As the center of the 2010 Arab Spring, Tunisia is no stranger to political unrest. The country is still working to implement a fully democratic system of government. While political and economic instability has slowed the growth of the financial sector, retail forex trading remains possible in the country via online brokers.
While it is a crime in Tunisia to import or export Tunisian dinars, each citizen can convert up to 6,000 Tunisian dinars into foreign currencies before leaving the country. The country is also planning to transition its dinar into a convertible currency that private individuals can use for trade. Despite all that, there is plenty of room for educated and established currency traders to operate in the forex market.
Get Started with Forex in Tunisia
If you are trading forex from Tunisia you will generally be doing so through a foreign forex broker. Make sure the broker has a solid financial foundation Here are the steps that every aspiring forex trader should understand and implement before moving into retail forex trading
Connect to the Internet
Tunisia has one of the most developed telecommunications infrastructures in North Africa with some of the lowest costs for broadband services in the region so you should have no trouble getting a reliable and affordable internet connection. Make sure that you can trade without lag by testing the speed and reliability of your deal executions using the forex broker ’s supported trading platforms
Choose a Fully Regulated Broker
For safety, only choose brokers that are regulated through trustworthy financial authorities, such as the UK Financial Conduct Authority (FCA) or the U.S. Securities and Exchange Commission (SEC). Tunisia does not regulate the retail forex market and does not offer any official protection for your money or personal financial information, so choose wisely.
Fund Your Account
You can generally fund your trading account using a debit card or a bank wire transfer. You will need to deposit enough funds to meet the forex broker’s requirements and to act as collateral for your first trade.
Choose Your Trading Platform
Many brokers offer proprietary forex trading platforms, although some brokers allow clients to use 3rd-party platforms such as MetaTrader4 and NinjaTrader. Install and learn how to use your chosen platform before taking any live positions.
If you’ve completed the steps above and have opened and funded an account with a reputable forex broker with proper oversight from a known regulator you are ready to make your first trade.
Tunisia Forex Trading Strategies
Now that you are ready to trade, you can pick an appropriate trading strategy for your personality. The standard strategy types summarized below have served as an outline for various different kinds of forex trading. They are meant for different personality types. Choose the one that best fits your goals and talents.
The day trader typically trades throughout a particular trading session, aiming to take profits from near-term movements in the exchange rate of one or more currency pairs. The chief feature of the day trader is that they close all positions at the end of the trading session or day. Large profits are often not the goal — the day trader may leave money on the table to keep away from the risk of exposing themselves to any negative moves in the market outside of their active trading session.
Swing or momentum traders typically interpret momentum technical indicators for trading signals and watch for news items that help them determine if a currency pair will go up or down in the near future. Swing traders can hold trades for a few hours, days or weeks before exiting a trade, depending on how the trade performs.
Position or Trend Trading
Position or trend traders look to profit from long-term directional moves in currency pairs. For example, a trend trader’s criteria for taking a position may be based on a discrepancy between the base currency’s current exchange rate and the counter currency’s relative purchasing power parity value. Position traders can hold a position for months or even years, so a considerable amount of patience is required for this style of trading.
Forex Trading Example in Tunisia
The Tunisian currency is the Tunisian dinar (code TND, symbol DT) and it has been declining overall versus the U.S. dollar over the past few decades. Imagine that you think the USD/TND exchange rate will continue to rise in the near term and the current quote for the pair is 2.7500/10, you can buy $100,000 versus the TND at 2.7510, if your online broker allows. Given a 30 to 1 leverage ratio, that would require you to have at least $3,333.33 in your margin trading account to use as collateral.
After several days, the USD/TND exchange rate is trading at 2.7700/10, so you can sell out your position at 2.7700. This 190-pip profit generates a total profit on the trade of ($100,000 x 0.0190) or TD1,900. Had the market instead fallen, you would have lost money on this trade.
Making Money with Forex in Tunisia
Take a look at some of the basic trading techniques and financial vehicles commonly used in the forex market.
- Going short: Shorting or “going short” a currency consists of selling it against another currency. Any forex transaction will have a “short” component since you are trading an exchange rate, so you’re going to be buying or going long one currency and simultaneously selling or going short another.
- CFDs: Contracts for difference (CFDs) are derivatives that facilitate the trading of assets without taking a position in the underlying asset. CFDs allow buyers to purchase or sell contracts on a particular currency pair without having to take or deliver the currencies involved in the transaction.
- Binary options: These exotic derivatives allow the holder to pay a fixed premium to receive a fixed payout if a particular market condition occurs at or before expiration.
Best Online Forex Brokers in Tunisia
You have the choice of trading currencies via many reputable forex brokers that are licensed and regulated by reputable financial authorities outside of Tunisia.
- Best For:Non US Forex Tradingsecurely through AvaTrade's website
- Best For:Forex Trading in and Outside the U.S.securely through Forex.com NON US'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:Low Deposit Requirementsecurely through Tickmill Investing'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.
- Best For:Active and Global TradersSecurely through Interactive Brokers’ website
- Best For:Forex Traders Seeking a Reliable and Secure Trading Platformsecurely through ALB.com's website
Knowing the following terms will introduce you to some of the most important concepts in the forex market.
- Pip: An acronym for “percentage in point” that represents the smallest movement in a currency pair’s exchange rate, typically 0.0001 for most pairs.
- Lot size: A standardized trading amount, usually 100,000 base currency units.
- Orders: Instructions you give to your broker to execute transactions on your behalf.
- Calls: A contract giving you the right to buy a particular amount of one currency versus another at a prearranged exchange rate on or before a certain expiration date.
- Puts give the holder the right to sell.
- Currency options are both calls on one currency and puts on another since their underlying asset is an exchange of currencies.
Education is a Strong Resource in Forex Trading
The Tunisian economy has moved forward admirably in recent years, but the government and financial regulatory structure still have room for improvement. If you’re looking for a secure trading environment from Tunisia, take advantage of the strict regulation that many foreign brokers undergo. You also may want to formulate and test your own trading strategy that can be used to generate profits over time.
For now, the most important resource that you have for forex trading in Tunisia is a consistent source of relevant information on the forex market. Bookmark our site for this information and for solid strategies that you can use or adapt to your own style.
Frequently Asked Questions
Is forex trading legal in Tunisia?
Forex trading is legal in Tunisia, but it is subject to a number of restrictions. The Tunisian Central Bank has issued regulations that govern the activities of forex brokers and traders. These regulations aim to protect investors from fraud and ensure that the markets remain fair and transparent.
Can you trade stocks in Tunisia?
Yes, you can trade stocks in Tunisia. The Tunisian Stock Market (Bourse des Valeurs Mobilières de Tunis) is regulated by the Financial Market Authority (AMF) and provides an opportunity to invest in stocks of companies listed on the exchange. It is possible to open a brokerage account with an AMF-regulated broker in order to trade stocks.
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