Forex trading in Nigeria and South Africa compared

Africa is gaining popularity in the forex trading market as more and more capital circulation is accumulated in the continent and especially in Nigeria and South Africa.

Those countries are prominent in the forex exchange market as more and more people are becoming involved in it as it gives a good opportunity and environment not only to the traders but also for the brokerage companies to operate as well.

To put it in numbers, South Africa, at the time of writing this article has about 190K forex traders and Nigeria, being also the most populous country in Africa, 200k traders. One of the main values of these two countries in the case of forex trading is the valuable and trustworthy brokerage companies.

Because of its $2.21 billion in daily market volume, South Africa is much more appealing to investors. Nigeria, on the other hand, has a daily amount of about $314 million. The leading places of South Africa and Nigeria are due to the fact that they each have a significant majority of the overall population.

Due to the high birth rate and fewer job opportunities, people in those two countries are worried about their future and income and the opportunities that are naturally given to them by the country are not enough for everyone.

The main reason for the active involvement of the population in forex trading is to earn money with better sources and efficiency.

However, despite the similarities between those two countries in terms of forex trading, there are some differences as well, and the discussion about it will make the decision process easier either for the traders or the brokerage companies.

Regulations

The increased number of investors in Africa is due to the environment that the continent is offering to them. All the regulations are observed by the Financial Sector Conduct Authority (FSCA) that offers a very friendly environment. Their response rate to the problems that might appear is very quick and all the companies are satisfied with their service.

So the first message to the countries that want the industry to be booming the same way as in South Africa is to have the framework of the FX industry as developed as the above-mentioned country.

As we have seen, South Africa is the main country in the whole continent that offers valid and verified brokerage firms, this is why the demand for the best Forex brokers online was massively increased. It is even due to the fact that people from other countries can get help online, even without going out.

Unlike the regulation system in South Africa, we cannot say the same about the Nigerian system as the government is willing to impose the regulation on the forex market.

Due to the fact that the market was highly unregulated, it was creating some problems for not only the brokerage companies but also for the traders.

Mostly, this is why the investors from Nigeria are trying to find the brokerage companies for the assistance that are having the license from the FSCA.

When we are talking about the comparison between South Africa and Nigeria, we should also compare the countries’ profiles. It will not be fair not to talk about the political and economic developments of South Africa compared to Nigeria.

South Africa is providing the traders and investors with not only proper regulation but political and economic environment.

When talking about the political conditions in Nigeria, we can say that it is not stable and people are not aware of the possible development either of the economic and political situations or possible regulations.

Once it created fertile soil for the crypto-industry, the government soon started talking about regulating or restricting the exchange process as it was difficult for them to track the transactions due to the anonymity of the process.

Moreover, living conditions in South Africa are way better than in Nigeria. In living conditions in case of the trading process and forex involvement, we mean access to the advanced software and hardware as well as the internet, and in this case, the Nigerian environment is not ready to satisfy everyone’s requirements, unlike South Africa.

Summing It Up

Finally, to sum up, we can say that the major similarity between those two countries is that the industry is booming in both of them, but some differences. South Africa is providing people with proper, regulated assistance and it ensures convenience and efficiency for not only the traders but the brokerage firms as well.

While talking about Nigeria, the market boom is due to the unfavorable living conditions for the population, and the rule of law in terms of forex trading is not protected. Moreover, Nigeria has more population than South Africa, so the quality of the market in Nigeria is less than in South Africa.