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.
With such a peculiar market in place, one can easily see that it is interesting to examine the state of Forex trading in Bahrain. In the guide below, you will find a detailed overview of the main perks of trading in Bahrain, the local regulatory body, as well as the top Forex brokers list, and more.
As we have already mentioned, the Bahraini national economy has a lot to offer to the local traders. However, to secure access to all the perks available, one should start by choosing the brokerage that is both reliable, safe, and sufficiently qualified.
Our experts know very well just how hard of a task this might be – one will have to conduct an all-encompassing assessment, that would have to include the specifics of the country’s market, individual needs and trading, personal trading strategies, preferable payment methods, and many other factors.
With all of that, a trader, whether the beginner or an experienced one, would be faced with an ultimate choice of which brokerage to trust with the hard-earned trust. What you will find below, is the list of the best Forex brokers in Bahrain, that we have compounded to save you the time and effort of doing it on your own.
CySEC, IFSC, ASIC
CySEC, FCA, FSA
100 currency units
CIMA, FCA, NFA
Before reading onwards about the Bahraini FX market, we suggest that you determine whether or not you are eligible to become a trader there. The main legal requirement is being of age 21 or older, and once you meet that, there will be no regulation preventing you from getting into the field.
On top of the legal age requirement, you are likely to see that each individual brokerage has its own set of standards that their potential traders will have to meet. The most common of them are the requirements for the employment status and the minimum monthly income.
As in many other countries of the world, it will not cost you a dime to get into Forex trading in Bahrain. Nevertheless, Forex trading is a form of financial investment, which means that it will not be entirely free for you.
At the initial stages, the most important cost that you will be looking at is the initial deposit that you will need to access the actual trading. Different brokers will have different standards for the minimum deposit to be made, but it is usually with the 5 USD – 500 USD frame.
The Bahraini regulatory body is 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.
When it comes to choosing the best Forex broker in Bahrain to sign up with, 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.
One can argue that there is no point in looking for a licensed broker anyways, and it is nothing but a formality. This notion is far from being accurate as the possession of the license means that the broker was first able to prove that it has all the skills and resources to offer their services, and was closely monitored ever since.
Moreover, by joining a brokerage with an official license, you can be confident that the relevant regulatory body will step in on your behalf in case of any disputes.
There are two main bonuses that the Forex trading brokers in Bahrain have to offer:
If you are specifically interested in obtaining bonuses from your brokers, you will easily be able to find those in Bahrain, unless the brokerage that you choose is licensed by the European regulatory body that strictly prohibits them.
The main trading platforms in Bahrain are similar to those that are often met in other countries across the world. Some brokers choose to use the software that was developed specifically for them, while others resort to the more popular alternatives, such as the cTrader, MetaTrader4, and MetaTrader5.
Choosing a broker with a platform that fits your needs best is not any less important than any other features that the brokerage has to offer. If you are looking for something beginner-friendly, we would recommend choosing MT4 and MT5, as it is so widely used by both top brokers in Bahrain and across the world. that you will have no trouble finding educational material on how to use it.
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 GDP reaches 78 760 billion USD. As previously mentioned, 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.
The national currency of Bahrain is the Bahraini dinar or the BHD. This currency is often traded by the local traders, however, it is not as popular outside of the country, as it is considered exotic. Many of the best online trading platforms in Bahrain do offer an option of making a payment in BHD, although the choice of payment methods is more limited than elsewhere in the world.
The most popular options are credit/debit cards ( especially Visa and MasterCard) and online payments. PayPal is also available in Bahrain, however, the services that it has to offer are limited.
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.
With the rapid speed of economic development, one can easily predict that the FX market will soon follow the path of the country’s financial sector, and become one of the most prominent ones in the region.
Nevertheless. the market still has a long way to go to achieve that and is currently in scarce need of proper regulations in place. As of right now, if you are a Bahraini citizen who wishes to try out trading Forex in the country, we highly recommend that you do not overlook any of the necessary repercussions. Among them is always choosing the regulated Forex brokers in Bahrain, and inquiring about their respective licenses with the relevant regulatory body.