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What you need to know about Online Forex Trading in Zimbabwe

The Foreign Exchange Market is the largest financial market in the world. Bloomberg, a global leader in financial data and analysis, reported a daily currency trade volume of over $6.6 trillion, back in April 2019. This was a 29% increase in volume compared to April 2016.

The Foreign Exchange Market is the largest financial market in the world. Bloomberg, a global leader in financial data and analysis, reported a daily currency trade volume of over $6.6 trillion, back in April 2019. This was a 29% increase in volume compared to April 2016.

24/5 availability, low capital requirements, high liquidity and zero low-entry costs are one of the few factors that has made retail forex so popular among investors.

With the rise of 3rd-party trading platforms like – MT4 and MT5, many low-cost retail brokers have opened in recent times which resulted in the growth of retail forex trading globally. In Africa too, retail FX trading has grown in the past few years and presently there are estimated to over 1.3 million African forex traders that trade in forex daily.

The trading in forex market is done on currency pairs. Traders can buy, sell or exchange currencies based on the current exchange rate of a currency pair like EUR/USD. FX trading involves a lot of risks and traders have to take risks related to leverage, interest rate, economy and counterparty into account before starting forex trading. Also, there are other risks related to human emotions and insufficient knowledge of the financial instrument & market uncertainty.

We take a look at some of the aspects of retail forex trading, the reasons behind its increasing popularity among African investors and the risks involved.

What is Retail Forex Trading?

 

Retail forex trading is a part of the larger forex market where banks, government and companies transact. Retail forex traders speculate on the exchange rate fluctuations of different currencies. Speculators buy currencies with the aim to sell them off at higher price later on.

 

Speculation can result in gains for the traders but the risks involved are very high. This is because, during the period that an investor holds the currencies they’ve bought, the currencies can fluctuate in value due to various reasons which can be hard to predict for most traders.

 

The forex market trade is done on currency pairs such as – the EUR/USD or Euro/US Dollar pair. Here, the base currency is Euro and the quote currency is US Dollar. Presently, the exchange rate of the EUR/USD pair is around 1.18. This means, in exchange for 1 Euro you can get 1.18 US Dollars. The EUR/USD pair is the most traded currency pair in the world.

Why is it so popular among African investors?

 

Africa has seen an increase in retail forex trading demand over the past few years. Currently, South Africa, Nigeria, Kenya, Tanzania have around 200,000, 190,000, 65,000 and 50,000 forex traders respectively. And Zimbabwe too has reportedly over 45,000 traders in the retail forex market.

One of the main reasons for this impressive growth in the region is the establishment of local forex regulatory bodies in Africa like – Financial Sector Conduct Authority (FSCA of South Africa) and the Capital Markets Authority (CMA of Kenya) which created secure & regulated trading environment for SA & Kenyan traders in which they oversee the conduct of the market participants as well as educate local investors about the risks. The FSCA and the CMA issue brokerage licenses as well as function as financial watchdogs over institutions that provide financial services and products.

Moreover, the startup & regulatory costs imposed by the FSCA and CMA on African brokers are much lower than most other regulatory bodies in EU, UK and Australia. This resulted in many local brokers like CM Trading, BlackStone Futures to open & grow their business in Africa and also encouraged big overseas brokers like FXTM, IG, HotForex, Avatrade, Pepperstone to get forex broker license from FCSA & CMA.

These brokers help build the local ecosystem in Africa for new traders by establishing local IB networks, trader groups, seminars where new investors are educated about forex trading.

Apart from above, African forex investors are attracted to forex market due to its unique nature over the other financial markets. This includes high volume, liquidity, low entry costs, ease of deposit/withdrawal options, 24-hour services and on-the-go trading facilities that can be availed by using just a mobile application or any platform of choice. Further, with the rise of mobile internet, social media and digital communications, more and more young people are coming to know about trading and are turning to online investing.

