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The Benefits of Online Forex Trading in Africa
With financial markets becoming accessible to more and more people, Forex Trading Opportunities have grown exponentially over the past two decades. Online Foreign Exchange Trading, commonly known as FX Trading, refers to the practice of buying and selling currency values with the aim of making a profit. Being a global market, FX Trading is conducted all over the world, with New York, London, Tokyo, and Hong Kong serving as the major financial hubs with the largest markets. Having previously been a preserve mainly of large financial institutions such as banks, multi-national corporations, and the wealthy few, Online FX Trading has become increasingly popular with many who have internet access and a fair knowledge of the basics of FX Trading, owing to its relatively easy entry requirements and suitability for beginners. Although retail online forex trading has for a long time been considered a secondary source of income, many who have treated it as a primary source of income, have gained financial freedom by participating in it, given that a 9 to 5 job alone, most often than not, does not offer us the financial stability and freedom we desire. Although a 9 to 5 may offer you some job security, that doesn’t seem to be holding much ground in this post-pandemic economic situation we’re faced with now. In this article, we discuss the benefits of trading forex in Africa, both for individuals and for their respective countries as a whole. 1. A LARGE AND GLOBAL MARKET TRADEABLE 24-HOURS-A-DAY The sheer size and scale of the online Forex market sits at the top of the list when it comes to the benefits of online trading. As the world’s largest financial market, about $6 trillion on average, is exchanged daily. At ALL hours of the day, traders in every part of the world, are buying and selling currency pairs, making forex a truly global marketplace, with a very wide scope of profitability. In our very first article, How to Make Money from Forex in Ghana, we indicated the fact that, unlike other financial or capital markets, the forex market does not need a physical location to operate from, but rather, operates via an electronic network of corporations, banks, and individuals engaged in trading one currency for another. This makes it possible and convenient for forex markets to operate 24 hours a day, 5 days a week, across different time zones and financial centers. What makes this possible is the overlap in trading times of major sessions. Where most stock exchanges are open from 9am-4pm (depending on the country from where it operates), the FX Market operates continuously from the start of the week on Monday morning in New Zealand, till Friday afternoon New York time when it closes. Since it operates this way, the online FX market is not subject to any centralized exchange system; As long as there’s a market open somewhere in the world, you can trade. This is great news for those who want to start off trading on a part-time basis. 2. FLEXIBILITY AND WIDE RANGE OF CURRENCY PAIRS The very first point serves as an excellent springboard for another benefit of trading forex in Africa, which is the ability to participate in trading activities from anywhere on the globe. As already stated above, with market sessions, one is not limited to traditional office hours. Thanks to technological advancements, you don’t need to be tied to a desk, staring at six screens of charts to gain a decent handle on the market. With the additional element of a wide range of currency pairs to trade in, there is the flexibility to trade in your chosen currency pair at your own preferred time. Due to the flexibility Forex trading offers, a lot more people with regular jobs are choosing online day trading as an additional source of income. If you trade online full-time, you get to set your own hours and be your own boss. You can work from the comfort of your home, making profitable trades, while giving you leverage to spend time with your family and loved ones. Given this opportunity, you’re able to make time for other priorities, which a regular job may not fully allow you to. You can work even when you’re on a trip to some Island; all you need is a smart device with a good internet connection. That is the beauty of forex trading – the ability to make money while on the move, anywhere, anytime. 