Forex is one of the most popular ways of investing money and enjoys a lot of advantages for various reasons. Almost $4 trillion is circulated every day on the foreign exchange market, making it the biggest one.
In recent years FX trading has seen a surge in Africa and developing countries in general. More and more countries, including Nigeria and South Africa, are flourishing. In this article, we will talk about the reasons for the popularity of Forex trading in Africa.
The most convenient schedule
One of the main reasons for the boom of the Forex market in Africa is that the currency market is open 24 hours a day. This means that Forex traders and investors can choose their working hours, rather than working “from call to call” in a strictly allotted time frame. While at day African workers might be busy, they can easily trade at nights.
Thanks to such a most loyal work schedule, workers in Africa have the opportunity to combine trading in the foreign exchange market with other permanent jobs. After all, you must agree, it is stupid to lose a permanent income, recklessly rushing into the abyss of currency trading without having either sufficient knowledge or experience.
And a smooth entry into the world of trading, in parallel with another type of activity that is a source of constant income, allows a beginner to get involved in trading without much damage to his personal budget. And later, when the level of income from trading equals the salary at the main place of work, you can already think about quitting and devoting all your efforts to trading.
In addition, currency trading is very convenient, since you can trade currency from your own home using a regular computer connected to the Internet. Also, Forex brokers usually provide trading platforms for tablets and smartphones.
At the same time promotions that brokers offer are available in almost every part of the world. For example, you can get XM bonus anywhere in the world and Africa is not an exclusion.
Most of the times people in Africa are happy with such opportunities. You can go on an indefinite vacation to warm regions, taking with you a laptop with a trading terminal platform on it and making money sitting surrounded by coconut trees. In general, you are given complete freedom of movement, limited only by the mandatory availability of access to the Internet.
The opportunity to train for free
All good forex brokers provide free live quotes, software, tools, news, analysis, and more. You can open a demo account and try yourself as a trader or, for example, try out your strategies without any risk to your wallet.
When Forex first appeared in Africa such innovations and opportunities greatly improved the inclusion of Africans in this industry. As time passes more innovations are incorporated, thus making Forex trading go up in Africa.
Low entry threshold
Another reason why Forex is so popular in Africa is its relatively low overhead and low entry threshold. The vast majority of Forex brokers do not charge commissions and make their money through spreads (the difference between the buying and selling prices of currencies), which are displayed in a special window of the trading platform. You may not even notice that you are paying your broker (especially if the broker gives fixed spreads).
And while almost all countries in Africa are developing ones and sometimes money is an issue you can have literally a couple of American dollars on your trading account (well, or an equivalent amount in any other currency in which the broker opens an account for you) to start trading. This opportunity exists thanks to the so-called micro-accounts, which can be opened with many well-known Forex brokers.
In fairness, it should be noted that earning any money with such a ridiculous amount of a trade deposit is unlikely to work. That is, of course, you can win at times, but there can be no talk of any stable earnings here.
Forex brokers provide margin. The so-called leverage allows you to trade huge amounts with only a couple of hundred dollars on your deposit. This is of course risky, but on the other hand, a trader can always choose lower leverage, thereby reducing his own risks.
African brokers offer decent leverage which attracts more traders to them.
For example, by choosing the size of the trading leverage 1 to 100, a trader has the opportunity to conclude transactions in an amount one hundred times higher than his deposit. Having everything