Why UK Forex brokers are rushing to the African market

Forex – or Foreign Exchange – trading on the African continent has been on the rise over the past five years.

By The Newsroom
Friday, 22nd April 2022, 12:30 pm
Many UK trading companies have turned their focus to huge markets in Africa
Many UK trading companies have turned their focus to huge markets in Africa

There is an increasing number of African Forex traders entering various financial markets, here experts Forex Brokers explain why.

An increase in Forex traders has been accompanied by an increase in the number of trading brokers operating out of well-known countries and areas, such as Britain.

There are various reasons why well-known worldwide Forex brokers like Exness, as well as UK brokers in particular, are racing to Africa's shores, and we investigate these factors in this article.

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Forex trading on the African continent has been on the rise

1.Numerous opportunities for growth

The continent of Africa provides the largest room for expansion and growth for UK-based trading firms, thanks to the lack of rules, limitations, and restrictions.

The FSCA, central banks, and other regulatory authorities in various African nations allow UK trading brokers to offer their services in the African countries in which they operate.

As a result, brokers have a broader customer base and a better chance of increasing trading volume, especially since many trading brokers reward large volumes and active trading with incentives.

Over $6 trillion worth of currencies are traded every day in the FX market

2.Greater regulatory restrictions in the UK

Many UK trading companies have turned their focus to huge markets in Africa as a result of the European Securities and Markets Authority (ESMA) enacting new restrictions on the maximum leverage that European FX dealers can give their clients.

3.Increasing internet access throughout Africa

Internet service providers in many African countries have expanded their offerings, making it easier for trading brokers to advertise their services online.

Numerous African traders now have access to an array of trading alternatives, financial markets, as well as another source of income during periods of economic upheaval and uncertainty.

4.Wide variety of countries that are open to Forex trading

There are numerous countries in Africa that allow and even encourage forex trading, despite the fact that some governments have imposed some small limitations.

Several countries, including Nigeria, Egypt, Kenya, and the Ivory Coast, allow forex trading. Foreign exchange trading may not be strictly regulated in all these nations, which means that many unauthorized forex brokers can operate undetected.

However, a substantial number of well-known UK trading firms have already applied for the appropriate permits and guidelines.

In order to facilitate trading in African countries, numerous central banks and the Financial Sector Conduct Authority (FSCA) are involved in ensuring that the financial markets and the trading environments in these countries remain transparent and secure.

5.A diverse market base

Over $6 trillion worth of currencies are traded every day in the FX market, which is the largest and most liquid market of all. The forex market has grown at an exponential rate over the previous decade, making it a competitive industry around the world. Africa is no exception.

With a population of more than 1.2 billion people and a GDP of more than $2.4 trillion, Africa is the second-fastest-growing region in terms of economics and demographics.

More than 1.8 million African traders reside in South Africa and Nigeria, with Kenya, Egypt, Angola, Namibia, and Tanzania a close second and third, respectively, but with other nations lagging behind them.

These young Africans, who are looking for more cost-effective ways to buy goods, build and preserve their funds, are an ideal target market for UK brokers who are trying to extend their customer base in the financial industry.

Forex trading presents many potential benefits for young Africans who wish to grow their income and find career-building opportunities in Forex trading online.

The proliferation of UK Forex brokers throughout the African market gives these traders access to excellent trading platforms with advanced technology and support, while allowing the brokers to expand their customer base.