3. ACCESSIBLE AND BEGINNER FRIENDLY Yes, you read right. The Online Forex market can be beginner friendly if you make the commitment to acquiring the knowledge and equipping yourself with the required tools. First-Time traders who can only afford to make smaller investments can easily enter the forex market. Trading with the Best Forex Broker grants you access to real-time market pricing, news, price charts, tools, and strategies. As mentioned earlier, accessibility is one of the biggest advantages of forex trading; Compared to other capital markets, it does not require a large initial investment, making it easy to enter, and accounting for its popularity among beginner and even hobbyist traders. As a beginner, a good forex broker offers you a range of educational sources and Demo Accounts allowing you to practice and hone your skills on the market without the risk of losing real money. Demo Accounts essentially offer you a “Try-Before-Purchase” test run. They give you the opportunity to get used to a trading platform, familiarize yourself with market movements, and develop a risk management strategy, all without making any financial commitments, in a simulated live trading environment. It’s critical to bear in mind, however, that regardless of your investment capital, Knowledge and skill are the bedrock of successful profitable FX Trading. 4. HIGH LIQUIDITY Online Trading benefits include High Liquidity. In capital markets or trading terms, Liquidity refers to the ease with which an asset can be bought or sold. Combined with the high volumes and 24-Hour-a-Day activity, the global scale of
Geldex Marks 1st Anniversary with Digital Finance Training for over 300 Tertiary Students
Geldex Invest, a multi-regulated broker entity, as part of its 1st anniversary commemoration, has embarked on a campaign to train over 300 undergraduates from selected universities in ‘Digital Finance’. The four selected universities to benefit from the initiative are the Koforidua Technical University, Valley View, Ghana Telecommunication University, and the University of Ghana, with some students already enjoying the hands-on training. Geldex believes that it is important the youth are included in decision-making and given appreciative opportunities for work, training, and to innovate. It intends to train these 300 undergraduates on the capital market, and the need to indulge and explore career and financial paths in forex trading. The capital market, especially the foreign exchange market, is the most liquid market on earth. Global Gross Domestic Product (GDP) of the forex market in 2019 amounted to roughly US$142trillion, with the entire worth of the market standing at US$2.4quadrillion, and with over 170 currencies being traded. This was reported by the Bank of International Settlement. The population of sub-Saharan Africa is projected to double by 2050, as indicated by the United Nations and currently, 60 percent of the population is under the age of 25, making Africa the world’s youngest continent. The burgeoning youth population is both an opportunity and a challenge for the continent. Internet, digital penetration, and engagements of African youth increased from 24.4 percent in 2018 to 90 percent in 2020 indicated by ITU Digital world (Child Online Protection Organisation). But most of the activities online by the youth are not very productive even though great career and financial opportunities abound online. Such a high number of young people is an opportunity for the continent’s growth, but only if these new generations are fully empowered and trained to realise their best potential. The United Nations estimates that 16 million young Africans are facing unemployment. On average, 11 million young people join the African labour market each year, yet the continent generates only 3.7 million jobs annually, a gap too wide to be ignored. It is to this effect that Geldex Invest, a multi-regulated broker, as part of its 1st commemoration is embarking on this Digital Finance programme for the youth. The International Market Analysis Research and Consulting (IMARC) group predicts a compound annual growth rate of six percent for the forex industry in the next five years. The industry is green in Africa, especially in Ghana – the more reason why there is need to study and train to bridge the educational and capacity gap in the hope of future opportunities. Geldex Invest has made its mark in the African Financial industry with its operations in this short time. The official sponsor of the African Financial Traders awards 2021, in collaboration with Women in Forex Ghana, under her initiative ‘The Elevate Ghana Forex Project’, has trained over 400 youths in forex education across four regions since the beginning of the year, 2022, and continues to impart financial literacy into the youth. The goal is to adequately equip the youth with the skill set that is relevant in this pandemic era for a better livelihood, gear the youth toward productive online engagements, and reduce cybercrime while helping government’s policy to reduce unemployment.