But, this growth has also caused rise to investment scams in Africa, just as there are genuine brokers who aim to provide safe environment to the investors and build a reputation for themselves, there are also some unregulated entities/persons who want to cheat inexperienced investors with false claims and promises.

Risks of Investing in the Forex Market

 

Most of the risks involved in forex trading arise from trading with insufficient knowledge about the markets.

But, most common risk that new forex investors take is trading with an unregulated broker. Not all unregulated brokers pool money from the public with ill-intent. But, in most cases this is their intent and many new investors fall prey to such persons/entities who make huge promises of returns or never invest their money in the markets. So, it is always wise to choose a regulated forex broker that is licensed by bodies like FSCA, CMA, FCA or ASIC.

In case you run into any disputes with a regulated broker, you always have a dispute resolution body to appeal to for damages and seeking legal aid. But this is not possible in case of unregulated entities. So, it best to avoid them and be safe than sorry!

Apart from above, there are some inherent risks associated with retail forex trading. Such as:

  • Market Volatility and Unexpected Movements

 

The forex market is very volatile in nature. This is because the value of any currency is influenced by various economic, political and natural factors.

Any event, whether of local, national or global significance, can have the potential to crash the markets. This is why investors need to stay highly alert and updated, to be able to make a move in case of any unfavorable development.

For example, in the month of March, almost all currency pairs became volatile and some even dropped upto 35% in value. The cause was the outbreak of novel coronavirus. Developing nation currencies took the worst hit and one of the worst affected ones was the South African Rand – falling by around 32% against the US dollar, in the months of March and April.

 

  • Risks of using High Leverage/Margin Trading

 

Margin based trading allows you to trade with only a fraction of the required capital for an investment. It is expressed as a ratio of the minimum amount of money needed to make the investment against the actual amount of capital required for the investment. Most brokers in Africa offer high leverage with low margin requirements to their clients.

For example, for an investment worth $1000, a leverage of 1:1000 implies that you only need to pay $1 as margin to the broker.

Leverage is a double-edged sword. Higher leverage means higher profits, but only if the trade plays out in your favor. If it doesn’t, you can lose just as much as you stood a chance to gain.

  • Over Trading & Investing more than you are willing to lose

 

Due to the volatile nature of the forex market, any trade can go wrong in seconds. If you invest all your money at once, there is a chance that you might end up losing all of it. This is why one should only invest a fraction of the money from their savings and only invest what they can afford to lose.

Risk Management could help reduce risks of a forex trader where trader can determine his/her risk tolerance and make adjustments to their portfolio based on the same. It can be done through tools provided by brokers like:

  • Negative Balance Protection-

Protects you from incurring losses more than the amount you have deposited.

  • Stop-loss Orders-

Protects you from incurring losses greater than your risk tolerance. A stop-loss order can stop a trade if the losses exceed a pre-defined threshold.

However, even with proper planning and use of risk management tools, investors can still lose a lot of money. This is because the forex is much riskier to invest in than other investments like government bonds or mutual funds. For new investors, it is recommended to start trading in small amounts. This will help you to get accustomed to the market and also determine whether or not it is suitable for you.

Is Forex Trading Legal in Zimbabwe?

There is no clarity on rules relating to Online Forex Trading in Zimbabwe as there is no direct law or directive allowing or banning online forex trading activity.

Foreign exchange transactions are regulated by Reserve Bank of Zimbabwe and exchangers must be regulated by bureau of exchange. And trading is allowed to Regulated Organizations through new forex auction system.

Individual Investors are not allowed to invest online as there are restrictions on online & offline foreign exchange transactions. Yet some investors find their way to do so, which is illegal.

There is no regulation for forex brokers in Zimbabwe making it risky for investors. There is no forex broker that is regulated in Zimbabwe and if anyone claims so, take caution.

If you still want to invest in forex at your own risk, you must do proper due diligence on local Forex laws, online investing restrictions in Zimbabwe and on brokers you want to choose. Most globally reputed forex brokers are regulated under different top tier regulations like FCA, ASIC, FSCA and you must only trade with them.

