Forex demand is increasing in Nigeria and South Africa. The industry has developed so much during the years that more and more people are finding themselves to be interested in trading. There is increased interest among investors and brokers also to invest their money in this well-regulated places for trading.
There are around 190k traders in South Africa alone. Nigeria has the almost same amount of traders as South Africa’s – 200k.
The rest of the continent has around 1.3 million traders in Africa. The main reason why the investors are paying attention to South Africa and Nigeria is that they have the most valuable and trustworthy brokerages.
South African forex platforms are the most popular in Africa. They have $742.04 as the size of the deposits. After them comes Nigerian traders with $514.42.
South Africa is far more attractive for people to invest in because their volume in trading is $2.21 billion per day. On the other hand, there is Nigeria with a daily volume of around $314 million. South Africa’s and Nigeria’s leading positions are coming from the fact that they both are having a large percentage of the total population.
Since the South African rand is one of the most traded currencies in Africa and the 18th in the world, there are already better forex brokers in South Africa overall, then in other regions of the continent. It is coming from the fact that South Africa is the biggest financial center in Africa. Their main source of wealth are diamonds, metals, minerals, new technology, and cold. People are considering that with the fast economic growth, sooner or later their high unemployment rate will fall and the region’s quality of life will be better. That is why most of the people who are interested in making their lives better, are trying to educate themselves to that point, that they could do something for themselves and their families. Trading and using this platform for them is one of the smart decisions that they can make.
Africa is getting more attention from investors and other countries in the past years. That is coming from the new opportunities which this continent can offer. Financial Sector Conduct Authority (FSCA) is organizing all the regulations. That is why this place is trading friendly. They respond to all the problems one can have, and because of that, they are very respected among 1k registered financial institutions. So, when South Africa is blooming their trading field, other countries can only set some goals to have the framework for the FX industry as developed as South African’s.
Nigeria has the second biggest financial market in Africa, after South Africa. In terms of retailing the FX trading deposits, they are in a very good place on the trading scene. Sadly, they have not got their own regulations for the trading sector for now. The FX market is unregulated in Nigeria and that is causing some problems among traders and brokers. That is why Nigerian investors are trying to find the brokers who have the licence which is regulated under FCSA. Everyone prefers to ensure their money and be protected.
Brokers are choosing South Africa
The financial sector in South Africa is strong. The best part of it is that this region is still growing and the demand for FX is getting higher. Because of trading friendly regulations, South Africa and Africa’s brokers are choosing to settle in South Africa. They have their main operations happening in there. These brokers are also receiving some benefits from FSCA regulations which lets them market other traders in Nigeria, for example.
Forex trading is very competitive in Africa and the market is experiencing new things all the time. Over the decade, people are enlightened by the Forex’s opportunities. Funny how when it came into the South African market, many thought that they could never be successful and big. They were almost unnoticed and they become the most dynamic industry in the South African market.
South Africa is expected to attract more Forex brokers in time. Partly, because of the fact that there will be soon additional restrictions and rules which will help traders to remain in a secure position.