Is Binary Options Trading Legal in Bangladesh? (2025)

Paul Titus
Barry Edwards
Last Updated on November 5, 2025
Is Binary Options Trading Legal in Bangladesh
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Binary options trading, also known as fixed-time trading (FTT), is a high-risk trading derivative where traders have to predict whether the price of a specific asset will go up or down within a short timeframe (5 seconds to 60 minutes). If your prediction is correct, you earn a fixed payout (50% to 90%), but if you guessed wrong, you lose 100% of the trade amount.

Due to its simplicity, binary options trading is very popular among beginner Bangladeshi traders, but since the financial regulation of the country is strict, you might be wondering: is binary trading legal in Bangladesh?

The short answer is:

👉 No, binary options trading is not legal in Bangladesh because it is considered gambling by Bangladesh Bank, binary option brokers don't have a BSEC license, and transferring funds to these brokers violates foreign exchange laws in Bangladesh.

In this article, we’ll break down the current Bangladeshi trading laws, explain how BSEC and Bangladesh Bank view these platforms, and outline what risks you face as an individual trader, even if the platforms themselves are not directly banned.

Online Trading Laws in Bangladesh

Before we explain why binary options trading is illegal in Bangladesh, it’s important to understand the laws that apply to binary options and how online trading is regulated in the country.

The legal status of any online trading platform in Bangladesh depends on three main entities:

  • Bangladesh Securities and Exchange Commission (BSEC): Regulates capital markets and securities.
  • Bangladesh Bank (BB): Oversees foreign exchange and monetary policy under the Foreign Exchange Regulation Act, 1947.
  • Bangladesh Telecommunication Regulatory Commission (BTRC): Controls digital communications infrastructure, including the blocking of unauthorized websites and mobile apps that violate national law.

Here are relevant laws that apply to binary options trading:

  • Only BSEC‑licensed brokers can operate legally in Bangladesh, and they must follow Bangladesh Bank’s foreign exchange rules and the country’s core financial laws, including the Securities and Exchange Commission (Amendment) Act, 2020, and the Foreign Exchange Regulation Act (FERA), 1947.
  • You can only trade in instruments that are officially listed on the Dhaka Stock Exchange (DSE) or the Chittagong Stock Exchange (CSE).
  • According to FERA (1947), Bangladeshi residents are not allowed to send money abroad for speculative or unauthorized investments.
  • The Gambling Act of 1867, reinforced by recent High Court orders banning online betting and gambling apps, also applies to digital financial speculation.

Why is Binary Options Trading Illegal in Bangladesh?

While no Bangladeshi law explicitly mentions “binary options” or “fixed-time trading (FTT),” BSEC and BB consider this unauthorized and gambling-like trading product, which is strictly prohibited. The High Court directives authorized BTRC to block apps and websites related to digital betting and illegal trading.

Here are three reasons why this financial product is illegal and how it fits into the current regulatory framework of online trading in Bangladesh:

1. Binary Options is Considered Gambling in Bangladesh

Binary options trading is widely treated by Bangladesh Bank as gambling-like activity, not a real investment product, an activity that fails to comply with Public Gambling Act of 1867. This is because of two key factors:

  1. Fixed time trading is highly speculative, as the ultra-short durations (like 5-60 seconds) make the outcome based on random chance, not skillful technical or fundamental analysis.
  2. Fixed time trading is highly speculative, as the ultra-short durations (like 5-60 seconds) make the outcome based on random chance, not skillful technical or fundamental analysis.
  3. Binary options offer an unfair payout structure where you risk 100% of your investment to win a lesser amount, typically 70-90% of your bet. So you need to win more than 55-60% of your trades just to break even, which is a very hard task even for experienced traders.
  4. Binary options offer an unfair payout structure where you risk 100% of your investment to win a lesser amount, typically 70-90% of your bet. So you need to win more than 55-60% of your trades just to break even, which is a very hard task even for experienced traders.

» Learn more about the risks of binary options trading


Under Digital Security Act, 2018, the government is allowed to block or penalize access to any website or app that facilitates unlicensed financial activity. The Bangladesh High Court has already banned mobile gambling apps and declared that their use, possession, or promotion is a punishable offense. Binary options platforms are included as part of the government’s crackdown on illegal betting and unlicensed financial apps.