New forex investors should study, analyze the market and strategize accordingly and before starting off with real money, test their strategy in a demo account. Most reputed brokers provide demo accounts to their clients. Demo accounts can help you familiarize with the effectiveness of your strategy and also help you understand more about the trading platform and tools offered by the broker.

Make sure you understand the laws and regulations in Zimbabwe on online forex trading before you invest any money.

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CMStrader Signals provider, the number 1 signal provider 4 years in a row

CMStrader Signals provider, the number 1 signal provider 4 years in a row.

CMStrader, the number 1 signal provider 4 years in a row, is now offering free signals to new clients!  Reliable trading tools are fundamental part of successful trading.

cmstrader for the Best Trading Signals

cmstrader for the Best Trading Signals

 

CMStrader’s signals success rate is estimated in 91% this should be enough to take a look and decide for yourself. since this is their biggest feature and drives this broker towards success, it is opretty afe to say that they do their utmost to provide you with quality forex signals.

This broker also entered the cryptocurrency market and offers several cryptocurrencies.  in short they act on the market and engage their clients directly.

when you start trading at CMSTrader, you can choose from a extended list of currencies, indices, commodities, gold and oil.

CMStrader Signals for better Trading

CMSTrader sends trading signals to traders’ accounts when there is an opportunity to buy or sell orders at specific points; an overview of the speculated price or loss ratio is included.

CMStrader Signals the number 1 signal provider among brokers

CMStrader Signals the number 1 signal provider among brokers

The signals are sent directly via SMS to a cellphone for major currencies traded on the stock exchange, foreign goods and precious metals.

In addition, signals can be sent to an e-mail address and or traders can be notified directly over the phone.  This service is available 24/5.

Like with Most proper signal services don’t expect 50 signals a day as simply there are not that many. you will get maybe a few good ones a day on which you could and most of the time should act.

Earn profits with CMStrader Signals in the forex market – the biggest trading scene in the world. Enjoy our unique benefits, trading education, minimum margin and best leverage! Start with a demo account and enter the amazing world of forex with CMStrader.

More about CMStrader Signals & Forex Broker

  • Name :CMSTrader
  • Website :cmstrader.com
  • Established :2013
  • Regulation :FSP
  • Country :United Kingdom
  • U.S. Clients Allowed ?  :No

CMSTrader is a leading investment advisor specializing in personal wealth management and growth and is a somewhat a newcomer to the Forex market.

they started in 2013 and since then have won several awards 2 including one for having best customer service in 2013.

CMSTrader “CMStrader Signals” is authorized under the name of CMS Ventures Limited which is a New Zealand Registered Financial Service Provider (FSP).

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Daily Financial News

Supreme Court Sides With Bits of Gold in Bank Dispute

Supreme Court Sides With Bitcoin Broker “Bits of Gold” in Israeli Bank Dispute

Upon appeal, the Israeli Supreme Court has rejected the closure of Bits of Gold’s banking facilities at Leumi bank, Tel Aviv.

The Israeli cryptocurrency brokerage’s appeal followed a previous ruling against it that has now been set aside by the higher court.

As Israel and many other countries struggle with the accelerated phenomenon of virtual currencies, Leumi Bank recently made the news for being a particularly blunt in its rejection of Bitcoin.

We should of course not be surprised with the banks attitude towards bitcoin or any other cryptocurrency for that matter. keep in mind that the banks become more and more obsolete because of them. Bits of gold versus leumi

They will keep on loosing money which now they make with ridiculous commissions of work that is fully automated. so they will try to see how they are able to make the operation and acquiring cryptos  as hard as possible knowing that they will never be able to stop them.

There is widespread anticipation that the upcoming G20 Summit in March 2018 will produce a global, moderate framework for a regulatory approach. Set against that are persistent hostile stances the world over from banks, asset managers and even governments towards cryptocurrencies.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane. 

Apart from the Israeli revenue service opting to tax cryptocurrency assets as “properties” and other more positive developments dating back to mid-2017, Israel remains a strange mix of genteel acceptance alongside wildly opposing voices.

