Online Forex Trading is very popular in many countries in Africa including – South Africa, Nigeria, Kenya, Tanzania & Egypt. There are some estimates, reports on forex trading numbers & volumes in SA, Nigeria, Kenya which say that there are around 190,000, 200,000 & 70,000 traders in these countries respectively. And average monthly deposits with forex brokers by traders from SA, Nigeria & Kenya stand at approx. $742, $514, $363 respectively, which are among highest in Africa.
With such demand, there is a huge risk for retail forex traders to be scammed by unregulated entities as most African countries have not yet regulated or legalized online forex trading.
There are only 2 major African markets that have legalized, regulated and formalized online forex trading i.e. - South Africa & Kenya under FSCA & CMA respectively; thus encouraging brokers to get license from them.
But there are dozens of unregulated brokers operating in Africa and traders must be vary of trading with such unregulated forex brokers or forex trading platforms.
We have prepared a list of major regulated brokers in Africa licensed under FSCA & CMA jurisdictions, some of these brokers are globally renowned brokers that are also regulated with top-tier regulators like FCA, CySEC, ASIC.
List of Top Regulated Forex Brokers in Africa
Avatrade is a major global forex broker that operates in Europe, Asia, Australia & Africa and accepts clients from all over world with trading volume crossing 70 billion USD per month. Its trading platforms are very popular among African traders. It offers platforms like WebTrader, AvaTradeGo, Avatrade Mobile Platforms, Meta Trader 4 & 5.
It is regulated in major countries and under major regulations like Bank of Ireland, ASIC of Australia, FSA & FFAJ of Japan.
In South Africa, it is registered as AVA CAPITAL MARKETS (PTY) LTD and holds FSCA’s license for derivatives Instruments and Forex Investment under Category I with FSP number 45984 since 10/11/2015. It offers 8 major financial instruments including 55 currency pairs.
South Africans & traders from other African countries can choose the broker and would get regulatory protection.
FXTM is a popular international forex broker that operates across all major markets except for USA, Mauritius, Japan, Canada, Haiti, Suriname, Democratic Republic of Korea, Puerto Rico, Occupied Area of Cyprus.
It is very popular in Nigeria and South Africa. It offers trading platforms like MT4, MT5 and its own proprietary FXTM Trader Mobile App.
It is licensed in South Africa by FSCA with FSP number 46614 to offer Shares, Money market instruments, Bonds, Derivative instruments. It also holds top-tier licenses from FCA of UK & CySEC of Cyprus.
Plus500 is a major online CFD trading platform that is very popular in Europe, Australia and South Africa. They provide their proprietary trading platform for desktop, web & mobile which is very popular among retail FX & Crypto CFD traders.
It offers wide variety of CFDs instruments on Stocks, Indices, Forex, Cryptocurrencies, Options, ETFs, Commodities. You can trade CFDs of major stocks in major countries, metals, oil, 71 currency pairs and major cryptocurrencies.
It is a highly regulated broker with licenses from top-tier regulators FCA, ASIC, CySEC, MAS Singapore and it is also listed on London Stock Exchange as a publicly traded company.
Plus500 is a FSCA Authorized Financial Provider & holds Category I license to offer derivative instruments under its Australian entity PLUS500AU (PTY) LTD with FSP number: 47546 since 07/02/2017.
Hotforex is another major globally regulated broker that operates in Africa. It is very popular among Nigerian & South African forex traders. It offers MT4 & MT5 trading platforms for web, mobile and desktop.
It offers CFD Instruments on 50+ Forex Pairs, Metals, Energies, Indices, Shares, Commodities, Cryptocurrencies, Bonds, Stocks DMA and ETFs.
It is regulated in UK (FCA), Cyprus (CySEC) and South Africa. Its FSP Number is 46632 and is licensed by FSCA since 09/02/2016 under Category I for derivative instruments.
FXPesa is a popular CFD trading platform in Kenya that is operated by the broker EGM Securities Limited. They are the first non-dealing forex broker to be licensed in Kenya in 2018. Its CMA license number is #107. EGM is part of Equiti Group Ltd. which is licensed by FCA, UK.
It offers proprietary platform for web & mobile – FXPesa Trader, FXPesa Mobile and also popular MetaTrader 4.
It offers CFDs on 68 Currency Pairs, Indices, Commodities and Shares of US, UK & EU Companies.
PepperStone is a major internationally licensed forex broker, which is also licensed in Africa under CMA. Its CMA license number is 128 and it has recently applied for FSCA’s ODP license with FSP Number 49497.
It offers platforms on desktop, web & mobile through Metatrader 4, 5 and Ctrader. Pepperstone offers CFDs on Forex, Indices, Commodities and Crytocurrencies.
It is regulated by multi top-tier regulators like FCA, ASIC making it very reputable in the market. It was founded in Australia in 2010 and it is very popular in Australia, South East Asia and South America.
Caution for Forex Traders in Africa
Forex Market is a very risky capital market and leveraged forex trading can lead to huge loses. Forex Trading is also subject to abuse by unregulated and fake entities.
Traders must check regulations & rules in their respective countries - you need to make sure if the local laws allow or prohibit you to trade forex online before you start trading.
Forex Trading is legal in South Africa & Kenya, if done through FSCA or CMA licensed forex brokers respectively.
FCSA issues ODP licenses to forex brokers in South Africa and brokers are issued a unique FSP number that can be checked on the regulator’s website: fsca.co.za. South African Traders must check if the broker holds a license to offer derivatives instruments of Category I under Products Approved and if broker is also listed on ODP Search.
CMA in Kenya issues 3 types of licenses to forex brokers (dealing, non-dealing, money manager) and traders can check CMA regulated brokers here.
CMA & FSCA prohibits customers to trade forex with un-regulated brokers that are not regulated with them.
Some African countries have banned online forex trading; while others like Nigeria & Tanzania don’t strictly prohibit the online forex trading as of now and advise traders to apply caution with a warning.
Nigerian capital market regulator SEC had issued a warning to retail traders in 2018 that forex trading is unregulated and told them to be cautious. According to them, it is subjected to abuse and anyone trading forex is doing so at own risk until the regulation/framework is developed by SEC.
In 2019, Tanzanian Regulator BoT announced that, it was conducting studies to regulate Online Forex Trading with local licensing scheme for brokers but there was no future development/announcement on this. There are restrictions on Forex Transactions sending money abroad which also applies to anyone spending forex online at brokers.
Till now, there is no regulation for online forex trading in most African countries including Nigeria & Tanzania, so investors have no grievance redressal in case of bad practice by a broker.
There are many unlicensed brokers & investment companies operating in these countries as these markets have huge demand for Forex and Cryptocurrencies, making it risky for the traders & new investors and making them prone to being scammed.
For their safety, African traders must only choose an entity that has a good reputation, history in the market and which is also regulated under multiple top-tier jurisdictions in Europe, Australia & Africa.
If there is no regulation in your country, you must check if it is allowed/legal for you to trade forex online, if yes, you must only seek a broker that is regulated with international top-tier regulators like FCA or ASIC or with African regulators like FSCA or CMA and always start with a demo trading account.