Choosing The Best Broker To Trade With
Spurred on by greater internet accessibility, more investment knowledge, and proliferation of forex brokers, online Forex trading has risen in popularity in recent years in Africa, with more and more traders emerging day-in-day-out. To trade the forex market online, choosing the best forex broker, and one you can trust, is a vital first step, as your broker will form a critical part of your trading equation, and essentially be your business partner. Online forex trading is gaining traction and momentum in Africa as a whole, and Ghana in particular, and the challenge many beginner traders are faced with, is finding a legitimate broker they can trust; one who is not only reliable but also within arm’s reach; as close and real as can be. Forex brokers are an integral part of the forex trading equation, and a trader’s aim should be to find the best forex broker available. If you’re new to forex trading, you may get confused by the flood of advertisements from different firms. That is why we have simplified it, helping you take the guesswork out of your search for the best forex broker to trade with. A forex broker is an entity that acts as an intermediary between institutional or individual clients and the global forex market. In addition, the forex broker’s job is to ensure your orders are executed. The forex broker market is saturated with many options, and it has become necessary to apply certain metrics in choosing the right forex broker to attend to your needs. Not all forex trading brokers are regulated, and it’s very important to be wary of unregulated firms, to avoid being scammed or your trading capital being done away with. Take your time to find a reliable forex broker to ensure your money and trades will be handled appropriately and to best industry practices. 1. REGULATORY COMPLIANCE Simply, is the broker licensed and regulated by a reputable regulatory authority. As obvious as this may be, you will be surprised at how many unlicensed and unregulated forex brokers there are. The best forex brokers in Africa are licensed and regulated by industry regulators to grant professional and retail clients the ability to trade foreign currencies by offering them a secure online trading platform. Due to concerns regarding the integrity of a broker, and the safety of clients’ funds, accounts should be opened only with brokers who are duly licensed. Choosing a broker who is licensed to offer the services you need, helps you avoid potential scams, and reduces the risk of losing your money should the broker go bankrupt. Being a dominantly virtual industry, many people do not really know who they are dealing with, because everything is conducted digitally. You should evaluate a broker’s license and compliance with industry regulations, and not pay too much attention to glitzy websites. We advise you to stay away from forex brokerage firms that do not display their regulatory license numbers openly, as this may be a red flag. Many forex brokers these days also tend to show license numbers that are not theirs, hence, to be completely sure, you should visit the regulatory authority’s website to check if the said license number is true, and belongs to who they claim it belongs to. If you’re in Ghana or Africa, you can find a trustworthy broker licensed and regulated by either one of the following: CYSEC-Cyprus (As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law), the FSC-South Africa, ASIC-Australia, or the FCA-United Kingdom. Forex trading companies in Ghana are most likely to be regulated by any of these reputable industry regulators, any of which can render confidence that your broker is legit. As a globally recognized brand, regulated in the most advanced capital market jurisdictions across the globe, Geldex Invest is not only licensed, but also offers you the ultimate package of an excellent trading experience, and exceptional customer responsiveness. We are licensed and regulated by many of the leading financial regulatory authorities for international brokerage firms. 2. CHOICE OF DIFFERENT ACCOUNT TYPES It’s a plus when a broker offers you a variety of accounts to choose from for online forex trading. This means they can cater to traders with different financial abilities, needs, and aspirations. The best forex trading companies in Africa recognize the power of choice goes a long way. Closely related to the above, is the offer of Demo Accounts. Trading on a Demo account is essential before trading on a live account. Trading on a Demo account gives you the opportunity to trade in real market conditions, but with virtual money. This means it’s absolutely risk-free. The main purpose of the Demo Account is to know the ins and outs of online forex trading, put your strategy to test, and discover your strengths and weaknesses before you go unto a live account. We encourage beginners to trade on demo accounts for only so long; enough to get your feet wet and move to a live account. 3. VARIETY OF TRADING INSTRUMENTS The more tradable instruments a broker offers, the more opportunities are unveiled for you. When choosing a forex broker, go with one that doesn’t only offer the major currency pairs, but also the Minors and Exotics, as well as precious metals and other commodities, for the purpose of diversifying your portfolio. Seeing as trading comes with risks, it’s important to manage these risks in an adequate manner. The best Forex Trading companies in Africa give you the opportunity to diversify your portfolio this way, so as to manage risk in the most effective manner possible. Gold, for instance over the years, has proven to be a very popular trading instrument during times of political and economic instability, such as is currently being experienced globally. If you find yourself in one of the largest gold-producing countries in the world, and own a smartphone, you have no excuse not to learn to trade gold on the forex market. 4.