There is thus Hope But no decision

Bits of Gold has fought a David and Goliath battle since their banker decided it wanted to steer clear of all cryptocurrency-related business.

On record as recently telling another bitcoin-related trader that they simply don’t want the business, Leumi Bank’s hard-line stance is accumulating bad press. The second-largest bank in Israel appears as discriminatory when analyzing virtual currency traders and other digital coin businesses.

During 2017, a customer made a bank transfer to the Kraken exchange site for buying bitcoin worth $1000. The bank identified the request, halted it, and started investigating.

The elated CEO of Bits of Gold, Youval Rouach said that “The court’s decision enables us to focus on the growth of the Israeli cryptocurrency community.”

 

The February 26 Supreme Court ruling granted Bits of Gold a temporary injunction against their account closure pending further scrutiny by the bank and other parties. The presiding bench declared that the company had “acted transparently and did not violate any provision of law.”

Calling the bank’s concerns “speculative” and turning an unsympathetic ear to the plaintiff, the ruling does, however, allow for the bank to still close the account on any small technical detail that defies legislation. As a record of a public spat around cryptocurrency’s right to be recognized in many ways, the ruling is seen as a victory for the local cryptocurrency community.

One Small Step Forward

Although not as absolute as nations like China that has opted for draconian bans, Israel is a front line for digital coins’ right not just to exist, but also become assets in the true sense of the word. The Supreme Court noted in its written ruling that Bits of Gold had not made itself guilty of the violation of any standing laws since opening its doors for business.

 

The Bits of Gold v. Leumi Bank case might become something of a test case once the bank applies its mind in scrutinizing the company’s accounts against the backdrop of existing legislation. The outcome will also be informed by sentiment post the G20 Summit due in March as well as other global regulatory trends.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane.

This was First Published by coindesk

 

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easyMarkets launches Ethereum and Ripple.

easyMarkets launches the crypto-markets’ best kept secret – Ethereum and Ripple.

The crypto markets are the new frontier of trading, we have seen unprecedented movement – from astonishing peaks to abrupt crashes – behaviors and easyMarkets launches Ethereum and Ripple.movements no other instrument experiences or has experienced previously.

Bitcoin was immensely popular when we introduced it to our customers in 2017. After closely following the innovative cryptocurrency markets we found two more immensely interesting (but less visible) cryptos to add to our offerings – Ethereum and Ripple.

easyMarkets launches Ethereum and Ripple.

Ethereum is a blockchain based cryptocurrency like Bitcoin, whereas Ripple is a cryptocurrency payment protocol, touted as a solution to perform payments for institutional clients. Although Bitcoin was undeniably the markets’ star in 2017 – these two crypto-counterparts had equally impressive movements.

Ripple towards the end of 2017 had a notable 33014% overall climb with a market cap of $83.6 Billion. This was assisted by Ripple’s collaboration with institutional users like American Express.

Ethereum had climbed an astounding 8,885% from the beginning of 2017 until the end of that year with a respectable market cap of 69.3 billion. Purely as a cryptocurrency it seemed to even outdo its forefather – Bitcoin – by completing transactions quicker and more effectively.

they have also lowered our spreads on Bitcoin!

Of course, all of their cryptocurrencies include easyMarkets great trading conditions:

Trading Conditions

  • There’s  zero slippage on the easyMarkets web platform meaning your Ripple trades will be executed at the price you see on your screen.
  • You can trade Ripple during its most active times, around the clock, five days a week.
  • They got you covered with an in-depth eBook and plenty of other trading education resources.
  • Make sure you have an exit plan in place by taking advantage of our 100% guaranteed Stop Loss and Take Profit.
  • They cover your deposit and withdrawal fees, so that the amount you deposit or withdraw is the amount you receive.
  • Negative Balance Protection means you can never lose more than you invest when you trade Ripple CFDs at easyMarkets.
 easyMarkets launches Ethereum and Ripple.
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