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My guide to Forex trading in Azerbaijan is designed to help residents find the best Forex / CFD broker for their needs. In addition to assessing the top brokers that are likely to be most useful for residents of Azerbaijan, I will outline information that will shorten your learning curve, help you avoid mistakes, and inform you of what you should look for in your Forex broker so you can thrive as a Forex trader. Read on to find out more about the best Forex brokers in Azerbaijan.
Top Forex Brokers in Azerbaijan
- Alpari International, Hybrid execution model + scalping, hedging and more trading options.
- IG, No withdrawal fee.
- Dukascopy, a Swiss Bank and a broker.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- Pepperstone, Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platform.
Alpari International
In Summary Hybrid execution model + scalping, hedging and more trading optionsTraders get MT4/MT5 upgraded with the Pro Trading Tools. Fees consist of commission-free and commission-based spreads of 0.1 and 0.0 pips for a commission of $2.50 per 1.0 lot, respectively, with lower average spreads in the latter. Active traders can redeem points earned from trading for rewards via the Alpari Rewards program. Therefore, I rank Alpari among the best Forex brokers in Azerbaijan.
Alpari shines with its average order execution speed of 0.1277 seconds, with 99.64% of orders executed under one second. The price improvement technology improves orders by an average of 0.84 pips on 60.66% of all orders.
Pros & Cons
- Autochartist, FX Street news service, and quality in-house research
- PAMM accounts from a low minimum deposit requirement of $50
- MT4/MT5 trading platforms, plus a proprietary mobile app
- Ultra-low trading fees in the commission-based ECN accounts
- Limited educational content for beginners
IG
In Summary No withdrawal feeIG maintains an industry-leading asset selection featuring 17,000+ CFDs covering eight asset classes. Traders can rely on the proprietary web-based IG trading platform, MT4 upgraded via 18 add-ons plus the Autochartist, ProRealTime, or L2 Dealer. IG also connects social traders to 50M+ peers at TradingView. So, I rank IG among the best Forex brokers in Azerbaijan.
Traders get commission-free Forex spreads from 0.6 pips or $6.00 per 1.0 standard lot. IG also maintains a cutting-edge trading infrastructure with an average order execution time of 13 milliseconds and an order fill rate of 100% at the requested price or better.
70% of retail investor accounts lose money when trading spread bets and CFDs with this provider
Pros & Cons
- Broad asset selection for Forex traders
- Quality choice of trading platforms, including MT4
- Autochartist signals integrated with the proprietary web-based platform
- No minimum deposit + free deposits and withdrawals
- Limited deposit and withdrawal methods
Dukascopy
In Summary a Swiss Bank and a brokerI rank Dukascopy among the best Forex brokers due to its in-house developed Swiss FX Marketplace (SWFX), a proprietary technological solution connecting SWFX to 20+ banks via the FIX API for deep liquidity and fast order execution. The STP/NDD/ECN trading environment and volume-based commission discounts make Dukascopy ideal for high-volume and high-frequency traders and an excellent Forex broker for algorithmic traders.
Traders get MT4/MT5, and its proprietary JForex alternative. Dukascopy has its cryptocurrency coin, Dukascoin, and supports 22+ deposit currencies and gold. Dukascopy also offers a well-balanced asset selection and 1:200 maximum leverage.
Pros & Cons
- Quality trading tools and in-house research
- Banking services and trading as a bundled service
- Competitive trading fees with volume-based discounts
- Excellent STP/NDD/ECN trading infrastructure
- Account verification requires a video call
FXTM
In Summary Best all-around broker with high floating leverage and fast executionWe have made FXTM one of our top-rated brokers because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- Limited choice of commodities
Pepperstone
In Summary Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platformPepperstone, founded in 2010 and headquartered and regulated in Australia, the U.K., and Dubai, is probably the most well-known ECN Forex broker in the world. As an ECN broker, Pepperstone offers raw spreads and low commissions. Taken together, Pepperstone’s “Razor” account offers one of the most competitive costs of trading in Forex that you will find anywhere. In addition to their global headquarters in Australia, Pepperstone also have presences in London, England, where they enjoy full regulation by the Financial Conduct Authority (FCA), and in Dubai, where they are regulated by the Dubai Financial Services Authority (DFSA). Pepperstone is also regulated by the Cyprus Securities And Exchange Commission (CySEC) in Cyprus, the Capital Markets Authority of Kenya (CMA) in Kenya, the Securities Commission of The Bahamas (SCB) in The Bahamas and the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) in Germany.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, cTrader, TreadingView and Pepperstone Platform
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Signal Start, MetaTrader Signals, Copy Trading by Pepperstone, DupliTrade
- Leverage of up to 1:400 depends on jurisdiction and superb trade execution
- Demo accounts have 60-day time limits
Azerbaijan Forex Brokers Comparison
| | | | | |
Regulators | MWALI International Services Authority | ASIC, BaFin, CySEC, DFSA, FCA, FINMA, FMA, FSCA, JFSA, MAS | FINMA, JFSA | CMA, FCA, FSC Mauritius, FSCA, SCA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB |
Year Established | 1998 | 1974 | 2004 | 2011 | 2010 |
Execution Type(s) | ECN/STP, Market Maker | Market Maker | ECN/STP | ECN/STP, Market Maker | No Dealing Desk, NDD |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.1 pips ($11.00) | 0.9 pips | 0.3 pips ($3.00) | 0.1 pips | 1.1 pips |
Average Trading Cost GBP/USD | 1.2 pips ($12.00) | 1.4 pip | 0.8 pips ($8.00) | 0.2 pips | 1.4 pips |
Average Trading Cost Gold | $0.27 | $0.30 | $0.32 | $0.18 | $0.15 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5 | Other, MetaTrader 4, Proprietary platform, Trading View+ | MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Proprietary platform | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ |
Islamic Account | |||||
Negative Balance Protection | N/A | N/A | |||
| Visit Website | Get Started Visit Website71% of retail spread bet and CFD accounts lose money | Visit Website | Visit Website | Get Started Visit Website75-95% of traders on margin lose |
What to Look for in a Forex Broker in Azerbaijan
The best Forex brokers in Azerbaijan will offer the following:
- Regulation: A clean regulatory record of 10+ years with trader-friendly regulators. I recommend Forex brokers regulated in New Zealand, Seychelles, Mauritius, Belize, South Africa, and Dubai, as they balance trader protection and competitiveness. They often include an investor compensation fund, independent audits via the Hong Kong-based Financial Commission, and third-party insurance protection.
