Posted: 15 May 2020 12:00 AM PDT

Are you searching for the best forex trading app? If so, give ForexTime FXTM some thought. Through ForexTime FXTM, you can access numerous currency pairs, commodities, single-stock shares, and contracts for difference (CFDs).

As you'll find out in the following ForexTime FXTM review, this app stands out for its quick trades and withdrawals, which are facilitated by the MetaTrader platform. Most FXTM accounts are based on MetaTrader 4 (MT4).

ForexTime FXTM: What does it offer?

ForexTime, also known as FXTM, is a financial service and automated currency broker. FXTM customers can use their accounts to trade currencies, CFDs, shares, and commodities. In total, there are more than 250 different financial instruments to access through FXTM.

ForexTime FXTM review — The ForexTime FXTM app lets you trade on the move (Image credit: ForexTime)

With the FXTM app, available on both Android and iOS devices, you can monitor live rates and adjust your positions wherever you are. The inclusion of demo accounts and a flexible leverage system makes this a good trading platform for beginners and experienced forex traders alike.

This service is registered and regulated in the UK, South Africa, and Cyprus but does not serve customers in the USA, Canda, Japan, or a handful of other countries.

ForexTime FXTM: Opening an account

After that, you can finish the account-opening process in your browser or on a mobile device by installing the FXTM Trader app. In total, there are five steps to complete before you can begin trading. You'll need to add personal and tax information to your profile, upload photos of some ID and, finally, make a deposit.

Rather than using real cash, you can start practicing trades with a risk-free virtual account. This is a great way to get a good understanding of how the ForexTime FXTM trading system works.

It doesn't take long to open a ForexTime FXTM account (Image credit: ForexTime)

ForexTime FXTM: Account Types

You can choose between six different types of FXTM trading account. Three of these are Standard Accounts and three are Electronic Communications Network (ECN) Accounts.

All standard FXTM accounts are based on MetaTrader 4 (MT4). (Image credit: ForexTime)

ECN accounts are designed for forex experts and don't have a maximum number of orders or volume of lots in an order. Trading with an ECN account results in a better rate thanks to a reduced average percentage in point (pip) values but requires a higher minimum deposit amount. FXTM Pro ECN accounts, for example, only offer super low spread values if a balance of 25,000 USD/EUR/GBP is maintained.

FXTM's three non-ECN accounts are the Standard, Cent, and Shares accounts. Cent accounts work in a balance of cents rather than dollars and have a tiny minimum deposit amount of $10. Meanwhile, the Share accounts allow you to trade in European and US shares and have a reduced minimum spread value of 0.1, compared to 1.3 for Standard accounts and 1.5 for Cent accounts.

ForexTime FXTM: Features

The ForexFXTM platform is full of handy features to help you manage trades. We were especially impressed by how easy it was to modify our positions using cross-device trading, which enabled us to open a trading position on one device and close it from another.

Live currency charts are available through the FXTM Trader app. (Image credit: ForexTime)

A major advantage of using this trader is that FXTM is regulated by authorities in the UK and Cyprus, both of which have deposit protection insurance. As a consequence, if you are trading from within the EU or UK through FXTM, you could be eligible for £85,000 or €20,000 in cases of brokerage insolvency.

Newcomers to foreign exchange trading will appreciate ForexTime's vast library of educational resources. Here, you can explore ebooks, forex trading webinars, and glossaries of common forex trading terms. ForexTime also releases weekly market analysis videos filled with expert advice about new trading strategies.

Meanwhile, more advanced users will be able to use the ForexTime FXTM Pivot Points Strategy to enhance their trading style. This FXTM tool enables you to perform five-point calculations to decide what position to take on a range of financial instruments.

ForexTime FXTM: Support

Besides the wealth of informative educational materials on the FXTM site, this platform has a solid customer support service. You can get assistance from agents 24 hours a day over the phone, via live chat, or through third-party platforms like WhatsApp and Telegram.

You can discuss issues with ForexTime FXTM staff through a variety of channels. (Image credit: ForexTime)

ForexTime FXTM: Final verdict

The ForexTime FXTM platform remains one of the best forex trading apps available today. Users who are able to meet the deposit minimums required to open an ECN account will receive highly competitive rates and avoid any limits on order volume.

But ForexTime FXTM isn't just good for professionals. There's a lot to offer here for casual and first-time traders thanks to a large backlog of trading guides and a fully-featured mobile app that lets you modify your positions on the go.

Whatever kind of trader you are, you can be confident that FXTM is a safe way to make foreign exchange trades. That's because ForexTime FXT is registered in countries with strict deposit protection schemes and has built up a solid reputation since opening for business in 2011.

ForexTime FXTM: The competition

ForexTime FXTM isn't the only trading app out there. For first-time users looking for an app more tailored toward improving their trading skills, Stock Trainer is an alternative option worth considering. This virtual trading app provides the ideal environment in which to learn more about how foreign exchange markets operate.

At the other end of the spectrum, for those who feel that ForexTime FXTM's 250 financial instruments don't offer enough variety, Admiral Market is a popular competitor with a large selection of stock, futures, and forex markets.

Forex Regulation Across Africa – The Complete Guide - Yahoo Finance

Posted: 03 May 2020 12:00 AM PDT

Forex Regulation Across Africa – The Complete Guide

Partly, this intense growth was caused by the fact that ESMA enforced new restriction laws on the maximum leverage that EU traders can use (this caused FX brokers to focus on other big markets, like Africa)

An average of over $5.1 trillion is traded daily in the Forex market. Though worldwide, there are major forex trading centres which include London, Tokyo, Paris, Sydney, New York, Zurich, Singapore, and Hong Kong. A Forex trading day starts in Australia and ends in New York. The market stays open for 24 hours a day and five and a half days a week.

