| Updated: Forex trading in Bangladesh has gained traction among traders seeking to profit from currency fluctuations. However, although the global forex market is accessible in the country, local traders must navigate a unique regulatory landscape.
The Bangladesh Bank, the country’s central financial authority, oversees all foreign exchange activities and can authorise foreign exchange dealers. If you plan to trade currencies as a Bangladeshi citizen, it is crucial to understand the taxes that may apply, which forex instruments are permitted, and how to find a reliable broker. Read on to learn more.
Top 8 Forex Brokers in Bangladesh
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodity CFDs
- Crypto CFDs
- Forex CFDs
- Index CFDs
- Metal CFDs
- Stock CFDs
-
FP Markets
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodity CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Index CFDs
- Metal CFDs
- Stock CFDs
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BlackBull Markets
- Broker boasting lightning-fast execution speed
- ECN brokers with tight spreads from 0.0 pips
- $0 minimum deposit requirement
Trading InstrumentsDeposit Methods- Commodity CFDs
- Crypto CFDs
- Forex CFDs
- Index CFDs
- Metal CFDs
- Stock 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- Commodity CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Index CFDs
- Metal CFDs
- Stock CFDs
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Forex.com
- Access to over 80 currency pairs, majors and exotics.
- Traders may pick from a variety of platforms, including MT4 and MT5, as well as Forex.com proprietary online and mobile platform
- Forex.com provides exclusive research, news feeds, and a range of educational resources to help traders make informed decisions.
Trading InstrumentsDeposit Methods- Bond Futures
- Bond Options
- Bonds CFDs
- Commodity CFDs
- Commodity Futures
- Commodity Options
- Crypto CFDs
- Crypto Options
- Currency Futures
- Energy Futures
- Energy Options
- ETF CFDs
- ETF Options
- Forex CFDs
- Forex Options
- Index CFDs
- Index Futures
- Index Options
- Interest Rate Futures
- Metal CFDs
- Metal Futures
- Metal Options
- Share CFDs
- Stock Options
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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- Commodity CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Index CFDs
- Metal CFDs
- Share CFDs
- Stock CFDs
- US 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- Commodity CFDs
- Crypto CFDs
- Forex CFDs
- Forex Forwards
- Forex Options
- Index CFDs
- Metal CFDs
- Metal Options
- Share CFDs
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ActivTrades
- Winner of 20+ Global Awards
- MT4/MT5, TradingView
- Leverage up to 1:400
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodity CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Index CFDs
- Share CFDs
Our 8-step guide to choosing a forex broker
- Verify regulation and authorisation (e.g., FCA, ASIC).
- Check trading costs: spreads, commissions, swaps.
- Compare execution quality: slippage, fills, order types.
- Check platforms and tools: MT4/MT5, cTrader, TradingView.
- Ensure risk controls: stop-loss, guaranteed stops, negative balance protection.
- Review funding and withdrawals: local options, fees, processing times.
- Evaluate research, education, and alerts.
- Prioritise security and support: segregated client funds, two-factor authentication, support hours.
