The key step in starting currency trading is choosing a partner company — i.e. direct dealing centre, through which the trader plans to carry out their operations. At first glance, the reliability criteria are obvious: the selected Forex broker must be stable, be present in the market for a long time, have a developed network of representative offices, have authority among the professional community — these are intuitively clear factors of a partner’s reliability. Obviously, not every person has such reserves. But a lot of people want to profit from foreign exchange trading.
Alpari Forex Broker in South Africa and Nigeria come to the rescue of those who do not have enough money and knowledge to conduct trading in the Forex market. Together with the strategy of copy trading, any beginner can successfully enter the trading market and receive the advice of professional mentors, repeating all the steps that they will advise.
South Africa — A Step to the Superiority
It should be noted right away that South Africa, although it is the most developed country in Africa, still also has great potential for economic development, because of this it can take a quick step forward in the future. There are some objective reasons for this:
- The South African government is multi-party, it takes interests of various social groups into account;
- The South African government does not impose too strict restrictions on foreign capital movement and exchange (unlike other developing countries).
Everyone knows about the OTC Forex market. The daily trading turnover in this market is about seven trillion dollars. The bulk of operations are carried out by major banks, multinational corporations, investment companies, and large hedge funds. Individual participants in the Forex market account for only about 5% of the turnover. It seems insignificant, but in numerical terms amounts to $250 billion. With the development of online communication technologies, a lot of private traders have grown rapidly. Forex brokers appeared who provided access to currency trading to individuals.
In developed capitalist countries, exchanges have existed for a long time, and the activities of broker and exchange speculators have been considered common for centuries. Therefore, the new foreign exchange market quickly fits into the existing financial system of the world.
In other countries, this process began much later. Moreover, this happened unevenly across countries due to differences in economic development and national characteristics. Quite quickly, the Forex industry started developing in former colonies of European states. Forex is especially popular in Southeast Asia (Vietnam, Malaysia, Indonesia, Singapore), South Africa, Nigeria, Pakistan, and Bangladesh.
China deserves special attention. This huge country is developing rapidly in recent decades. Incomes of the population increased and lots of people are now engaged in trading commodities in the Forex market. In other developing countries in Africa and South America, the number of traders has also grown significantly.
The Dynamics of Forex Market Popularity
Every three years, the monetary and economic department of the Bank for International Settlements publishes statistics on the international market, taking Forex signals into account. A recent study showed that daily turnover in the international Forex market reached $5.09 trillion. In ten years, market volumes have grown by almost 5 trillion and, according to forecasts, it can reach as much as 10 trillion in the future, spreading also near you.
The tendency is positive, and the statistics on the opening of the deposit are impressive. The Forex market has its own dynamics in different countries, such as cultural characteristics, level of financial literacy, the state of the economy, political and regulatory regime.
For example, developing countries are considered one of the most promising markets for brokerage business not without reason. Interest in speculative rates here is steadily growing, which is clearly seen in South Africa and Thailand, where the popularity of forex in the retail segment has almost doubled since 2012.
Argentina is a sad exception in this regard. After the global financial crisis, Argentines lost interest in currency trading, also due to the fall of stocks, economic problems and a decline in living standards.