The continent of Africa is quickly becoming a major player in the world of forex trading. A huge amount of retail and spot forex trading opportunities exist on the continent due to the large number of different currencies that are available in so many different nations. The foreign exchange market in South Africa is incredibly promising, and the country is leading the way.
The currency market in South Africa is the most well-developed and well-organized in the world. Between 2013 and 2016, the retail FX market in South Africa jumped from $14 billion to $21 billion, furtherafrica.com reports. In addition to the country's geographic location and liberal political beliefs, the South African market has an amazing level of regulation for forex brokers operating inside the country. Forex traders and brokers flock to the nation because of this. Other African nations' financial markets are even less developed.
This regulatory body, known as the Financial Services Conduct Authority (FSCA), has also played a significant part in South Africa's currency market expansion. About 1000 financial institutions are registered with the agency, making it one of the oldest and most renowned regulating authorities.
Forex trading was once unregulated in South Africa. Increased criminal activity and fraud have resulted from this. The regulator decided to adopt tough regulations in order to stop illicit operations. As a result, a new system of licensing was put in place. According to the new license, broker data such as pricing, transaction information, and investors must be sent to FSCA. In an effort to reduce illicit activity and ensure that brokers treat their customers properly, this data is being made available.
There are fewer regulations in the FSCA compared to the rest of the world's regulators. As a result, forex brokers are able to make enormous profits while also reducing operating expenses. For this reason, there are some of the best Forex traders in South Africa, who trade with the South African Forex brokers in order to make more money through the reduced costs. It is also worth noting that a growing number of foreign brokers have entered the market to take advantage of the favorable business climate. These well-regulated forex brokers from South Africa are a fantastic starting point if you're looking for an online forex trading platform. These include South American-based internet brokers and banks.
Choose a broker with a website that can be translated into the language of your choice if you choose to do business in a different language. Additionally, the broker should have a customer support representative proficient in that language.
South Africa has become Africa's leading forex trading and brokering hub. South Africa's strong financial industry, expanding demand for foreign exchange products, and current laws make it a popular market for brokers. In reality, some of the world's most reputable brokers have set up business in South Africa. South Africa is being used as a base for the brokers to extend their activities. There are a number of firms that provide trading accounts in the South African rand (ZAR) as a way of attracting South African traders. In South Africa, the most popular choice is to open a trading account in ZAR.
There are a number of foreign exchange companies that are seeking FSCA registration in South Africa as a route into Africa. Brokers in the area have the ability to provide higher leverage and so possibly earn more money.
As previously stated, South Africa's regulatory system is well-developed and well-structured. Both traders and brokers benefit from South Africa's trading legislation. These rules entice merchants from other African nations to set up shops here. It is because of this lack of regulation that traders in other countries like Nigeria choose to deal with FCA-regulated brokers. Generally speaking, the Africa FX market is gaining momentum. In order to catch up to South Africa, other nations will have to improve their own performance.
Number Of Traders
About 190000 forex traders are active in South Africa, which is close to Nigeria, which has a total of 200000 merchants. The remaining 750 000 dealers in Africa raise the total to 1.3 million traders. Nigeria, on the other hand, seems to have a sizable consumer base. On a monthly basis, South African merchants have an average customer deposit of $742.04, whereas Nigerian traders have an average customer deposit of $514.42. The average monthly deposit made by Kenyan merchants is $363.56.
The daily forex trading volume in South Africa in 2019 was roughly $2.21 billion, including spot and CFDs. According to the Bank of International SettlementsSurvey of foreign exchange and OTC markets, the overall turnover for all fx instruments is $21 billion. In contrast, the daily forex volume in Nigeria was $314 million, while the daily forex volume in Kenya was just $192.66 million.
South Africa has gained a lot of attention from traders and brokers due to these intriguing figures. Brokers, particularly those from Europe, have been flocking to the nation in greater numbers. In addition, local businesses participate in the extremely lucrative market.