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Forex trading is very much legal in the Bahamas, and actually it is very popular among the citizens of the country. Known officially as the Commonwealth of The Bahamas, it is a country located within the Lucayan Archipelago and takes up 97 percent of the land area.
With its almost 400,000 population and well-regulated Forex market, it is a very popular place for many Forex traders. The country’s economy is perfect for Forex trading, as it enjoys the status of one of the richest countries in the region. It is also known to be one of the countries with the biggest amount of offshore entities or companies, however, the country’s economy still mostly relies on tourism. After this, the most important sector for countries economies is banking and offshore international financial services, which are very actively used in many countries around the world.
In today’s guide, we will discuss everything about this very diverse and interesting financial market. So, if you are looking for the best Forex broker in the Bahamas, follow our tips carefully!
What are Bahamas’ best Forex brokers?
There are a number of Forex brokers that are actively and legally offering their services to the citizens of the country, however, finding the best one can take a lot of time. For you, we have done very hard research and came up with a list of the best brokers that you can take a loot below.
While coming up with this list, we made sure that we would take into account regulations, fees that are charged for payments, and many other details.
Licences
FCA, CySEC, IFSC, ASIC, DFSA
Min. depo
$5
Leverage
1:888
Platform
MT4, MT5, WebTrader
XM
Licences
ASIC, FSA, FSCA, FFAJ, FSRA, FSC
Min. depo
100 USD
Leverage
400:1
Platform
MT4, MT5
AvaTrade
What are the Forex trading regulations in the Bahamas?
The main regulatory body of the country which is responsible for issuing licenses to Forex brokers in Bhama is the Securities Commission of The Bahamas, SCB. The company is responsible for not only giving out the licenses but also for monitoring the financial activities and services of the broker.
Initially, the company was established to provide guidelines for all financial companies including Forex regulations, rulemaking, investigatory practices, and many more. The company is responsible to make sure that everything is done in accordance with the law.
Thanks to the long-standing status of the country as the financial offshore haven, the regulatory body has a very huge experience of overseeing different types of Forex brokers and other financial companies. The laws, however, are mostly still based on British common law, and maybe with the help of it, the country is known to be very safe and reliable for both, Forex traders and brokers. Recently, the country came up with some stricter and tougher laws when it comes to trading, to ensure the maximum safety of its citizens.
How to obtain a Forex trading license in the Bahamas?
To be able to deliver Forex services to the citizens of the country, brokers have to go through a very detailed procedure. Generally, they will have to:
- Incorporate a new business entity, by providing identity documents, intended structure, etc.
- After sending your documents for authorization and SCB approving it, you will be required to open up bank accounts that are needed for operation
- You will need to have a capital of at least $120,000 and you will need to have a physical office in the Bahamas
Also, keep in mind that the process can be very long, as it can take anything between 4 to 6 months.
Why are regulations so important and how to check if the broker is authorized or not?
Regulations are super important because they ensure that your funds can stay safe with a specific company. In most cases, these regulations also include that the brokers should keep funds of their clients segregated, which adds another layer of safety. To make sure that the broker that you are trading with is licensed, you can address the regulatory body directly.
Visit the website of the body and try to look for some type of a list that includes Forex brokers. If there is not any, you can always contact the organization and ask them if a specific broker is authorized or not.
What is the national currency of the country?
The official currency of the Bahamas is the Bahamian Dollar. It is a very important fact that 1 USD equals one Bahamian Dollar. Even though the currency is not actively used in the world of Forex, you still need to make sure that when you start trading with Bahamian Forex broker, they offer payments with the national currency.
This is important because in most cases, it will cost you some money to exchange the different currencies and you do not really want to spend your hard-earned money on that.
What are available payment methods is the Bahamas?
Even though the most actively used payments in the country is by cash, there are many payment methods that you can use for Forex trading in the Bahamas. For example, credit cards, such as Visa, Mastercard, and American Express are very actively used among Forex traders in the country.
Also, online payment methods are very popular in the Bahamas, you can find a bunch of different Forex brokers that accept the world’s best online brokers in the Bahamas. Payment methods can be very important for your trading experience. Most of the brokers on the market offer different types of it. While working on this guide, we have come up with a list of brokers that have adopted some of the most diverse payment methods on the market.
XM
Min. Depo
$5
Licences
FCA, CySEC, IFSC, ASIC, DFSA
Leverage
1:888
Platforms
MT4, MT5, WebTrader
AvaTrade
Min. Depo
100 USD
Licences
ASIC, FSA, FSCA, FFAJ, FSRA, FSC
Leverage
400:1
Platforms
MT4, MT5
Exness
Min. Depo
$10
Licences
CySEC, FCA, SFSA
Leverage
1:2000
Platforms
MT4, MT5
FundedBull
Min. Depo
49 USD
Licences
N/A
Leverage
N/A
Platforms
MT4, MT5, cTrader
Forex.com
Min. Depo
$100
Licences
NFA, CFTC, FCA, FSA, IIROC and CIMA
Leverage
1:50
Platforms
WebTrader, MT4, MT5
CMTrading
Min. Depo
250 USD`
Licences
FSCA
Leverage
1:200
Platforms
MT4, WebTrader, Copykat
Plus500
Min. Depo
$100
Licences
FCA, ASIC, CySEC, FSCA, FMA, MAS
Leverage
1:30
Platforms
WebTrader, Windows 10 Trader
The most popular Forex trading Softwares in the Bahamas
The country is well-known for its Forex regulations and because of these regulations, the field is full of different brokers. Among these brokers, most use the MetaTrader4, which is a Russian software actively used by many Forex brokers around the world. This software offers traders access to a very huge market, with the possibility of trading with almost 90 different currencies.
A newer version of MT4 is the MetaTrader5, which includes some updated tools which make Forex trading even easier. These platforms can be used in browsers directly and you can also download them. If you are actively used mobile phones, you can always depend on these Softwares, since they make mobile trading very easy. With this, you will always be able to keep in touch with the world of trading no matter where you are!
Is Forex trading safe in the Bahamas?
Because of the well-regulated market, Forex trading in the country is very safe. The Bahamas uses laws from the UK, which makes Forex trading even easier. In recent years, the country has adopted additional regulations that make sure that every trader and broker can feel safe while trading Forex.