BDL Forex Brokers Regulation & FX Services Offered For Traders In Lebanon

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Lebanon is a West Asian country that is considered to be a major part of the Middle East and has a distinct diversity in culture that makes it significantly different from its other Middle Eastern neighbors. Lebanese people are divided into 18 different groups according to their religious beliefs and are known to have different customs and traditions that are unique to a particular group of religious followers. However, Lebanon follows the French legal system, which was passed down to the Lebanese people from the French rule. The Lebanese Republic used to be a leading tourist destination up until the occurrence of massive civil unrest in its neighboring countries, which severely affected the overall economic stability of the nation. A large number of Lebanese investors are slowly moving towards the Forex trading markets to capitalize on the immense investment potential provided to retail traders. Forex trading is still not a regulated market in the country, and hence traders should be careful while dealing with Forex brokers in Lebanon. On the other hand, Forex brokers can provide regulated services by being regulated by the BANQUE DU LIBAN (BDL), which is the central bank of the country. BDL regulated brokers offer convenience, security, and peace of mind for Lebanese investors who are looking to invest their money in a reliable and regulated Forex broker.

The Central Bank’s Role In BDL Forex Brokers & Economic Regulation

BANQUE DU LIBANBANQUE DU LIBAN is a public institution that enjoys significant powers to stimulate and regulate the Lebanese economy using the authority vested in it by the state legislature. BDL was established in the year 1963 under the Code of Money and Credit and has the responsibility of maintaining the efficiency of the country’s national currency, the Lebanese Pound. BDL is the sole authority that is responsible for safeguarding the stability of the Lebanese economy by creating laws and monetary policies that are designed to induce liquidity in the market. The Government of the Lebanese Republic has assigned numerous duties and responsibilities to the BDL to ensure transparency in the markets that includes regulating all financial firms that indulge in money transfers and exchange platforms. BDL regulated brokers should possess all the necessary authorizations and licenses to offer money changing services or Forex products within the Lebanese markets. Although Lebanon has somewhat relaxed rules and regulations concerning the operations of overseas Forex brokers in the country, all financial firms that have a presence in the Lebanese Republic should receive a valid BDL regulatory status before commencing their operations in the country.
BDL is the sole regulatory authority in Lebanon that controls and regulates financial firms in the country. Therefore, traders should be careful about companies that claim to be a Forex broker in Lebanon without having a valid BDL regulatory approval. BDL is responsible for regulating local banks, brokerage firms, foreign banks, leasing companies, mutual funds, money dealers, money exchanges, insurance companies, and other financial institutions. BDL issues advisories and circulars on a periodic basis to provide timely information to investors, which can help in reducing the amount of scams and financial malpractices that can severely cripple an economy. BDL is a Government funded organization and follows all rules and guidelines provided by the Government for regulating its member firms. The BDL collaborates with the authorities and Government officials on creating and modifying a regulatory framework that is in line with the Government’s policies on financial governance and the BDL’s vision for ensuring a sound, transparent, and stable economy. BDL serves as the primary advisory to the Government on all matters related to the performance of the economy and acts as a liaison between private financial institutions and the Government to ensure a smooth equilibrium between all parties to promote economic growth. BDL has been endowed with several resources that allow the central bank to control the economy through both active as well as passive fiscal policies. BDL can adjust the liquidity in the markets by controlling the demand and supply and has the authority to intervene in the markets through direct means. BDL also controls the central bank rates and the credit facilities enjoyed by both local as well as overseas banking institutions for maintaining the lending policies for both public as well as private sector projects. BDL is known to actively trade the Lebanese Pound according to the demands and supplies of the market, which ensures that the national currency is traded on the global FX markets according to the different economic factors.

Finding Forex Brokers In Lebanon Regulated By BDL

Lebanon is not considered to be a popular investment destination for Forex brokers due to a wide variety of reasons. First of all, Forex traders from Lebanon are free to choose any overseas broker without any restriction. Therefore, Lebanese investors are free to choose from hundreds of high-quality Forex brokers from Europe and Asia for trading the FX markets safely. BDL does not have any rules that restrict investing in international markets, thereby allowing greater freedom for its citizens to invest according to their needs. Forex brokers also find it hard to justify the costs of setting up a brokerage in Lebanon, as they can easily provide their services to Lebanese investors through an online platform or through introducing brokers. Forex brokers also find it easier to get around the rules of BDL regulation by just adopting an affiliate platform that can cater to Lebanese FX traders without actually having a physical presence in the country. Therefore, it can be difficult for Forex traders to find mainstream BDL Forex brokers, as there are only a few brokers that are regulated by the Central Bank of Lebanon. Nevertheless, there are options for traders to find BDL regulated brokers by searching through the official BDL database or by verifying the regulatory information of a Lebanese broker with the information provided on the official BDL registry. BDL Forex brokers may not be able to provide a competitive trading environment, especially since these brokers have significantly lower volumes than overseas dealers. If you are a trader from the Lebanese Republic looking for the best trading products, you can always consider opening a trading account with foreign brokers that are typically regulated in Europe, Asia, or Australia. Although these brokers can offer better trading services, you should always be careful about the implications of financial scams and fraudulent broker practices, as the Lebanese Government may not be able to protect you from any broker scams. It is also close to impossible to initiate any legal action against an overseas company due to obvious reasons, and overseas brokers may not be able to provide the sense of security that is usually provided by local Forex brokers in Lebanon. Since Lebanon is known to have a Muslim majority in the country, Islamic traders may want to consider the option of Sharia compliant Forex trading accounts to ensure that they follow all the rules and regulations according to their religious beliefs. Several brokers offer the convenience of an Islamic trading account to enable Muslim traders to trade the Forex markets without affecting their religious sentiments in any manner. Get in touch with a financial expert and seek professional advice before choosing an overseas broker, as there may be other implications towards sending and receiving money from other countries under the anti-money laundering laws. Traders are also encouraged to verify the legality of trading with international brokers before proceeding to invest in the Forex markets.