Why is Forex Trading Exploding Across Africa?

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Forex trading has reached immense heights across the world. No wonder it has spread in Africa as well and as statistics demonstrate Forex is more popular in developing countries that are showing a willingness to adopt trading.

 

In the past years countries such as South Africa, Zimbabwe, Nigeria, Kenya and many more showed rapid development in FX trading. We have also seen numerous traders who earned a lot of money in these countries, establishing themselves as one of the most successful investors. It goes without a question that Forex requires a lot of knowledge and experience. In this article we will have a look at the main reasons that led to the explosion of trading in Africa.

Availability

Forex is widely available – all you have to do is just have a computer, laptop or smartphone to start trading immediately. Africa has gone through innovative changes and right now technology plays an important role in the country. As there are brokerage companies that offer customers a possibility to claim bonuses, It is possible to start Forex trading without depositing money. The number of such brokers in Africa is low, but you can encounter some of them anyway.

Large leverage

Unlike the securities markets, which offer relatively low leverage, Forex offers large margin deposits (over 100: 1). This means that investors can use relatively small amounts that, in good market conditions, can generate large returns. In the majority of African countries currency fluctuations are frequent, which means that there are chances for investors. However, using leverage also means more risk.

Education

When we talk about people in Africa, new generations are more inclined to learn more about technology and investing. Times when long-term investments were popular are not that relevant in the modern period. Forex trading is a way to earn a decent amount of money in no time. While you need education, reading various books and analyzing different patterns, still with determination it is possible to achieve success in trading.

Low entry threshold

Investors can start with a fairly small investment in the Forex market, which is especially attractive for those who are new to the field and are starting to test opportunities. For many investors, the Forex market is proving to be a viable alternative. The same applies to traders associated with trading in commodities or options, who have to deal with the fact that more and more money is needed to invest.

Flexible working hours

For investors, the limited hours of the stock market are a real challenge, especially if they work full time during the day. The Forex market offers the ability to open trades outside of normal business hours during the day. The global Forex markets are open 24/5, which means that traders have the opportunity to trade currencies also at night or in the evening, from Monday to Friday.

Great liquidity

Unlike trading markets, the Forex market is global. This means that it is very loyal: there are always great deals here. This greatly reduces the risk that traders will be trapped in sudden and unforeseen movements in the market – since Forex has a global reach, there will always be someone to trade with. This liquidity also makes it possible to generate profits much faster than other sources available in the world.

Pandemic Factors

When the coronavirus pandemic started roaming around the world back in 2020, a lot of Africans were left unemployed and they were forced to look for other job opportunities. Forex trading proved to be one of the few opportunities. Interestingly, a lot of citizens managed to turn trading as their daily “job”. Even when the restrictions regarding the pandemic were alleviated, they still continued with the following process.

 

Forex trading is growing rapidly and engulfs even more countries in Africa. We can only predict that this trend will show no signs of slowing down.