The African continent, and all 54 of her countries, have been experiencing a surge in forex trading over the past five years, with more African forex traders emerging in a variety of financial markets.
In addition to a rise in forex traders, more trading brokers from prominent countries and regions, including the UK, have swarmed to the African market to set up shop.
In the past few years, the European Securities and Markets Authority (ESMA) has enforced some new restriction laws that limit the maximum leverage that European forex traders could offer their clients, which is one of the reasons why these UK trading companies shifted their focus to large markets in Africa.
The forex market is the largest and most liquid market of them all, with more than $6 trillion being traded daily as participants buy, sell, and exchange currencies. Forex trading is a competitive activity across the globe and Africa is no different, with the forex market has experienced exponential growth over the last decade.
Africa is the second-fastest-growing region where economics and demographics are concerned, with a population of more than 1.2 billion and a gross domestic product (GDP) of more than $2.4 trillion.
With a fast-growing number of young consumers who are looking for more cost-effective ways to purchase goods, grow and protect their savings, these Africans are showing a keen interest in trading in the financial market, creating the perfect clientele for UK brokers who wish to expand their customer base on reviewed platforms such as Oanda Brokerage.
More than 1.8 million traders are residing on the African total, with South Africa and Nigeria leading the way as both these countries constitute a significant percentage of the overall figure, followed by Kenya, Egypt, Angola, Namibia, and Tanzania, but with other countries short on their heels.
There are many forex-friendly countries
While there is a long list of countries that have banned forex trading, there are many in Africa that allow and welcome forex trading, despite there being some minor restrictions from some governments.
Forex can be traded in South Africa, Nigeria, Egypt, Kenya, the Ivory Coast, and several other countries. However, it should be noted that forex trading is not always strictly regulated in all these countries and many illegitimate forex brokers slip through the cracks.
But many large, reputable UK trading brokers have applied for the necessary trading licenses and regulations. This is done through several central banks and the Financial Sector Conduct Authority (FSCA) to offer trading in African countries.
More prospective traders have access to an internet connection
In many African countries, internet service providers have extended their services, offering more people a reliable connection to the internet and this has opened the door for trading brokers to advertise their services.
It has also connected many African traders with a plethora of trading options, a variety of financial markets, and an additional way to secure income in times of economic turmoil and uncertainty.
Africa has the most potential for growth
When considering all the factors that have already been mentioned, it all points towards the fact that Africa offering UK trading brokers the most opportunity to grow and expand, all without having to worry too much about strict regulations, limitations, and restrictions.
If UK trading brokers keep to what the FSCA, central banks, and other regulatory authorities require, they can offer their services in several African countries. This not only provides for a larger customer base, but it offers brokers the ideal field to grow in trading volume, especially considering that many trading brokers offer incentives for large trading volumes and active trading.