Trading Forex in Bangladesh is legal. The government allows qualified Forex brokers from Bangladesh and from abroad to offer the country’s residents Forex related services. As such, Bangladeshis are spoilt for choice when it comes to picking their best Bangladeshi FX brokers. The one thing an FX trader should insist on is that the broker they commit to transact with is locally regulated. Engaging with a broker that is unregulated may lead you to lose your hard-earned Forex capital. The Bank of Bangladesh, also commonly referred to as BB, is the central bank of Bangladesh. It is the government body which oversees all the financial and economic policies of the country. To confirm whether your preferred FX broker is BB regulated visit or not (www.bb.org.bd).
Bangladeshi currency (Taka) is not a major global currency. When it comes to picking a top Bangladeshi FX broker, you should ensure that they do offer Taka withdrawals and deposits. Many of the locally regulated brokers do offer withdrawals in local currency. However, there are some brokers even though highly rated don’t include Taka as one of the currencies that you can withdraw. You can choose to withdraw USD which is the default global currency and which is easily exchangeable in Bangladesh but at an extra cost.
FX trading requires that you have access to a well-designed platform. On top of this, you will need a top Bangladeshi Forex broker who will give you all the necessary support as and when you need it. Many of the brokers do offer 24/5 support. You should confirm a broker’s ability to give you unrivalled support before signing up with them. Look for a brokerage firm that is comfortable working in the +5 CET timezone. Even though the Bengali language is preferred by many traders, not all brokers have been able to incorporate it into their websites.
There are at least 10 brokers that are regulated and licensed by the Bank of Bangladesh to operate in the country. It is worth noting that many of the regulated Forex brokers are not based in Bangladesh. We have done detailed research which has enabled us to come up with a comprehensive Bangladesh Forex brokers list.
FCA, CySEC, IFSC
Visit the website of your broker and preview the services they have to offer or just read the reviews of those brokers on our site. We have further reviewed Bangladesh Forex scams and all financial firms which offer fishy services. You will be able to get all this information from the comfort, safety and convenience of our website.
The Bank of Bangladesh was established in 1972. It has ten offices spread across the country. It is mandated with the overall role of overseeing the financial market in Bangladesh. Here are some of the key roles of the bank;
The Bank of Bangladesh is mandated with the role of overseeing the implementation of the Foreign Exchange Regulations (FER) Act of 1947. The Act is in many ways similar to the Foreign Exchange Act of Pakistan. In fact, the Act gives credit to the Pakistani Act. Within the Act, you will find all the information that you need to know not only about Forex but the regulations relating to foreign currency, exports and imports of currency. The management of the financial sector is definitely a huge responsibility. For this reason, the BB has delegated the Forex regulating role to Foreign Exchange Policy Department (FEPD).
Most of the FX brokers that operate in Bangladesh are not incorporated in the country. However, for a broker to be allowed to conduct business in the country, it must satisfy the Foreign exchange regulations that are stipulated under the FER ACT 1947. This means that only the brokers that commit to offer the residents of the country the best service get to be licensed.
Despite the BB being very strict on the importance of traders only engaging with Bangladesh regulated Forex brokers, there are retail traders who fall prey to rogue brokers. A simple way to confirm whether a broker is registered and regulated by the BB is to check its license number and compare it with the one indicated on the BB website.
The Foreign Exchange Policy Department which has its head office in Dhaka is mandated with the role of issuing Forex trading licenses. In order to be licensed, a firm must provide information showing that it has enough staff trained in Forex. The firm must also show the prospect to attract reasonable volume of Forex business.
The Forex trading license is also issued to any firm that, in the opinion of the BB, can conduct business in strict accordance with the FER Act.
Dhaka Stock Exchange has more than 700 listed companies. The volumes moved annually surpass $700 billion and the market capitalization stands at $320 billion. There are a number of Bangladeshi Forex brokers that have access to the DSE and this enables them to offer their clients Contracts-for-Difference. The popularity of the CFDs and the Forex trading in general has coincided with the sudden surge of the cryptocurrency. The Bangladeshi cryptocurrency brokers might have a good time because CFD trading goes well with cryptocurrency.
It is important to note that CFDs are not provided by the exchange but rather by the market makers. The prices of the quoted items might vary from one market maker to another. A trader should check for accuracy and reliability when it comes to picking the best Bangladeshi CFD brokers.
Even though the Forex market in Bangladesh is not as big as in countries such as the UK and the US, Forex scammers do target Bangladeshi FX traders quite a lot. There are frequent reports of how FX scammers have made away with people’s millions. In 2016 for example, over $100 million dollars of Bangladesh’s foreign exchange reserves was stolen from an account at the Federal Reserve in New York. Even though this is a big loss to all concerned, there are many other cyber attacks which have been targeting the FX industry in Bangladesh. The government, through its central bank and the FEPD regularly strives to update the systems and even train personnel on technology. It is only with time that the full efforts of the BB and FEPD will be judged whether they are effective or not.
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