The forex market is likely one of the most common way to trade and make money.
In fact, about 55% of African adults invest and trade their money in speculative instruments (CFDs)
Trading forex is increasing rapidly in Africa specifically East Africa including Tanzania, despite the fact that different countries have not set regulations to forex trading firms.
As a general rule before investing in forex do checkout the broker to use if is regulated in your country. However, due to restrictions on local areas to regulate brokers specifically Tanzania citizen have to seek for international regulated broker to speculate in the forex market.
I have clearly highlighted the best brokers you can pick and start your forex trading journey including Exness as my favorite.
Who is a Forex Broker?
A forex broker is a financial service firm or a company which gives a trader liquidation and access to a platform for buying and selling foreign currencies.
The clients of a broker include retail traders, large investors and investment banks who use their trading platforms
How do Forex Brokers Make Money?
Forex brokers make money through the bid-ask spread of a currency pair and commissions.
Take an example on Eur/Usd, Dollar pair is priced as 1.20010 bid and 1.20022 ask price, the spread between these prices is 0.00012 which is 1.2 pips . Now if a trader places a position at the ask price and closes it at the bid price, the forex broker will collect that 1.2 spread as the his payment.
Your broker contribute 15% your success in forex trading, this is the reason you need a reputable online broker.
In forex trading as a contract for difference (CFD) a trader, speculator or investor need to have a specific needs related to which platform, trading tools, deposits and withdraws methods that you are broke should have.
What are types of Forex brokers?
There are three main categories of forex brokers which each type has a different way of handling transactions and executing of orders. Popular examples of the three different types of forex brokers are;
- Dealing Desk or Market Makers
- Non- Dealing Desk
- Electronic Communications Network
Pro Tip: When choosing a forex broker make sure you understand your trading style and the actual trading methodology that your will be using. This guide will save you when adopting trading platforms, some brokers are not favorite for scalpers simply because of the spread of execution speed.
Before using a certain broker in the forex market use the following criteria to choose regulated one
Things to put into consideration when choosing a broker
- Regulation of the broker
- Modes of withdrawal and Deposits
- Commissions
- Spread
- Leverage
- Customer services
In this blog post I listed foreign brokers that accept clients from Tanzania, same applies they carry a regulatory identification from Financial Conduct Authority (FCA).
BEST FOREX TRADING BROKERS
- Exness : The Best Forex brokers to all types of traders
- FxPro : Best Brokers for advanced traders
- Templerfx : Best broker for beginners and getting experience
- Justforex : Best broker for low cost and beginner traders
Exness is the best forex broker to all types of traders
Account Minimum deposits: Depends with the selected account type but you can start with minimum of $10
Fees: No Spread costs unless you choose Pro accounts with commissions
Best for: Beginners, Advanced and Pro Traders
Means of Deposits: Fast Mobile Deposits/Withdraws, Skrills & PayPall, Wire Transfer and Bank transfer
Signup here and Open an account.
FxPro: Best Broker for advanced traders
Account Minimum deposits: $100 for initial account deposits
Fees: Spread costs and swap for overnight financing costs
Best for : Advanced traders
Modes of Deposits and Withdraws: Bank deposits, wire transfer, Skrills and PayPal
Trading software: MetaTrader4, MetaTrader5, cTrader, FxPro Edge
Signup here and open an account
FxPro has been operating since 2006. For 15 active years, it confidently became one of the world’s leading Forex and CFD broker. An impressive list of more than 90 international awards is constantly being updated, and the number of loyal customers is increasing on a daily basis.
Pros
- Medium forex spreads
- Regulated by FCA, FSCA/ CYSEC and SCB,
- The company offers a range of assets including CFDs and Spread Betting on FX
- futures, spot indices, shares, spot metals, spot energies and cryptocurrencies.
- Offers a big range of trading platforms
Cons
- Does not accept clients from USA, Iran, Burundi, Canada, North Korea, Zimbabwe, Cuba, Sudan, Syria, Iraq, Yemen, Congo, Liberia, Libya, Somalia, Puerto Rico,
- Does not offer M-Pesa or other mobile methods as modes of withdrawals and deposits
Pepperstone: Best broker for trading experience
Account Minimum deposits: $100 for initial account deposits
Fees: Spread costs and swap for overnight financing costs
Best for : Trading Experience with tight spreads
Modes of Deposits and Withdraws: Bank deposits, wire transfer, Skrills and PayPal
Pros
- Low forex spreads.
- Regulated by FCA ( U.K).
- Offers protection for East Africa based clients under legal authorities based in Kenya.
- Offers a big range of trading platforms
Cons
- Does not accept U.S clients.
- Does not offer M-Pesa or other mobile methods as modes of withdrawals and deposits
Tickmill: Best forex broker for Intermediate traders
Account Minimum deposits: $10 for initial account deposits
Fees:Commissions, Spread costs and swap for overnight financing costs
Best for : Trading Experience with reasonable spreads
Modes of Deposits and Withdraws: Bank deposits, wire transfer, Skrills and PayPal, M-pesa and other Mobile transfers
Pros
- Tickmill is an award-winning global ECN broker, authorized and regulated in the UK.
- Reasonable forex spreads.
- Regulated by UK Financial Conduct Authority and the FSA of Seychelles.
- Offers a big range of trading platforms.
Cons
- Commissions on trades
ARE YOU NEW TO FOREX TRADING?
You need a broker with a lot of great educational material about forex and great customer support.
I use FxPro to trade forex instruments. Legitimate brokers with a bunch of trading instruments
Conclusion
Stop making excuses that you’re not stable to start executing today. The best investment I did when I started trading was in to educate myself.
I started my trading journey 2017, and I felt like it was late.
I wish I had started even earlier.
Get started today.