Choosing The Best Forex Broker To Trade With In Ghana And Africa
Spurred on by greater internet accessibility, more investment knowledge, and proliferation of forex brokers, online Forex trading has risen in popularity in recent years in Africa, with more and more traders emerging day-in-day-out. To trade the forex market online, choosing the best forex broker, and one you can trust, is a vital first step, as your broker will form a critical part of your trading equation, and essentially be your business partner. Online forex trading is gaining traction and momentum in Africa as a whole, and Ghana in particular, and the challenge many beginner traders are faced with, is finding a legitimate broker they can trust; one who is not only reliable but also within arm’s reach; as close and real as can be. Forex brokers are an integral part of the forex trading equation, and a trader’s aim should be to find the best forex broker available. If you’re new to forex trading, you may get confused by the flood of advertisements from different firms. That is why we have simplified it, helping you take the guesswork out of your search for the best forex broker to trade with. A forex broker is an entity that acts as an intermediary between institutional or individual clients and the global forex market. In addition, the forex broker’s job is to ensure your orders are executed. The forex broker market is saturated with many options, and it has become necessary to apply certain metrics in choosing the right forex broker to attend to your needs. Not all forex trading brokers are regulated, and it’s very important to be wary of unregulated firms, to avoid being scammed or your trading capital being done away with. Take your time to find a reliable forex broker to ensure your money and trades will be handled appropriately and to best industry practices. REGULATORY COMPLIANCE Simply, is the broker licensed and regulated by a reputable regulatory authority. As obvious as this may be, you will be surprised at how many unlicensed and unregulated forex brokers there are. The best forex brokers in Africa are licensed and regulated by industry regulators to grant professional and retail clients the ability to trade foreign currencies by offering them a secure online trading platform. Due to concerns regarding the integrity of a broker, and the safety of clients’ funds, accounts should be opened only with brokers who are duly licensed. Choosing a broker who is licensed to offer the services you need, helps you avoid potential scams, and reduces the risk of losing your money should the broker go bankrupt. Being a dominantly virtual industry, many people do not really know who they are dealing with, because everything is conducted digitally. You should evaluate a broker’s license and compliance with industry regulations, and not pay too much attention to glitzy websites. We advise you to stay away from forex brokerage firms that do not display their regulatory license numbers openly, as this may be a red flag. Many forex brokers these days also tend to show license numbers that are not theirs, hence, to be completely sure, you should visit the regulatory authority’s website to check if the said license number is true, and belongs to who they claim it belongs to. If you’re in Ghana or Africa, you can find a trustworthy broker licensed and regulated by either one of the following: CYSEC-Cyprus (As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law), the FSC-South Africa, ASIC-Australia, or the FCA-United Kingdom. Forex trading companies in Ghana are most likely to be regulated by any of these reputable industry regulators, any of which can render confidence that your broker is legit. As a globally recognized brand, regulated in the most advanced capital market jurisdictions across the globe, Geldex Invest is not only licensed, but also offers you the ultimate package of an excellent trading experience, and exceptional customer responsiveness. We are licensed and regulated by many of the leading financial regulatory authorities for international brokerage firms CHOICE OF DIFFERENT ACCOUNT TYPES It’s a plus when a broker offers you a variety of accounts to choose from for online forex trading. This means they can cater to traders with different financial abilities, needs, and aspirations. The best forex trading companies in Africa recognize the power of choice goes a long way. Closely related to the above, is the offer of Demo Accounts. Trading on a demo account is essential before trading on a live account. Trading on a demo account gives you the opportunity to trade in real conditions, but with virtual money. This means it’s absolutely risk-free. The main purpose of the Demo Account is to know the ins and outs of trading, put your strategy to the test, and discover your strengths and weaknesses before you go into a live account. We encourage beginners to trade on demo accounts for only so long; enough to get your feet wet and move to the live account. VARIETY OF TRADING INSTRUMENTS The more tradable instruments a broker offers, the more opportunities are unveiled for you. When choosing a forex broker, go with one that doesn’t only offer the major currency pairs, but also the Minors and Exotics, as well as precious metals and other commodities, for the purpose of diversifying your portfolio. Seeing as trading comes with risks, it’s important to manage them in an adequate manner. The best Forex Trading companies in Africa give you the opportunity to diversify your portfolio this way, so as to manage risk in the most effective manner possible. Gold, for instance over the years, has proven to be a very popular trading instrument during times of political and economic instability, such as is currently being experienced globally. If you find yourself in one of the largest gold-producing countries in the world and own a smartphone, you have no excuse not to learn to trade gold on the forex market. TRADING PLATFORM These include: More chart frames
