Forex Trading has become an extremely popular way of earning money. Many people all over the world have started trading and found it very lucrative as well as beneficial. Forex trading is not a brand new activity, yet not every country was involved in this activity from the very beginning. Some of the countries, mostly the second and third world countries have just been introduced to online trading and consequently are new to the industry. Despite being a newbie, many countries are involved very actively and take some serious progressive steps in order to develop the shepherd as much as it is possible.
As mentioned before, some of the third world countries, are actively involved in the industry and thus, have already occupied some major positions in the market. One of those countries is Uganda. Forex trading has become one of the most popular activities in the country during past several years. Despite a little time and relatively little experience compared to some other countries, Uganda forex traders are a very active part of the market and the market keeps evolving rapidly.
Forex Trading brokers in Uganda is though another topic of discussion. There are quite a few brokers available in the local market, yet you have to be careful with choosing the best and the most suitable for you. The regulations of the forex market are of key importance while trading online in any country. Uganda is a new player and has to sophisticate the regulations and stabilize the market still, but is doing a really good job.
Some of the Uganda forex traders are already very successful and earned their fortune with trading online. Successful fired traders from Uganda decided to establish forex trading courses and training. They also founded some schools and take care of the education sector of the country, which is very important for local development. If you want to be the next successful forex trader from Uganda, firs of all, you have to know the market and take into consideration some of the major steps in order to choose the right point to start from.
Overview of the Forex Market in Uganda
Uganda is definitely not one of the leading countries economically wise. It could not reach a stable and sustainable economy yet, however when it comes to the online forex trading in Uganda, things go surprisingly well, and the situation is progressive at a face. This does not mean that the industry exceeds markets like China or Canada, but it still means that it owns the local market. This is especially important in contrast to the fact that the economy in Uganda is quite concerning, while the market is very promising.
As mentioned above, there are quite a few brokers operating in Uganda, though due to the lack of the licensing regulation, there are not as many trustworthy and licensed brokers in Uganda as one would love to have. There are some of the major points to be understood and taken into consideration to understand the whole workflow of the forex market. Trading different pairs in Uganda is very popular and people find salvation in trading online.
Despite the existence of some of the regulations and laws, some controversies around the topic still exist. There is some question on who the licensed forex brokers in Kenya actually are and by whom are they regulated. There are no authorized regulators like CySEC or FCA in Kenya. Though there still is the regulatory authority, which provides licensed for the operating brokers. The regulator is the Central Bank of Uganda. We will define the licensing process and some enclosed points down below the articles. Below, you can see some of the best Forex brokers on the market, which we think will be very helpful for every trader.
Regulations in Forex Market Uganda
Uganda is encouraging Ugandan FX traders to trade online more and to be more actively involved in the online forex trading overall. The way they choose to do so, is the financial support fo the traders. One of the brokerage agencies, which actually was one of the first ones to introduce forex to Uganda, Egen Financial Ltd, made the statement back in 2016, mentioning that they will support traders with total os $40,000. The financial support concerns every trader who have proven their knowledge and experience in trading forex.
According to the statement the maximum bonus one trader could receive is $1,000. This amount is the maximum, while many other traders could also get some kind of support relative to their experience and knowledge fo forex. It was also mentioned, that the agency would then exclude 30% of a win for themselves and leave everything the rest to the specific trader. Egenfx is the first official trading platform in Uganda and is one of the most important actors in supporting bot the local traders as well as forex brokers Uganda.
Regulatory Authorities of the Local FX Market
According to some of the reports, there is no regulatory authority for the forex market. Though as it is obvious that someone definitely takes care of the local industry. In this case, it is the Bank of Uganda. Although the government has had several tries of appointing specific regulatory authority for regulating the forex market in Uganda, so far it seems like an unaccomplished task.
Bank of Uganda has made several comments regarding this news. One of the comments was made by the director of the Bank of Uganda, Stephen Kabyo. According to his statements, the forex industry in the country is not regulated, and moreover there are very few regulated forex brokers in Kenya. If we do not take a look at the market overall, the statement might be very much true, though, on the other side, there are some other facts, which state the opposite.
While the Bank of Uganda is the most official regulator of the local market, it is the Licesning Information Portal, which is responsible for providing the license for the registered forex trading brokers in Uganda. This body is also responsible for revealing the information regarding the brokers and their registration procedures. This is the most reliable and official Forex bureau in Uganda. The application process does not take long, and every single broker can apply for the license. Though not many brokers bother to get the license as there is no other regulatory authority which is going to check the broker and whether it is licensed or not.
License for Forex brokers online in Uganda
As mentioned before there is no specific obligation for owning the licenses in order to offer the brokerage services for the Ugandan forex traders. There is a simple application process for the license. There are certain requirements, which have to be fulfilled in order to receive the license.
