Overview of Forex Trading in Zambia
The Forex Market is the largest and most accessible markets of them all, and it experiences substantially high volumes on a daily basis with transaction to the value of more than $5 trillion being executed within a 24 hour time period.
There has been an influx in traders taking to the Forex Market for various reasons, one being the attempt to secure an alternative income due to economic duress as result of the Covid-19 pandemic.
There has been an influx in Forex trading especially in various African countries recently, due to more brokers welcoming traders from numerous African countries, providing them with an opportunity to partake in the largest financial market in the world.
Beginner Zambian traders will need to ensure that they gain sufficient Forex trading knowledge by making use of various guidelines and tutorials before they attempt to start trading to avoid substantial loss of capital due to novice errors.
Various brokers offer educational tools and resources that aid beginners in starting their Forex trading journey, and in addition, they offer the use of demo accounts which act as practice accounts.
These demo accounts offer beginner Zambian traders with the opportunity to build up their trading skill and experience with the added advantage that it is a risk-free trading environment that mirrors that of a live trading environment.
There are numerous brokers that accept Zambian traders, and when comparing between them, it will depend on the Zambian trader’s trading needs and objectives in deciding which broker is better suited.
Before registering a live account with a Forex broker, it is imperative for Zambian traders to verify the exchange rate along with the deposit, withdrawal and account base currencies supported.
All currency conversions performed in this article have been done between the US Dollar and the Zambian kwacha at the current exchange rate on the day and at the time that this article was written.
Best Forex Brokers recommended for Zambian traders
ThinkMarkets is an Australian-based ECN and STP broker with regulation through ASIC, and FCA. As a well-regulated, global online broker, ThinkMarkets facilitates the trade of Forex, commodities, cryptocurrency, stocks, and many more financial instruments.
Should Zambian traders wish to make use of this broker, there is a minimum deposit of 4, 540.06 ZMW which allows traders access to leverage of 1:500, variable and tight spreads, and relatively low and competitive commissions on trades.
ThinkMarkets supports the use of MetaTrader 4 and Trade Inceptor and supports a variety of payment methods through which deposits and withdrawals can be made.
eToro is a Cyprus-based broker with multiple regulations through ASIC, FCA, and CySEC in providing online trading facilitation of multiple financial instruments including Forex, commodities, cryptocurrency, indices, and several others.
In opening an account with eToro, Zambian traders will be expected to deposit a minimum of 3,632.05 ZMW when opening an account, providing them with tight and variable spreads, leverage up to 1:400, and commission free trading.
eToro provides its own proprietary platform through which trades can be executed along with an array of payment methods which are supported for deposits and withdrawals.
3. Trading 212
Trading 212 is a STP broker headquartered in Bulgaria and the U.K with regulation through both the FCA and FSC, respectively. Trading 212 facilitates the trade of Forex, commodities, cryptocurrency, stocks, shares, and many other financial instruments.
Zambian traders who open an account with this broker will be liable to pay a minimum deposit from as little as 18.16 ZMW which provides them access to leverage up to 1:300, variable spreads, and commission free trading.
Trading 212 provides its own proprietary trading platform through which trades can be executed either on web or mobile devices and Zambian traders can make use of an array of payment methods when making deposits or withdrawing funds.
Pepperstone is an Australian-based ECN and STP broker which is authorized and regulated by ASIC, FCA, and DFSA in facilitating trading of Forex, commodities, cryptocurrency, stocks, shares, and numerous other financial instruments.
When opening an account, Zambian traders can expect minimum deposit requirements of 3,632.05 ZMW, leverage of up to 1:500, variable and tight spreads, and ultra-low commissions charged on trades.
Zambian traders can make use of either MetaTrader 4, MetaTrader 5, or cTrader through which trades can be executed and various payment methods which are supported through which deposits and withdrawals can be made.
FXPrimus is a Cyprus-based ECN and STP online broker which is regulated by CySEC, FSCA, and VFSC, and facilitates the trading of Forex, commodities, cryptocurrency, stocks, shares, metals, CFDs, and other financial instruments.
The minimum deposit required when opening an account with FXPrimus is 1,816.03 ZMW and Zambian traders can expect leverage up to 1:1000, variable spreads and low commissions which are charged on trades.
When trading, Zambian traders can make use of MetaTrader 4 either on desktop PC, web browsers, or mobile devices. FXPrimus supports the use of various payment methods through which deposits and withdrawals can be made.
HYCM is an ECN and STP online broker with offices in the U.K, Cyprus, UAE, and the Cayman Island with respective regulation through CIMA, CySEC, DFSA, and the FCA. HYCM facilitates the trade in Forex, commodities, stocks, and more.
When opening an account with HYCM, Zambian traders can expect a minimum deposit requirement of 1,816.03 ZMW, leverage of up to 1:200, fixed and variable spreads and relatively low commission charges on trades.
Zambian traders have a choice between using either MetaTrader 4 or Metatrader 5 when trading. HYCM supports a variety of payment methods through which deposits and withdrawals can be made.
Forex.com is based in the United States, U.K, and Japan with multi-regulation and authorization through ASIC, CFTC, FCA, FSA, IIROC, JFSA, and NFA in facilitating the online trading of Forex, commodities, stocks, indices, CFDs, and numerous other instruments.
Should Zambian traders open an account with Forex.com, there is a required minimum deposit of 908.01 ZMW which provides traders with access to leverage of 1:50, variable spreads and average commission charges.
Forex.com supports the use of MetaTrader 4 but also offers its own proprietary trading platform as well and deposits and withdrawals can only be done through Bank Wire Transfer or Credit/Debit Cards.
NordFX is a STP, ECN, and NDD online broker based in Vanuatu and Cyprus with respective regulation and authorization through VFSC and CySEC in providing trading facilities for Forex, commodities, cryptocurrency, stocks, and other financial instruments.
The minimum deposit required when opening an account is 181.60 ZMW and NordFX offers leverage of up to 1:1000, fixed and variable spreads, and extraordinarily low commissions charged on trades.
Zambians can trade by making use of MetaTrader 4 which can be used either on desktop PCs, web browsers or mobile devices. NordFX supports an array of payment methods which can be used to make deposits as well as withdrawals.
With more brokers accommodating traders from African countries, including Zambia, Zambian traders have more access to an array of options where brokers are concerned.
When choosing a broker, Zambians will need a clear understanding of their trading and financial objectives along with their trading needs and what they expect from their broker.
Zambian traders can make use of demo accounts provided by these brokers to gain a more in-depth view of the brokers’ trading conditions in a risk-free environment by using virtual funds instead of the trader’s own capital.