By African Thinker
Forex trading has long been an immensely popular means for traders and investors around the world to grow their wealth by taking advantage of currency fluctuations and market volatility.
In recent years, Forex trading has exploded in popularity across the African continent, which has become an exciting new hub of trading markets for both international forex brokers as well as African traders seeking to find new ways to earn an income.
Several key factors have made forex trading particularly popular with African traders, creating a unique population of investors who have entered the forex arena. In this article, we explore some of the most important factors that have made forex trading the next frontier for African investors.
Forex trading is broadly accessible
For African countries long deprived of easy access to wealthy foreign markets, forex trading has created opportunities for individuals across the continent to take advantage of global financial developments.
With the help of a forex broker, traders can access the forex market at any time of day or night, no matter where they are located. The forex market is open 24 hours a day, seven days a week, 365 days a year, so traders in Africa can access it whenever they choose.
Additionally, traders no longer need to spend the majority of their trading time hunched over a desktop computer; instead, trades may be made at anytime, from any location, using mobile trading applications.
Forex trading is affordable for African investors
Forex trading has a relatively low barrier of entry, which makes it an excellent platform for first-time investors hoping to grow their profits steadily as they continue to learn the tricks of the trade.
Many forex brokers only require a small minimum deposit in order to open a trading account, and with many brokers now providing negative balance protection, traders are protected from incurring losses that exceed their initial investment, says Monty Barnard, chief operating officer from FSCA regulated forex brokerage – Khwezitrade.co.za
Forex education is widely accessible
For many first-time traders in Africa, the broad availability of free forex education makes it easier to start trading successfully.
Many brokers as well as investment websites provide either free or affordable educational seminars, workshops, e-books and training materials that allow newbie traders to learn the various aspects of trading from the comfort of their homes.
Forex trading can be done part-time for additional income
While many African economies are some of the fastest growing in the world, the COVID-19 pandemic has slowed this growth and caused increasing job uncertainty.
Forex trading allows African traders to continue to earn an income both as a substitute for job losses or to supplement their existing income.
The proliferation of the internet across the African continent
With stable internet connections becoming increasingly available throughout Africa thanks to the introduction of fibre and the increasing number of private internet providers, online trading has become easier than ever.
Added to this, the availability of various trading applications means that African traders can continue to monitor the forex markets on the go, creating a convenient and accessible trading interface.