In recent years, there has been a substantial rise in the demand for forex trading around the world, more especially in numerous African countries. The majority of forex trading is conducted in both South Africa and Nigeria, with traders otherwise spread across the great expanse of the African continent.
Not only are both investors and traders in Africa increasing, but the number of foreign investors who are taking great interest in Africa are rising as well. This has led to an increase in the strength of African currencies and the economy as a whole, altogether.
The South African rand is one of the most traded currencies in the world, more or less falling within 20th place and African markets offer great opportunities for forex trading on a global front.
These factors, amongst others, means that the future of forex trading in Africa is looking up, and it can go an exceptionally long way if activity continues to increase.
More regulated brokers, more African traders and more forex trading
One of the factors that keeps forex trading in Africa away from reaching its full potential, is the lack of Financial Sector Conduct Authority (FSCA) regulation that brokers have to be able to offer their services to African traders.
With more brokers applying for, and obtaining, FSCA regulation, the more African traders will be able to join the forex market and start trading, allowing for forex trading to gradually increase.
Widespread and improved connection and technology
With more internet connectivity across the African continent, the future of forex trading in Africa is becoming more secured as more African traders join the market.
In addition, with developments in technology that bring forex trading to the palm of the trader’s hands, more people can trade from wherever they are, whenever they can, as they are not bound to a desktop computer.
The cost of trading is also reduced as mobile phones that have the ability of supporting mobile trading apps, are far more cost-effective than desktops and laptops.
Widespread education and community projects
There are more and more expert African traders who are giving back to their communities by setting up organizations, centres, classrooms, and other aides to help more people learn about, and engage, in forex trading.
These traders are giving back to their communities by showing them the path that they themselves had to follow, with the necessary support and material to help them in their forex journey.
Younger people are becoming interested in forex trading and the financial markets, leading them to choose forex trading as a profession. Another factor that is driving the future of forex forward, ensuring that there are more rising forex traders, young and old.
Forex trading is more accessible than trading in other markets
Forex used to be an activity which could only done by institutions and/or individuals who had substantial capital. That has changed greatly through the years and today, traders can start trading with truly little capital and stand a chance to make great profits.
With more traders who can afford to trade, forex trading is set to increase more in the foreseeable future.
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