Those requirements rea the following:
- the brokerage needs to be owned by the bank, or at least to be its subsidiary
- the brokerage should provide at least 6-month valid bank statement
- the brokerage shall be registered under the Companies Act as a limited liability company
- the brokerage needs to provide the full name and juridical address of the company
- the brokerage shall provide work permits for all non-Ugandan directors and employees
- the brokerage shall prove that its director has never been caught on financial crimes
- the brokerage shall provide a complete business plan
Once the broker has received the license, it will be valid for a year. After a year the license needs to be renewed. Not many brokers do this and thus, there are many brokers who have applied for the license but have not continued the process. This is not for free of course. Once the company applies for the license there is the fee of a maximum of 40,000 Ugx, which is the Ugandan Shilling, a local currency. The application might take the longest 3 months.
The fee is for the purpose of ensuring the transparency of remittance and payment flows in and outside of Uganda. The license is valid only for a year, and thus, the renewable fee also applies to the license, which is an additional 1,000,000 Ugx. All of this makes brokers responsible for their own actions. There is no obligation, though there is a clear way of how to be legitimate and safe for the traders. The best forex brokers in Uganda are the ones with the active license of course. Though, there are some people who still prefer to work with some of the brokers and have better offers.
Overall, the Uganda forex industry is ever developing and is relatively new to the market. The country is trying to regulate the market but leaves the broker on their own responsibility, and does not really do frequent checkups for the licenses and the regulations. You should definitely take everything this into consideration while choosing the right forex broker in Uganda to trade with, though there are some different factors, which you should also consider in order to start the successful forex journey.
Speculations in the Uganda FX market
As mentioned above there is no specific regulation, which regulates the FX market strictly. While there are some of the points to hang on, there is nothing important and special about the common framework, as it simply does not exist. This gives many dishonest brokers the opportunity to proceeds some fo the speculations within the local market. While everything this does not seem to look fine at first, there are some traders who are up for some better options and offers rather than security.
The frauds and scams are not something very uncommon for the local market. Consequently, the number of reliable forex brokers in Uganda is relatively low, though still real. You just need to be attentive and careful while choosing the right broker. Once you get acknowledged to the market and make sure that you are in control of your own money and time, you might easily become one of the future successful Ugandan forex traders.
Account Types and Bonuses
The regulation and the registration is an undoubtfully very important part of choosing the broker, though there are some more points that need to be discussed. One of those topics is the accounts and their types. It is essential to understand the difference between the account types that the broker offers you. The majority of brokers shall offer you at least two different account types. The more options you have the better it is. The accounts usually differ with the leverage rates, the deposit amount, and the withdrawal limits.
While there are some packages for the accounts, like the VIP, Standard, or many more, some of the most important account types are the Demo Account and the No Deposit Bonus Account. Those are two major types, especially for beginners. The Demo Account is the demo version of the real forex account, which enables you to learn trading without even spending your own money. Whenever you complete the registration process for the Demo account, the broker will give you the virtual fund, which you can trade with.
Some of the best forex brokers accepting traders in Uganda offer the Demo account to the beginners. As the industry is new to the country, there are still very few people who have big experience in trading, and thus there are a lot of people who need to learn. With the demo account, all of the tools are present and the market is almost up to date, meaning that the changes in the market have indeed happened. This is a perfect start point. You can switch to the real account whenever you want to, there is no time restriction.
As for the No Deposit Bonus account, it is relatively the same for the beginners. Many beginners prefer to have no deposit bonus account. The fund is no longer virtual but is given by the broker. Usually, the fund provided by the broker is from $30 to $100. You can trade this money, with no requirements. But you have a limited time to trade with the fund. Usually, this period is one month. Once this period expires and you have not won any money, you shall switch to the real money account and make a deposit yourself.
Some of the most successful traders in Uganda have established a sort of funds, and moreover some of the brokers support local traders financially as well. Thus, those traders who have been trading for some time and do not possess any assets to continue trading or to switch to a bigger trades can apply for the funds and assistance from the traders or the brokerage as well. This is not about the account type, but the money transferred from the fund shall be claimed to your account straight.
Interface and Platforms
There are several available platforms for trading forex. The most common ones are the MetaTrade4 and MetaTrade5. The MT5 is the updated version of MT4. It comes with slightly more tools and opportunities to trade with. Those two platforms are the most used and time-tested platforms, which are used y the majority of brokers and traders. Despite the fact that this is one of the most successful platforms to trade forex, it still does not mean that it is the only one.
Some of the online forex brokers in Uganda also offer customized or any other platform for trading. Those platforms are usually modernized and adapted to the specific broker and their needs. Those platforms are also the best choice for the broker with some specific offers. The Interface of the platform also differed a lot. Try to choose the one with a decent design and outlook. It usually defines the hard work of the broker and the whole team.
