As with CFDs trading forex can be difficult in some countries around the world. With strict policies regarding financial regulations and margins (or even interests in the case of Islamic countries), it might be tricky to trade online and follow all the rules. We will help you choose a broker and take the first steps towards trading with several examples from around the globe.
What to consider?
The most important thing to know is the regulation regarding your own country and in the country the broker you want to trade with is regulated in. this is especially true if you live in Canada.
For example in India, it is only allowed to trade currency pairs that have the Indian Rupee in them, and you can only trade without margin.
Taxes in Canada
Knowing the taxes that might apply on your trading activity can save you from a lot of trouble—not knowing them won’t be a good excuse if you receive a fine. And taxes are VERY different in a lot of countries so be sure to have a ballpark estimate before you calculate you profits.
It is not inevitable that you will have an account in your own currency as it might not even be available as a base currency by your broker. For example if you live in Asia or Africa (Like Ghana, Nigeria, Kenya or South Africa) you will most likely trade in a foreign currency. Even if you live in Australia you or a European Nation outside the Euro-Zone you might end up with substantial currency risk.
You can mitigate the risk if at least your currency is available for trading by your broker. In that case, you can hedge your position to eliminate the risk (but you might pay for the hedging in the form of margin interest).
Choosing the broker
It is not just the base currency and the product offering that matters. Having customer support in your language is a great thing especially if you are not perfect in English. When your money is on the line you don’t want the language to be a barrier. There are good brokers like IronFx (read our review ) with a wide range of available languages in Customer Support.
The payment methods offered by the broker might be deal-breakers as well. Having a legal, quick and easy way to access your money like OkPay, Neteller, PayPal or Skrill might save you a lot of money and time.
Choose a reputable broker even if it is offshore!
If regulations let you be sure to choose a company with a history of stability and no money transfer problems. The last thing you want is to run into a scam like this one in Kenya. If this means the company is not regulated in your country so be it, it is most likely still legal for you to open an account; you just have to check the rules of your authority.
Check the Local Offers!
If you find a great broker that also has an office in your country don’t hesitate to open an account, you will probably be saved from a lot of hassle this way, as the company is likely to know the rulings, your duties as a trader and will help you with good customer service.
Whatever broker you end up choosing you should keep on looking—the market is evolving constantly. There might be new offers available in your country that would provide much better conditions than previous ones. Keep an open attitude and profit from the quickly developing online forex business!