A guide to finding best Bahraini Forex brokers

The Kingdom of Bahrain is a small sovereign state located in the Persian Gulf. The overall territory only adds up to 780 square kilometers and consists of 91 islands, both natural and human-made. This country borders with some of the region’s major economic and political players, such as Qatar and Saudi Arabia, however, the Bahraini national economy is a strong competitor to those, despite its size.

Unlike other states in the Middle East, that keep natural resources, especially oil, as the main drivers of their economies, Bahrain has long realized the need of investing in the development of various segments of the economy to keep it diverse. As a result, the World Bank recognized the country as the one with a high Human Development Index, and a high-income economy overall.

According to the recent UN report, the Kingdom of Bahrain is the fastest-growing economy in the world and the freest economy in the region. The country’s main source of revenue is the export of oil, however, the national economy of Bahrain is very diverse.

Among the most developed segments, you will find the financial sector, which is duly considered to be the most prominent ones in the region. Moreover, being the home to some of the UNESCO protected sights, Bahrain attracts thousands of visitors from the region and from across the world every year, and the country’s tourism industry is also flourishing.

A full list of the best Forex brokers in Bahrain

To find a broker that best fits your needs, traders need to assess multiple brokers, compare their fees, regulations, account types and other trading conditions, which is time and energy consuming. To make this process easier for you, we have reviewed multiple brokers and created the top list.

Forex trading regulations in Bahrain

Forex and CFD (Contracts for Difference) trading in the country is regulated by the Central Bank of Bahrain (CBB), which was established in 2006 to take on the functions previously executed by the Bahraini Monetary Agency. As of today, the CBB is overseeing the smooth functioning of the country’s financial sector, which includes banking, investment, insurance, and capital market, as well as determining the country’s monetary policy.

However, when it comes to the Forex trading market, the CBB does not have any specific regulatory mechanisms in place. This means that it is relatively unsafe to start trading in the country, although not entirely impossible. The regulator is not highly experienced when it comes to Forex brokers. And therefore, we suggest that you consider international brokerages that offer their services there. If the broker is licensed by a reputable body, such as the CySEC or BaFIN, it can definitely be trusted as both qualified and safe.

Most popular trading platforms in Bahrain

One of the very first steps beginners have to make is to choose their trading platforms. The most popular platforms globally and in the country are:

• MetaTrader 4 (MT4) – that was created in 2005 and quickly became a hit. Nowadays, most brokers offer this platform. It is mostly used for trading Forex pairs.
• MetaTrader 5 (MT5) – this platform is built by the same company that created the MT4. MT5 was released in 2010 and offers improved capabilities. MT5 is a multi-asset platform that gives traders access to not only Forex, but to stocks, bonds, and futures.
• cTrader – cTrader has a modern looking design. And supports trading CFDs and Forex. However, cTrader is not a multi-asset software like the MT5. This platform is popular among day traders that enjoy raw spreads.

Pros and cons of trading Forex in Bahrain

It is hard to give a clear answer to whether or not it is advantageous to get into Forex trading in Bahrain, however, there are some outstanding positive and negative features of the local FX market that do stand out.

Pros:

• The Bahraini national economy is strong and diverse, and a trader can benefit from a variety of trading instruments
• The lack of strong regulatory mechanisms means that you can trade with high leverage and maximize your profits (although we do not recommend you do that if you are not an experienced trader)
• The local FX market is still developing and has the potential to become one of the strongest in the region, which can create career opportunities for traders.

Cons:

• The absence of an efficient regulation makes it rather unsafe to trade in Bahrain
• Choosing a broker has to be done with some extra caution, as the number of scams in the country is ever-growing.

Summary

Overall, Forex trading is legal and regulated by the country’s central bank in Bahrain. However, the regulator is not highly experienced when it comes to controlling Forex brokers. Which is why we recommend taking international brokers into consideration. Global brokers that we have included in the list have better trading conditions than the local ones because they are competing at the global level. In addition, international regulators such as FCA, CySEC, and others are more experienced in regulating brokers.

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