Binary Options Trading in Bangladesh
The trading of Forex and binary options is relatively new and underdeveloped in Bangladesh. However, there is an overwhelming number of investors who reside here, who are interested in the new and exciting investment opportunities of binary options trading. With this lucrative investment method being so new in this country, what are Bangladesh traders’ options? Let’s delve in and find out!
Bangladesh has a very large and strong investment market in the forex industry. There has been a large increase in the trading of binary options online in recent years, causing for some interesting topics pertaining to the investment practice.
Binary options trading in Bangladesh proves to be somewhat misunderstood and unknown. It is new to the region and is very underdeveloped in terms of brokerages offering the service as well as rules and regulations pertaining to it. The trading of binary options is in somewhat of a grey area in Bangladesh’s legal system. There are no laws outright banning or saying it is illegal, but at the same time there are laws and restrictions pertaining to the practice it involves, causing some confusion on the legality of it.
Recommended Binary Brokers in Bangladesh
Currency Pairs & Spread
Bangladesh’s most common currency pairs are similar to other countries who trade binary options. Most traders’ trade what are called ‘Major’ currencies. These currency pairs include: AUD/USD, EUR/USD, GBP/USD, JPY/USD, USD/CHF, and USD/CAD. These currency pairs have the tightest spreads due to their frequent trade volume.
A currency pair which is unique to Bangladesh traders is the Bangladesh Taka (USD / BDT). The Bangladesh Taka is the national currency of Bangladesh, hence making it a popular currency to be traded. This currency pair falls under the category of ‘Exotics’, which includes other currencies such as: USD/SEK, USD/ZAR, USD/MXN, USD/SGD. These currency pairs have wider spreads, but are still popular among some traders.
Another common group of currency pairs traded in Bangladesh are called ‘Crosses’. These currency pairs often include currencies such as; EUR, JPY, GBP, and CHF among others. They are traded more frequently than ‘Exotics’ but less frequent than ‘Majors’ which makes the spread size to be somewhere in between the two opposing currency pair groups.
Trading Platforms
Trading platforms for binary options trading are some of the most sophisticated online trading platforms out there. They offer intuitive design with easy to use interfaces. They empower top of the line software for executing trades at lightning fast speeds, and offer an immersive array of analysis charts and tools. There are numerous platforms available to Bangladesh traders. However, as for trading platforms from Bangladesh, there are very few. It is recommended to go with platforms who are regulated from a highly reputable agency, and unfortunately Bangladesh does not offer this type of regulation for binary options brokers. Therefore, Bangladesh investors should seek international platforms for the trading of binary options.
Bonuses
Bonuses are not something new to binary options. This is the case for Bangladesh brokerages as well. There are various bonuses that companies offer their clients, enticing them into signing up, making more deposits, or simply to keep them trading with their platform. Some of the most common types of bonuses are as follows:
- Welcome Bonus – This is the most common type of bonus, usually receiving an amount of money just for joining a brokerage and making an initial deposit.
- No Deposit Bonus – Another bonus, like the welcome bonus, rewards you with money just for signing up and doesn’t even require a deposit.
- Mobile Bonuses – This is a bonus for downloading a brokerages mobile application and using it.
- Refer a Friend Bonus – Receive money for getting a friend to sign up, they may be required to make an initial deposit.
There is a wide variety and different variations of these bonuses, but they always result in the trader saving or gaining some money for trading on the platform.
Deposit and Withdrawal Options
The deposit and withdrawal process for binary options trading in Bangladesh is somewhat complicated and limited compared to most other countries in the world. One of the restrictions Bangladesh has is, you cannot load funds to your online account through any banking channel from within the country.
Some options to get around this are through e-wallets such as PayPal, Skrill, or Neteller. Another option is to have someone residing in another country other than Bangladesh deposit funds into your account. Other popular options may be the use of Credit Cards. This option proves to be quite simple for investors.
Legality & Regulations
The main regulatory power of the financial markets- which includes binary options trading, is the Central Bank of Bangladesh. The Central Bank was established in 1971 and cooperates with the government to establish and enforce regulations over the financial markets.
In addition to this there is the Bangladesh Securities and Exchange Commission (BSEC), which provides further regulation and protection to investors and brokerages in the securities markets.
There is no law stated by any of these authorities that the trading of binary options is illegal. However, the Central Bank has recently issued a warning for investors to stay clear of the trading of binary options online. As the buying and selling of foreign currency from unauthorized entities is illegal and not authorized by the central bank. This puts the trading of binary options in a grey area with much uncertainty on whether it is legal or not.
FAQ
- Are binary options legal in Bangladesh?
It is very unclear on whether it is legal or not. There are many investors in Bangladesh trading binary options, however it is not widely accepted by the country and their regulatory powers.
- Are binary options regulated in Bangladesh?
No, there is no regulation pertaining to binary options in Bangladesh. However, there are regulatory authorities that protect and try to regulate the financial markets binary options are apart of.
- How can I trade binary options in Bangladesh?
First you must open an account with an investment firm offering binary options trading. Its is quite simple, and can be done online in a few simple steps. Some companies do not even require a deposit to start trading.
Best Brokers in Bangladesh
In terms of binary options brokers in Bangladesh, there are none. Bangladesh investors looking to trade this way must look to international brokerages. It is recommended they choose a reputable broker who is licenced and registered in its hosting country.
Conclusion
This article has attempted to shine light on the new and interesting investment method of binary options trading in Bangladesh. We have overviewed the legality and regulations pertaining to binary options in Bangladesh, and what the country offers in terms of platforms, payment methods, bonuses and more. Besides binary options being unregulated and frowned upon in Bangladesh, investors still have plenty of freedom and choice of international platforms/brokerages to choose from.
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