Forex Trading in Lebanon and BDL Forex Brokers
Forex trading is a relatively new form of investment but is quickly becoming popular all over the world. As with many innovations, there is often considerable confusion about whether such activity is legal. Those of you considering Forex trading in Lebanon will be pleased to learn it is a perfectly legal form of investment. The best option for anyone heading down this path is to look for BDL regulated brokers, as this will offer the best possible protection for your money and you can be certain of the best trading experience because regulations are created to make things safe and secure. All over the world, there are different regulatory bodies and some will be familiar while others are not. Anyone considering Forex brokers in Lebanon should be concerned with regulation provided by the Banque Du Liban.
A brief introduction to the Banque Du Liban
The central bank of Lebanon has a number of different titles. It is known as the BDL, Banque Du Liban, or simply the Bank of Lebanon. Created in 1963 it didn’t actually become operational until the following year. There are a number of functions the BDL has to perform alongside its responsibility for issuing the country’s currency. It plays a major role in the stabilization of the country’s finances, the regulation of money transfers, and ensures compliance of the banking sector. The Banque Du Liban has some very important goals:
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- Protecting the country’s economic and financial stability
- Ensuring the banking sectors reliability
- Development of financial markets and money
- Development of a reliable system of payments and instruments
- Development of money transfer operations and regulation
- Regulation and development of various payment and financial instruments and bonds
The powers of the BDL were given following the passing of various laws, together with the necessary privileges in order to fulfill its role regarding the stability of the exchange rate. It has the power to intervene in the Forex market by selling and buying different currencies.
The Bank Du Liban is able to influence market liquidity by adjusting discount rates, actively participating in the open markets and by managing credit facilities it offers to banks and financial institutions. It imposes credit ceilings, directs credits for a specific purpose and governs credits in order to regulate credit available in the banking system.
Why it’s important to choose a BDL regulated Forex broker in Lebanon
We’ve already mentioned Forex brokers in Lebanon are regulated by the Banque Du Liban. The BDL is also responsible for the regulation and licensing of banks, financial institutions, money dealers, leading companies, different types of brokerage firms and mutual funds. But why is it so important to choose a financial services provider that is regulated?
The world of Forex trading has expanded pretty rapidly. Nowadays, there are thousands of brokers to choose from but unfortunately, not all offer the same level of service. While there are plenty of honest Forex brokers there are also a number with only one aim. To entice you in with attractive promises, take your money and then offer very little in return. A good rule of thumb is to consider licensed and regulated brokers as a much safer option if you want reliability and trust.
However, you should also be aware that a regulated broker is not going to be able to offer you 100% protection, as regulation is not enough on its own. You should also take into account the country where the regulatory body is based, and how stable the economy of that country is. After all, your capital and hopefully your profit is going to accumulate in the country where you have chosen to trade Forex. It is, therefore, important to gain an understanding of the country’s economy and financial situation. How mad are you going to be if you wake up one money and the country’s Government has seized all your money?
You should also bear in mind that not all regulatory bodies impose the same rules and regulations. Some are far stricter than others. Always make yourself aware of those which apply to your chosen brokers and remember the regulations are in place to protect you as an investor. And even a basic level of regulation is better than none at all.
Choosing a BDL Forex broker will offer you far more protection than an unregulated broker
We wouldn’t wish any kind of problems on our readers, but it’s wise to be prepared should something happen. It is good to have an understanding of the complaints procedure for BDL regulated brokers, as it is a requirement for them to have one. Your only course of action if you have a problem such as being mistreated as a client is to apply your rights under the law. Most regulatory bodies, including the BDL, have guidelines which Forex brokers have to follow, and you can expect them to be strictly adhered to. You can also expect your complaint to be investigated and a remedy provided if it is found you have been treated unfairly.
It is easy enough to check whether a Forex broker in Lebanon is regulated and will only take a few minutes of your time. We would always advise you to check out any regulatory claims as it is common practice for scam brokers to claim they have a license when they don’t. You may have a problem, however, if you are not fluent in Arabic. The Banque Du Liban has its own website and it includes a list of BDL Forex brokers, as well as other regulated entities. If you can’t find the name of a broker in that list our advice is to contact the broker and ask about regulation. If the broker is unwilling to divulge such information your best course of action will be to look for another broker. If they provide you with some details we would advise you to check the claims by visiting the appropriate regulatory body’s website.