Brokers Compared by Spread
FX Broker Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| BlackBull Markets |  |
$0 (Standard)$0 (Prime)$20,000 (Institutional) |
| FxPro | |
No fixed minimum deposit requirement |
| Forex.com | |
$100 |
| eToro | |
$50 or $100 based on country ($10 for the UK) |
| easyMarkets | |
$25 ($2,000 for MT4 Premium, $10,000 for MT4 VIP) |
| ActivTrades | |
$0 |
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) |
| BlackBull Markets | |
1:500 (FMA), 1:500 (FSAS) |
| FxPro | |
1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:10000 (SCB | Retail Account) |
| Forex.com | |
1:30 (ASIC), 1:50 (CFTC), 1:200 (CIMA), 1:30 (CIRO), 1:30 (CySEC), 1:30 (FCA), 1:200 (MAS), 1:400 (Pro Account), 1:25 (JFSA) |
| eToro | |
1:400 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:400 (FSAS | Retail Account) |
| 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) |
| ActivTrades | |
1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB) |
Forex Broker Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| FP Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| BlackBull Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| FxPro | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| Forex.com | |
MetaTrader 4, MetaTrader 5 |
| eToro | |
Proprietary |
| easyMarkets | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web, TradingView |
| ActivTrades | |
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView |
Comprehensive Comparison of the Best Forex Brokers in Bangladesh
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.91 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.29 pips |
|
|
 |
$0 (Standard)$0 (Prime)$20,000 (Institutional) |
|
AVG 0.1 pips |
|
|
 |
No fixed minimum deposit requirement |
|
AVG 0.48 pips |
|
|
 |
$100 |
|
AVG 1.3 pips |
|
|
 |
$50 or $100 based on country ($10 for the UK) |
|
AVG 1.1 pips |
|
|
 |
$25 ($2,000 for MT4 Premium, $10,000 for MT4 VIP) |
|
MIN 0.8 pips |
|
|
 |
$0 |
|
AVG 0.5 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 authorised dealers (ADs), including licensed banks and financial institutions, can legally conduct forex transactions.
- Spot Trading: The most common form of forex trading, in which currency pairs are exchanged at the current market price for immediate settlement. In Bangladesh, only authorised dealers, such as 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 contracts 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 expiry date. Although they are not widely available to retail traders in Bangladesh, businesses may access options through licensed institutions.
- Futures Trading: Similar to forward contracts but traded on exchanges, currency futures are standardised agreements to exchange currency at a set price on a future date. Futures trading is uncommon in Bangladesh and requires regulatory approval.
- Contracts for Difference (CFDs): CFDs allow traders to speculate on forex price movements without owning the underlying currencies. However, forex CFDs fall into a regulatory grey area, and traders should verify their legal status before participating.
- Spread Betting on Forex: A speculative trading method in which investors bet on the direction of currency prices without purchasing the underlying asset. This form of trading is not explicitly recognised in Bangladesh and may be considered illegal if conducted through unauthorised 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: Binary options trading is not permitted in Bangladesh because of the high-risk nature of these instruments and the potential for significant financial losses.
- Unregulated Forex Platforms: Using unregulated or unauthorised forex trading platforms is prohibited. Traders are advised to conduct transactions only through authorised dealers and licensed brokers to comply with local laws.
These restrictions are intended to safeguard the financial system and protect investors from the risks associated with unregulated trading activities.
Regulations on Forex Trading in Bangladesh
In Bangladesh, foreign exchange transactions are 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 licences to Authorised Dealers (ADs), typically banks and financial institutions, permitting them to conduct foreign exchange transactions. These ADs must adhere to the rules set out in the Guidelines for Foreign Exchange Transactions, which detail the procedures and regulations governing various types of foreign exchange dealings.
Additionally, the Bangladesh Securities and Exchange Commission (BSEC) plays a role in regulating financial markets, including activities related to securities and derivatives. Although the BSEC primarily focuses on the securities market, its regulatory framework can intersect with forex trading, particularly in relation to derivative instruments.
It is important to note that the regulatory environment is subject to change. As of February 2025, discussions were ongoing about updating the existing foreign exchange regulations to better align them with the current economic landscape and attract more foreign investment. Traders and investors should stay informed about legislative changes that may affect forex trading activities in Bangladesh.
Requirements for Forex Brokers in Bangladesh
Forex brokers operating in Bangladesh must adhere to specific regulatory standards to provide investors with a secure and transparent trading environment. Key requirements include:
- Licensing and Authorisation
Brokers must obtain authorisation from the Bangladesh Bank to operate as authorised dealers or money changers. This process involves meeting specific criteria, including maintaining adequate capital, complying with regulatory standards, and demonstrating the ability to conduct foreign exchange transactions. - Negative Balance Protection
Brokers are required to implement measures that prevent 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 clients with a safety net in cases of broker insolvency or misconduct. - Leverage Restrictions
The Bangladesh Bank may impose limits on the leverage ratios offered to retail traders to reduce the risks associated with highly leveraged forex trading. - Risk Disclosures
Brokers must provide clients with clear and comprehensive disclosures outlining the potential risks involved in forex trading. - Fund Segregation
Client funds must be held in segregated accounts, separate from the broker’s operational funds, to protect client assets if the broker experiences financial difficulties. - Automatic Margin Close-Outs
Brokers should have mechanisms in place to automatically close positions when a client’s margin falls below the required level, helping to prevent 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 activity to the relevant authorities.
