The newest European fintech startup, investfox, was launched in late June with the aim of reshaping relationships between investors and investment companies.
This new platform will benefit many traders and investors, especially those in African countries. The reason behind this statement is that capital markets in Africa lag behind most of their counterparts from the rest of the world. With the introduction of investfox, African traders will now have a platform where they will be able to receive much-needed information and insight into the trading market, that is absent in most of Africa.
The financial market in Africa is practically non-functional and unregulated with the exemption of South Africa, Nigeria, and Kenya. Every single African regulatory body is still looking to attain Tier-1 status and in fact, any kind of retail trading regulations are still absent in 96% of African countries. This is despite the fact that retail trading is becoming more and more popular among the African population.
Because of this lack of oversight, most brokers are taking advantage of African traders by offering them unfavorable deals.
High Leverage - With the lack of regulatory oversight, brokers are able to offer African traders unprecedented high leverages. This causes 76% of African traders to lose their positions on the market and go into debt with the brokers.
Investment Scams - Another problem that African traders face is countless investment scams floating around the market. Scams such as pyramid schemes are a common occurrence in the African market. In fact, in 2021 around 10,000 traders from Zimbabwe lost $32 million to these scams.
Unfavorable Investments - Not every investor will benefit from the same investment option. Everyone has different budgets, experience, and market knowledge. But for brokers with no oversight, this is not something that they care too much about, as they only aim to sell as much as possible.
How will investfox solve this problem
investfox brings much-needed transparency into the financial market by offering well-crafted FX broker reviews, comparisons between these brokers, and much-needed educational materials to help traders start their trading journey.
Most of the broker reviews that we find on the net are promotional reviews that don’t show the true face of the broker. investfox offers its users totally unbiased and transparent reviews of brokers, by doing an in-depth analysis of every important factor that decides brokers' credibility and quality and after that gives each broker an appropriate score.
But this is not everything. What’s better advice than from those who are actively trading with these brokers every day? Well, investfox gives its users opportunities to make their voices heard around the trading community by giving them the ability to craft their own reviews of different brokers based on their experience. This feedback can be used to determine whether a specific broker is a good fit for you.
With the influx of new African traders, the market got filled with newcomers who are making common mistakes and are taken advantage of because of their lack of knowledge of financial markets. But be it no more, as these traders are now able to go through investfox educational materials where they will be able to learn everything that they will need to succeed in the financial market. Starting from basic terminology all the way to complex charts and indicators, the investfox educational page has everything needed for success.