One of the most developed countries on the African continent is South Africa, which has good tech literacy, has a young population.
Especially in the last few years, the citizens of the country, which has been at the top of all countries in the world in forex trading, have shown an interest in online trading and become the focus of many fintech startups.
Forex brokers and cryptocurrency exchanges are among the fintech companies that continue their expansion in South Africa.
Being able to access and trade world stock markets, currencies, commodities, metals, shares and all other CFDs online has increased the adoption of this technology in South Africa.
Opportunities such as protecting themselves against inflation, making use of their money, and storing value make South Africans hungry, as do people around the world.
Forex in South Africa
The South African Rand (ZAR) is one of the most traded currencies in the world. A highly volatile currency, the ZAR became more volatile with the onset of the pandemic in 2020.
Investors started making various investments by turning to forex brokers to protect their wealth. The volatility problem weakening the local currency caused investors to develop an instinct to hedge against political risks.
South Africa has Forex Regulation
The FSCA is the license that non-African brokers must have to market their trading activities to South Africans. Brokers that tailor their services to obtaining this license may serve South African citizens. FCSA regulatory requirements are comparatively less than those of other global regulators.
In this way, foreign forex brokers coming to South Africa, which is subject to the FCSA, can reduce their operating costs. The government’s enactment of AML regulations and the South African Reserve Bank’s allowing of forex trading under regulatory control has opened the door for investors and brokers.
South Africa is also unrivaled across the continent with the Johannesburg Stock Exchange (JSE). Furthermore, South Africa is home to Exness, a forex broker that has been ranked as the biggest forex broker in the world.
While Nigeria has slightly more forex traders, according to tentative data, South Africans have much more client deposits than Nigerians. So, South Africa is a gateway to the rest of Africa for forex brokers. Increasing demand for CDFs, cryptocurrencies, spot forex, index commodities and other trading products will continue to bring more brokers to Africa.
Forex Trading Provides Advantages to Citizens of Developing Countries
Anyone who has an internet connection and a device (pc, smartphone, etc.) that can make transactions can trade at any time during working days. The ability to trade without the need for high technological standards, high entry fees, and complex trading steps has attracted the attention of many people.
Forex trading enables the improvement of the financial inclusion of the population in developing countries. The idea of being able to invest in stocks, currencies, cryptocurrencies, commodities, metals, indices and more on the world’s stock markets will bring more and more people into online trading.
There are many forex and binary brokers in South Africa that offer forex pairs, spreads, leverage, rewards, and events for traders. A few of the best among these brokers are HotForex, Pepperstone, IC Markets, XM, AvaTrade, FXTM, FxPro, Plus500, IG Markets, and Oanda.