Forex trading in Turkey continues to grow in popularity, but local traders often face strict regulations governing this activity within the country.
In addition, there are restrictions when dealing in the Turkish Lira due to an ongoing currency crisis. The good news for Turkish Forex traders is that they are permitted to trade with a wide range of offshore brokers, and these firms serving Turkey do not require a local license to accept Turkish Forex traders.
Our Forex brokers in Turkey page covers what to look for in a Forex broker, how to start Forex trading in Turkey, and evaluates the pros and cons of Forex trading in Turkey.
- 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.
Best Turkey Brokers Comparison
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID |
Year Established | 2011 | 2005 | 2006 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP | Market Maker |
Minimum Deposit | |||
Average Trading Cost EUR/USD | 0.1 pips | 1.2 pips | 0.9 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.4 pips | 1.5 pips |
Average Trading Cost Gold | $0.18 | $0.16 | $0.29 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ |
Islamic Account | |||
Negative Balance Protection | N/A | ||
| Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM ranks highly on our best Forex brokers in Turkey list due to ultra-competitive fees and cutting-edge trading environment. For a minimum deposit of just $500, Forex traders get raw spreads from 0 pips with a separately charged commission ticket fee of between $0.80 and $4.00 per 1.0 standard mt4 round lot. The FXCM price improvement technology averages 0.3 pips gain on executions for traders or $3.00 per round lot: this is a vast advantage FXTM delivers.
Traders get the MT4/MT5 trading platforms, and FXTM upgrades MT4 with its Pivot Point Strategy plugin. Mobile traders can use the user-friendly FXTM Trader. It is an ideal alternative for copy traders using the proprietary FXTM Invest.
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 upgraded MT4/MT5 trading platforms, enhanced via the Traders Toolbox consisting of twelve plugins, plus services by Autochartist and Trading Central. It belongs on our best Forex brokers in Turkey list due to its strength in copy trading, featuring embedded services in MT4, MT5, and cTrader, or via the proprietary FP Markets Copy Trading alternative, Myfxbook Autotrade, or fee-based Signal Start.
An Islamic account is available upon request and approval. FP Markets maintains competitive trading fees and deep liquidity in its commission-based ‘Raw account’ that shows choice spreads from 0.0 pips for a separate ticket fee commission of $6.00 per 1.0 standard round lot.
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 spreadsAvaTrade appears on our best Forex brokers in Turkey list due to its many trading platform choices, balanced asset selection, and trading tools, especially those for beginners. The proprietary trading platforms are Ava Options, Ava Social, WebTrader, and AvaTradeGO. The latter two come with embedded Trading Central services. The MT4/MT5 trading platforms get the Guardian Angel plugin and the unique fee-based Ava Protect insurance policy that clients can use to cancel losing trades.
Beginners get well-structured educational material on the AvaTrade website and via its spun-out Ava Academy. The asset selection includes options, cryptos, and ETFs, and the broker seems supportive of all trading strategies. Algorithmic traders benefit from VPS hosting for low-latency, 24/5 market access.
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
Forex Trading in Turkey
Forex trading in Turkey is legal and continues to gain popularity, but the Turkish government has strict regulations for trading in the domestic currency, the Turkish Lira. It has curtailed local currency trading significantly, and the Turkish Lira represents just 0.40% of total global Forex volumes in 2022 based on the latest Triennial Central Bank Survey conducted by the Swiss-based Bank for International Settlements.
Most Turkish Forex traders manage their portfolios with well-respected offshore-based brokers like the ones from our Forex brokers in Turkey list mentioned above.
What to Look for in a Turkish Forex Broker
I ensured all listed providers offered a competitive trading environment, granting their Forex traders an edge. Below is a list of Forex traders' core considerations when selecting a Turkish Forex broker.
- Regulation - A clean regulatory track record with 10+ years of operational experience suggests a trustworthy and time-tested trading environment.
- Low trading fees - Trading fees are one of the most critical aspects for traders. The fee structure can also suggest which trading strategies a Forex broker supports and methodologies it discourages. Competitive trading fees on major currency pairs generally do not exceed a spread of 0.8 pips or $8.00 per 1.0 lot. Traders should also evaluate the swap rates on leveraged overnight positions and ensure the markups are not too expensive and positive swaps are passed on to the trader when applicable.
