Africa-Press – Ghana. The concept of forex trading is steadily finding its way into the African continent. While other types of trading have been prominent in Africa, forex trading has been on the rise recently. While Africa’s youth make up the majority of forex traders, more and more investors in Ghana from all demographics are beginning to take an interest in forex trading.
What is forex trading?
Forex is short for foreign exchange and describes the type of trading where one currency is converted into another. Within forex trading, there are forex pairs, which are pairs of two currencies. This can be combinations such as the US dollar against the euro, which is one of the most popular ones. When trading, you buy one asset of a currency, just like other transactions.
Every day, there are forex transactions of 75 trillion Ghanaian Cedi. Many choose to go into forex trading because they have instant access to the market, which means savvy traders can potentially capitalise on opportunities when they arise.
Few barriers to entry
The reason why forex trading has become attractive in Africa is partially because of how easy it is to get access. African countries have long been barred from access to foreign markets. But now, African traders have equal access to the market.
Forex trading can also be accessed from smartphones instead of computers, which makes it easy to trade from anywhere. And seeing as more countries have more mobile phone ownership like Gabon and Morocco, where the number is almost 100 per cent, and 99 per cent here in Ghana, this is a contributing factor in getting more traders.
A form of passive income
Beyond easy smartphone access, the global forex trading market is also easier to access than others because of the low barrier of entry. Forex trading requires a smaller minimum deposit, and therefore, brokers won’t have to have spend years trading in order to venture into forex. With forex trading, Ghanaians can make well-informed trades that could potentially result in good return on investment (ROI), which can be a relief during a time when some are still getting back from the financial losses from the pandemic.
African countries already embracing forex trading
Because of the previously mentioned factors like smartphone ownership and stable internet connections, many Africans have already jumped on the forex trading train. As of now, South Africa is the biggest trader, as Rand is the most traded currency on the continent and one of the most actively traded currencies in the world. This is partially due to regulations from the Financial Sector Conduct Authority. Nigeria comes in on a 2nd place, where there are more forex traders, but the trading volume is lower.
The future of Ghana
Because of trading schools like the Oak Forex Academy, forex trading is very much on the rise in Ghana. Within eight weeks, students can learn how to trade forex while also learning strategies and emotional control. Right now, there are no regulations regarding retail forex trading in Ghana. Therefore, traders operate at their own risk. In the future, it will be interesting to see whether there will be regulations, as seen in South Africa.
For More News And Analysis About Ghana Follow Africa-Press