Taxation of Forex Trading Profits in Bangladesh
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 at rates ranging from 12% to 32%, depending on total income.
- Traders must report their earnings in their annual tax filings and maintain proper transaction records.
- There is no specific capital gains tax for forex trading because gains are treated as part of regular income.
- Taxation for Corporate Entities
Companies engaged 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: tax rates ranging from 37.5% to 40%.
- 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 are due by 30 November for individuals, while deadlines vary for corporations.
- Advance tax payments are 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.
Because tax laws can change, traders should consult a tax professional or the National Board of Revenue (NBR) for current guidance.
How to Identify a Reliable Broker in Bangladesh
When selecting a forex broker in Bangladesh, it is essential to verify that the broker is reliable and trustworthy. Here are the key factors to consider:
- Regulatory Compliance
Although brokers regulated by international authorities, such as the FCA, ASIC, and CySEC, may be suitable options, the Bangladesh Securities and Exchange Commission (BSEC) has enhanced its regulatory framework. Traders should therefore consider brokers licensed by the BSEC to operate within Bangladesh. - Segregation of Client Funds
A trustworthy broker will keep client funds in segregated accounts, separate from its operating capital. This practice helps protect your funds if the broker experiences financial difficulties. - Transparent Fee Structure
Choose a broker with a clear and transparent fee structure. Review its spreads, commissions, and any additional charges. Understanding the costs in advance helps you avoid unexpected expenses and make better-informed trading decisions. - Trading Platform
The broker should provide a stable and reliable trading platform with features such as real-time data, charts, and risk-management tools. Popular platforms such as MetaTrader 4 and MetaTrader 5 are widely used because of their user-friendly interfaces and comprehensive tools. - Customer Support
Reliable customer support is crucial. Ensure that the broker provides responsive assistance in a language you understand through multiple communication channels, such as email, live chat, and phone. - Educational Resources
Brokers that offer educational resources, such as webinars, tutorials, and market analysis, may benefit traders looking to improve their skills. - Deposit and Withdrawal Methods
Review the broker’s payment options for deposits and withdrawals. Ensure that it offers secure, convenient, and locally accessible methods.
By assessing these factors, traders in Bangladesh can identify a trustworthy forex broker that meets their needs and provides a secure trading environment.
FAQs
What is the role of the Bangladesh Bank in forex trading?
The Bangladesh Bank is the central authority responsible for regulating and supervising foreign exchange transactions in the country. It licenses authorised dealers, primarily banks, to conduct forex transactions and enforces rules intended 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 according to their overall taxable income, with rates ranging from 12% to 32%. Corporate traders must comply with corporate tax regulations, with rates varying by company type.
Are there restrictions on using cryptocurrencies for forex trading in Bangladesh?
Yes, the Bangladesh Bank has declared that cryptocurrencies cannot legally be used for transactions within the country. Forex trading involving cryptocurrencies is therefore prohibited, including trading cryptocurrency pairs.
How can I identify a reliable forex broker?
Look for brokers regulated by reputable authorities, such as the UK’s FCA or Australia’s ASIC. Ensure that 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 opening an account.
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, so traders should confirm the applicable limits with their brokers and ensure compliance with relevant regulations.
What is the risk of using unregulated brokers in Bangladesh?
Using unregulated brokers can expose traders to greater risks, including fraud, a lack of investor protection, and the potential loss of funds without legal recourse. Traders should choose brokers regulated by recognised authorities.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it's essential to rely on trustworthy sources. RationalFX, a company with over 20 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it's clear that Rational FX has built a reputation for providing reliable and unbiased information.
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.