The Forex industry is one of the biggest industries in the world. It was established back in the century and is spreading throughout the whole world slowly. Many countries have already adopted the industry to their own interest, while others are still learning and for them, it is still very much brand new. One of those countries is Ghana. The forex industry in Ghana is still very new and thus, not that many people know what to expect from the development of the industry. There are not many people who actually know how forex trading works at all.
Forex industry is a huge industry and there are many major factors that need to be considered while trading. Moreover, one of the main actors in the industry is the brokers. As far as the Ghana market is still very new and not fully customized to the local needs and requirements, there are many brokers present. Though this is not a very positive thing overall, as many of them are operating illegally and scam a lot of locals.
In countries such as Ghana, where the economic and social situation is relatively less stabilized and sustainable it is very hard to customize the new industry and to ingrain it in culture. Though, exactly the poor economic conditions are the reason for many people actively being involved in the industry. The urge to earn some money from trading and simply improve their social situation is very big and often acts as a motivator for many people.
Ghana’s government and authorities are working on the improvement of the economic conditions, though the country has still a lot to go through and moreover, has a lot of changes and challenges to accept. One of them is considered the forex industry, which is another great opportunity for local people to learn something new, and to develop skills which will assist them in making their lives easier and sophistication their living styles.
Forex trading has become quite popular in Ghana and despite the fact that many people are interested in the industry, not many people have the exact knowledge of what the industry offers the costumers. Thus, the authorities and the local brokers are working on the improvement of the education level and raising awareness around the forex trading industry in the country.
Is it legal to trade forex in Ghana?
Forex trading in Ghana is completely legal. Although the common regulatory framework for the industry simply does not exist, still trading online is completely legal. More than that, it is a highly rewarding activity in the country. There is one specification though. No one can actually trade online in Ghana, without having an official representative broker. In order to have the representative, you have to find a reliable and trustworthy source of the brokerage company and start trading with them. The process might be time-consuming, but in the end, it is definitely worth it.
Many African countries do not have any official regulatory authorities responsible for the local forex market, though the same can not be told about Ghana. There is the regulatory authority that is responsible for every action taken within the market, yet the country lacks the common framework and the full regulation of the market. Despite the market needs improvements, the fact that the government actually cares about the development of the field is itself very good news and fact.
There are some other questions remaining regarding the marker. How safe and secure is it, or how transparent is the local FX trading industry in Ghana. The main factor to consider is that besides the fact that the forex industry is very beneficial for the poor populations especially, together with the benefits the taxes come, which is not something the same poor population would love to have. Though, if the market gets more regulated and there will be certain guidelines for the brokers to operate in, the situation can switch to win-win very easily. Both the people and the government should be very happy about the outcome. The fact that the government is trying to develop Forex trading in Ghana is also great for foreign traders, as they are receiving great conditions of the market they can trade on.
Below are some of the best Forex brokers in the country.
Regulations of the FX industry in Ghana
As we have mentioned in the previous paragraph, Ghana has a separate regulator. The official regulator of the forex industry is the SEC of Ghana. SEC is the Securities and Exchange Commission of Ghana. Usually, this is the authority responsible for the control and monitoring of the local industry, and just like in many other countries, in Ghana, the SEC does pretty much the same.
SEC is responsible for checking the Forex brokerage companies, operating locally, and prove the legitimacy of their operations. The responsibility of the SEC also includes the checkup for the transparency of the company. The regulator’s main mission and goal are to make the forex market in Ghana as transparent as possible. That, in turn, is done in order to develop the economy of the country and provide the overall health of financial transactions within it. But that does not mean that it is keeping the Forex market from developing in any way.
Usually, the situation differs in reality, and Ghana is not an exception. The government tries to make the market as transparent as possible, well at least this is what they say, but as we can clearly see from the real picture of the market and according to the experience, the country’s economy can never really drastically develop and improve unless the investors and the regulators go hand in hand together.
Unfortunately, the situation and the government will not let that happen. As a fact, the forex industry generates a lot of money and the brokerage companies are benefiting a lot, yet the governmental structures do not allow reaching certain goals for the companies. Thus, you may often notice how lots of organizations from the list of Forex brokers in Ghana were stimulated and rewarded by SEC Ghana. There are some clear examples of the operation of the brokers in Ghana, which we offer you down below in the article.
In order to see a clear picture of the Ghana forex industry, you have to see and understand the real example of the FX industry in Ghana. This can be done simply via checking the local brokers, their operations and the outcome the brokers have. One of the most successful brokers in Ghana is the GhanaFX, which we can the example on. The condition on trading and the feedback from the costumers is a valid argument to mention the GhanaFX as one of the best forex brokers in Ghana.
You may think that the brokerage firm is the old one, but in reality, it is relatively one fo the youngest brokerage companies in Ghana. The company was established several years ago and has been operating in the market very successfully since then. Gaining trust from the costumers especially in the beginning is not something many brokers can boast with. The brokerage company is licensed by SEC, which is then the highest regulatory authority in Ghana, and guarantees at least local safety and security.
SEC license means that the traders can cam down and be sure that their funds are in god hands and are safe and sound. The regulatory authority does not provide brokers with the license unless they fulfill certain requirements imposed by the regulator. The brokers who have fulfilled the requirements and applied for the license should get it straight away but must expect checkups for the regulator, which is very natural thing and is very good practice in order to maintain the quality of the service or product.
How to choose the right online forex trading broker in Ghana?
There are some major factors to consider while choosing the forex trading broker in Ghana. The broker should be legit first of all, but then should also be offering some handy services, which will make you stay and trade even more.
