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Forex Trading in Myanmar

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Myanmar, known formerly as Burma, has 2 forex markets in competition with each other — the official exchange and the underground market right beside it. No, literally, the underground market is right beside the building housing the Yangon Stock Exchange. Individual currency dealers do business in an alley behind the Yangon building, transacting through bank transfers made on smartphones.

Believe it or not, this underground market is significant enough to help determine the formal rates of the Myanmar kyat. This tends to add to the volatility of the currency because the informal market sometimes offers better rates than official pricing. Although there is no official way to measure, some experts believe that the official and unofficial markets transact approximately the same amount of currency.

Get Started with Forex in Myanmar

If you want to trade forex from Myanmar, you will need to be especially careful. Regulators do not have much reach in the country because of the influence of alleyway forex dealers. Pay close attention to the companies in your digital financial chain to avoid fraud and theft of information.

  1. Internet: Despite its unregulated market, Myanmar has relatively good internet in its more developed regions. You will need a connection that maintains its veracity under pressure because you will be connected to multiple sites and many programs simultaneously.
  2. Broker: It is probably best to choose a broker that is regulated through a well-known financial overseer outside of Myanmar. Many investors coming from the country do business with brokers under the auspices of the EU for a more stable regulatory environment.
  3. Bank: The regulation that keeps your broker honest will also protect your financial investments. Be sure that you have a good connection between your bank and broker for quick withdrawals and deposits, especially if you plan to use margin on your account.
  4. Money: Test your banker/broker connection with a few small deposits and withdrawals before fully funding your account.
  5. Interface: Standard trading interfaces like MetaTrader are probably best for your experience investing in forex from Myanmar.
  6. Investing: If everything is in place to your liking, you can begin trading in the forex market.

Myanmarese Forex Trading Strategies

The way that you trade forex is first and foremost how you view the market. Take a look at different perspectives to see which one most accurately depicts your investment style.

Nomad Capitalist

Day Trading

Day trading is defined by fast-moving investments and quick reaction times. As a day trader, you will probably be much more concerned with the bid/ask spread and daily trading volume than you will with political upheaval and economic downturns. Day traders hold trades for a very small amount of time — minutes or even just seconds. The first opportunity for a profit is likely the one that a day trader will make. Day traders do not give the market a chance to pull back or reverse direction on them.

Swing Trading

Swing traders maintain a balance between studying chart patterns and taking heed of the latest news cycle. Because the swing trade develops over the course of days or weeks, the news may affect how the chart pattern plays out. Swing trading also gives a volatile currency like the kyat more time to match its price to its value, although this is not always how a swing trader makes a profit.

Position Trading

The position trader tends to hold a position in the forex market for months or years. This time is meant to let a currency’s position develop into a balanced state. Ideally, the position trader invests in a difference between a currency’s price and value, hoping that it will return to its logical place if enough time passes.

Forex Trading Example in Myanmar

You want to order K5,000,000 when the bid/ask range of MMK/USD is 0.0007/0.0008. The broker you are working through provides an MMK/USD margin rate of 11.71%. This means you can buy K5,000,000 with $439.13 cash. 

After 15 hours, the new MMK/USD bid/ask range is 0.0009/0.0010. This is only a 1-point move, but since your order was large, you will profit you (K5,000,000 x 0.0009) – (K5,000,000 x 0.0008), or $500.

Making Money with Forex in Myanmar

Tour My India – The Myanmar “skyline”

Matching your preferred way of trading to a successful investment strategy gives you an optimal chance of success. Here are just a few of the most significant strategies that are commonly used in the forex market.

  • Short selling: You can often make money trading a weaker currency if you focus on selling that currency rather than buying strong ones. This strategy is known as short selling, and it is very effective for traders who are used to dealing in weaker currencies.
  • CFDs: CFDs are contracts for differences, which allow you to participate in the forex market without taking possession of any currencies. In an unregulated market, CFDs are sometimes fraudulent.
  • Binary options: Binary options are another financial vehicle that should be avoided in an unregulated market like Myanmar. Although the investment is simple — a yes or no question — the brokers that offer it often do bad business, cheating investors out of profits or refusing to pay winning bids.

Best Online Forex Brokers in Myanmar

Choose from a list of offshore forex brokers that do business in Myanmar. Be sure to check the financial authority that regulates them as well. 

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

You will need to know the most important terms that every forex trader uses in order to evaluate strategies and communicate with your broker.

  • Pip: The smallest baseline of measurement in the forex market, usually pegged to the U.S. $0.0001 
  • Lot size: Your order size, which is usually 100,000 currency units unless you specify differently (ordering a micro-lot)
  • Orders: The full details of your forex investment
  • Calls: A contract you can buy or sell that lets you control a certain amount of currency for a limited amount of time

Moving in the Underground

Myanmar is unique in that it cannot upend its underground market without completely upending its official currency. The central bank is moving slowly toward stabilization techniques like futures trading, but progress will likely be slow. The country is struggling to implement its updated Foreign Exchange Management Law (FEML), which is to replace its stagnant FEML from 2012.

The best chance to succeed in the Myanmar forex market is having up-to-date news and strategies. Bookmark this website to stay in touch with what you need to know for your best chance of success.

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