Forex trading in Bangladesh has gained traction among investors looking to profit from currency fluctuations. While the forex market is globally accessible, traders in Bangladesh must navigate a unique regulatory landscape. The Bangladesh Bank, the country’s central authority, oversees all foreign exchange activities, ensuring compliance with local financial laws. Understanding the legal framework, restrictions, and broker requirements is crucial for traders to operate safely. This guide provides a comprehensive overview of forex trading in Bangladesh, covering legal forms, regulations, broker requirements, and taxation policies.
Top 7 Forex Brokers in Bangladesh
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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FP Markets
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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ActivTrades
- Winner of 20+ Global Awards
- MT4/MT5, TradingView
- Leverage up to 1:400
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
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FxPro
- NDD broker offering deep liquidity and ultra-fast execution
- Over 99% instant order executions with no requotes
- Supports MT4, MT5, cTrader, and a proprietary platform
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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eToro
- Popular broker for social trading
- Trading is conducted on innovative in-house platform
- Offers both investing and trading products
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
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Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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easyMarkets
- Innovative tools like to manage risk effectively.
- EasyMarkets provides access to Forex, Indices and Stocks
- Proprietary EasyMarkets platform available, as well as MetaTrader 4 (MT4), to suit both beginner and experienced traders.
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Forex Forwards
- Forex Options
- Indices CFDs
- Metal Options
- Metals CFDs
- Share CFDs
Brokers Compared by Spread
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| ActivTrades | |
$0 |
| FxPro | |
$100 |
| eToro | |
$50 or $100 based on country ($10 for the UK) |
| Axi | |
$0 |
| easyMarkets |  |
$25 ($2,000 for MT4 Premium, $10,000 for MT4 VIP) |
Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| ActivTrades | |
1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB) |
| FxPro | |
1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:10000 (SCB | Retail Account) |
| eToro | |
1:400 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:400 (FSAS | Retail Account) |
| Axi | |
1:500 (Elite Account), 1:400 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SVGFSA) |
| easyMarkets | |
1:500 (ASIC | Pro Account), 1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:2000 (FSAS | Retail Account) |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| FP Markets | |
cTrader, TradingView |
| ActivTrades | |
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView |
| FxPro | |
cTrader, MetaTrader 4, MetaTrader 5 |
| eToro | |
Proprietary |
| Axi | |
MetaTrader 4 |
| easyMarkets | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web, TradingView |
Comprehensive Comparison of the Best Bangladesh Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.93 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0.5 pips |
|
|
 |
$100 |
|
AVG 0.5 pips |
|
|
 |
$50 or $100 based on country ($10 for the UK) |
|
AVG 1 pips |
|
|
 |
$0 |
|
AVG 0.1 pips |
|
|
 |
$25 ($2,000 for MT4 Premium, $10,000 for MT4 VIP) |
|
MIN 0.8 pips |
|
Legal Forms of Forex Trading in Bangladesh
Forex trading in Bangladesh is regulated by the Foreign Exchange Regulation Act of 1947 (FERA), which grants the Bangladesh Bank authority over all foreign exchange transactions. Only authorized dealers (ADs)—licensed banks and financial institutions—can legally conduct forex transactions.
- Spot Trading – The most common form of forex trading where currency pairs are exchanged at the current market price for immediate settlement. In Bangladesh, only authorized dealers (banks) can conduct spot transactions.
- Forward Contracts – Agreements between two parties to exchange currencies at a fixed rate on a future date. Businesses use forward contracts to hedge against exchange rate fluctuations, and these are typically facilitated through banks.
- Options Trading – Currency options grant traders the right (but not the obligation) to buy or sell currency at a set price before the expiration date. While not widely available to retail traders in Bangladesh, businesses may access options via licensed institutions.
- Futures Trading – Similar to forward contracts but traded on exchanges, currency futures are standardized agreements to exchange currency at a set price on a future date. Futures trading is not common in Bangladesh and requires regulatory approval.
- Contracts for Difference (CFDs) – CFDs allow traders to speculate on forex price movements without owning the actual currency. However, forex CFDs fall into a regulatory gray area, and traders should verify legal status before participating.
