Forex Trading in Bolivia • Forex Strategy • Benzinga
The forex market has been growing at a rapid pace in Bolivia, where increased currency stability, free-floating government regulations and an expanded internet infrastructure has made it easier to trade. If you’ve ever wanted to trade forex in Bolivia, our comprehensive guide will show you how to get started, open a brokerage account and formulate…
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The forex market has been growing at a rapid pace in Bolivia, where increased currency stability, free-floating government regulations and an expanded internet infrastructure has made it easier to trade. If you’ve ever wanted to trade forex in Bolivia, our comprehensive guide will show you how to get started, open a brokerage account and formulate your own unique trading strategy.
Table of Contents
Get Started with Forex in Bolivia
Getting started with forex trading begins with opening a brokerage account. You can open a brokerage account on nearly any device that connects to the internet, including:
Desktop computers
Mobile phones
Tablets
Laptops
Before you begin the process of opening an account, check and make sure that your internet connection is secure and private. You may also want to run a speed test on your device.
There are many international and local brokers offering forex trading capabilities to investors in Bolivia. When you compare brokers, be sure to consider the following characteristics:
Currencies the broker offers access to
Territories the broker services
Local and international licensure and regulation status
Account minimums
Fees and other transaction expenses
When you find a broker that you want to work with, create an account using that broker’s process. You may also need to download a 3rd-party trading platform like MetaTrader 4 or 5 before you can trade.
After your account has been opened in full, choose how you’d like to deposit trading funds. Most brokers in Bolivia allow you to fund your account using a number of methods, including:
Direct bank transfers
Transfers from electronic wallets like PayPal or Skrill
Deposits from a debit or credit card
It might take a few days for your deposit to show in your account. When your deposit clears, you can officially trade forex by placing your first order through your broker.
Bolivia Forex Trading Strategies
Thanks to a high level of volatility, most forex traders in Bolivia use a technical analysis strategy to profit from their trades. Technical analysis is a type of currency examination that uses past charting patterns and indicators to predict how the price of the currency will move in the future. There are a wide range of technical analysis strategies used throughout the world. Let’s take a look at a few examples to help you get started.
Head and Shoulders
The head and shoulders pattern is 1 of the most commonly used technical analysis formations. The head and shoulders pattern first establishes a baseline, with 2 minor peaks positioned in between a major peak. This pattern gets its name from its shape, which resembles a head and a pair of shoulders. The head and shoulders pattern is a bearish indicator and typically represents a sell signal.
Reversal Candlesticks
Traders who rely on short-term price movements often use reversal candlesticks to determine when they should buy or sell a currency. A reversal candlestick is an indicator that signifies that a currency’s price trend direction will change soon. A reversal candlestick can be bullish or bearish depending on its position. There are a wide range of reversal candlesticks, and the strength of each candlestick is typically determined by its tail length.
Forex Trading Example in Bolivia
How can you earn money trading forex? Let’s take a look at an example of how differences in currency values can be profitable for you.
Imagine that you fund your account with Bs10,000. Your broker offers you 10:1 leverage, which means that you can place trades worth up to Bs100,000. You believe that the value of the USD will rise in relation to the BOB, so you use your entire lot and leverage to buy dollars. $1 is currently equal to 6.89 BOB — converting Bs100,000 leaves you with about $14,513.79.
Soon, you see that the value of the BOB is falling in comparison to the U.S. dollar. When $1 is equal to 6.93 BOB, you decide to cash out. You convert your entire lot of dollars back to BOB and receive Bs100,580.55 in the trade. This means that, after accounting for leverage and your initial deposit, you’ve earned a profit of about Bs580.55.
Making Money with Forex in Bolivia
Though the realm of forex trading is still gaining traction in Bolivia, residents and travelers in Bolivia are free to exchange currencies as they wish. There are no limitations on the amount of money that you can deposit into an international brokerage account. You don’t need any type of special permissions from the Central Bank of Bolivia before you begin.
This freedom to trade combined with a growing internet infrastructure has led to the growth of forex trading in Bolivia. However, you’ll need to take steps to protect yourself and your capital during this period of change and growth. Some of the ways you can fight back against fraud and forex scams include:
Working only with licensed, well-known brokers. Whether they’re registered with the Central Bank of Bolivia or a comparable international oversight body, legitimate forex brokers are always regulated. Be sure to ask about licensure and regulation before you open an account.
Limit your leverage usage. It’s possible to find local brokers offering up to 1,000:1 leverage. This is a dangerously high level of leverage that’s very likely to cause bankruptcy for new traders. Limit the amount of leverage you use as much as possible.
Practice trading with a demo account. Most forex brokers allow you to practice your trading strategy with a demo account before investing your own money. Be sure to get familiar with your broker’s tools before you invest.
Best Online Forex Brokers in Bolivia
The forex broker you choose will dictate how much you pay in fees, which currencies you can buy and sell, the platforms you can use to trade and more. This means that it’s well worth the effort to take plenty of time researching and comparing brokers before you open an account.
