There is a good reason for Turkey’s popularity among tourists from all over the world. The country combines ancient history with a vibrant and diverse culture, unique customs and traditions, and amazing sights to see.
On top of that, Turkey is an important player in the geopolitical arena, both due to its economic and political power, as well as its unique geographic location. The Republic of Turkey is located on the Anatolian Peninsula in Western Asia, but its territory also consists of some parts of Southeastern Europe and the Balkan Peninsula.
With a population of 83,154, 997 people the country occupies a total territory of 783, 356 square kilometers, which makes it the world’s 19th largest country by population, and 36th largest state by overall territory.
Turkey has been displaying impressive economic growth since the 2000s, and, therefore, it is unsurprising that the local Forex environment is also quite developed. Moreover, in terms of the sheer size of it, the Turkish Forex market is one of the largest in the world.
In the guide below we will dive deeper into the Forex regulatory environment in Turkey, assess the country’s top Forex brokers list, examine the opportunities of trading in the Turkish national economy, and provide some useful tips on how best to get started with the FX market there.
As mentioned earlier, the Forex market in Turkey is both sufficiently well developed and regulated properly, which means the opportunities for profit that it has to offer are plentiful. However, in order to access them, you will need to dedicate some time and effort to research and careful assessment of the brokerages that offer their services in this country.
Moreover, although the local market is subjected to very efficient regulatory mechanisms, it does not mean that you do not risk coming across a scam. On the other hand, we are well aware that looking for a reliable brokerage to join can be both time-consuming and stressful.
In order to lend you a helping hand, we have called upon our own team of experts and tasked them with examining the variety of brokerages operating in Turkey. The result of their extensive research is the complete list of best Forex brokers in Turkey that you will be able to find below.
In it, you will both be able to discover Turkey’s most reliable brokerages, as well as detailed information on their most important features, such as the success rates of their respective traders and the trading instruments that they have to offer.
CySEC, IFSC, ASIC
CySEC, FCA, FSA
100 currency units
CIMA, FCA, NFA
As we often mention in our guides, an effective regulatory environment is imperative to the sustainable development of the country’s Forex market. As is usually the case in other countries across the world when Forex trading was first introduced to the local traders the market was full of fraud schemes and was barely regulated at all.
Once the local authorities realized that the lack of security is damaging the overall reputation of Forex trading in Turkey, the regulatory mechanism was adjusted and the local FX market developed into what it is right now – one of the largest markets both in the world and in the region. We will now have a closer look at how exactly is the Turkish Forex market monitored and regulated.
The main regulatory body of Turkey is the Capital Markets Board ( CMB). First established in 1982, this agency is appointed directly by the Turkish Ministry of Finance, and it is tasked with performing a variety of different tasks.
Overall, the CMB is responsible for overseeing the general stability, security, and sustainable development of the country’s financial market, as well as ensuring the safety of the customers that purchase the services that it has to offer – including the Forex trading.
According to the CMB regulations, if a broker wishes to offer their services to the local traders, it is required to obtain a license from the country’s official regulatory body. The process is both demanding and time-consuming, however, it does ensure what it was originally meant for – having only the most reliable brokerages operating in the local market.
Moreover, since Turkey is not a part of the European Union, the brokerages licensed by the European regulatory authorities are not legally permitted to operate there. Although this notion significantly reduced the variety of options of brokers that the Turkish traders can choose from, it does still fit in the country’s overall agenda of making the local FX market as safe as possible.
As we have already mentioned, local authorities take market security very seriously, thus, it is no surprise that regulated Forex brokers in Turkey are obliged to meet some strict requirements from the CMB.
Among them is a popular measure, that many other regulatory bodies across the world impose upon their official licensees. An investor protection fund exists to make sure that in case of a brokerage going bankrupt, its traders will not be left with their hard-earned funds lost altogether.
By requiring local brokers to keep this fund intact at all times, the CMB provides Turkish traders with an additional layer of security and much-needed peace of mind in a financial enterprise that is already quite risky.
In an attempt to limit all the unnecessary risks that the traders can be subjected to, the Capital Markets Board of Turkey has gone an extra mile and imposed additional regulation on the provision of leverage and CFDs. When it comes to the former, a trader in Turkey, who is trading with a margin, will only be able to access maximum leverage of 10:1.
Despite caps on leverage being quite popular among the regulatory bodies all around the world, Turkey is definitely among the countries with some of the tightest restrictions on leverage. For many traders based there, such restrictions are a cause of a lot of frustration, as both CFDs and leverage can both result in devastating losses, but also in some of the highest profits.
