St. Lucia is an often overlooked but well performing developing economy with a great deal of upside potential. Its economic freedom score of 68.2 places it well ahead of most countries in the Americas and well above the global average. The environment is considered generally business-friendly with plenty of room for foreign investors. The reputation of the government, however, does suffer from corruption, with regulators unable to fully control the problem primarily due to a lack of funding.
Attribution: Rendezvous Resort
The Money Services Business Overview Act No. 11 of 2020 regulates the retail forex market. St. Lucia requires a license to do business in currency exchange within its borders. There is a measure of protection on paper for investors in the country, but the execution of investigations into complaints can be slow and cumbersome. Investors are encouraged to protect their own financial interests when trading forex in St. Lucia.
Get Started with Forex in St. Lucia
Being able to trade forex safely starts with solid preparation. Here is how to build your digital financial infrastructure so that you can feel secure.
- The internet connection: You may need to center yourself in the more developed parts of St. Lucia to get a consistent, fast internet connection. Everything in retail forex hinges on how well you are connected.
- The forex broker: There are a high number of forex brokers across the world that accepts clients from St. Lucia. We recommend to prioritize brokers that are in compliance with international financial regulators.
- The brokerage account: You will need an ID and your 3rd-party bank information to connect a funding source to your brokerage. Make sure you have protections for your money through regulators and the company’s own policy.
- The funding source: Fund your brokerage account using a check, debit card, fintech account or credit card.
- The trading platform: The trading interface that you choose will affect the speed and efficiency of your transactions with the market. Choose one that lets you enter your orders quickly but accurately.
- The investing: With your research concluded, you can begin safely trading forex from St. Lucia.
St. Lucia Forex Trading Strategies
Trading in the forex market requires a strong plan. Take a look at some of the high level strategies that have been successful for many investors.
Price action keeps the attention of the investor focused primarily on short-term chart movements. You honestly don’t need to know much about the individual currency you are trading — you are looking for patterns in charts that you can predict and exploit. The news may affect how these patterns form and where they form, but they do not usually determine how those patterns move over the time period of minutes or seconds. Price action trading involves quick reflexes and a steady setup with no latency.
Swing trading involves interpreting chart patterns, but the trades are usually made over the course of hours, days or weeks. The time frame allows for larger price differentials, so swing traders are looking for larger profits per trade than price action traders.
Position traders stay in the market for the longest periods and usually have the lowest frequency of trades. Over the period of months or years, the fundamentals behind a currency become its most important price driver. Daily news cycles and chart patterns take a backseat.
Forex Trading Example in St. Lucia
You want to trade the Japanese yen (JPY) against the currency of St. Lucia, the Eastern Caribbean dollar (XCD). In your opinion, the current bid/ask spread of JPY/XCD — 0.0255/0.0275 — is too low. Your broker provides a margin rate on this currency pair of 7.99%. You want to purchase ¥60,000 and wait until it rises to sell. You will need EC$127.04 in your account to control this investment.
After 7 hours, the JPY/XCD price moves up and is now at 0.0295/0.0315. This is a move of 20 points (0.0295 – 0.0275), and your profit is (¥60,000 x 0.0295) – (¥60,000 x 0.0275), or ¥120.
Making Money with Forex in St. Lucia
Attribution: LIO Global
Here are some of the most commonly known profitable financial vehicles in the forex market.
- Carry trading: When you carry trade, you look for your profit from the difference in interest rates of various currencies. This strategy relies on the fact that you gain interest on your forex holdings in the same way that you do when holding money in a commercial bank.
- Binary options: A highly speculative investment, binary options seem simpler because of their yes/no choice. Binary options brokers are often the center of controversy in countries with low regulation. Tread carefully.
- Shorting: You can profit from a currency weakening against another through shorting. You will need margin on your account, because you will borrow money to sell a currency that you don’t own before buying it back later at a lower price.
Best Online Forex Brokers in St. Lucia
The forex broker you choose is a vital part of your forex strategy. Choose your regulated broker wisely.
100 of your selected base currency
1 Minute Review
FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.
- MetaTrader 4 users
- Beginner forex traders
- Active forex traders
- Impressive, easy-to-navigate platform
- Wide range of education and research tools
- Access to over 80 currencies to buy and sell
- Leverage available up to 50:1
- Cannot buy and sell other securities (like stocks and bonds)
- Confusing margin requirements that vary by currency
- Limited customer support options
- Cannot open an IRA or other retirement account
1 Minute Review
A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.
- Advanced traders
- Traders looking for a well-diversified portfolio
- Controlled by regulatory agencies of multiple countries
- Choice offered in terms of trading platforms
- Support available in 14 languages and trading platforms in 20 languages
- Practice/demo account available for trying out
- Breadth of trading assets
- Does not accept customers from the U.S. as it isn’t regulated in the U.S.
- Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
1 Minute Review
Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).
eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.
- International Forex/CFD Traders
- New cryptocurrency traders looking for an easy-to-use platform
- Traders who want to buy and sell cryptocurrencies on-the-go
- Simple platform that is easy to master
- CopyTrader feature that allows new traders to copy the same strategies used by professionals
- Virtual dummy account that gives you $100,000 to practice trades
- U.S. traders currently limited to cryptocurrencies
- Only 15 major coins available to trade
Here a few basic terms that you should familiarize yourself with before stepping into the forex market.
Pip: Also known as a “basis point” the percentage in point — pip — is the smallest unit of measurement in forex. It is typically measured to the 4th decimal place and pegged to the USD.
Lot size: If you don’t specify otherwise, you will normally trade in the standard lot size of 100,000.
Orders: This is how you enter and exit forex trades.
Calls: Buying a call option lets you control a specified amount of currency until a certain date that is specified in the contract. You can also sell call options.
Be Your Own Financial Saint
St. Lucia can be a good place to trade forex. With a currency that is viably pegged to the U.S. dollar and decent infrastructure, investors can feel confident in their chances if they are willing to perform the proper due diligence.
Don’t forget to browse the rest of the website for even more tips about how to win in the forex market.
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