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Forex Trading in Antigua and Barbuda

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Thanks to its robust tourism industry, Antigua and Barbuda, two islands that formed an independent state, is one of the most prosperous countries in the Caribbean. Since this dual island’s economy is mainly service-based and highly reliant on tourism, it is also easily susceptible to economic downturns in foreign nations, especially the U.S., which generates the largest portion of its tourism dollars. Antigua and Barbuda’s geography makes it susceptible to crippling hurricanes, which can ravage its economy. 

antigua currency

In 1983, Antigua and Barbuda joined with 7 other Caribbean countries to form the Organisation of Eastern Caribbean States that then created the East Caribbean Central Bank to serve as the monetary authority over their nations. The central bank started the Eastern Caribbean Securities Regulatory Commission (“ESCRC”) in 2001, which supervises the retail forex market for all 8 nations. Those trading the Eastern Caribbean dollar (code XCD, symbol $) can be a bit more confident knowing that several other countries are also working to maintain this currency’s stability.

For Antigua and Barbuda, its top earners of foreign currency are tourism and hospitality services. If you are interested in trading currencies from Antigua and Barbuda, the sections below will help you get started. 

Get Started with Forex in Antigua and Barbuda

Setting up the proper trading infrastructure is one key to forex trading success. Current technology allows most people the opportunity to participate in the retail forex market from the convenience of their own home with the internet. However, traders should take the time to lay out a strong trading plan that incorporates a consistently profitable trading strategy and sound money management principles prior to trading in a live account. 

  1. Connect to the web.  Having a fast, reliable internet connection is generally a necessity for trading forex online via one of the many available foreign brokers. If you want to do your trading from Antigua and Barbuda, both islands have well-developed internet infrastructures. Finding internet connectivity shouldn’t be hard. 
  2. Get a fully regulated broker.  Any forex broker based in Antigua and Barbuda will need to be regulated by the Eastern Caribbean Securities Regulatory Commission. Still, you will probably want to open an account with an international forex broker, so make sure they are overseen in their local jurisdiction by a well-regarded regulatory authority.  
  3. Select and open a trading account.  Your chosen broker probably has several different account types. Choose the one that fits your initial deposit amount and best suits your trading style and strategy. 
  4. Fund your trading account.  Well-established brokers typically allow funding a trading account using several methods. A bank wire transfer from a standard bank account, a debit card payment or a transfer from an electronic payment service like Paypal or Skrill should all be able to fund your trading account so that you have sufficient money to use as margin when you are trading forex. 
  5. Choose your trading platform.  Your forex trading platform should allow you to manage your positions and analyze and execute trades from any of your smart devices including your computer, smartphone and tablet. Some brokers offer their proprietary platforms, as well as supporting trading via popular 3rd-party platforms like MetaTrader and NinjaTrader. 
  6. Start trading currencies.  Since you have now set up your forex trading infrastructure, you can start trading forex from your home or office. 

Antigua and Barbuda Forex Trading Strategies

Do you want to optimize your ability to trade forex? Understanding the type of trader personality you have will help you do just that. It will also help you select the type of trading strategy that best suits you to incorporate into your overall trading plan. 

Day Trading

Day traders generally enter and exit trading positions within a given trading session to avoid taking any exposure to overnight market risk. This means that day traders may only hold a currency position for a few minutes or hours. Armed with sophisticated trading tools, many day traders operate in only a few major currency pairs that they can watch closely for trading signals. This trader’s short-term focus will usually mean they will settle for smaller gains on their positions compared to swing and position traders. The successful day trader relies on the increased frequency of their trades to help offset the smaller profits made from each trade. Due to the greater trading frequency, day traders tend to be more sensitive to the width of dealing spreads they trade on. 

Swing Trading

Swing or momentum traders typically focus on trading ranges, trends and corrections to maximize their trading opportunities. They generally do so by watching momentum indicators for signals that a market is due to reverse soon. Swing traders also identify underlying trends within the forex market that could take as little as a few hours or as long as a few weeks to develop. Being able to observe support and resistance levels and classic chart patterns sets the more sophisticated swing trader apart from the pack. Unlike the day trader, the swing trader is willing to take overnight positions. They may also take on several trades at once.

Positional Trading

Positional or trend trading focuses on taking long-term positions consistent with the underlying directional movement or “trend” observed in a currency pair’s exchange rate. Although they may trade based on technical factors used to identify trends, they also use fundamental factors to inform their trading, such as how political and economic trends can affect currency pairs. If a country is likely to be harshly sanctioned or there is murmuring of political unrest in a nation, there will also likely be a long-term negative effect on that country’s currency relative to other less affected currencies. 

Unlike the day trader, who is content with small but frequent profits, the position trader seeks to capture the larger profits that can come from foreseeing long-term shifts in a currency’s value relative to other currencies. The position trader must be patient and comfortable holding a position for months or even years before closing it out. They may also use trailing stops to protect their profits on a winning trade. 

Forex Trading Example in Antigua and Barbuda

Most forex traders in Antigua and Barbuda will want to operate in one of the far more liquid major currency pairs, such as EUR/USD, rather than in their local currency, the East Caribbean Dollar (XCD) — few online brokers allow trading in that currency. If 1.1800/05 is the bid/ask quote for EUR/USD, and you think the euro is ready to rise against the U.S. dollar, then you can enter an order with your broker to buy €100,000 versus the USD at 1.1805. To make that trade using the leverage ratio of 100:1 that your broker allows, you will need at least €1,000 or $1,180.50  in your margin account.

