Thanks to technological advancements and the explosion of affordable and reliable internet connections across Africa, we have seen a proliferation of online trading in Africa. Actually, a lot of entrepreneurs and new investors are looking to enhance their revenue by trading online.
Actually, 1 out of 781 people around the world, trade online, and it’s very likely this number will increase as most people have access to stable internet connection. But what are the main factors that have propelled this kind of growth? In this article, we provide an overview of these factors as well as some notable examples of great trading sites.
Why Are Online Trading Platforms Gaining Traction?
The first reason is the internet penetration rate. As we mentioned earlier, internet usage is increasing due to the affordable costs related to the internet. What’s more, a large percent of the population has smartphones which make online trading platforms more accessible to the public.
One great example is Nigeria, where there are approximately 50 million internet users, and 47% of the population is online. Another example is South Africa, where approximately 33.42 million people are active internet users based on the latest data from 2020.
Other factors that prompted this kind of growth are low transaction costs, low minimum deposits, or in other words, and there are no barriers for entry on online trading platforms. Plus, a lot of trading sites offer compressive information for newbies, which again improves the accessibility of online trading, while most of the platforms also make sure to deliver timely notifications and a clear overview of relevant news and developments in this field.
Thanks to the progress of AI technology, there is also a rise of automated trading systems that rely on AI–driven algorithms. More specifically, automated trading is software that conducts trades for you while you set the rules for trading. An important advantage is that you will be able to carry out a lot of trades in a shorter period of time, within already built parameters. In addition, it minimizes the manual execution, and you can trade around your schedule. Still, you need to have a good trading strategy and familiarize yourself with the program, and naturally, choose a reputable platform.
Next, on a lot of trading sites, users have a chance to invest in cryptocurrencies that are also quite popular nowadays due to the bull cycle of Bitcoin and other altcoins like Litecoin, Cardano, Ethereum, and many other currencies. Plus, because they are decentralized, they are not affected by external events like financial crises, for example.
Lastly, even though there is a noticeable economic growth, a lot of countries on the continent suffer from hyperinflation, political instability, and other issues, and this motivates inventors and business owners to invest their funds in safe-haven assets that aren’t affected by hyperinflation, for example. Another advantage is that there are a plethora of safe, reliable trading sites which provide an abundance of options – from bonds, cryptocurrencies, futures to stocks and much more.
Online Trading Platforms
When it comes to choosing an online trading platform, it is very important to do your due diligence, carry out your research and register on safe trading sites. Also, if you’re new to trading online, is it is beneficial to sign up on a site that offers resources for beginners. In case you want to find reliable information about the online trading site, you can read more about online brokers here.
They offer detailed and honest reviews of top UK trading platforms based on their features, user-friendly interface, transaction fees, available options, trading tools, customer support, and more. So, it’s safe to say that you will have a good understanding of what you can expect from each trading platform.
When it comes to trading online, forex trading sites are attracting a lot of investors because you can quickly sell, exchange, and buy currencies. This is a highly liquid market, and there are numerous options available to investors. Some examples include FXCM, Fx Pro, HotForex, and many other sites. If you want to trade stocks, for instance, there are plenty of platforms, including Ally Invest, which offers ETF and stock trades.
The majority of investors on trading sites are millennials or tech-savvy individuals that are familiar with digital devices. In terms of trading volume, some of the largest markets are South Africa and Nigeria. Additionally, we see an increased interest in trading online across Namibia, Kenya, Tanzania, Angola, and other countries.
Even though online trading is taking off and there is a great number of trading sites, it’s still important to do your research and trade on reputable sites. Furthermore, as an investor, make sure to stick to a financial budget that works for your financial condition and long-term goals. Also, keep in mind that is important to stay up to do date with the latest news and make adjustments accordingly if that is necessary to your trading strategy.