On top of having a specific set of regulations for the Turkish Forex brokers in 2020, the CMB also introduced a number of requirements that the local traders need to follow. In order to get into the field of the FX market in Turkey, a trader will need to make an initial deposit of 50,000 Turkish liras (a little over 8,000 USD).
This might seem like a lot of money that one needs to have ready in order to get into the local Forex market. However, such a strict requirement does fit into the countries overall agenda of keeping the market participants as safe as possible. According to the CMB logic, if a trader cannot afford to deposit 50,000 TRY, then they are better off kept away from the potential financial risks of trading Forex.
As mentioned earlier, the Turkish national economy has grown significantly over the last twenty years. As of right now, the country’s GDP is estimated at 744 billion USD, which makes it the 19th largest economy in the world, and the world’s 13th largest economy by purchasing power parity (PPP).
Moreover, Turkey enjoys a special standing in the global economic arena, as the country is among the founders of the OECD – G20. Finally, a significant driver behind the success of the Turkish national economy is the EU-Turkey Customs Union, which boosted the country’s economic development and established a foundation for its foreign trade policy.
The national currency of Turkey is the Turkish Lira, coded as TRY. This currency has a long history of turmoil, such as lasting periods of inflation and devaluation, and it remains to be quite evaluated to this day. The main entity responsible for overseeing the issue of the currency and the implementation of the relevant monetary policies is the Central Bank of the Republic of Turkey (CBRT).
Given the hardship that the Turkish Lira is still going through, it is no surprise that it is not very popular with traders across the world. Moreover, our general recommendation to the amateur traders is to avoid exotic currencies and start by trading more popular currency pairs, such as EUR/USD.
With that being said, it does not mean that one should avoid trading TRY altogether. If you are confident in your trading skills and understand the variety of factors that influence this currency, you will find that most of the best Forex brokers in Turkey both offer it as a trading instrument and accept payments in TRY. The TRY is usually traded in a pair with USD or EUR.
If you are interested in trading commodities then the Turkish FX market might just be the place for you. As of 2019 figures, Turkey has exported a total number of goods worth over 171 billion USD. The largest chunk of the overall Turkish exports was oil, closely followed by precious metals and electric machinery.
On top of being a large producer of the region’s oil, Turkey is also known for its diverse industrial sector. The country manufactures motor vehicles, ships, and transportation equipment. Moreover, the Turkish agricultural sector is very well developed and caters to the country’s produce and export of pomegranates, figs, apricots, and hazelnuts, as well as the livestock.
The variety of commodities to trade with, that the best online trading platforms in Turkey have to offer could ultimately become the recipe for trading success. If your trading strategy is keeping your trading profile diverse and resistant to market volatility, then you are sure to enjoy the opportunities for Forex trading in this country.
Since the FX market in Turkey is well-established, it is no surprise that the local trader gets to choose from a variety of different options when it comes to the trading software. Ultimately, you should never underestimate the important role that the right platform plays in the overall success of each trader, and you should always do your research to choose the one that suits your needs best.
Some Forex brokers in Turkey operate on the platforms that were created specifically for them, and it does not mean that one should avoid them altogether. However, before joining a broker that offers individualized software, it is always a good idea to go through the customer reviews to determine whether or not it functions well.
On top of customized platforms, top Forex brokers in Turkey often use more popular trading software, such as MetaTrader4, MetaTrader5, and cTrader. The former two are especially recommended to those who are only getting started with Forex trading, as they are reliable, extremely popular, and easy to navigate.
As mentioned earlier, it is not only brokers that have to abide by the strict regulations issued by the Turkish regulatory body. In order to be considered eligible to become a trader in this country, an individual will have to be aged 18 or older, and meet the country’s minimum deposit requirement of 50,000 TRY.
Having said that, we will attempt to answer one of the most popular questions that beginner traders have – is it free to start trading Forex? The answer is yes and no at the same time. It is technically free to sign up with the best Forex broker in Turkey that you end up choosing, however, as mentioned earlier, you will have to meet the country’s minimum deposit required to access the market.
Having discussed the overall state of the FX market in Turkey, we can conclude that it is definitely a favorable environment for the local traders. The opportunities for profits are plentiful, and the local authorities make a lot of effort to maintain the security of the Forex market for all its participants.
However, one should also keep in mind that due to the strict security regulations, the market is both hard to get into, and the options of the best Forex brokers in Turkey in 2020 are limited. Nevertheless, if Forex trading is something that you have long been interested in, then we highly recommended exploring the local market further.