In recent months, there has been significant proliferation of affordable, reliable, fast internet across the African continent, resulting in a remarkable increase in the rate of forex trading in most countries.
However, it is not surprising that widespread internet access would result in businesspeople, entrepreneurs, and others finding new ways to grow their wealth online, but Africa has a unique set of factors which have resulted in it outpacing other regions where forex trading adoption is concerned.
Factors involved in Africa’s boost in forex trading adoption
Forex trading has seen an unprecedented spike in numbers across Africa in the last few years, especially since the start of the Covid-19 pandemic, which has been bolstered by fast internet and adopted by younger people who are seeking new, entrepreneurial ways to make a living.
By June 2020, forex trading in Africa had already increased by 477% as result of lockdowns across Africa which forced people to remain home, finding new ways to make a living. Resulting in forex trading becoming a vital way for Africans to beat increasing unemployment rates.
The median age of many Africans is 19, and this dynamic, adaptive demographic has shown increasing interest in Forex trading to help them grow their wealth without having to rely on employment opportunities and growth, which is set to remain sluggish as economies struggle to return to pre-pandemic levels.
Other factors which have led to the widespread adoption of forex trading in Africa include:
- The size of the forex market, low transaction costs, and easy accessibility
- An increase in the number of regulated forex brokers that allow African traders
- The number of trading opportunities and ways of trading
The Forex Market
The forex market is the largest, most liquid, and volatile financial market which sees more than $5 trillion in currencies being traded between millions of market participants daily.
The forex market offers a significant number of trading opportunities to forex traders of all trading levels and presents a range of sessions in which African traders can partake.
There are certain conditions that influence exchange rates of currency pairs traded in forex and traders who learn to speculate on prices and the direction in which they will move, can become extremely profitable.
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Regulated Forex Brokers
There are hundreds of forex brokers in the world offering their services to African traders. However, the rule to remember when choosing a forex broker is to only use a well-regulated broker to facilitate trades.
African traders have a choice between some of the best, reputable, and well-regulated forex brokers in the world that facilitate accounts from most African countries. In using the services of a regulated forex broker, African traders know that their funds are safe and that they can trade in a safe, secure trading environment.
Trading Opportunities and ways to trade
An advantage of the forex market is that traders have access to many forex trading strategies, trading platforms, a choice in currency pairs, and access useful trading tools such as leverage.
All these components make for an immersive, exciting experience in trading forex, and offers African traders with multiple ways to earn great profits says Gayle Web Davies from Forextrading.africa