Forex brokers in South Africa are currently being demanded for retail and spot Forex, with an increase in the African continent. The Forex industry has recently been developing, with an expansion of traders and demand among assets, and the demand for a regulated finance sector.
Forex Brokers in South Africa: Why South Africa?
According to a statistical report, there is an estimate of 190 thousand Forex traders in only South Africa. In comparison, Nigeria has about 200 thousand traders; while in contrast, Kenya only has about fifty thousand traders.
However, despite the quantified report, FX brokers in South Africa are paving the way in local retail Forex trading, and global currency swaps in Africa. The main reason that FX brokers in South Africa are so popular is because of the sturdy and well-regulated financial services providers that are in accordance to the local demand from investors.
There is also strong foreign interest in assets and investments in the South African economy and to the South African currency, the South African Rand, which inserts to the strength of FX brokers in South Africa. FX brokers in South Africa have skyrocketed due to the size of their deposits with retail Forex trading platforms at a whopping 742.04USD, which makes SA traders more precious for brokerage firms. After South Africa, Nigeria comes in second. Traders in Nigeria rank with a 514.42USD, and traders in Kenya come in fourth with 363.56USD, according to an analytical report by a consultancy firm of trading behavior known as, CPattern.
South Africa Has Strict Regulations
FX brokers in South Africa have become the top choice for both traders and investors. The reason behind the increased interest is because of the role of the Financial Sector Conduct Authority, better known as the FSCA. The FSCA, which was formerly known as the Financial Service Board, is the financial regulatory agency of South Africa that regulates brokers and provides brokers with licenses that permit them to Forex trading. The FSCA is the most reputable and it is the oldest financial regulator in the African continent, with over one thousand registered financial institutions.
The South African Rand is currently the most traded currency in the African continent, and it is the 18th most traded currency in the world.
According to the Triennial Central Bank Survey of Foreign Exchange and OTC markets by BIS (Bank of International Settlements), South Africa’s FX trading volume, which includes CFDs and spot trading, makes up about $2.21Bn on a daily basis. For all Forex instrument in 2019, South Africa’s FX trading volume sums up to $20.37Bn dollars.