Facts to know about the most successful traders in Africa
Like most great things in life, there are truly few shortcuts to become successful in forex trading. But learning from someone who has the knowledge and expertise in advanced forex trading, definitely gives you a lot of leverage to succeed in advanced online currency trading. If you have started trading forex in Ghana only recently and want to ensure you do it right, then you have stumbled on the right article. One of the principles for achieving success in any area, is following those who have achieved success where you seek to, and in this article, we will share some facts and characteristics of the most successful forex traders in Africa, and hope you can imbibe them as well. Many of these characteristics are key traits that the most successful forex traders have used to master the market and generate consistent profits month in and month out. The Forex market is an ever-changing entity, where each day presents us with different and unique scenarios for trading the market. Therefore, to trade successfully, it’s important to understand that the forex market is fluid and very dynamic, and the question many ask when they begin this journey is what characteristics or attributes are needed to enable them stand a good chance at becoming successful and profitable independent forex traders There is no single formula that all successful forex traders use to ensure profitability on the forex market. Trading is both Art and Science, and the idea that success comes overnight could not be farther from the truth. It takes time to learn the ins and outs, manage your risk and refine your skills and yourself as a trader. That is how the best traders in Ghana and the world over, have done it 1- Begin with a plan in hand You have probably heard the saying “failing to plan, is planning to fail”. Your trading plan doesn’t need to be complicated; you can start by including basic guidelines like – Your Entry and Exit Level Triggers – Position Size – Stop Loss – Take Profit The most successful forex traders in Africa treat advanced online currency trading as a business; complete with plans, daily routines, schedules and obligations. Before you trade, it’s important to recognize the value of good preparation. Most successful businesses always begin their business journey with a good business plan; a formal statement revealing the goal of the business and the guidelines to reach those goals, without which achieving those goals will be difficult. The same applies to the business of advanced forex trading. Successful traders adhere to a set of guidelines to help them execute consistently profitable trades that will help them reach their income goals. This will prevent you from making decisions on a whim. Remember the saying “plan your trade, and trade your plan”. 2- Having Realistic Expectations Some traders may show off their rewards from forex trading, but won’t tell you about the years of effort they put in before they found success. The fact is that, like any other profession, becoming a successful forex trader takes time. The best Forex Traders in Ghana know that forex trading is not a get-rich-quick scheme. While some may see it as a sprint, the most successful forex traders in Africa see it as a marathon, with small rewards accumulating as the race goes on; not with the goal of becoming a millionaire overnight. Trading with high expectations of how fast you will make money is a bad start for any trader. Although the market can make some huge moves than you anticipate sometimes, you should not expect to invest $250 in your trading account, and make $1,000 each trade. If your goal is to double your money every day, it sounds great but it’s not realistic. A realistic goal must be attainable; within your current capabilities. The best realistic goals are short-term goals; make your first goal a small one, and then continue to increase your them as you experience success. The most successful traders stay flexible with their Take Profits, sometimes settling for less, if indicators show that’s all they can take out of the market at that moment. 3- Being Analytical Having an analytical mind is one of the most important facts about the best traders. This means being able to figure out some simple math quickly, understanding percentages, and calculating things like Risk: Reward ratios. The good news is that it can be learned if you don’t already have this. And once you have learned it, and practised it for some time, you are well on your way to becoming one of the most successful traders in Africa, and the world. Being analytical of the market also behoves on you to be analytical of your own performance. You can do this by keeping a record of your trades. At the end of each month, quarter or year, your trading account will most likely be in one of three main categories: your trades either made a profit over the period; were roughly break-even; or lost money. Irrespective of the category you fall into, keeping and reviewing a track record of your trades, is key to building on your strengths and working on your weaknesses. The best Forex traders in Ghana have used this to improve their performance and become successful. 