- Spread Betting on Forex – A speculative trading method where investors bet on the direction of currency prices without purchasing the asset. This form of trading is not explicitly recognized in Bangladesh and may be considered illegal if conducted through unauthorized channels.
Restrictions on Forex Trading in Bangladesh
In Bangladesh, the Bangladesh Bank, as the central regulatory authority, imposes specific restrictions on currency trading to maintain economic stability and protect investors. Key restrictions include:
- Binary Options: Trading in binary options is not permitted in Bangladesh due to the high-risk nature of these instruments and the potential for significant financial losses.
- Unregulated Forex Platforms: Engaging with unregulated or unauthorized forex trading platforms is prohibited. Traders are advised to conduct transactions only through authorized dealers and licensed brokers to ensure compliance with local laws.
These restrictions are designed to safeguard the financial system and protect investors from potential risks associated with unregulated trading activities.
Regulations on Forex Trading in Bangladesh
In Bangladesh, the regulation of foreign exchange transactions is primarily governed by the Foreign Exchange Regulation Act of 1947 (FERA). This legislation grants the Bangladesh Bank, the country’s central bank, the authority to oversee and regulate all dealings in foreign exchange and securities, as well as the import and export of currency and bullion.
The Bangladesh Bank is responsible for formulating and implementing monetary and credit policies, managing international reserves, and ensuring the stability of the financial system. It issues licenses to Authorized Dealers (ADs)—typically banks and financial institutions—permitting them to conduct foreign exchange transactions. These ADs are required to adhere to the guidelines set forth in the Guidelines for Foreign Exchange Transactions, which detail the procedures and regulations for various types of foreign exchange dealings.
Additionally, the Bangladesh Securities and Exchange Commission (BSEC) plays a role in regulating financial markets, including overseeing activities related to securities and derivatives. While the BSEC’s primary focus is on the securities market, its regulatory framework can intersect with forex trading, especially concerning derivative instruments.
It’s important to note that the regulatory environment is subject to change. As of February 2025, discussions have been ongoing about updating the existing foreign exchange regulations to better align with the current economic landscape and to attract more foreign investment. Traders and investors are advised to stay informed about any legislative changes that may impact forex trading activities in Bangladesh.
Requirements for Forex Brokers in Bangladesh
Forex brokers operating in Bangladesh must adhere to specific regulatory standards to ensure a secure and transparent trading environment for investors. Key requirements include:
- Licensing and Authorization
Brokers must obtain authorization from the Bangladesh Bank to operate as authorized dealers or money changers. This involves meeting specific criteria, including capital adequacy, compliance with regulatory standards, and demonstrating the capability to conduct foreign exchange transactions. - Negative Balance Protection
Brokers are required to implement measures to protect clients from incurring negative balances, ensuring that traders cannot lose more than their deposited funds. - Investor Compensation
Participation in investor compensation schemes is mandatory, providing a safety net for clients in case of broker insolvency or misconduct. - Leverage Restrictions
The Bangladesh Bank may impose limits on the leverage ratios offered to retail traders to mitigate the risks associated with high leverage in forex trading. - Risk Disclosures
Brokers must provide clear and comprehensive risk disclosures to clients, outlining the potential risks involved in forex trading. - Fund Segregation
Client funds must be kept in segregated accounts separate from the broker’s operational funds to protect client assets in case of the broker’s financial difficulties. - Automatic Margin Closeouts
Brokers should have mechanisms in place to automatically close out positions when a client’s margin falls below required levels, preventing significant losses.
Compliance with anti-money laundering (AML) regulations is also essential. Brokers must implement robust AML policies, conduct customer due diligence, and report suspicious activities to the relevant authorities.
Taxation on Forex Trading Profits in Bangladesh
Yes, forex trading profits in Bangladesh are subject to taxation under the country’s income tax laws. The tax treatment depends on whether the trader is an individual or a corporate entity.
- Taxation for Individual Traders
- Profits from forex trading are considered personal income and are taxed under Bangladesh’s progressive tax system, ranging from 12% to 32%, depending on the total income.
- Traders must report their earnings in annual tax filings and maintain proper records of transactions.
