Today, more than ever, Africans are taking a deeper interest in income-generating activities like forex trading. While advancement and increased technological access have made this possible, drastic financial literacy has also contributed immensely.
Millions of Africans are trading forex, and here are some convincing reasons why.
1. Increasing Financial Literacy
Gone are the days when Africa was associated with high illiteracy. Although a small percentage of this issue persists, many Africans can read and write. Moreover, a considerable chunk of the population is financially literate.
The rise in financial literacy can be attributed to several factors, including increased access to information. Many Africans own digital devices and have access to the internet, which are indispensable in forex trading.
2. Widespread Internet Use
Presently, the African continent has over half a billion internet users. Several factors have made that possible. These include affordable mobile technology and improved infrastructure.
Affordable smartphones and other digital gadgets have made Africa the fastest-growing market. Since pocket-friendly devices are available, people in droves are buying them. Moreover, telecommunication companies invest heavily in excellent infrastructure, encouraging widespread internet use.
Increasing internet use allows more Africans to discover forex trading and educate themselves before entering the industry. It allows interested individuals to join reputable trading platforms and execute trades.
3. Low Entry Threshold
Admittedly, poverty is a menace in Africa. By 2021 around 490 million people lived below the $190-a-day poverty line. This issue can be linked to various sources, including dwindling natural resources, corrupt governments, and natural disasters.
Despite Africa having many poor people, forex trading is still widespread. That is because some trading platforms allow people to join and start executing trades with as little as 1 US dollar. That makes it easier for many Africans with little income.
Moreover, there’s been a considerable spike in middle-class Africans, thanks to economic growth in some countries, improved education, and urbanization. And as more of the continent’s residents join the middle class, they become more aware of financial investments like forex trading and are better positioned to invest.
4. Convenient Schedule
The worldwide forex market is open 24 hours a day, from Monday to Friday. Many Africans have discovered this amazing feature and are exploiting it to the maximum. For instance, some trade throughout the day, while nine-to-fivers do it in the evening after leaving formal employment.
Forex’s operating hours encourage more Africans to exploit positions without compromising their lifestyles. Also, the different trading sessions, including Tokyo, London, New York, and Sidney, make trading more convenient by letting traders choose time zones that suit their needs and preferences.
Besides conventional options like mining, Africans in droves participate in other rewarding activities like forex trading. Thanks to aspects like better internet connectivity and increased financial literacy.
If you believe you have what it takes to trade forex, join the industry. But ensure you are knowledgeable and have access to a good broker and trading platform.
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