4- Being Disciplined and Patient Discipline is crucial when you’re trading Forex. Our definition of discipline when it comes to advanced online forex trading is to determine your exit strategy even before you enter the trade. Discipline is also the ability to “pull the trigger” when your system indicates to do so. The market gives you infinite opportunities to trade and once you decide which position you’re taking, you should enter your stop loss and take profit orders. This also reflects the ability to be patient until your system triggers an action point. Good online traders are disciplined and patient, and trade as professionals. Becoming a successful forex trader requires strong discipline, and it
Concerns Over Inflation and Other Economic Indicators Impacting the Ghana Stock Market
A Financial Advisor to Geldex Invest, Ms Gifty Annor-Sika Asantewah, has bemoaned the slow start of performance of the Ghana Stock Exchange in 2022, noting that the rising level of inflation, depreciation of the cedi and other economic indicators are badly affecting the performance of the Ghana Stock Market. According to the analyst, the stock market has gone through some challenges in recent years but managed to bounce back last year. However, she observed that 2022 has not started as predicted, which can “partly be blamed on the pandemic and declining confidence of investors.” “Many markets are under distress due to the pending pandemic that slowed investment. As such, that may be just one of the reasons why trading activities declined in the first few months of 2022… That being said, the Ghana Stock and investment terrain for past few years has gone through some dramatic scrutiny that has left some investors overwhelmed with low market confidence and trust.” – Annor-Sika Asantewah Miss Annor-Sika however, explained the reason why some major stocks such as: Fan Milk LTD, MTN Ghana and others that performed brilliantly last year, 2021, are now struggling this new year 2022. “Investors are more likely to purchase or trade stocks if they feel or are convinced the stocks or the market instrument will increase in value in the future. Currently, few stocks such as, SIC Insurance Company PLC and others are doing relatively well, while others like MTN Ghana, Fan Milk Limited, Unilever and some banking stocks are not doing well…Looking at the statistics, foreign investors holdings on equities market dipped. The Ghana Stock Exchange’s report on fund managers holdings for February showed that foreign investors contributed 82.0% of equity market trades as of end of February 2022 in comparison to 86.6% for the same period in 2021. Concerns over inflation, depreciation of the cedi, high interest rates, and other economic indicators is gradually driving foreign investors away from the Ghanaian stock market. These indicators affect how money is spent by investors. They [investors] are making certain ‘safer’ investments a more attractive alternatives to stocks.” – Annor-Sika Asantewah Slow Level of Technology in GSE The financial advisor expressed worry over the slow level of technology being adopted by the Ghana Stock Exchange. She noted that the Ghanaian equities market is behind when it comes to technological advancement. “The impact of disruptive technology on capital markets is as significant as fire was to the cavemen. In fact, technological progress in capital markets offer investors the opportunities to boost flexibility, scale efficiencies and reduce complexity in how the market operates. It is time that leaders in the industry embrace new-age technologies which are further going to transform the Ghanaian capital markets ecosystem in the upcoming years. Stock markets are embracing new technologies and innovations. Many are shifting from the conservative stock market trading to digitalization which the Ghana stock exchange is yet to embrace. I hope that the market expands to other innovative instruments beyond just stocks, shares and bonds to attract more traders and investors.” – Annor-Sika Asantewah Miss Annor-Sika observed that investors are gradually changing tastes in regards to trading activities, types of stocks to indulge and how it should be done. She thus, predicted that the performance of the Ghanaian stock market might further plummet in the coming weeks and months. “Frankly, the performance of the Ghanaian bourse might worsen due to the uncertainties facing our monetary and fiscal policies this year coupled with increment in taxes. Unfortunately, the cedi is on a downward spiral and thus, eroding investors confidence.” – Annor-Sika Asantewah Miss Annor-Sika moreover, sided with Bloomberg Africa’s prediction that the invasion of Ukraine by Russia is likely to further hurt Africa’s coronavirus ravaged and fragile economies through fiscal constraints, weaker investment flows and higher costs. The pronounced challenge, she noted, will have implications on inflation in the country. Meanwhile, the Ghana Statistical Service (GSS) announced that inflation has accelerated to 15.7% in February 2022 compared to 13.9% in January.
