Despite currency fluctuations and macro-economic shocks across Africa, emerging reports show that Nigeria and South Africa, the two largest economies in Africa, are the biggest players in online retail forex trade, which now accounts for more than a quarter of the continent’s forex trading.
This is just as the forex trading platforms allow many Africa residents to grow and earn passive income both as a substitute for job loss and to supplement their existing income.
The online trading platforms is now simpler than ever since stable internet connections and broadband connectivity are becoming more widely available throughout Africa because of the advent of fiber and the rise in the number of private internet providers and viable options like trading rebates.
It is important to know that Africa’s greatest participant in the FX market is South Africa. The most traded currency in Africa is the South African Rand, which is used by the nation even as the Rand ranks as the 20th most traded currency globally.
Although, Nigeria remains cautious about the FX market as the Nigeria’s Securities and Exchange Commission (SEC) cautions Nigerians against engaging in leveraged online retail forex trading.
People throughout the continent now have the chance to benefit from changes in global finance thanks to forex trading.
The forex market has long been a popular method for traders and investors around the globe to maximise their wealth through currency fluctuations.
There have been several geopolitical and macroeconomic shocks across Africa that have weighed heavily on many currencies. The steepest currency depreciation and the highest inflation levels have been experienced by net importers of fuel and food.
African nations are primarily young, with a median age of around 19, so this dynamic and adaptive demographic has embraced Forex trading to grow their wealth at home without relying on employment growth, which is unlikely to continue for a while.
Additionally, the availability of numerous trading apps allows African traders to keep track of the Forex markets while on the road, resulting in a practical and approachable trading interface.
The Forex market is accessible to traders in Africa whenever they choose because it is open around the clock, every day of the week.
Additionally, traders can now make trades at any time, from any location, utilizing mobile trading apps, eliminating the need to spend most of their trading time hunched over a desktop computer.
Although the forex trading market is expanding in Africa, there are still many obstacles to overcome. Fraudulent actions along with a lack of awareness, knowledge and regulatory infrastructure have impeded its growth.
There is no single regulatory authority in charge of monitoring currency trading, and the African continent is also heterogeneous. Because of this, forex trading is mostly unregulated, which leaves it more vulnerable to fraud and con artists.
Furthermore, Africa, compared to other continents, lags behind in skills and education in regard to currency trading.
The hazards and potential for profit of Forex trading are not well known to many people. Due to this ignorance, dishonest and misleading activities have been practiced, which has led to many people falling for the scams of dishonest persons who promise astronomical gains.
However, interest in currency trading will undoubtedly continue to rise in the coming years. The sensitization level is currently high as Forex trading is advertised on social media and traditional media channels.
There are equally growing amounts of seminars and programs to create awareness around currency trading. More Foreign- based currency brokers are also picking interest in offering their services to African countries.
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