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Republic of Georgia is situated in the South Caucasus region and borders with Russia, Armenia, Azerbaijan, and Turkey. Georgia is home to one of the world’s most ancient histories, which, to this day, can be observed in every element of the country’s vibrant culture, customs, and traditions.
The main contributors to the national economy of Georgia are wine exports, agriculture, manufacturing, and tourism. The country offers an investor-friendly environment as trading financial markets are not taxed. In addition, Georgia has free trade agreements with the EU, Turkey, and other significant economies in the region. However, there are many challenges to overcome. 20% of the country is under occupation by the Russian Federation, and the local economy is still in its development phase.
The complete list of best Forex brokers in Georgia
Forex trading in Georgia is becoming increasingly popular. One of the main steps beginners have to make is selecting a broker. What makes this process so difficult is the fact that there are a huge amount of brokers to be compared. Traders need to compare fees, regulations, platforms, customer service, and available assets. To make the selection process easier for you, we’ve created a top brokers list.
Forex trading regulations in Georgia
The main regulator body in the country is the National Bank of Georgia (NBG), which is the central bank in the country. This entity is responsible for a vast variety of sectors of the country’s financial segment, with the Forex trading in Georgia being among them. FX trading in the country is still very new, and the regulations are still in the development. The NBG issues license for local brokers, however, the number of local brokers is very limited.
Bans on binary options, bonuses, and conflict of interests
In an attempt to provide an extra layer of security to its traders, the NBG has listed a number of activities that are strictly prohibited in the country. Failure to abide by this list will cause regulated Forex brokers in Georgia to be banned, as well as face the appropriate punishment.
The first on this list is the practice that is also banned in almost every country in Europe, namely, the provision of bonuses and promotions. Brokers often use bonuses to lure in new traders and expand the existing customer base.
The bonuses that are usually offered are either welcome or refill, with the former being gifted to the traders that have just joined a broker, and the latter being issued periodically to the returning traders. In Georgia, bonuses are viewed as a form of aggressive marketing of a potentially risky investment, and are, therefore, prohibited altogether.
Another instrument that is prohibited in Georgia refers to the use of binary options. Most countries in the world regard this type of trading as merely a form of gambling, and there is not a single trader who tried exploring it and did not end up being scammed or with some significant financial losses. Forex brokers in Georgia are banned from both promoting and offering binary options to their clients.
Popular trading platforms in Georgia
Most Georgian traders use international brokers for trading. And the most popular platforms in Georgia and globally are MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. MT4 and MT5 were built by MetaQuotes. And they both look very similar, however, the main difference is that MT5 is more advanced, a bit more complex, and supports additional trading asset classes, such as bonds, stocks, and futures, while MT4 is mainly used for trading currencies. cTrader offers a modern design and is popular among ECN (Electronic Communications Network) traders that prefer raw spreads. On the downside, it should be mentioned that like MT4, cTrader is not a multi-asset platform. All three platforms mentioned support algorithmic trading, offer extensive tools for market analysis, and are highly reliable when it comes to trade execution. In addition, brokers typically offer mobile and web trading versions of these platforms.
Summary
Forex and CFD (Contracts for Difference) trading in Georgia is gaining popularity every year. Trading is regulated by the central bank of the country, however, it should be mentioned that trading financial assets in the country has gained attention fairly recently and the regulator is not highly experienced. In addition, the number of local brokers is limited, and they cannot compete with global brokers. International brokers such as XM, AvaTrade, Plus500, and others in our list offer best trading conditions to customers globally.
FAQs on finding top Forex brokers in Georgia
Can I trade Georgian Lari in Forex?
Is Forex taxed in Georgia?
