platform, as algorithms account for 80%+ of daily Forex trading volumes. MT5 and cTrader are reasonable alternatives.
- Deposits & Withdrawals - Bengali Forex traders should look for no internal transaction fees and low minimum requirements with a choice of e-wallets and preferably cryptocurrency deposits and withdrawals.
- Account Types - Commission-based account types offer lower trading fees versus commission-free alternatives, with few exceptions. Many Forex brokers in Bangladesh have simplified their account types and offer one to three options.
- Demo Account - A demo account is necessary for beginners and seasoned traders. Beginners can test the trading environment and incorporate educational lessons, seasoned traders will use it to test and tweak strategies, algorithmic traders will bug-fix and test solutions, and copy traders can evaluate signal providers. Traders should look for demo accounts without expires and customization options.
- Scams - Regrettably, scams are part of the Forex market. Bengali Forex traders can easily avoid scams by avoiding unregulated Forex brokers, ignoring social media posts, groups, and channels where signal providers promise outsized returns with fake live portfolio screenshots that show linear portfolio growth, and using common sense.
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.
Forex Trading in Bangladesh – Pros & Cons
Traders should consider the pros and cons of Forex trading in Bangladesh before funding an account with the best Forex brokers in Bangladesh.
The pros of Forex trading in Bangladesh include the following:
- Income opportunities due to 24/5 trading
- Passive income copy trading or MAM/PAMM accounts
- Good internet speed
- Reasonable tax rates compared to many developed countries
- Slowly expanding disposable income
- Acceptable time zone to trade during the most liquid trading sessions
The cons of Forex trading in Bangladesh include the following:
- Well-regulated offshore brokers do not offer Bangladeshi Taka
- No deposits or withdrawals in Bangladeshi Taka
- Most Bengali traders rely on mobile apps for trading, which are less than ideal
- Low internet penetration rate below 45%
- Lack of quality education in Bengali
Mistakes to Avoid while Trading in Bangladesh
My tips below will help beginners shorten their learning curve and avoid mistakes while trading Forex in Bangladesh.
Here are my tips on avoiding Forex trading mistakes in Bangladesh:
- Begin with in-depth education.
- Approach and respect Forex trading as the highly skilled profession it represents.
- Trading psychology separates up to 90% of unprofitable traders from profitable ones, making it the first challenge to master.
- Understand the leverage-risk management relationship.
- Trade with sufficient capital and appropriate lot sizes for your portfolio to avoid overtrading.
- Leverage magnifies profits and losses.
- Risk management ranks on par with the trading strategy.
- Your trading strategy should reflect your personality.
- Low trading fees determine a competitive trading environment.
- Master proper take profit and stop loss placement.
Is Forex Halal in Bangladesh for Islamic Traders?
The best Forex brokers in Bangladesh offer swap-free Islamic accounts, making Forex trading halal in Bangladesh for Islamic traders. Some Forex brokers will substitute the lack of swap rates with fixed fees, higher spreads, time limits before extra costs apply, or other restrictions. Therefore, I recommend Islamic Forex traders read and understand the conditions of Islamic accounts, compare them to non-Islamic accounts, and evaluate their fairness.
How to Avoid Forex and CFD Scams?
Online trading revolutionized the retail financial market and continues to evolve positively in most areas, but it also invites scams.
Here are my tips on avoiding Forex and CFD scams:
- In-depth education will help you understand markets, realize what they represent, and spot scams
- Avoid unregulated brokers, irrelevant to how good their offer sounds
- Legit brokers never call traders, but scam brokers call under the guise of helping beginners trade, which is a red flag
- Never trust social media, where scammers use groups, forums, channels, and direct messaging showing fake live portfolio screenshots with linear portfolio growth or high success rates with the occasional loss with outsized returns
- Avoid trading bots, as they fail long-term but enrich the sellers
- Paid-for educational courses, mentors, and trading coaches are usually failed traders who recover losses by selling useless products and services
- Ignore anything that promises quick profits from small deposits with no knowledge needed
- Remember that professional Forex traders average less than 12% annual profits consistently with few exceptions
- The majority of successful Forex traders do not share their strategies, use copy trading, or offer private lessons
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.
You might also be interested in reviewing the below top brokers:
- Best Forex Brokers in Asia
- Top Forex Brokers in South Korea
- Top Forex Brokers in Nepal
- Top Forex Brokers in Singapore
- Best Forex Brokers in India
Bottom Line
Forex trading in Bangladesh can offer excellent long-term, sustainable income opportunities. Beginners must start with in-depth education, focus on trading psychology, and master the relationship between leverage and risk management. It will also help traders avoid scams. The best Forex brokers in Bangladesh ensure a competitive trading environment, starting with low trading fees and cutting-edge trading infrastructure.
