Check out FOREX.com to start forex trading in Suriname.
Located on the Atlantic coast of South America between French Guiana, Guyana and Brazil, Dutch-speaking Suriname has suffered considerable economic and social turmoil since the end of its civil war in 1992. The country’s civilian constitution is only 33 years old and was the result of a referendum after the end of the dictatorship of Dési Bouterse who took over through a military coup in 1980. Bouterse returned to power in Suriname after being elected president in 2015
Suriname is heavily dependent on its gold, precious metal scraps, rough wood, refined petroleum and banana exports. The country’s gold exports make up almost half of all Suriname exports at $1.17 billion and are exported primarily to Switzerland, the United Arab Emirates and Hong Kong. The COVID pandemic and the slowdown in demand for commodities put considerable pressure on an already challenged economy.
The Centrale Bank van Suriname, or Central Bank of Suriname, is the regulatory authority that oversees the foreign exchange market in Suriname. The local foreign exchange market in Suriname consists mainly of commercial banks and cambios or currency exchanges. In addition, retail forex brokers based outside of Suriname will often accept clients from the country.
If you intend to start trading forex from Suriname, make sure to pick a broker that is regulated in their jurisdiction by a reputable agency, such as the UK Financial Conduct Authority (FCA) or the U.S. National Futures Association (NFA). If you’re a new trader, be cautious in the market since most retail forex traders lose money.
Get Started with Forex in Suriname
Build a solid financial foundation for the best chance at forex trading success. Follow the steps below before you begin trading in the market.
- Connect to the web: Having a decent and reliable internet is essential for online trading. While broadband service is available in most urban locations in Suriname, you may need a satellite provider if you live in a more remote area.
- Get a fully regulated broker: Because Suriname does not directly regulate retail forex brokers operating abroad, make sure that you do business through a broker that is properly regulated by a major financial regulator in their jurisdiction. Check your broker of choice research tools and forex trading platform capabilities before signing up.
- Open a trading account: After you’ve selected an online broker that meets your needs, you should open a trading account. Many forex brokers let you open a demo account that allows you to practice trading forex with virtual money and test their services. You can then decide whether to fund an account with that broker.
- Fund your account: Once you’ve opened a live trading account, you can typically transfer funds to your broker through bank wire transfers, debit cards or a payment processor like Skrill or PayPal.
- Choose your trading platform: The trading platform you choose should give you real-time access to the market so you can watch exchange rate movements and enter orders. You’ll probably also want access to technical analysis tools and a news feed via your platform that should ideally operate on both your computer and your smartphone.
- Trade the market: After you’ve completed the previous steps, you should have some experience trading via a demo account and are now ready to begin trading in a live account. Make sure you have a trading plan with sound money management components to further increase your chance of success.
Suriname Forex Trading Strategies
When getting started in forex trading, it often helps to understand which trading methods work best with your personality. Consider using one or more of these common trading styles when deciding what kind of trader you want to be.
The day trader is characterized by closing all open positions before the end of the trading session or “day.” The forex market has 3 primary sessions throughout the trading week that consist of the New York, London and Tokyo sessions. Most forex day traders operate in 1 of those 3 sessions. Day traders typically hold positions from a few minutes to several hours, often keeping a keen eye on economic news that might affect the currency pair they’re trading.
Swing or momentum traders generally try to take advantage of the market’s shifting momentum and position themselves based on technical signals that indicate a market may be ready to change direction. They might look for oversold/overbought market conditions, moving average crossovers and chart patterns that indicate a major reversal could come. Unlike day traders, swing traders’ time horizons can extend to more than one forex session, with several days or weeks sometimes taken to liquidate positions.
Position or trend trading generally involves having an extended time horizon and the ability to identify major market trends. To be effective, the position trader should have deep enough pockets to withstand substantial adverse market moves, considerable patience and the ability to perform a thorough analysis of the economic conditions for the relevant countries. They also often use trailing stops to protect their accrued profits.
Forex Trading Example in Suriname
The currency used in Suriname is the Surinamese dollar (code SRD, symbol $ or Sr$). The Surinamese dollar has seen multiple devaluations, with the exchange rate against the U.S. dollar trading from the 3.2700 level in 2016 to its current level of .0311484, showing a notable decline. Since the SRD exhibits relatively low liquidity, forex traders operating from the country could instead trade the highly liquid EUR/USD currency pair.
Imagine that the EUR/USD currency trades at 1.1310/15, you’ll need to pay $1.1315 to buy 1 euro. You might purchase 100,000 euros on margin via your online forex broker because you think the EUR/USD exchange rate will rise. Using the 30:1 maximum leverage ratio available at your broker means you will need to make a minimum margin deposit of €3,333.33 to fund your trading account sufficiently to make this trade.
If EUR/USD rises by 470 pips to 1.1785 after 1 month, you can sell your long €100,000 position to show a profit of $4,700 over that time frame. If the market fell 470 pips instead to 1.0845, then you would have lost $4,700 if your broker did not close out your position automatically due to a lack of margin.
Making Money with Forex in Suriname
Once you’re comfortable with the type of trader you are, you can move into more complex ways of operating in the forex market.
- Going short: Traders go short a currency pair when they bearishly expect the exchange rate of the base currency to fall relative to the counter currency. A trader could instead go long a currency pair to express a bullish view on its exchange rate.
- CFDs: Contracts for difference consist of cash-settled derivative contracts that have their value determined by the market for their underlying asset that could be a currency pair, stock, stock index or commodity. Forex traders can use CFDs to trade currency pairs and other assets.
- Binary options: Exotic derivatives where the holder pays a fixed premium to receive a fixed payout if a specific market condition occurs at or before their expiration date.
Best Online Forex Brokers in Suriname
There are many reputable forex brokers that will accept clients residing in Suriname and most of them are well-regulated by authorities in their local jurisdiction. Below are Benzinga's top picks for the best FX brokers in Suriname.
Most forex traders understand the basic terms below.
- Pip: In the forex market, the minimum change in a currency pair’s exchange rate is 1 pip or “percentage in point.” A single pip is usually a movement of 0.0001.
- Lot size: A standard trading amount; in the online forex market, the standard lot size is generally 100,000 base currency units. Traders can also trade in mini lots of 10,000 and micro-lots of 1,000 base currency units.
- Orders: The order is how a trader details what transactions they want a broker to execute for them. Two basic order types are a market order and a limit order.
- Calls: A call is an option contract that gives the holder the right, but not the obligation, to purchase an asset at a particular price (strike price) on or before the option’s date of expiration in exchange for paying an upfront premium. Currency options are both calls and puts since their underlying asset is an exchange rate.
Does Trading From Suriname Suit You?
Many retail forex traders find locations like Suriname quite advantageous. The burgeoning industry does not have the constraints of the European and U.S. retail forex markets, giving currency traders access to higher leverage ratios at brokers located outside those strict jurisdictions. While leverage is a two-edged sword and using higher leverage can lead to larger losses, a high-risk trading environment may suit certain strategies and individuals who can cope with the financial consequences.
Bookmark this website for information that will help improve your forex trading experience in Suriname.
Frequently Asked Questions
Is trading Forex in Suriname legal?
Yes, trading Forex in Suriname is legal.
Is trading Forex in Suriname well regulated?
Yes, the Forex trading market in Suriname is well-regulated.
How can I find a broker who trades Forex in Suriname?
You can find a broker that trades Forex in Suriname by consulting the list above.
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