Forex Trading in Ghana: A Beginner’s Guide for 2022

Are you looking to begin forex trading in Ghana? In this article, you can explore how to trade forex in Ghana and the top forex brokers in the country.

How to Start Forex Trading in Ghana

If you are looking to start trading forex in Ghana you will have to identify a suitable broker. Choosing a broker will depend on a number of factors and your forex trading requirements.

Factors to consider include:

• deposit methods;
• regulations;
• financial instruments available;
• types of accounts; tools available for trading; and platform fees.

It is important for traders to do their own comprehensive research and choose a forex broker that meets their requirements.

Once you have settled on a forex broker the next step will be to open a trading account. You can opt for a live trading account or a demo account. A live account will allow you to deposit and trade forex using fiat money. Depending on your forex broker the accounts can be further classified into a standard account, an ECN account, or a micro account.

A demo account is for new or inexperienced forex traders that enables users to trade in forex using a dummy balance. This way traders are able to learn the ins and outs of forex trading, without the risk of losing their hard-earned money to market fluctuations.

To begin trading, you will have to fund your account. Nearly every forex broker will have a minimum deposit required before you can commence trading.

Furthermore, you may also have to download the trading platform to start trading. The type of trading platform differs from one broker to another. Some forex brokers will offer desktop MetaTrader 4/5 platforms while others offer customised platforms for mobile and tablets.

Forex Trading Companies in Ghana

AvaTrade

AvaTrade is an international forex broker that offers a variety of instruments including stocks, indices, commodities, cryptos, and forex. You can access over 1,250+ instruments and enjoy high liquidity pools when trading on the platform. According to the site, AvaTrade is home to over 300,000 traders and has a monthly trading volume of €50 billion.

AvaTrade offers a number of manual trading platforms such as MetaTrader 4/5, WebTrader, and AvaTradeGo for Android and iOS smartphones. Moreover, you can also choose from a variety of automated platforms such as ZuluTrade, DupliTrade, AvaSocial app, and more.

The Dublin-based forex broker holds multiple regulations through bodies such as ASIC, CBI, BVI, FSA, FFAJ, and the FSCA in dealing forex.

To start trading on AvaTrade you must sign up for a trading account. Registration will require you to provide your name, email address, phone number, and other KYC details. The next step will be to verify your details for the trading account to be activated.

Features include:

• The minimum deposit is ¢579
• Multiple currency pairs
• Fixed spreads from 1 pips
• Leverage 400:1
• MT4/5 Trading platforms
• Demo account

eToro

eToro is a leading CFD broker that is regulated by strong oversight bodies such as FCA, ASIC, and CySEC. The platform allows you to trade up to 50 forex currency pairs, as well as numerous financial instruments.

To start trading on the platform you have to register for an account. Upon signing up for an account you can access the eToro proprietary trading platform on the web and features its own mobile application. You can deposit a minimum balance of ¢1,158 to commence live trading. The broker offers leverage of up to 1:400 and spreads that start from 3 pips when trading EUR/USD. Furthermore, it charges zero commission on trading.

Features include:

• The minimum deposit is ¢579
• 46+ currency pairs
• Fixed spreads from 3 pips
• Leverage 1:400
• MT4/5 Trading Platforms
• Demo account

HotForex

HotForex is an international forex broker that provides services to both retail and institutional clients. The forex broker is regulated by the likes of the FCSA, FCA, and FSA. You can trade over 50 currency pairs using any of the 12 trading platforms.

To begin trading on HotForex, you must register for a trading account. Select the ‘Open Live Account’ and input your personal details. Proceed to click on the ‘Register’ tab after reviewing the privacy policy and finding the terms acceptable. The next step will be to verify your account and upload KYC documents such as an ID/passport as well as residency documents.

HotForex offers six types of trading accounts that cater to different types of clients. Furthermore, the forex broker does not charge any fees for deposits.

Features include:

• A minimum deposit of $10
• 50+ currency pairs
• Leverage 1:1000
• Flexible spreads from as low as 0 pips
• 12 Trading Platforms
• MPESA payments
• Demo account

FXTM

FXTM is a leading forex broker that is regulated by CySEC, FCA, and FSC. Founded in 2011 the platform offers both ECN and standard accounts as well as an impressive knowledge base. The platform offers a wide range of trading instruments and multiple currency pairs.

To register on the platform you will have to input your personal details. The next step is to click the ‘Send PIN’ option to receive the access code by SMS and email. Enter the PIN in the assigned field and click on ‘Register Now’.

To become a verified FXTM client you have to upload clear copies of a passport, national ID, or driving license. In addition, you will also have to supply proof of address documents such as bank/card statements or utility bills. You can download the MT4/5 platforms on your desktop or any of the custom mobile applications for Android and iOS.

Features include:

• A minimum deposit of $10
• Leverage 1:1000
• Low spreads of 0.3 pips on currencies
• MT4/5 Trading platforms, Android, iOS support
• Demo account

Is Forex Trading Legal in Ghana?

Forex trading has become a popular and alternative investment vehicle for many Ghanian citizens. According to reports, there is an increasing number of Ghanian traders on international forex platforms, trading in portfolios worth millions of US dollars or the equivalent in other foreign countries.

The bulk of the trading is done by individuals with most trades occurring on international platforms since none exist in Ghana.

Presently, there is no regulatory framework or legislation that covers forex trading in Ghana, and therefore, traders can only participate in the foreign markets using forex brokers that are domiciled abroad.

However, the Securities and Exchange Commission (SEC) with consent from the Bank of Ghana, came up with a new initiative that would legalise foreign exchange trading on local platforms in 2021. The new initiative would all enable institutions to be licensed as dedicated forex market traders, and trade in forex using domestic forex platforms.

The SEC predicts the new initiative will ultimately help to strengthen the cedi by keeping the foreign exchange, that traders in Ghana were trading on foreign markets, within the country. Obviously, in comparison with other financial markets, the more the local forex players involved, the higher the liquidity in the market, and the more efficient the pricing, as a result of lower trading margins.

Having said that, the SEC is keen to license enterprises rather than individuals, apparently because the former would result in better regulatory compliance, higher trading volume capacities, and better technical knowledge. Already, major international banks have expressed interest in setting up dedicated forex brokers in Ghana when the framework is established and licenses become available.