Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
The primary stock market in Bangladesh is the Dhaka Stock Exchange (DSE), which was founded in 1986, but originates back to 1954 when the East Pakistan Stock Exchange Association Ltd was first incorporated. The DSE now ranks 48th among the largest stock exchanges globally, with a market capitalisation of around $42.42 Billion in 2019.
The DSE provides a basic listing service in stocks and equity derivatives for Bangladeshi companies. It also lists mutual funds and has plans to offer more assets in future, like Real Estate Investment Trusts (REITs) and exchange traded funds (ETFs). The exchange also provides trading in Bangladeshi debt instruments like treasury bonds and corporate bonds and debentures.
The primary broad stock market index for the Dhaka Stock Exchange is the DSE Broad Index (DSEX), while the exchange’s main narrower blue chip index is the DSE 30 Index (DS30). Stocks in both of these indices are weighted by their float-adjusted market capitalisation, and neither index includes mutual funds or debt instruments.
Bangladesh also has a second significant stock exchange known as the Chittagong Stock Exchange (CSE) based in Chittagong. It was incorporated in 1995, demutualised in 2013, with its Next Generation Trading System (NGTS) becoming operational in 2011. The CSE ranks 50th among the largest stock exchanges globally, with a market capitalisation in 2019 of $40.36 Billion.
The CSE’s listing service includes stocks of Bangladeshi companies, mutual funds and corporate bonds. Like the DSE, the CSE also has plans to offer additional assets soon, including Real Estate Investment Trusts (REITs), exchange traded funds (ETFs), commodities and derivatives. The primary broad stock index for the CSE is the CSCX or Chittagong Special Categories index that incorporates all the securities the CSE lists, including Z category stocks. Narrower blue-chip indices include the CSE 30 and the CSE 50 indices that are made up of the top 30 and 50 best stocks traded on the CSE respectively.
The Bangladeshi taka (BDT) is the national currency for the People’s Republic of Bangladesh. Takas are issued and managed by the Bangladesh Bank that acts as the central bank of Bangladesh. Each taka is further broken down into 100 lesser units called poisha. In its 2016 survey, the Bank for International Settlements (BIS) did not rank the Bangladeshi taka among the 35 most actively traded currencies that year. The BDT also failed to rank among the currencies most commonly held as central bank reserves in 2018, as per the International Monetary Fund (IMF).
The main securities market regulator in Bangladesh is the Bangladesh Securities and Exchange Commission (BSEC) that operates under the country’s Ministry of Finance. The BSEC was formed in 1993 to regulate the country’s capital markets under the Securities and Exchange Commission Act 1993. This regulator aims to protect the interest of securities investors, develop the securities market in Bangladesh and formulate securities legislation. Forex trading is legal in Bangladesh, and online forex brokers are overseen by the Bank of Bangladesh.
None of the major online forex brokers are situated in Bangladesh, although traders based in the country can deposit money for online trading by opening accounts with foreign brokers that will accept them as clients. Traders should also make sure that a broker allows for withdrawals and deposits in Bangladeshi taka, if they do not have an available balance in another currency.
Any broker located outside of Bangladesh also needs to be strictly regulated in its local jurisdiction and keep client funds separate in segregated accounts to keep funds deposited as margin protected. Brokers should also have good overall client reputations, as well as a sufficient range of tradable assets and services.
Most online forex brokers will allow practice trading and strategy development via demo accounts funded with virtual money. Funded accounts are also available at online brokers, and they require traders to put up a minimum initial deposit to use as margin before starting to trade live. Since Bangladesh is a Muslim country, some brokers offer Islamic accounts without swaps on rollovers that comply with Sharia law.
Virtually all online brokers provide customer service and a website in English. If accessing a broker’s website in a language other than English is important, such as in Bengali, Rangpuri, Assamese, Bihari or Urdu, then be sure to ask about that in advance to assure that those needs can be accommodated.
Online brokers vary substantially when it comes to the asset classes they allow clients to trade, although the most do offer some kind of forex trading in the major currency pairs. Contract for difference (CFD) trading is popular outside the United States, and CFD brokers will typically give traders the ability to trade more assets.
Regarding stock trading, both The Dhaka and Chittagong Stock Exchanges provide fair and transparent markets for several asset classes, including Bangladeshi stocks. DSE and CSE trades are generally executed in Bangladeshi taka, and live trading has taken place on the DSE via its automated trading system (ATS) since 2006 and on the CSE’s Next Generation Trading System (NGTS) since 2011.
The Bangladeshi financial sector is in the process of development. It presently consists primarily of a banking sector and a mostly undeveloped equity and capital market. And while the country is relatively small in size, its population of 167.9 million makes Bangladesh the eighth most populous and the most densely populated nation in the world, excluding city states.
According to GOV.UK, Bangladesh aims to become a middle income country by 2021, with a plan for growth through massive investment in infrastructure, skills development and trade. Other benefits for companies aiming to do business Bangladesh include:
With respect to World Bank rankings for doing business, Bangladesh scored rather poorly in most categories, with protecting minority investors being its best overall ranking at 89th .
According to the World Bank Group, Bangladesh’s top trading partners are the United States, Germany, the UK, Spain and France. Other countries that trade actively with Bangladesh include: China, India, Hong Kong/China and Singapore.
Any upcoming Brexit, which is set to occur on October 31st, 2019, should have minimal impact on Bangladesh’s existing trade with the UK since those countries do not have an existing trade agreement.
The World Bank ranked Bangladesh at a dismal 176th for general ease of doing business, and the country had even worse rankings of 189th for enforcing contracts and 183rd for registering property. Other areas that received low scores were obtaining electricity, trading across borders and obtaining credit, for which the country ranked 179th, 176th and 161st respectively.
In summary, traders and businesses may find Bangladesh a somewhat challenging place to operate in. Although Bangladeshi securities firms receive competent oversight by the BSEC, forex traders should look for a firm authorised to operate in Bangladesh by the Bangladesh Bank.
When selecting an online broker to trade through from Bangladesh, traders should ensure that a broker offers the asset classes they want to trade, has a good reputation, is well regulated, and accepts deposits in a currency they can readily obtain. The online broker should also provide a free trading platform that has the necessary features and should separate client funds from its own money for added safety.
Forex.com scored best in our review of the top brokers for bangladesh, which takes into account 120+ factors across eight categories. Here are some areas where Forex.com scored highly in:
Forex.com offers one way to tradeForex. If you wanted to trade EURUSD
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
Forex.com have a AAA trust score. This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being segregating client funds, being established for over 19
|Regulated by||Financial Conduct Authority|
|Uses tier 1 banks|
|Segregates client funds|
Want to see how Forex.com? We’ve compared their spreads, features, and key information below.
|USD/JPY Spread||0.90||DAX Spread||250.0|
|FTSE 100 Spread||150.0|
|Platform||MT4, Web Trader, NinjaTrader, Tablet & Mobile apps|
|Base currency options||USD, GBP, EUR|
|Funding options||Bank transfer, Cheque, DebitCard,|