2. Binary Options Brokers Have No BSEC License

Under Bangladeshi law, only brokers licensed by the Bangladesh Securities and Exchange Commission (BSEC) can legally offer investment or trading services to residents under Securities and Exchange Commission (Amendment) Act, 2020. Since no binary options broker holds a BSEC license, you can't legally trade it from Bangladesh.

The Digital Security Act, 2018 gives authorities, like BSEC and BTRC, the power to block mobile apps or websites that promote unauthorized financial schemes or threaten national economic security, which includes offshore binary options platforms.

We analyzed the legal status of the most popular binary option brokers in Bangladesh, and here are our conclusions:

  • Quotex is illegal in Bangladesh
  • Binomo is illegal in Bangladesh
  • IQ Option is illegal in Bangladesh
  • Olymptrade is illegal in Bangladesh
  • ExpertOption is illegal in Bangladesh
  • Pocket Option is illegal in Bangladesh

Many Bangladeshi traders still access popular fixed time trading brokers using VPNs or alternate links, but you have to understand that since these brokers are unlicensed and unregulated, you are not protected by Bangladeshi law, and your funds are not recoverable through legal means.

3. Sending Money to Unregulated Binary Options Brokers Violates Foreign Exchange Laws

Finally, and most importantly for you as a trader, the act of sending money to unregulated international brokers violates the Foreign Exchange Regulation Act, 1947, which governs all international financial transfers.

Even if a binary options platform is accessible from the country, the Bangladesh Bank (BB) enforces strict rules around outbound remittances for speculative or unauthorized investment purposes. This current regulation still applies even if the broker is regulated in another country, because if it doesn’t hold a valid BSEC license, it’s not legal to fund it from Bangladesh.

While Bangladesh Bank has not issued a public circular specifically mentioning binary options, it has instructed financial institutions to monitor and block transactions related to unauthorized investment platforms. Under Anti-Money Laundering (AML) and foreign exchange rules, banks and mobile money services are required to block cards or accounts, reject transactions, and report violations linked to suspicious remittances.

In practice, enforcement is selective, but real, as many Bangladeshi traders have experienced declined deposits, frozen e-wallets, and bank accounts flagged for suspicious activity. Even small transfers, if done often, can raise red flags, so you’re always at risk of being investigated or blacklisted.

Does depositing crypto to a binary options broker bypass forex restrictions in Bangladesh?

No, using cryptocurrency to fund your binary options account does not make the transaction legal because the Foreign Exchange Regulation Act (FERA), 1947, prohibits the transfer of value abroad for unauthorized speculative trading, regardless of the currency used.

Bangladesh has one of the strictest anti-crypto policies in Asia, so crypto wallet addresses, exchanges, and IP addresses are traceable, and enforcement is increasing. Similar to local payment gateways, you could still face account bans, wallet shutdowns, or criminal investigations if you’re found violating FERA and AML laws using crypto.

What are the Legal Alternatives for Trading in Bangladesh?

If you are looking for legal alternatives, only BSEC-licensed brokers are your fully legal options under Bangladeshi trading laws. However, BSEC-licensed brokers do not offer binary options, cryptocurrency trading, foreign forex pairs (like EUR/USD), or high-leverage products.

If you are interested in binary options for fast and high profits, BSEC-regulated brokers are not a good fit for you because they are focused on long-term investing through traditional assets in the Bangladeshi market.

Conclusion

Binary options trading is illegal in Bangladesh because it is considered prohibited gambling, the platforms offering it have no BSEC license, and funding offshore binary options brokers violates the Foreign Exchange Regulation Act, 1947.

Bangladeshi traders must understand that no international broker is currently authorized to operate in the country, including globally trusted and internationally regulated ones. This means, if you trade on an international platform, your funds are not protected by Bangladeshi law and you are exposing yourself to financial loss and legal risk.

So if you want to trade online legally, your only compliant path is using BSEC-licensed stockbrokers that operate within Bangladesh’s official financial system.


» If you are looking for a safe and reliable trading platform, we suggest you check out our list of recommended brokers.

Binary options regulation differs by region, so explore our region-specific legality guides below to see how binary options are regulated in your country:

table of contents
1)
Online Trading Laws in Bangladesh
2)
Why is Binary Options Trading Illegal in Bangladesh?
3)
What are the Legal Alternatives for Trading in Bangladesh?
4)
Conclusion