Clarifications, I need some insights

[Ugyen Penjore]

Hi Everyone,

Firstly, I want to thank FPA for your never ending selfless efforts to help newbies and pro fx traders alike here. I was lucky eough to have discovered FPA prior to any start into FX trading journey and stay away from scams and pitfalls of realities in FX world. I am a citizen of Bhutan, as small Kingdom out in the Himalayas beside Nepal in between India and China.

My country is a young Democratic Kingdom where we enjoy peace and harmony even in this modern days of conflicts everywhere. However, we are pretty slow into trading online and markets overseas due to which I am in a process to find out more about a Bhutanese being allowed to trade in Markets overseas with my governing authorities here.

My questions to ask you both here today is that if I fail to get a green light on trading abroad (with circumstances beyond my control) is it okay for me to get a Power of Authority from a friend who isn't from Bhutan and trade?

Does FX brokers allow it? I have an interest to trade with a broker for now and have been demo trading with them.

Other question is just as the export of a country increases the probability of having high foreign currency reserves, do you think that trading FX market directly would actually increase (If I perform well) the chances of increasing the foreign currency reserves (USD) in one's central Bank?

I read few expert's opinions (voxeu.org/article/precaution-mercantilism-and-real-exchange-rate), I have a vague opinion that trading FX would somehow help increase the reserves. I am not an expert in Economics nor in Finances so have been tapping into these for past three years to learn more. I intend to clarifies these all so I can convince the authorities here that the current regulation which they have can be reviewed and let us trade online with a larger view of how global markets and economies can actually be regulated and streamlined for the greater good of my country. Apparently it seems I am the only one who came to them so far.

Your valued insights would really help me and my country at large and I appreciate your suggestions on how to go around on both the matters.

Thank you

 

[Pharaoh]

First. check what the local regulations are. A few countries do prohibit citizens from trading forex. If this is the case, you need to see how far those restrictions go. There may or may not be loopholes which would let you do it via a friend in another country.

You could also ask your planned broker if they know anything about government limits for forex trading in your country.

 

[Ugyen Penjore]

Thank you Pharaoh for your informative suggestions. I have gone through most of the Laws and Regulations in my country but have failed to understand where it gives enough information about the restrictions and as to why. Here is a link to my country's financial laws and regulations. rma.org.bt/laws_bylawstp2.jsp

What RMA (Royal Monetary of Bhutan is our central bank) has stated in 'Regulations Relating to the Possession of Asset and Properties Outside Bhutan by Bhutanese Citizens' is not enough to explain their statement.

Going by the constitution of Bhutan, Fundamental Rights; "Article 10. A Bhutanese citizen shall have the right to practice any lawful trade, profession or vocation", Fundamental Duties; ''Article 8. A person shall have the responsibility to pay taxes in accordance with the law'', and "Foreign Exchange Regulations 2013" I strongly think it is legal to practice the trade.

Moreover with availability of "Revised terms and condition for FC Accounts" foreign currency accounts, it shows existence of proper channel in other departments of financial services in the country. Since I don't have a financial background, it is little difficult for me to form a clearer views to support what already exist and a need to do a little more to redefine and separate out investment in foreign assets.

With help of expert views from FPA members, i look forward to form a strong understanding of the subject before I follow up on seeking permission from the central bank to trade. I have been doing follow ups and awaiting their say on it.

 

[FxMaster]

Hi Everyone,

Firstly, I want to thank FPA for your never ending selfless efforts to help newbies and pro fx traders alike here. I was lucky eough to have discovered FPA prior to any start into FX trading journey and stay away from scams and pitfalls of realities in FX world. I am a citizen of Bhutan, as small Kingdom out in the Himalayas beside Nepal in between India and China.

My country is a young Democratic Kingdom where we enjoy peace and harmony even in this modern days of conflicts everywhere. However, we are pretty slow into trading online and markets overseas due to which I am in a process to find out more about a Bhutanese being allowed to trade in Markets overseas with my governing authorities here.