- Trading Fees: Major currency pairs should not exceed costs of $8.00 per 1.0 standard round lot or 0.8 pips. Volume-based rebates will decrease final trading fees.
- Trading Platforms: I favour MT4/MT5, as they support algorithmic and copy trading via third-party providers, including ZuluTrade and Myfxbook Autotrade. MT4/MT5 also connects to third-party trading tools like Capitalise AI, Trading Central, and Autochartist.
- Asset Selection: Traders require 200+ trading instruments to achieve diversification and cross-asset trading opportunities.
- Deposits and Withdrawals: I advise low minimum requirements and a choice of e-wallets, preferably cryptocurrency, for deposits and withdrawals.
Forex Trading Regulations in Azerbaijan
The Central Bank of the Republic of Azerbaijan regulates the physical Forex market in Azerbaijan, but online derivative trading remains unregulated. Therefore, the best Forex brokers in Azerbaijan are offshore Forex brokers. Offshore Forex brokers do not require a license issued by the Central Bank of the Republic of Azerbaijan, and no restrictions bar Azerbaijan-resident Forex traders from opening offshore accounts.
How Much is Forex Leverage in Azerbaijan?
No theoretical upper limit exists, but the best Forex brokers in Azerbaijan offer a maximum leverage of 1:500 with negative balance protection to ensure Forex traders cannot lose more than they deposit. Forced liquidation triggers if trading accounts breach margin ratios to assist with risk management. I urge Forex traders to implement proper risk management and to understand the relationship between leverage and risk management and how lot sizes will impact risk management before trading leveraged accounts.
How to Start Forex Trading in Azerbaijan
By considering my tips below, beginners can shorten their learning curve, understand the requirements to become successful Forex traders and learn which areas of study to focus on.
1. Focus on in-depth education.
2. Approach and respect Forex trading as a highly skilled profession.
3. Trading psychology separates up to 90% of unprofitable traders from profitable ones.
4. Master the leverage-risk management relationship.
5. Understand how lot sizes will impact risk management and make necessary adjustments.
6. Risk management is as important as the trading strategy.
7. Use a trading strategy that reflects your personality.
8. Low trading fees determine a competitive trading environment.
9. Learn the proper take profit and stop loss placement.
What is the Best Trading Platform & App in Azerbaijan
MT4/MT5 is the best trading platform and app in Azerbaijan. It supports algorithmic trading, VPS hosting, and API trading. Copy traders can connect via third-party providers, including ZuluTrade and Myfxbook Autotrade. MT4/MT5 has 25,000+ EAs, custom indicators, and templates. MT4/MT5 also connects to third-party trading tools like Capitalise AI, Trading Central, and Autochartist.
Forex Trading Taxation in Azerbaijan
Forex traders must pay taxes in Azerbaijan, but Azerbaijan exempts tax residents from paying taxes for seven years, and the tax rate is 0% for a monthly income of up to AZN 8,000, with a 14% rate above AZN 8,000. After seven years, traders pay 14% tax on income up to AZN 2,500 and AZN 350 plus 25% on income above AZN 2,500. Given the complex tax structure, I cannot over-stress the importance of consulting a licensed tax professional in Azerbaijan for all tax-related queries to ensure compliance with all local rules and regulations, including potential tax optimizations.
Pros & Cons of Forex Trading in Azerbaijan
I recommend Azerbaijani Forex traders consider the pros and cons of Forex trading in Azerbaijan before opening a trading account with the best Forex brokers in Azerbaijan.
The pros of Forex trading in Azerbaijan are:
- It is a good time zone to trade during the most liquid trading periods
- Expanding economy and diaspora drive Forex trading demand
- High-speed and stable internet connection
- Quality trading infrastructure
- Well-regulated offshore Forex brokers offer competitive trading conditions
The cons of Forex trading in Azerbaijan are:
- No domestic assets or local customer support
- Insufficient beginner education
- Lack of trading capital
Bottom Line
Azerbaijan lacks domestic online Forex brokers. Therefore, the best Forex brokers in Azerbaijan are well-regulated offshore Forex brokers, and many offer swap-free, Sharia-compliant Islamic accounts. Trading conditions in Azerbaijan match the competitiveness of well-established Forex markets, featuring low fees, algorithmic, copy, social trading, and mobile apps. I recommend beginners focus on in-depth education, mastering trading psychology, the leverage-risk management relationship, and how lot sizes influence risk management before funding trading accounts with the best Forex brokers in Azerbaijan.
