Forex trading is very popular in Africa, and there are many rich Kenyan forex traders. South Africa is one of the largest markets in the world for Forex brokers, and many other African countries are important markets as well. In this article, we are going to look at what you should think about before choosing a broker. We will also take a look at some of the best brokers for African traders.
Regulators
It is crucial that you register with a forex broker that is regulated by a trusted regulator. The most trusted regulator in Africa is The Financial Sector Conduct Authority (FSCA) in South Africa, but there are a number of other trusted regulators, such as the Kenya Investment Authority (KIA) and The Securities and Exchange Commission of Nigeria.
You should preferably choose to register with a broker that is regulated in your native country. This will offer you the best protection as a trader. If you are unable to find a broker that is regulated in your country, then you should choose a broker that is regulated by a reliable regulator in another African Country. A broker regulated by the FSCA is usually your best choice.
If you are unable to find an FSCA-regulated broker that offers you the features you want, then I recommend that you choose a broker regulated by the Cyprus securities and exchange commission (CySEC). CySEC has a good reputation and is the world’s most popular forex broker regulator. You are very likely to be able to find CySEC brokers that offer the functions you want.
Fees
Always compare the fees charged by different brokers before you select a broker to open an account with. It is important to compare spreads, commissions and fixed fees. Try to find a broker that features the lowest fees possible. Lower fees will make it easier to earn a profit while trading on the forex market.
Demo Account
A demo account, also known as a virtual trading account, is a very powerful tool that allows you to learn how to trade without risking any real money. It also allows you to test new strategies before you deploy them on your live account. You should always choose a broker that provides you with a free unlimited virtual trading account. There is no reason to register with a forex broker that doesn’t offer a free demo account.
Banking
It is crucial to choose a broker that makes it easy to deposit and withdraw money. This is especially true in many African countries where the number of banking options available might be limited. Especially if you live in one of the less developed African nations.
Most FX brokers will offer you a variety of different banking options that you can use to deposit and withdraw money, including VISA, MasterCard, Wire Transfer and different e-wallets. You can also find brokers that allow you to deposit money using cryptocurrency.
Choose a broker that makes it convenient to deposit and withdraw money.
The Top African Forex Brokers in 2023
Below you will find a list of the three best African forex brokers to open an account with if you want to start trading on the forex market in 2023. There are plenty of other good brokers, but these three stand above the rest.
AVATrade
AvaTrade is regulated by the FSCA as well as a number of other regulators. As an African trader, your trades will be regulated by the FSCA. AvaTrade is a very well-established broker that was founded in 2006. They have a long history of offering fair trading and good customer service.
AvaTrade allows you to trade both forex and CFDs. In total, they offer trade in more than 1250 Financial Instruments. They give you access to multiple trading platforms, including the popular MetaTrader4 and MetaTrader5.
They offer customer service in multiple languages. The customer service is open 24h a day.
AvaTrade requires a minimum deposit of $100 and allows you to make trades as small as $.01. They offer you a welcome bonus of 20% up to 10.000$, provided that you live in a country where it is legal to do so.
Pepperstone
Pepperstone is regulated by several different regulators, including CySEC. Unfortunately, none of them are located in Africa. Pepperstone was established in 2010 and did originally focus on Australian traders. They have quickly become a favourite among forex traders.
Pepperstone focuses primarily on CFDs but also allows you to trade with a number of forex products. They allow you to trade instruments based on a large number of securities. Pepperstone gives you access to several trading platforms, including MetaTrader and cTrader.
Support is available by phone and email.
Pepperstone recommends a minimum deposit of USD500. They allow you to make trades as small as 0.01 lots. They do not offer a bonus.
FXCC
FXCC is regulated by CySEC. They are, unfortunately, not regulated within Africa. FXCC does, however welcome African Traders, and CySEC offer good trader-friendly regulation. FXCC was established in 2010. They offer you ECN trading, which is good for traders that do not want to trade against the broker. I always recommend using an ECN forex broker to avoid conflicts of interest. FXCC offer high leverage, up to 1:500 and $0 commissions
FXCC primarily offer CFD trading but is a good option for people who want exposure towards the forex market. They offer CFDs based on a large number of assets, including many currencies. FXCC uses the MetaTrader4 trading platform for all their trades.
Support is available in several languages and can be contacted around the clock.
FXCC has no minimum deposit. You can deposit as little money as you want. The smallest transaction that you can make is 0.01 lots. FXCC offer a large bonus to African traders. 100% Up To $2000. The bonus is only available in countries where it is legal to offer a bonus.