- There is no specific capital gains tax for forex trading, as gains are treated as part of regular income.
- Taxation for Corporate Entities
Companies engaging in forex trading are taxed under corporate tax laws.
- Publicly traded companies: 22.5% tax rate.
- Non-publicly traded companies: 27.5% tax rate.
- Banks and financial institutions: 37.5%–40% tax rate.
- Taxation for Non-Residents
- Non-residents are taxed only on income earned in Bangladesh, usually at a flat rate of 30%.
- Compliance Requirements
- Annual tax filings: Due by November 30 for individuals and varies for corporations.
- Advance tax payments: Required if total taxable income exceeds BDT 400,000.
Corporate traders must file audited financial statements with the National Board of Revenue (NBR) and comply with advance tax payment requirements.
Since tax laws can change, traders should consult a tax professional or the National Board of Revenue (NBR) for up-to-date guidance.
How to Identify a Reliable Broker in Bangladesh
When selecting a forex broker in Bangladesh, ensuring the broker is reliable and trustworthy is essential for a secure trading experience. Here are key factors to consider:
- Regulatory Compliance
While brokers, regulated by international authorities (FCA, ASIC, CySEC, etc.) are a great option, the Bangladesh Securities and Exchange Commission (BSEC) has enhanced its regulatory framework, and it is now advisable for traders to choose brokers licensed by the BSEC for operations within Bangladesh. - Segregation of Client Funds
A trustworthy broker will keep client funds in segregated accounts, separate from the broker’s operating capital. This protects your funds in the event of the broker’s financial difficulties. - Transparent Fee Structure
Choose a broker with a clear and transparent fee structure. Check for spreads, commissions, and any hidden charges. Knowing the costs upfront helps you avoid unexpected expenses and enables better trading decisions. - Trading Platform
The broker should provide a stable, reliable trading platform with features like real-time data, charts, and risk management tools. Popular platforms like MetaTrader 4 and MetaTrader 5 are widely trusted for their user-friendliness and comprehensive tools. - Customer Support
Good customer support is crucial. Ensure the broker offers responsive support in languages you understand, with multiple communication channels, such as email, live chat, and phone. - Educational Resources
Brokers that offer educational resources—like webinars, tutorials, and market analysis—are ideal for traders looking to improve their skills. - Deposit and Withdrawal Methods
Check the broker’s payment options for ease of deposits and withdrawals. Ensure they offer secure, convenient, and locally accessible methods.
By assessing these factors, traders in Bangladesh can find a trustworthy forex broker that aligns with their needs and offers a secure trading environment.
FAQs
What is the role of the Bangladesh Bank in forex trading?
The Bangladesh Bank is the central authority that regulates and supervises all foreign exchange transactions in the country. It licenses authorized dealers (mostly banks) to conduct forex trading and enforces rules to maintain economic stability.
Do I need to pay taxes on profits from forex trading in Bangladesh?
Yes, profits from forex trading are subject to income tax in Bangladesh. Individual traders are taxed based on their overall taxable income, with rates ranging from 10% to 30%. Corporate traders must follow corporate tax regulations, with rates varying based on company type.
Are there restrictions on using cryptocurrencies for forex trading in Bangladesh?
Yes, the Bangladesh Bank has declared cryptocurrencies illegal for transactions within the country. Any forex trading involving cryptocurrencies is prohibited, and trading via cryptocurrency pairs is not allowed.
How can I identify a reliable forex broker?
Look for brokers regulated by reputable authorities like the UK’s FCA or Australia’s ASIC. Ensure the broker offers transparent fees, segregated client funds, negative balance protection, and a reliable trading platform. Always read reviews and check the broker’s reputation before committing.
What are the leverage limits in Bangladesh for forex trading?
The Bangladesh Bank may impose leverage restrictions to limit excessive risk. However, specific leverage limits can vary, and traders should confirm details with the brokers they use, ensuring they comply with any applicable regulations.
What is the risk of using unregulated brokers in Bangladesh?
Using unregulated brokers can expose traders to higher risks, such as fraud, lack of investor protection, and the potential for losing their investments without legal recourse. It’s recommended to choose brokers regulated by recognized authorities.
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What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.