BDL Regulated Forex Brokers in Lebanon
Forex trading in Lebanon. Is it legal? Is it just frowned upon? Or is it completely unacceptable to participate in such a risky form of investment? Forex trading in Lebanon is possible, and the best option for anyone looking for Forex brokers in Lebanon is to find one which is licensed and regulated. Wherever you may be located it is important to choose a broker that is regulated as this is the best way to safeguard your investment. And it’s always better to choose a broker that has been licensed in your home country. There are a number of Regulatory bodies, some more recognized than others. But for Lebanese Forex traders, the regulatory body you need to be concerned with is the Banque Du Liban.
Who or what is the Banque Du Liban?
Bank of Lebanon, BDL or Banque Du Liban, is the central bank of Lebanon. It was created in 1963 and became fully operational the following year. The bank has several functions including the issuance of Lebanon’s currency. It is also responsible for the country’s financial stability, regulating money transfers, and ensuring the integrity of the banking sector. In Lebanon, the banking sector is possibly a little different than anywhere else in that there are more than 100 different banks. Thereby making the Banque du Liban a very important part of the whole economy. The BDL has some very specific goals including:
- Safeguarding economic and monetary stability
- Protecting the reliability of the banking sector
- Developing financial markets and money
- Developing and regulating money transfer operations, such as electronic transfers
- Developing and regulating payment systems and instruments
- Developing and regulating the clearing and settlement operations of different financial and payment instruments and marketable bonds
The BDL has been given its powers by law, along with the privileges required to fulfill those roles in respect of exchange rate stability. It is able to intervene in the foreign exchange market by buying and selling foreign currencies. It is able to control bank liquidity by making adjustments to discount rates, participating in the open markets, and also by determining credit facilities to banks and financial institutions. It is able to regulate banks’ credit in respect of volume and types of credit. It does this by imposing a credit ceiling, directing credits for specific purposes or sectors and generally governing credits. BDL regulated brokers are granted a license by the Banque du Liban, as well as banks, money dealers, financial institutions, leading companies, mutual funds, and other types of brokerage firms.
Most Trusted BDL Regulated Forex Brokers In Lebanon 2019
Why it’s important to choose a regulated Forex broker in Lebanon
With so many Forex brokers in Lebanon to choose from, you’re probably wondering why it’s so important to pick one which is a BDL regulated broker. Let’s explain the role a BDL Forex broker can play and what may happen if you decide to pick an unregulated Forex broker. The Forex trading industry has expanded in a huge way, and nowadays there are a large number of brokers to choose from. Unfortunately for you, not all brokers are cut from the same cloth. For some new brokerage firms, the only goal is to take your money, preferably as much of it as possible. Whereas there are a number of reliable and trustworthy brokers who want to make your trading experience as enjoyable as possible. Generally, the most reliable and trustworthy brokers will be licensed and regulated by a regulatory body. And this applies wherever you may be in the world. However, the fact a broker is regulated by a regulatory agency is not the be all and end all. Regulation is not enough on its own. What also has a bearing is where the regulatory body is based and the stability of the country. The main reason for opening a trading account is to secure your capital and earn a good return. Your initial capital plus any additional profit will accumulate in the country you have chosen to trade in. Therefore it’s important to understand the economy and financial situation of said country. There is possibly no worse scenario than waking up one morning and finding the local government has seized all your funds. Of course, there a number of countries with much stricter regulatory standards. But you should be aware of those which apply to the broker you are choosing. After all, the regulations are generally in place for your benefit, along with a number of other reasons, of course. The stricter the control, the better protection for you the client.
How your choice of a BDL regulated Forex broker will protect you if things go wrong
While we wouldn’t wish something bad on any of you, it is possible it could happen. Say, for example, the broker you have chosen mistreats you as a client. The only remedial course of action is to apply your rights under the appropriate regulations and laws. Most countries, including Lebanon, have guidelines for Forex brokers. As the regulatory body responsible for brokerage firms is the BDL you can feel pretty confident the rules and regulations are strictly adhered to. As such you can expect your complaint to be investigated and promote a remedy if it is found you have been treated in an unfair way. If you want to check whether a Forex broker in Lebanon is regulated by the Banque du Liban it is very easy and should take just a few minutes. There is, however, a bit of a drawback if Arabic is not your native language. There is a list of regulated entities available on the BDL website and it is a simple task to run your finger down the list. If the broker you’re considered doesn’t feature in the list check whether it is regulated by another regulatory body. If there is nothing which even hints to a license get in touch with the broker to ask the question “Who are you regulated by?”. If an answer is not forthcoming then give this particular broker a wide berth. If some regulatory details are shared always spend a few minutes checking the details on the regulatory body’s website.