The global forex market is booming and Africa has seen a significant increase in traders and brokers in the last few months.

Since the COVID-19 outbreak with the resulting government-enforced lockdowns around the globe, economies have weakened and several businesses have suffered, sending the unemployment rate across the globe skyrocketing.

The unemployment rate across Africa soared, with numbers increasing to more than 30% in South Africa and 23% in Nigeria, changing the fortunes of forex trading in Africa as many people had to scout for new opportunities to provide for their families.

As it happens, South Africa and Nigeria are also Africa’s two largest economies, and the increasing number of forex traders in these two countries alone has impacted the forex markets greatly.

Even the employed are exploring new means of additional income. The forex market is easily accessible and more than $5 trillion is traded each day.

The market is open 24 hours a day, 5 days a week and all a potential trader needs is an internet connection and a smart device, laptop or PC, making forex trading an ideal way to earn money from anywhere in the world.

A strong rivalry among different brokers and the need to offer better trading conditions than the next broker is another reason trading has increased recently in Africa.

Africa’s youth is eager to learn, technology is advancing, costs and fees are decreasing and more financial instruments such as CFDs, commodities, stocks and indices are being offered to cater to the needs of all traders across the African continent.

The fact that Africa’s currencies are starting to perform better and the economy is stabilizing also has a great effect on forex markets. The South African Rand is one of the most traded currencies in the world and is steadily getting stronger.

African forex brokers offer a very high leverage, which can maximize profits when understood and used correctly.

In 2018 new restriction laws were put in place by the European Securities and Markets Authority (ESMA). These restrictions handicap traders in terms of their profit potential, which has prompted them to move to the greener pastures of the African markets.

The FSCA of South Africa allows for unlimited leverage ratios, and while the organisation is not as strict as many other regulators, it has taken steps to enforce client protection measures which mitigate the risks of trading on higher leverage.

Improvement should soon be visible for other African countries such as Nigeria, which will result in Africa’s forex numbers increasing even more.

As most of the African countries are still in the process of forming regulations with regards to forex trading, potential investors are advised to only select brokers that are regulated and in compliance with financial institutions.

The jseshares.co.za domain (the website) is owned by the SEOPros Pty Ltd. JSE Shares endeavours to ensure the accuracy and reliability of the website and the content, materials and products included and available on the website but because of the possibility of human and mechanical error as well as other factors, to the extent allowed by law, JSE Shares does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the availability, truth, accuracy, completeness or reliability of such information or that it is always up to date.

In the circumstances, and to the extent allowed by law, neither the JSE Shares nor any of its directors, officers, employees, contractors, agents or representatives are liable in any way for any loss or damages as a result of the use of or reliance on information provided on the website. The above wording limits and excludes obligations, liabilities and legal responsibilities of JSE Shares, and also limits and excludes your rights and remedies and places various risks, liabilities, obligations and legal responsibilities on you.

Education feed Join Telegram

Editors’ Picks

EUR/USD retreats towards 0.9600 as Russia-linked risk-aversion, hawkish Fedspeak propels DXY

EUR/USD retreats towards 0.9600 as Russia-linked risk-aversion, hawkish Fedspeak propels DXY

EUR/USD fades bounce off the recently flashed 20-year low of 0.9553, around 0.9630 heading into Monday’s European session, as bears keep reins amid a broad risk-off mood. ECB’s Lagarde, Germany IFO numbers eyed for intraday directions.

EUR/USD News

GBP/USD bears flirt with 1.0500 as the slump to record low trigger BOE intervention hopes

GBP/USD bears flirt with 1.0500 as the slump to record low trigger BOE intervention hopes

GBP/USD remains mostly inactive after declining to the all-time low. Doubts over UK’s fiscal stimulus to generate economic benefits, Russia-Ukraine woes led the bears. Hawkish Fedspeak, firmer US data also exerted downside pressure on the cable pair.

GBP/USD News

USD/JPY marches towards 144.00 on firmer yields, risk-aversion ahead of Fed Chair Powell’s speech

USD/JPY marches towards 144.00 on firmer yields, risk-aversion ahead of Fed Chair Powell’s speech

USD/JPY renews intraday high around 143.60 as Tokyo opens for Monday, extending Friday’s recovery moves. In doing so, the yen pair also reverses the previous day’s pullback from the 24-year high, triggered by Japan’s intervention to defend the national currency.

USD/JPY News

Editors’ Picks

EUR/USD retreats towards 0.9600 as Russia-linked risk-aversion, hawkish Fedspeak propels DXY

EUR/USD retreats towards 0.9600 as Russia-linked risk-aversion, hawkish Fedspeak propels DXY

EUR/USD fades bounce off the recently flashed 20-year low of 0.9553, around 0.9630 heading into Monday’s European session, as bears keep reins amid a broad risk-off mood. ECB’s Lagarde, Germany IFO numbers eyed for intraday directions.

EUR/USD News

GBP/USD bears flirt with 1.0500 as the slump to record low trigger BOE intervention hopes

GBP/USD bears flirt with 1.0500 as the slump to record low trigger BOE intervention hopes

GBP/USD remains mostly inactive after declining to the all-time low. Doubts over UK’s fiscal stimulus to generate economic benefits, Russia-Ukraine woes led the bears. Hawkish Fedspeak, firmer US data also exerted downside pressure on the cable pair.

GBP/USD News

Gold seems vulnerable to test sub-$1,600 levels Premium

Gold seems vulnerable to test sub-$1,600 levels

Gold kicks off the new week on a weaker note and drops to its lowest level since April 2020 during the Asian session. Buying the US dollar and selling everything else remains a key theme in the markets, which turns out to be a key factor weighing on the dollar-denominated commodity. 

Gold News

Cardano price could trap impatient investors before triggering an explosive move to $0.505

Cardano price could trap impatient investors before triggering an explosive move to $0.505

Cardano price shows a consolidation below a stable support level and has yet to reveal a directional bias. The ongoing range tightening will likely resolve as the US markets head to a fresh start this week.

Read more

Week Ahead: Euro eyes Italian elections and flash CPI, dollar may take a backseat

Week Ahead: Euro eyes Italian elections and flash CPI, dollar may take a backseat

With the Fed meeting out of the way, a quieter week is on the horizon, barring of course any flare up of tensions between Russia and Ukraine. Either way, the spotlight will probably fall on the euro as far-right parties are expected to gain ground in Italy’s parliamentary election on Sunday.

Read more

RECOMMENDED LESSONS

7 Ways to Avoid Forex Scams

The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?

What Are the 10 Fatal Mistakes Traders Make

Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.

Strategy

Money Management

Psychology