- Trading platforms - Since 80%+ of Forex trading volumes are algorithmic, an algorithmic trading platform is necessary. MT4 remains the leading choice for this trading activity, followed by cTrader and MT5.
- Asset diversity - Turkish Forex brokers should offer the necessary FX instruments for traders to execute their strategies. A good Forex selection exceeds 60+ tradable currency pairs.
- Deposits/Withdrawals - The choice of payment processors is essential for traders to guarantee the flexibility to manage their portfolios and follow-on transactions. Low to no minimums ensures flexibility and fast processing times of transactions are a bonus.
Forex Trading Regulations in Turkey
The Capital Markets Board of Turkey (CMB) regulates the domestic Forex market, and the Central Bank of the Republic of Turkey (CBRT) sets the monetary policy and advises banks on Forex-related matters. All domestic Forex brokers must obtain an operating license from the CMB.
Turkish-resident Forex traders can open offshore accounts, and most international Forex brokers can accept Turkish Forex traders without obtaining a CMB license. The Forex brokers on our Forex Brokers Turkey list are well-regulated and trusted brokers that can accept Turkish-resident traders.
How Much is Forex Leverage in Turkey?
Turkish Forex brokers can only offer a maximum Forex leverage of 1:10. Still, Turkish Forex traders are free to open offshore accounts where the industry standard maximum Forex leverage is 1:500.
How to Start Forex Trading in Turkey?
Before beginners choose any of the brokers from our Forex Brokers Turkey review, they should consider the below tips to minimize avoidable mistakes and shorten their learning curve.
Tips on how to start Forex trading in Turkey:
- Successful trading often starts with in-depth education, which is mainly available for free, with much material offered by brokers themselves.
- Traders should respect Forex trading as the high-skilled profession that it is.
- The first aspect traders should master is trading psychology. It separates profitable traders from a large percentage of losing traders that cannot control their emotions when real money is at risk.
- Traders must also understand the importance of using leverage sensibly and its relationship to effective risk management.
- The effectiveness of the trading strategy employed is equally vital to the risk management component; the incorrect approach in either of these areas can cause unnecessary loss of profitability in trading.
- Defining and executing a suitable trading strategy is paramount for traders, who should stick to a trading approach that best suits their personality and personal strengths and weaknesses.
- While leverage is an excellent and often necessary tool for generating a profit, traders must understand how to use it safely and effectively.
- Successful traders understand the significance of trading costs, as most Forex brokers claim their fees are competitive. Yet it is not until you review the detail of the total cost of trading that you can make a direct comparison.
- Proper placement of ‘take profit’ and ‘stop loss’ order levels (placing them with each order ticket represents a critical instance where traders typically should act without emotions).
Forex Trading Taxation in Turkey
Note that Turkish tax law consists of many presidential decrees and can change frequently.
Here are a few taxes Forex traders in Turkey should know about:
- The Banking and Insurance Transaction Tax (BITT) is 0.2%
- The capital gains tax is 22%
- The personal income tax rate ranges between 15% and 40%
Every Forex trader in Turkey should consult with a legal professional to seek tax advice in Turkey to ensure compliance with local rules and regulations when it comes to margin trading profit and loss treatment.
Pros & Cons of Forex Trading in Turkey
The pros of Forex trading in Turkey are:
- 24/5 decentralized trading
- Lower capital requirements for margin FX than other asset classes
- 80%+ of the daily volume is algorithmic
- Portfolio diversification via copy trading
- Traditional account management via PAMM/MAM accounts
- Passive income opportunities through acting as an affiliate
- Frictionless financial transactions
The cons of Forex trading in Turkey are:
- Disrespect of Forex trading as a high-skilled profession can lead to avoidable losses
- A fundamental misunderstanding of Forex trading, its requirements, and possibilities
- A false sense of accomplishment from demo trading alone
- Unrealistic trading expectations and a lack of sufficient trading capital lead to overtrading, frustration, and inefficient trading driven by emotions.
- Proper risk management will ensure your profitability is maintained at some point.
- Lack of understanding concerning leverage and its relationship to risk management
- Reliance on manual trading
- Emotion-based trading is not a sound strategy
Bottom Line
Forex trading demand continues to rise across Turkey, but the local market operates under heavy government restrictions, primarily concerning the Turkish Lira. Therefore, most Turkish-resident Forex traders manage their portfolios with well-regulated offshore Forex brokers.
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