Payments and Withdrawal
There are different payment methods available while trading online. The most common is still Visa and MasterCard. All of the legit forex brokers in Uganda except the common payment methods. Besides the basic ones, there are some other payment methods, which include wire transfers, which means that traders can transfer money straight from the bank to their account. For this transaction traders need acceptance from the bank as well as from the broker.
There are some other payment methods which include the crypto payment and the e-wallets. The most common e-wallets are the Neteller and Skrill. These wallets are pretty much accessible in every country including Uganda. Thus, traders need to have them already registered before completing the payment methods. The crypto or e-wallet payments seem to be the most secure payment methods.
The withdrawal process offered by the Ugandan forex brokers is pretty simple. All you have to do is apply for the withdrawal and receive your money. the withdrawal process can be instant or it might take several days to be completed. This majorly depends on the payment method you are using.
Commissions and Spreads
The next very important point is the speeds and commissions. There is two way the broker is earning money. This can be through the ratio of the currency pair, or the commissions, which apply to the deposits and withdrawals. We would definitely recommend you to partner with the brokers who make their earnings through the spreads. In this case, when you win money, the broker wins as well. Whenever you lose money, the broker still wins, but relatively less. This happens due to the value ratio the broker puts of the currency pair values.
The commission is another interesting point. Top forex brokers in Uganda almost never address this method for earning money. If there is any commission on the deposit or the withdrawal, this means that there are some more hidden fees, which you definitely should not tolerate. With the hidden fees, you will be charged a lot more than expected and thus, might lose a significant amount from the winnings. The information regarding the commissions should be accessible on the webpage, in the account type section. Another way to check if any fees apply to the transactions is to go through the items and conditions section. There should be information. If there is nothing mentioned, and you still get charged extra for any transaction, address the broker immediately, or better not to trade with that broker at all.
There is a lot of brokers available in the world market. Many Ugandan forex brokers online are operating illegally. As far as there is no database with the legal brokers available, you should double-check the broker’s background yourself. This means that you should investigate the history of the operation of the brokers.
Even if you simply check the About US section, or scroll to the bottom of the page, you should be able to find the information regarding the operation of the broker. History says a lot. Some of the FX brokers in Uganda have only been operating in the market for a couple of months or maybe a year or two. This means that you should not rely on the broker and it is most probably a scam and will only charge you money and never accomplish the promises and services it offered you.
On the other side, if the broker is operating on the market for some time already, and the offers seem real, plus the broker is licensed, then you should definitely sign up for it. The background check is very important, especially when the country does not have any official regulator of the industry. Some of the investigations should be provided by the trader himself or herself.
What to trade with?
Even before you make a choice between a forex trading platform in Uganda and decide to choose the most appealing to you, you should decide what you want to trade with at first. There are a number of different currency pairs and materials you can trade with, for example, precious metals. In this case, you simply need to dig a bit deeper and get acknowledged with the currency pairs and fluctuation of the currency.
The most common and popular currency pair id EUR/USD, yet it is the most fluctuating as well. Meaning that every single change in the market can affect the value fo the pair drastically. On the other hand, there is the local currency Ugx, which some of the forex trading brokers in Uganda can offer. The currency is not traded frequently but is getting more and more popular in Uganda. The perk of choosing the local currency is that despite it has a lower value it is not fluctuating and thus is not affected by the changes in the market significantly.
The best forex trading companies in Uganda
While there is no specific list of the best brokers available in the local market, there is still much available information, which you can use in order to get more acquainted with the market. The best brokers are the ones who make the best offers and who provide the best services. The quality of the platform should be high and the ability to develop as a trader as well as the ability to learn should be provided by the local broker as well.
Despite the nonexistence of the common framework, holding the license is considered to be a big privilege and we would definitely encourage you to choose the Ugandan Fx brokers who hold the license. This guarantees you the answers and assistance in case of the misconceptions and any technical issues.
What To Expect from trading online in Uganda?
The whole article is dedicated to the brokers operating in Uganda and the major points you have to focus on. If you are the beginner and new to the market you should definitely get acquainted with the brokers, their operations, and trading generally. The process is not easy and might take some time, but if you dedicate enough time and energy, you will definitely find your very own successful path.
Forex trading online in Uganda is relatively new, but already very popular. This might be explained in several ways. First, the socio-economic conditions in the country are definitely not the best you will come across. There are not many people who can do for a living, and most of them decided to try trading for a living, which came out pretty successful for some of the traders.
As far as the market is huge and it is hard to navigate through it, many experienced traders established Forex schools, in order to assist future traders and generally people in understanding what is a forex and how it works. Some of the most successful traders have also dedicated a lot of time to the development of the industry.
The number of FX brokers Uganda is increasing and more opportunities are to bee seen on the horizon as well. If you are considering trading online in Uganda, then go through the guideline once again and remember the top highlights of the best broker. Also, check the review provided by the traders. Think twice before choosing a broker, and then, take baby steps in order to achieve the higher levels.