ONLINE CURRENCY TRADERS LICENSE

Western Africa and Nigeria’s Unregulated Industry Therefore, forex brokers in Namibia remain largely unregulated. za, a South African forex review website, reports that the Namibia Financial Institutions Supervisory Authority (NAMFISA) has made no effort to compel foreign brokers to obtain local supervision. However, apart from South Africa, Namibia is another South African country with an increasing number of active online forex retail traders.Īlthough Namibia has strict rules that allow currency exchange only through authorized dealers, bureaus and commercial enterprises, it has no clear guidelines with regard to online forex trading. It has been said that the interest in South Africa is because the country has no restrictions on the use of leverage in CFDs and FX trading.

ONLINE CURRENCY TRADERS LICENSE

Additionally, it regulates some of the foreign brokers in Africa.Īs a result, many foreign brokerage firms are seeking to obtain an FCSA license so as to penetrate the African market. The FSCA, formed in 2018, is the successor to the country’s Financial Service Board of 2004 which regulated the country’s forex industry until FSCA’s emergence.Īlthough FCSA’s framework is not yet as strong as those of foreign regulators, it is the oldest and most respected regulator on the continent. The country’s leading position in the continent has been attributed to the strong regulatory framework provided by the Financial Sector Conduct Authority (FSCA). The country boasts of around 190,000 daily FX traders and over 1000 financial entities.Īccording to BusinessTech, a top business news site in South Africa, South Africa’s forex trading volumes including CFDs and spot trading totalled about $2.21 billion per day with a total daily foreign exchange volume of $20.37 billion for all FX instruments in 2019.

Rand is also the 18th most traded currency in the world. The country's currency, the South African Rand, is the most traded currency in Africa. South Africa is Africa’s largest player in the online forex scene. Similar restrictions have been imposed by the UK’s FCA & the Australian Securities and Investments Commission (ASCIC).Ĭreator: Nicole Knox Southern Africa and the FCSA Read this Term and restricting the marketing of CFDs in Europe, citing financial risks to the retail investors. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. The European Securities & Markets Authority (ESMA) in 2018 rolled out regulations limiting the leverage

South Africa, Nigeria, Kenya, Egypt, Tanzania, Namibia and Angola boast the highest numbers of beginner investors who trade forex and contracts for difference (CFDs) alongside cryptocurrencies.

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Read this Term industry is rising gradually across more than 30 million square kilometres in this continent of 54 countries.Īccording to estimates, presently, Africa has about 1.3 million forex traders in total, with Nigeria and South Africa, the continent’s two largest economies, accounting for about 390,000. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi From Egypt in North Africa to South Africa, and from Nigeria in Western Africa to Kenya in Eastern Africa, the online forexįoreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency) for example, the converting of British Pounds into US Dollars, and vice versa.

Online currency traders