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President Alexander Lukashenko of Belarus signed Decree No. 503 to exempt forex traders from taxation on their trading profits indefinitely. Although an exemption of forex trading from taxation has been in place since 2016, Lukashenko made it a much more permanent legal fixture and removed the need to renew it every year. The measure confirms Belarus as an excellent place to trade forex from in Europe.
Traders moving away from Russian restrictions on retail forex trading should also find Belarus an advantageous place to operate from. Belarus continues to show notable growth in foreign exchange trading activities among residents and nonresidents, recording 100% growth from 2018 to 2019.
Get Started with Forex in Belarus
Belarus offers a favorable situation for forex traders and plenty of brokers will accept clients from the country. You can deal through major European brokers and those based in other regions. Also, the internet infrastructure in Belarus makes it easy to connect to an online broker.
Follow these tips to ensure you have everything in place before you begin trading.
- Connecting to the web: The internet in some parts of Belarus can be shaky. Make sure you have a connection that won’t subject you to unexpected connection interruptions that can cost you money.
- Selecting a broker: Forex-friendly Belarus has attracted a notable selection of major online forex brokers willing to accept clients from the country. There’s no need to risk doing business with smaller, unknown brokers, so you can choose a well-regulated international broker to trade currencies through.
- Opening a trading account: Once you’ve found an online forex broker that fits your needs, you can open a trading account with that broker. Most online forex brokers offer several account types you can select from. You can also generally open a demo account to evaluate their trading platform, which lets you trade forex without committing any funds and can be useful for practicing.
- Funding your trading account: After you’ve opened a live trading account, you will need to fund it. Most online brokers let you fund an account through a bank wire transfer, a debit card payment or an electronic payment processor such as Skrill or PayPal.
- Selecting a trading platform: Most brokers that accept clients from Belarus either have their own proprietary trading platform or let you use a popular 3rd-party trading platform like MetaTrader or NinjaTrader. Make sure the broker offers a platform that works on your available devices.
- Making your first trade: Now that you’ve completed the above steps and have opened a live trading account with a broker, you’re ready to make your forex trade.
Belarus Forex Trading Strategies
If you want to trade forex successfully, then you will want to develop a good trading strategy. Here are some of the most popular trading strategy types used by forex traders that have numerous variations in practice.
Day trading strategies have a distinguishing feature in that traders close out all positions before the end of the trading session or “day.” Since the forex market stays open 24 hours during the trading week that stretches from Sunday afternoon to Friday afternoon EST, the day trader will typically select 1 of the 3 major forex sessions to trade in: the London, New York and Tokyo sessions. Day traders generally hold positions for a short time but they can hold positions for hours if the expected results take more time to achieve.
The swing or momentum trader uses technical indicators to signal market reversals that they can take advantage of. The type of technical indicator most often used by swing traders consists of momentum oscillators that show overbought and oversold conditions. They might also watch for moving average crossovers and other signals that could indicate a major reversal could be forthcoming in a currency pair’s exchange rate. This development may take a day or multiple weeks, so swing traders often take overnight positions. They also keep abreast of news items that may affect the behavior of a currency pair’s exchange rate.
Position or trend trading is for traders with the big picture in mind — they take advantage of long-term trends in a currency pair. Position traders can hold a position for weeks, months or even years until the exchange rate of a currency pair moves to its expected level. The position trader understands how to enter trades to profit from market discrepancies that might involve purchasing power parity or some other macroeconomic element that created the perceived imbalance. Position traders generally require patience and confidence in their analysis.
Foreign Exchange Trading Example in Belarus
The currency used in Belarus is the Belarusian ruble (code BYN, symbol Br). Since that currency is relatively illiquid, you can consider trading the highly liquid EUR/USD currency pair instead.
Imagine that the EUR/USD is now trading at 1.1310/15, that means that you need to pay $1.1315 to buy 1 euro. Let’s say you buy 100,000 euros on margin via your European online forex broker because you think the currency pair’s exchange rate will rise. At a leverage ratio of 30:1, that will require a margin deposit of at least €3,333.33 in your trading account.
If the EUR/USD exchange rate rises by 470 pips to 1.1785 over the month you hold that position, then you can sell your long €100,000 position at that rate for a gain of $4,700 in that time frame. If the market instead fell 470 pips to 1.0845, then you would have lost $4,700 as long as your broker did not automatically close your position out earlier for lack of margin.
Making Money with the Foreign Exchange Market
Find the trading strategy that fits your psychology best, then arm yourself with the tools that are most efficient for you to use. Here are a few forex trading terms you should know about.
- Going short: Going short a currency pair involves taking a net position of having sold the base currency and expressing the bearish view that the market will decline. When you short EUR/USD for example, you net sell the euro and net buy the U.S. dollar, while if you were to go long the EUR/USD exchange rate to express a bullish view, you would net buy the euro and net sell the U.S. dollar.
- CFDs: Contracts for difference, or CFDs, consist of derivative contracts that have their price dependent on various underlying assets, such as currency pairs, indexes, stocks or commodities. Their value mirrors the market for the underlying asset. CFDs are cash-settled and can be useful to traders who want to trade a variety of markets while avoiding establishing positions in the underlying markets.
- Binary options: Binary options are exotic derivatives that let the holder pay a fixed premium in order to receive a fixed payout if a specific market condition occurs on or before the option’s expiration date.
Best Online Forex Brokers in Belarus
Belarus allows many well-known forex brokers to accept clients from within its borders, so you have a wide selection at your disposal when you trade currencies from here.
- Best For:Forex Trading in and Outside the U.S.securely through Forex.com's website
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Best For:Non U.S. Forex Traderssecurely through AvaTrade's website
- Best For:Forex Executionsecurely through IG Markets's website
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Trading Forex from Belarus: Is it for You?
One of the biggest advantages of trading forex from Belarus consists of the tax exemption for forex trades. Nevertheless, be aware that even the best regulators cannot catch every fraudulent online broker, and there is no guarantee that you can get money back from an unscrupulous broker if you trust them with your money.
Even if you have set yourself up well to trade forex from Belarus, you may not profit from forex trading until you have developed a winning trading strategy and the discipline to stick to it. Filter through the information and highlight strategies that may be to your advantage. Bookmark us for more timely research on the forex market.
Frequently Asked Questions
Is it legal to trade Forex in Belarus?
It is legal to trade Forex in Belarus.
Is it profitable to trade Forex in Belarus?
It is profitable to trade Forex in Belarus because the country offers tax advantages for Forex traders.
How can I find a good Forex broker to trade in Belarus?
You can use the above list to find a good Forex broker in Belarus.
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