The Growing Market for Online Traders in Africa

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Analyzing recent socio-economic climate in Africa, global broker FBS formulates its view on the conditions shaping Africa as a fast-growing market for online trading.

Recently, Africa experienced a surge in online trading, becoming a new growing market for this type of financial activity. What are the reasons for this? What are the perspectives of traders and brokers in Africa? This article will answer these questions and more. 

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 The rise of online trading in Africa

One of the main reasons for the rising interest in online trading in Africa is rooted in the consequences of the COVID-19 pandemic. Statistically, the WB research says that at least 34% of Africans have lost their jobs due to Covid. For instance, Nigeria’s unemployment figures show a shocking 60%. However, even more people fell victim to the COVID-inflicted problems in the informal part of Africa’s labor market.

About 80% of the region’s workers are informal. These people have no protection against economic hardships. All across urban and rural areas of Nigeria, Uganda, Ethiopia, Malawi, and other countries, people lost their jobs with little to no positive prospects because they were not officially registered or their family business went bankrupt.

Against the backdrop of such a devastating impact on the local economies, more people turned to alternative sources of income. Between 2019 and 2022, the period marked a 15% jump in Internet users from Africa due to people looking for new jobs online.

Internetization as the driving force of online trading

Working online became possible thanks to increased internetization as more people began using computers and mobile devices – smartphones, tablets, laptops, and desktops. As the FBS study shows, around 60% of online traders use only mobile devices, with only 30% combining web and mobile trading.

Speaking of which, online trading is one of the world’s most popular and accessible ways to make extra money. With this in mind, it is only logical that so many African users have entered the market in recent years.

The core advantage of online trading is that it is a remote source of income. A person can trade from anywhere in the world, choosing the time that suits him or her best. It gives a sense of independence and control – something people need the most during times of uncertainty and depression.

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The new market emerges – FBS’s considerations

When COVID-19 hit Africa and left people without jobs, it kickstarted a process that included the ongoing internalization and growing number of users of mobile devices and PCs. These people began looking for new options to improve their financial situation online. Many of them focused on online trading via brokerage companies, like FBS.

According to the FBS study, the number of new traders doubled in the first year of the pandemic compared to the pre-Covid year. The numbers showed that the African region ranked second in user activity and trading volume.

Today, the online trading market continues to grow as more and more people turn to the financial markets as a secondary – or even primary – source of income. Africa is no exception. In fact, many brokers are making the region one of their main focuses today and for the foreseeable future.

Trading platform: a gateway to the market

Online trading has become increasingly easy and accessible with the rise of trading platforms that cater to all levels of traders, from beginners to experienced professionals. These platforms give African users the tools and resources to buy and sell various financial instruments, including stocks, currencies, commodities, and more, all from the comfort of their homes.

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FBS is one of the leading online trading brokers in Africa. Local traders value FBS’s modern-day trading solutions, including an easy-to-use trading platform accessible via the web, desktop, and mobile devices to stay connected to the markets and execute trades on the go. Technical analysis tools, real-time market quotes, and customizable charts allow FBS traders to perform in-depth analysis and make informed trading decisions. Plus, FBS offers free-of-charge educational materials and market analysis.

Regarding the trading process, an FBS trader can access over 550 trading instruments within one single account. This makes for versatile and flexible trading. Competitive conditions, including leverage of up to 1:3000, fast order execution, and a vast choice of fund management options, add to the overall appealing image of FBS as a go-to broker for African market enthusiasts.

The power of knowledge

However, introducing the market to a novice trader is not enough. A respectable broker should also care to educate its clients during the process. Today, things like education and risk management have become the focus of attention for traders and brokers alike as so many people are rushing into the market. Some never make trading work for them due to the lack of knowledge and support from the broker.

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As a global responsible broker, FBS considers it a must to put in a lot of effort to empower traders with the necessary knowledge.

First, any FBS trader can use free educational materials available within the FBS trading software on FBS social media, including Telegram and YouTube. Second, African traders can also attend free online and offline events – webinars and seminars presented by in-house FBS analysts, partners, and guest market experts. Another thing that FBS does to keep traders informed and motivated is running risk-management campaigns, like Control Your Drive and the #TradersKnowBetter series.

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Bottom line

Post-Covid Africa is one of the fastest growing markets for online trading nowadays. The drastic consequences of the coronavirus pandemic left millions unemployed and looking for new ways to earn a living. Due to the favorable turn of events – the internetization and the abundance of online brokers – many African citizens turned to online trading as a source of income. There is no doubt that the trend will continue for years to come, making Africa one of the key markets for online trading.

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Want to gain more information on FBS? Then please read:

FBS’s Perspectives and Insights on Forex Brokers, IB Programs, and Client Support

Innovations in Online Trading: the FBS Thoughts

Future Predictions For The Global Financial Market – What To Expect In 2024

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