The Bahamas or the Commonwealth of the Bahamas, the first-ever island settlement by humans, goes a long way back in history, around 500AD and 800AD. Its capital is Nassau and the official language spoken here is English. The Bahamas became independent in 1973 and is now known as one of the richest countries in America with its economy mostly based on offshore finance and tourism. Its currency is the Bahamian Dollar which stands at the same value as the US dollar.
Financial Market In Bahamas
The Bahamas International Securities Exchange (BISX) is the Securities Exchange market in the Bahamas. It was founded in 1999 and has headquarters in Nassau. Due to the absence of any income tax, capital gain, corporate tax, etc, the country has attracted several businesses.
Stock trading is also very active in the Bahamas. Whether you are a local trader or an international trader it is always advised to look for a trader who is regulated. To get more information about the Bahamas Brokers and how to trade in the Bahamas, continue reading.
Top Brokerage Firms in Bahamas
The most famous forex brokers in Bahamas are in the same time top world brokers and well regulated brokers. Bahamas is not big country but there are a lot of traders from this country. Top Bahamas broker is Hotforex and then Avatrade and XM.
How and What You Can Trade in the Bahamas
Being one of the richest countries in the world, the Bahamas’ Financial Market has a lot to offer to the traders. You have the options to trade in commodities, cryptocurrencies, CFDs, ETFs and Indices, and Forex. A trader must be aware of what he/she wants to trade and then go for the Bahamas Broker who is suitable for the investment plans.
Let us look at the trading options that are available to the traders in the Bahamas.
- Forex– Forex has great potential in the Bahamas. With over $5.1 Trillion Dollar worth Forex traded every single day all across the world, the Bahamas offer a lot of opportunities to Forex savvy traders. Bahamas Brokers are well equipped with the knowledge of Forex trading and the technological advances add to the betterment of the trading process. The trader must make sure that the Broker is regulated to avoid any misuse of his or her money. The Bahamas is very active in the imports and exports and so being an important requirement for import & export, Forex becomes an essential part of the financial market. While trading in forex in the Bahamas, the trader must also be well aware of the taxing policies of the Bahamas. The tax on Forex income is payable in the Bahamas after a certain level of income if achieved from trading. However, the trader or investor must also file returns even if there are negative gains. Make sure to take the help of your broker or a tax professional to be aware of such policies and to avoid any sort of misunderstanding.
- Cryptocurrency: Being recently introduced in the Bahamas’ Financial Market, cryptocurrency does not have specific legislation but the regulations are set by the Central Bank of the Bahamas for the trading of cryptocurrencies. Since $6 Billion worth Cryptocurrency is traded every day in the world, the development of its market will really help the Bahamas in gaining more access to the world market.
- Commodity: the Bahamas is actively trading in agriculture and fisheries which is solely due to its sunny and tropical climate that allows certain fruits and vegetables to grow in this area. Being surrounded by sea, the Bahamas’ mineral industry export cement and salt. The Bahamas majorly export petroleum and frozen lobsters.
The traders can also trade using Islamic accounts in the Bahamas. Bahamas Brokers offer the traders the option of Islamic Account that is regulated by the Islamic Sharia law which forbids the accumulation of any trading profit.
Benefits for Bahamas brokers
The Bahamas offers numerous benefits when trading. The major trading partners of the Bahamas are Argentina, Caicos, France Japan, Panama, Turks, and the UK. The Bahamian Capital market has seen continuous growth. BISX plays a crucial role in trading in the Bahamas. It not only provides a platform to the traders and investors but also works as a body to educate and spread knowledge about the trading system and other financial information. Traders can learn all the rules and regulations from the BISX website.
The financial services of the Bahamas are also quite famous. After its independence from the UK in 1973, many banks have gained licenses in the Bahamas and since the Financial Services has contributed a major part in the country’s GDP.
Offshore trading is also an important feature of the Bahamas Financial Market. Widely offered to international traders, offshore trading has benefits like privacy, asset protection, and tax benefits. Bahamas Brokers actively indulge in offshore trading.
Trading, in the case of any country, cannot always be associated with profits and benefits. There are always some risks following every type of investment. For instance, offshore can be expensive in the initial stages. Though it is legal, there is evidence of tax invasion associated with it.
Signs of A Good Broker
Finding the right broker can be difficult. And even after selecting the broker of your choice, one cannot be 100% sure that the broker will be able to comply with all the trader’s expectations. To take a step towards selecting a more accurate broker for your portfolio, look for the following signs or factors in your broker’s profile:
- How long has the Bahamas broker been working in the industry? The experience in the market is very important to understand how knowledgable your broker is about market trends. The trader must check the history of the broker of at least the past 2 years to get the gist of his or her trading skills. iI you are a novice trader, never trade with a new broker. As you both will lack in experience, you will end up making numerous mistakes and no one will benefit.
- Is the Bahamas broker quick with the transactions? When investing in the financial market, deposits and withdrawals are continuous activities. Traders should get the information or directly ask the broker about the time taken for such transactions. 2 or 3 days is considered ideal. This time period becomes very important when you have decided to close or leave a trade. You will not have to wait for weeks or months to get your money.
- Is the Bahamas broker regulated? Not choosing a regulated broker is the biggest mistake that an investor or trader can make. A regulated broker is the certificate of protection of the trader’s investment. This is important as sometimes brokers can use the trader’s capital as their working capital. A regulatory body will make sure that these two funds (the investor’s money and the broker’s capital) remain separate and that there is no misuse of the trader’s investment.
- What is the customer support level of the Bahamas broker? A good customer support service implies the work ethics and efficiency of the broker. Trading is an international market and there are high chances that you and your broker will be living in different countries and speak different languages. If the broker has a good customer support with people who work in shifts and speak different languages, trading with them will become significantly easier. So, if the broker has customer support of 15 or more, consider the broker an efficient one.
- How recognized is the Bahamas broker in the international market? The presence and position of the broker in the international financial market are important to be considered by the trader. Since you will be investing in the international market, a local broker may not be able to give you access to many things that an internationally recognized broker is capable of.