Don’t have time to conduct your own research? Consider opening an account with one of our favorite international brokers offering services to investors in Bolivia below.
Forex Terminology
One of the first things that you’ll notice when you begin researching the forex market is that forex traders seem to have their own unique language they use when discussing trades. Familiarizing yourself with forex terminology before you enter the market can enhance your understanding of the materials you’re reading. Explore a few of the most common forex terms you’ll hear with the definitions below.
Pip: A single pip is the smallest calculatable unit by which a currency can move, usually calculated to the 4th decimal place. For example, if a currency moves from a value of $1.0000 to $1.0010, you could say that the value increased by 10 pips.
Lot size: Your lot size is equal to the number of units of currency you are buying or selling on a single trade. For example, if you want to exchange ¥100,000 into euros, your lot size is equal to 100,000. Most forex traders consider 100,000 units of currency to be a “standard lot.”
Orders: An order is a specific set of instructions you provide to your forex broker so they can carry out a trade on your behalf. When you place an order, you’ll specify which currencies you’re exchanging, your lot size, the price that you need the order executed at and more. There are multiple types of orders and you can combine order types to limit your loss and automatically take profits.
Calls: A margin call is a risk of using leverage to trade. If you borrow money on leverage and your portfolio falls below a certain percentage, your broker might subject you to a margin call. If you receive a margin call, you’ll need to deposit more money in your account to make up the difference. If you cannot bring your portfolio value back up, you’ll need to exit your positions.
Getting Started with Forex Trading
Forex trading is still a relatively new market for traders and investors in Bolivia. This means that laws and restrictions on brokers, leverage caps and more may change in the coming years as the Bolivian government gains a fuller understanding of how currency investing affects the local economy. If you do decide to trade forex, be sure to protect yourself and your investment by only using licensed brokers to invest with, limiting your leverage usage and practicing your trading on a demo account before you put money into your broker’s account.
These new pairs have been available since July 1st, 2019 and provide an excellent opportunity to diversify your clients’ portfolios and increase their exposure to this vibrant 24/7 market.
Asset
Typical Spread
Leverage
Margin
Min Nominal Trade Size
NEOUSD
1.5% Over-market
2:01
50%
10
EOSUSD
2% Over-market
2:01
50%
10
MIOTAUSD
1.5% Over-market
2:01
50%
10
To unify their cryptocurrency instrument labels, They are relabeling their existing Ethereum, Ripple & Litecoin instruments, by replacing the existing instruments with new USD labelled ones:
Asset
Old Symbol
New Symbol
RIPPLE
XRP
XRPUSD
ETHEREUM
ETH
ETHUSD
LITECOIN
LTC_Mini
LTCUSD
These new pairs have also been available since July 1st,
The trading conditions for each one is identical to those of the older respective assets they replace.
Effective immediately, new positions are only available on the new pairs.
Avatrade Clients will not be able to open new positions on the old assets, but those already open will remain unaffected until July 29th.
Existing positions on XRP, ETH and Litecoin-mini that remain open on July 29th will be automatically replaced with corresponding positions on the new pairs, , at the same opening price and at no cost to clients.
as any broker that values their clients would do , Avatrade makes sure that the clients will not be affected by the change.
Neteller one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.
They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.
founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.
Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.
But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.
So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.
As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.
It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.
Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)
We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.
The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller
The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.
When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available
The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.
The fee rises to 3 percent for wallets with other default currencies.
Neteller | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?
At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.
The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.
Last July 25, Paysafe ( which as you remember is the company that owns Neteller and Skrill) announced that another digital wallet provider in its group, Skrill ( formerly known as moneybookers), started allowing customers to “instantly buy and sell cryptocurrencies, including bitcoin, bitcoin cash, ether and litecoin, using any one of the 40+ fiat currencies available in the Skrill wallet.”
We could now see that this was like their test run on this concept.
We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.
We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think
The currency trading industry and now also the cryptocurrency trading industry have gone through enormous volatile times the last couple of years. Now with trump and its trade wars. The fast rise and somewhat recline of the cryptocurrencies and the fast pace of international politics and economies that create high rises and steep fall of the currencies.
So what does it all mean and what can you do before start to trade on these news headlines.
Good brokers like LegacyFX and UBCFX provide the traders with the latest market news and updates on a continuous basis but if you are new to trading you still have no idea what to do with this.
You start by understanding that the involves a high degree of risk, including the risk of losing you hard earned money. Besides the ones that were lucky enough to have bought Bitcoin a couple of years back and cashed in in the end of 2017, most people don’t get rich overnight.
You have to understand that you only trade with money that you are able to lose, going hungry because you want to open a trade is not the right wy to go about it.
So, What is Forex?
You should by now understand that the value of currencies goes up and down every day.
This in general becomes apparent the moment you go on vacation and what you bought last year with your money now is not the same amount you get today at the exchange.