Why consider forex trading as your next investment move
A hard reality of our current situation is that at the time of writing this article, if you did a dollar conversion of your salary in Ghana as of January 2022, it’s safe to say you’ve been hit with a 50% salary cut, if not more; and it won’t stop there. Troubled? You should be. If you’re reading this article, you’re most likely particularly interested in Online Forex Trading, or are simply like many looking for an alternative investment. As the world teeters on the brink of economic catastrophe, with economists anticipating another global economic recession a little over 10 years after we came out of one, institutional investors, businesses, households and everyday people are frantically searching for alternative investments. Forex investment has a lot to offer all kinds of traders, from beginners to professional traders; and in this article Geldex explores the five most compelling reasons why you must consider Online Forex Trading as your next investment move. Global Economic Hedge With Global economic activity experiencing a broad-based and sharper-than-expected slowdown, inflation has been higher than expected in the aftermath of lingering effects from the COVID-19 pandemic, Russia’s invasion of Ukraine, the rising cost of living, and tightening financial situations. These are all weighing heavily, especially in the face of global growth being projected to slow from 6.0% in 2021 to 2.7% in 2023 – a record low since 2001. This comes with attendant inflation – forecast to rise from 4.7% in 2021 to 8.8% by the end of 2022. The IMF has warned: “The worst is yet to come, and for many people 2023 will feel like a recession”. As Ghana engages in Debt Restructuring with the International Monetary Fund, government securities, including Treasury bills and bonds – previously regarded as an all-safe, risk-free investments – are most likely to lose a large aspect of that safety and protection from risk. Now more than ever, in the present economic situation Forex Investment has become an absolute necessity to guard against financial shocks, missing out on high-potential opportunities, and to hedge against inflation. The currency market allows you to invest in Forex by trading currencies based on how you perceive their relative values will change over a period of time. Depending on which direction you believe a particular currency is headed, you can speculate or project both ways; either long or short. After having gained enough experience, you can allocate your risk across the currencies of several countries; allowing you to profit from changing global macroeconomic conditions. A level playing field Online Forex Trading was previously reserved for multi-national corporations, banks, financial institutions, and very wealthy investors. With prevalence of the Internet and technological advancements, Forex trading companies and proprietary currency trading platforms, this investment opportunity is now open to everyone willing to invest. The same technologies that have made online forex trading possible are the same ones that have made information freely available. In addition, unlike other capital markets, the news that drives currency prices is available to everyone on a real-time basis. Unlike stocks, bonds and even commodities which can many times be influenced by proprietary information held by insiders and key stakeholders of those assets, control of the currency market is much less centralized – and thus far less influenced by insider information, if ever. This aspect of online forex trading makes it one of the most transparent markets for trading. Knowledge is indeed power, and today’s information technology provides it in abundance. The speed at which technological advancements have ensured news travels across the globe means that someone investing in Forex can monitor their open positions from anywhere on the globe, and can react just as swiftly as a professional trading from the very centre of it in New York, London or Tokyo. Resources previously available only to large financial institutions are now open to all who may be interested in Forex investment. This means you can do your own analysis of events that influence a country’s economic health and actual monetary flow, which are the elements driving and impacting currency valuations. Thus, the online forex trading market cannot be controlled by one person or a few individuals and institutions. Considering how incredibly complex the online forex market can be, coupled with the myriad of influences (both macro and micro) they are subject to, everyday people investing in Forex are now better-positioned than they have ever been to take advantage of information and use it to manage their capital profitably. Volatility In simple terms, volatility refers to the price fluctuations of assets. It measures the difference between the opening and closing prices over a period of time. When looking to invest, many people tend to gravitate toward more stable options – such as the Real estate market, which is largely viewed as a solid investment market. But who says volatility has to be a bad thing? In actual fact, when a market moves frequently it creates an avenue for many opportunities to make strong gains within a relatively short period of time. Warren Buffet was once quoted as saying: “Look at market fluctuations (volatility) as a friend, rather than an enemy”. The volatility of currencies is influenced by a number of factors, including but not limited to: The economic stability of a particular country Global economic happenings as a whole Political news, events and policies (e.g., interest rate fluctuations, currency revaluations, political upheavals, trading sanctions, monetary policy changes, trade deficits, tax changes, import restrictions, etc.) Trade deals, etc. On any given day, Forex markets can move between 50-100 pips on a major currency pairing, allowing investors to cash-in on poor-performing assets or seize upon potential opportunities that present themselves. Regulation Forex Market regulations refer to the rules, laws and guidelines that Forex Trading Companies or brokers operating within the Online FX Trading space must abide by. They extend to the continuous oversight and enforcement of these rules. Forex Investment is well regulated by several bodies across the globe – including CYSEC (Cyprus Securities and