One of the most important factors is the account types. There is a variety of account types available with brokers. Most of them differ with conditions such as deposits and withdrawal amounts. Moreover, the account types should be chosen according to the trader’s experience. We would not recommend the beginner to choose the VIP package, as usually the deposit amount is way bigger and due to the lack of experience in trading it is relatively harder to trade the big amount of money at once.
The best option is to choose the Demo or NO Deposit Account. Those types of account are designated especially for the new traders, who still need to learn to trade and develop some of the skills. Traders who also need to explore the trading tools and the system the market works. Both of the accounts is very good in this case. Top forex trading brokers in Ghana will definitely offer one or another or even both account types for the costumers.
The demo account is the demo version of trading as you may have guessed. The broker deposits the virtual fund on the trader’s account. The fund then can be traded the way trader chooses. The market is almost up to date, and every tool is available even with the demo accounts. There is no limit put on the demo account trading. Whenever you feel like switching to the real account you are free to do so.
The No Deposit Account is another great option for the beginner, or for the trader who has changed the broker. In this case, the broker deposits a specific amount of money on the trader’s account,w which is usually from $30 to $100 maximum. The money should then be traded with certain conditions. If the trader wins, then it is possible to withdraw the money. yet, even in case of losing there is no refund required. Instead, the trader has to deposit real money on the account and start trading online.
Deposits and Withdrawals
While you have chosen the account type you want to trade with, it is essential to pay attention to some other conditions the broker offers. Those conditions include the minimum deposit amount as well as the withdrawal conditions. Usually, the minimum deposit can be as little as $5. Yet it can be as much as $5000. It is very important that the broker pays equal attention to every trader, irrelevantly whether one has deposited the minimum or the maximum amount of money.
The withdrawal option is another interesting aspect. Sometimes the broker requires a minimum amount of winning in order to be able to withdraw the fund. Sometimes it can happen that you see a solid amount of money that needs to be traded in order to withdraw it afterward. This is worth your attention. The more is the amount of money the harder it is to trade with the broker. The best scenario is when the trader can withdraw money whenever he wants, with no limit on the withdrawal amount.
The payment method is also a very important aspect. The majority of brokers offer different payment methods, which include bank transactions, as well as the most common Visa or MasterCard payments. Make sure to check the available payment methods with the broker before you even start trading. A good broker must always have at least several ways of payment. Some of the brokers even offer the e-wallet payment methods, similar to Skrill and Neteller.
Platforms and Interface
The trading platforms vary according to the broker. The most common platforms for online forex trading are still the MT4 and MT5. The MT5 is the more upgraded version of Mt4, which offers more tools and more opportunities for the traders. The broker might have only one of them or even both.
Some fo the brokers have customized platforms and interfaces. Those ones are also worth considering. Yet, you have to investigate the platforms first and get some information bout the tools they offer. The platforms are different in use, and once you get used to one of the platforms, it takes some time to switch to another one.
MT4 and MT5 platforms are the most common platforms, which are used by the top brokers all over the world. Trading with those platforms is the most common practice and moreover, those two are the most time-tested ones, with the least amount of technical issues coming across during the trading process.
Commissions and Spreads
Don’t forget that you are not the only one learning via trading. The broker earns as well. Yet how the broker earns is another topic of discussion. There are two major options, which are through spreads or through commissions. The best option is when the broker is earning through the spreads. In this case, whenever the trader wins, the broker wins as well. Though, whenever the trader loses the broker still wins a slight portion of the win. How does this happen? Through the pips.
There might be a variance of the pips. The higher pips are better for the wins, yet the lower pips are less vulnerable to the even drastic changes in the market. The information regarding spreads comes in the terms and conditions or with the account type information. Usually, the information regarding spreads is somewhere nearby the leverage. The leverage might be up to 1:5000. and the spreads are usually as low as 2 pips.
The way of earning through commissions, though this is not the best possible option. Commissions mean that the broker has some hidden fees present, which is not something the trader would want to have. With hidden fees, the traders have to pay some extra charges every time while making deposits or withdrawal. The broker might impose certain commissions on the withdrawal, which can be very high. The same can happen on the deposits as well.
Despite the fact that there is the official regulatory authority regulating the forex market in Ghana, it still does not mean that you do not have to check the background of the broker. Experience is crucial. The longer the broker has been present in the market, the more experience the company should have. Consequently, more people have traded with the broker and feedbacks should be available.
We would not recommend pairing up with the brand new brokers, which have been operating locally for a couple of months or a year only. This means that the broker should be a scam or is not reputable. In any case, none of the above mentioned must cross your interest. The information regarding the license and the establishment of the company is available on the front page of the online forex trading site in Ghana. If the information is not accessible, better consider any other broker.
What to expect from forex trading in Ghana?
Forex industry is relatively new Ghana and its citizens, though many people have already started starting and some of them are making decent progress and profits. Forex trading in Ghana is fully legal, and you do not have to worry about legal issues. While it is legal to trade forex, there is a common framework available in Ghana, though there is the official regulatory authority which is SEC.
In order for your trading path to be successful, you have to consider several options. Those are the background of the broker, the account type it offers, the payment method as well as the way of earning. If all of the points are acceptable to you and the broker seems appealing, then proceed t the stage of checking the reviews and the feedbacks of the local traders. This is should be the most relevant information to you and assist you in choosing the right broker for trading.
Due to the fact that the industry is still new to Ghana, people need to be educated and the government, as well as particular brokers, take responsibility for that. There are several schools and training courses available for those people who are interested in trading forex. This gives additional opportunities to get acknowledged with the local market and to make progressive future steps.