After several hours, the EUR/USD bid/ask quote is 1.2005/1.2010. This 200-pip move grosses you a total profit on the trade of (€100,000 x 0.0200) or $2,000. If the market had instead fallen 200 pips, you would have lost that same dollar amount. 

Making Money with Forex in Antigua and Barbuda

Knowing the most basic forex terminology is important when you want to communicate with other traders. After you master that, you can begin to learn about more complex techniques and products like the following. 

  • Going short: A strategy used by traders to profit from the decline in the exchange rate of a currency over a certain time frame. Going short involves taking an overall position in which the base currency of a currency pair is net sold, while the counter currency is net purchased.  
  • CFDs: Acronym for “contracts for difference,” these derivatives allow a forex trader to engage in currency trading and accrue gains or losses without actually making transactions in the underlying currencies. CFDs can also have their value based on that of other underlying assets like stocks, market indexes and commodities. 
  • Binary options: Exotic derivative contracts that allow the holder to pay a fixed premium in order to receive a fixed payout if some specific market condition occurs at or before their expiration. Binary options brokers are currently accessible to traders in Antigua and Barbuda. Some binary options only require a trader to provide a “yes” or “no” on whether a currency pair will be trading above or below a certain exchange rate at a predetermined date and time. 

Best Online Forex Brokers in Antigua and Barbuda

Antigua and Barbuda allows forex trading by its residents, although few reputable forex brokers are currently licensed by the Eastern Caribbean Securities Regulatory Commission. Accordingly, traders will probably want to find a well-regulated foreign broker to deal currencies through instead. Make sure they are overseen by a regulatory agency with a good reputation to help keep your deposited funds safe. 

Account Minimum
100 of your selected base currency
Pairs Offered
80+
Get started securely through FOREX.com’s website
Account Minimum
100 of your selected base currency
Pairs Offered
80+
1 Minute Review

FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.

Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
Cons
  • Cannot buy and sell other securities (like stocks and bonds)
  • Confusing margin requirements that vary by currency
  • Limited customer support options
  • Cannot open an IRA or other retirement account
Commissions
$10 value per pip
Account Minimum
$0
Get started securely through IG Group’s website
Commissions
$10 value per pip
Account Minimum
$0
1 Minute Review

IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.  

Best For
  • New forex traders who are still learning the ropes
  • Traders who prefer a simple, clean interface
  • Forex traders who trade primarily on a tablet
Pros
  • Easy-to-navigate platform is easy for beginners to master
  • Mobile and tablet platforms offer full functionality of the desktop version
  • Margin rates are easy to understand and affordable
  • Access to over 80 currency pairs
Cons
  • U.S. traders can currently only trade forex
  • Customer service options are lacking
  • No 2-factor authentication on mobile
Account Minimum
$50 USD
Pairs Offered
47
Get started securely through eToro’s website
Account Minimum
$50 USD
Pairs Offered
47
1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For
  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade
Account Minimum
$100 USD (or equivalent)
Pairs Offered
69
Get started securely through HYCM’s website
Account Minimum
$100 USD (or equivalent)
Pairs Offered
69
1 Minute Review

HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.

HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the United States, it can be a great choice for residents of the other 140 countries where it offers service. 

Best For
  • Investors who want a customizable fee schedule
  • Traders comfortable using the MetaTrader platform
  • Islamic traders who need swap-free accounts that don’t build interest
Pros
  • Wide range of currency pairs available
  • Excellent selection of educational tools
  • $0 deposit and withdrawal fees
Cons
  • Not currently available to traders based in the U.S.
Account Minimum
100 EURO
Pairs Offered
50+
Get started securely through AvaTrade’s website
Account Minimum
100 EURO
Pairs Offered
50+
1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For
  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio
Pros
  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets
Cons
  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days

Forex Terminology

If you’re going to trade forex, you need to understand that language.

  • Pip: Acronym for “percentage in point” and is the smallest amount by which a currency pair’s exchange rate can move. For most pairs, a pip is equal to a 0.0001 move. 
  • Lot size: A standardized trading amount. Generally equal to 100,000 units of the base currency at online forex brokers. 
  • Orders: Instructions given to your broker to “buy” or “sell” an asset on your behalf. 
  • Calls: Derivative option contracts that allow you to purchase an asset at a given price on or before some future date but do not require you to do so, while a put option gives you the right to sell. Forex options are both calls and puts since the underlying asset is an exchange of one currency for another. 

Forex Trading and You

While Antigua and Barbuda strives to expand its economy beyond tourism and hospitality, it will still be reliant on these industries for the foreseeable future. Forex trading is legal in Antigua and Barbuda, so you can freely operate through any one of the reputable foreign online forex brokers that will accept clients from the island nation. Since most retail forex traders lose money, you will want to develop a sound trading plan that incorporates an adequately profitable trading strategy before starting to trade currencies in a live account. 

Bookmark this page and website as your primary source for information on forex trading in Antigua and Barbuda. Our goal is to provide you with accurate forex trading and market information in an easily accessible format. 

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