This is on a large scale, what a lot of people do not know is that there is a foreign exchange market – or ‘Forex’ for short – or “FX” for even shorter, where you can potentially make a profit from the movement of these currencies.
The most known Trader is George Soros who made a billion dollars in a day by trading currencies. This is of course on a scale that we are not able to reach and you need a huge amount of money to begin with. Still he made a billion in one day!!
The internet has played a huge part in making trading in currencies accessible for the masses. You also do not need huge amounts of money to actually do this. Now keep in mind that if you make 10% profit on your investment but the investment was just $50 you basically just end up with $55. still no bank will give you 10% interest on your money.
Many people and I am talking millions are now trading every day, most do this on the side and don’t do this as a full-time job, but there are today enough people that are full time traders and making enough money to live comfortably.
Retail forex market needed Brokers
The Forex market for the retail market was born, it started around 15 years ago to become more serious as technologies advanced and the stream of information became almost instant, this is important for trading as one second can make the difference between profit or loss.
So, the moment the technology was there the people that wanted to trade were there all that was needed were the Forex brokers that offered the platform for trading.
There are latterly hundreds of companies of not thousands that offer this service and there are good ones like LegacyFX and there are scams (these tend to not last long)
Forex explained in short
The Forex market is the largest financial market on the planet and has been for many years now.
Its average daily trading volume is more than $4 trillion. (just let that number sink in for a second). Of this total amount around 5% is the retail market meaning traders like you and me. Still 5% of 4 Trillion is still a number with a lot of zeros behind it.
If you compare that with the New York Stock Exchange, which only has an average daily trading volume of $55 billion. You truly see the size.
To give you another example:
if you were to put ALL of the world’s equity and futures markets together, their combined trading volume would still only equal a 25% of the daily Forex market. Insane right?
Why does this even matter?
It matters because there are so many buyers and sellers that transaction prices are kept low. To explain how trading the Forex market is different than trading stocks, here are a few major benefits.
Most Brokers don’t charge commissions – you pay only the bid/ask spreads.
There’s 24hour trading – you decide when to trade and how to trade.
You can focus on your currencies and become experts in only those pairs that you follow instead of following and selecting out of 5000 stocks
You can trade on leverage, (something to be very aware of as it can magnify potential gains but also your losses).
Forex is accessible for almost everyone– you don’t need a lot of money to get started
In the Forex market you can trade on Demo accounts to learn before you commit your money
How is Forex traded?
The mechanics of a trade are virtually identical to those in other markets. The only difference is that you’re buying one currency and selling another at the same time.
This is also the reason as to why the currencies are quoted in pairs, like EUR/USD or USD/GBP.
The exchange rate represents the purchase price between the two currencies.
Example:
The EUR/GBP rate represents the number of GBP one EUR can buy (relevant now with all the Brexit issues going on) . If you think the Euro will increase in value against the British Pound, you buy Euros with British Pounds. If the exchange rate rises, you sell the Euros back, and you cash in your profit.
Now the same works for strading Bitcoin, ethereum, Litecoin or other cryptocurrencies. this has become an entire new market and has introduced many people to Forex . you should here be also aware that trading cryptocurrencies is like regular trading so you will be able to lose great sums of money.
the Best thing i found about trading cryptocurrencies is that the Leverage by default tends to be very low which makes the risk of losing it all much smaller.
Sounds simply enough?
Why does not everyone Trade.
The same could be asked as to why not everyone plays poker, you can make money. The comparison between the 2 is actually closer than you might think.
All traders that are successful will tell you that 80% of successful trading is psychology and the other 20% is research. It takes time to get the research down, but it can take a lifetime to master the psychology.
People tend to do things differently when real money is on the line and are accepting losses in the hope that the trend will reverse or taking out profit too early because they don’t want to lose what they just have gained. In short, the psychology is the hard part.
One should be aware that you can loose real money and a lot of it very fast if you don’t know what you are doing.
Now most Good Forex brokers offer some educational tools, some more than others that will teach you how to trade. There is also something that is called social trading that will allow you to follow other traders and see what they are doing in order for you to learn and make money at the same time.
So here are some ground rules for those that look to start trading
Get involved in the market, watch read and listen to the news to understand what is happening
Go through a trading course ( a good one is here)
Open a demo account and trade at least a month (my advice to do this even longer)only on this before you even think about trading with real money.
Check out social trading, there are some options for this, this broker offers this also.
Try with an amount that you are able to afford losing. See this as your tuition money.
Take it slow, don’t become greedy and follow the basic rules
Basic Rules (there are many more but start with these)
The trend is your friend
Don’t add money to a losing position
Don’t trade on too many different currency pairs
Trade only with a good broker
Don’t open to many positions (no one needs 100 positions a day)
Develop your strategy and stick to it.
Know that NO ONE is 100% of the times right, everyone loses some.
Last but not least, don’t trade with money you cannot afford to lose.