My questions to ask you both here today is that if I fail to get a green light on trading abroad (with circumstances beyond my control) is it okay for me to get a Power of Authority from a friend who isn't from Bhutan and trade?

Does FX brokers allow it? I have an interest to trade with a broker for now and have been demo trading with them.

Other question is just as the export of a country increases the probability of having high foreign currency reserves, do you think that trading FX market directly would actually increase (If I perform well) the chances of increasing the foreign currency reserves (USD) in one's central Bank?

I read few expert's opinions (voxeu.org/article/precaution-mercantilism-and-real-exchange-rate), I have a vague opinion that trading FX would somehow help increase the reserves. I am not an expert in Economics nor in Finances so have been tapping into these for past three years to learn more. I intend to clarifies these all so I can convince the authorities here that the current regulation which they have can be reviewed and let us trade online with a larger view of how global markets and economies can actually be regulated and streamlined for the greater good of my country. Apparently it seems I am the only one who came to them so far.

Your valued insights would really help me and my country at large and I appreciate your suggestions on how to go around on both the matters.

Thank you

There are many brokers who are accepting clients from Bhutan. To start trading, follow my suggestions
* You have to choose few brokers first.
* Check reviews about them here https://www.forexpeacearmy.com/forex-reviews
* Shortlisted some brokers from the reviews
* Go to their live chat
* Ask them if they accept client from Bhutan or not?
* Open account with them with a small amount.
* Place some trades and then check their withdrawal system.
* If everything seems fine the You can go with the amount you want with them

 

[Ugyen Penjore]

Thank you FX Master. Do you think I can trade under someone's name taking power of attorney? Like how fund managers are doing for their clients who can't trade?

 

[FxMaster]

Thank you FX Master. Do you think I can trade under someone's name taking power of attorney? Like how fund managers are doing for their clients who can't trade?

To be honest, I can't suggest you that because you can but if broker finds out then they will have reason to not let you your funds back, Illegal ways always harm us.

 

[Ugyen Penjore]

True that, thank you FxMaster.

 

[FxMaster]

True that, thank you FxMaster.

You`re most welcome

 

[Pharaoh]

If you use some sort of Power of Attorney filed with the broker, then the broker shouldn't have a reason to complain.

I checked the Forex Exchange laws of 2013 on the website you provided. They appear to apply to banks and currency converters, not to trading. You would need to ask the government if they really care about whether you trade FX as an investment at a broker outside of Bhutan.

 

[Ugyen Penjore]

Thank you so much Pharaoh for going through laws in my country. It had been like more than a month that I had been following up to clarify on where the government stands on FX trading and they said 'NO' it is not allowed. They regulation that they had written in 1993 on Assets overseas, clearly states that with their permission I can trade or acquire foreign assets including stocks and trading.

But the regulation isnt clear as to why and what, it lacks details. I totally understand where my country stands in market overseas as of now and why they are being conservative. They said that foreign reserve is the issue but through researches on real exchange rate and foreign reserves conducted by some economists in World Banks it seems increasing export is a way to increase foreign reserves just as China and other big exporting countries.

But i also feel like fx trading is also a way to increase foreign reserves even if it posses risk. I am looking forward to hear from some brokers on power of attorney and also wait for any future change in regulations. I just know that it is 100% legal with limited credit card spending. We are allowed to spend according to our income statements limit set to credit card issues by Banks here. It is just ridiculous that they dont understand that it is better to invest rather than spend on stuffs.

Anyhoo, Thank you everyone for being such a support and this forum is like an extra sets of eyes, ears and brains for everyone of us. I may have permanent solutions if I change citizenship to my fiancee's country in near future. But I don't mind waiting. May be we can organize some conferences where we meet up those who ever can and talk face to face.

Experts come up with their presentations and traders both pro and novice can join accordingly and express such issues in near future. I don't mind organizing it in Bhutan. If experts here like to. We can explore this Last ShingriLa into the Himalayas and actually do help each other in FX world. Work + Fun.