There are specific regulations in countries, continents that oversee the trading of Forex. In some countries, FX trading is restricted and banned while in others, it is fully supported. In this post, our focus is on Africa as we'll be looking at Forex regulation across the continent.

Overview of Forex Trading In Africa

Forex trading is a very competitive activity, and in Africa, it is no different. The market has experienced speedy growth over the last two decades as more Africans are being enlightened on what Forex entails.

Significantly, the last decade has seen the Forex market go from almost unnoticed to becoming one of the most dynamic industries in the content. This can be attributed to the advent of mobile devices and other technologies.

There are about 1.3 million Forex traders in Africa. South Africa and Nigeria lead the way as both countries constitute a large percentage of the total figure.

Other countries where Forex trading is gaining ground are Kenya, Egypt, Angola, Namibia, and Tanzania. This has attracted international Forex brokers like IQ Option, IC Markets, XM Forex Trading, ForexTime (FXTM), and Olymp Trade.

With this vast amount of forex traders, it is expected that government financial regulatory bodies will be interested in monitoring trading activities in individual countries.

Forex-Friendly African Countries

A lot of African countries are Forex-friendly, but there are minor restrictions from the government. Forex can be traded in Nigeria, South Africa, Egypt, Kenya, Namibia, Ivory Coast, and many other African countries.

Whereas Forex trading cannot be said to be legalized in these countries, it also does not break the law. Before a Forex broker can offer Forex trading services to a country's citizen, it is mostly mandatory to acquire a trading license.

Forex-Prohibited African Countries

Currently, a complete Forex ban is not placed on any country in Africa, unlike world countries like North Korea and Israel. As stated earlier, there are minor restrictions from the government in some countries. These restrictions do not prohibit the trade of Forex but are imposed to prevent fraudulent and scam activities.

Some of these restrictions are on the maximum trading amount and the maximum amount you can have in your Forex account. These are similar to Forex restrictions imposed in countries like China and Russia. Furthermore, Forex trading with non-licensed Forex brokers is prohibited in some African countries. Likewise, you can only trade Forex for yourself and not for anyone else (identification is mandatory for most Forex brokers).

Forex trading is usually not welcomed in countries governed with strict sharia laws. As a result, countries like Algeria, Benin, Burkina Faso, Egypt, etc., may not be the best to engage in Forex trading.

Let's consider how Forex trading is regulated in some major African countries:

Forex Regulation In South Africa

In South Africa, various regulatory trading rules are put in place to minimize Forex trading risks. These regulations are imposed by the South African Financial Sector Conduct Authority (FSCA), formerly known as the Financial Services Board (FSB). The FSCA is the body responsible for monitoring and controlling all financial activities in the country. It is the most vigorous Forex market regulation in Africa.

The FSCA regulatory policies are in line with what is obtainable from regulatory bodies overseas. Notably, all OTC derivative brokers must report all trades in a bid to organize CFDs. Through the FSCA, Forex brokers can relate with each other without resulting in conflict.

According to topforexbrokers.co.za, the FSCA license incorporates some immense benefits like that FX brokers regulated by the FSCA treat their customer in good faith and that they help them with financial education and financial literacy. Not to mention that if anything goes south, a South African trader who is trading with FSCA regulated broker can go to FSCA if they think they have been scammed by their broker or mistreated.

Forex Regulation In Kenya

In Kenya, the Capital Markets Authority (CMA) regulates all financial activities, including foreign exchange trading. Before a Forex broker can do business in Kenya, they must be registered and licensed by the CMA.

Forex was previously unregulated in Kenya. Before 2016, lots of Kenyans were trading with unregulated brokers, and there were too many reports of fraudulent activities. As a result, the Kenyan government authorized the CMA to regulate Forex trading activities in the Finance Act 2016. The principal aim of the regulation is to make the market transparent and protect investors' funds.

The CMA drew regulatory leads from international regulatory bodies like the Australian Securities and Investment Commission (ASIC) and the United Kingdom's Financial Conduct Authority (FCA).

Forex Regulation In Nigeria

Forex trading in Nigeria is still unregulated despite the market being one of the most active ones in the continent. However, it is perceived that the country's apex bank is working with the Securities Exchange Commission to commence Forex trade regulation.

Despite the absence of regulation in the country, the government does not consider Forex trading illegal. There are local Forex brokers who register just like other businesses and carry out foreign exchange activities as usual. Most Forex traders in Nigeria make use of foreign Forex brokers rather than the local ones due to this lack of regulation. The trading risk is totally on the trader, so they assume the foreign brokers are more trustworthy.

Banking policies do have effects on Forex trading in Nigeria. Some Nigerian banks may prevent customers from using their electronic cards to make payments or withdraw from foreign exchange platforms. Presently, there are imposed restrictions on the amount of foreign currency a Nigerian can spend outside the country. These are individual policies that could be eliminated if the Nigerian government properly legalizes Forex trading.

How To Select The Best Forex Broker For Africa

Due to the risks involved in Forex trading, it is vital to be cautious when deciding on the best Forex broker to invest in Africa.

Firstly, you should check for the broker license. If Forex trading is regulated in your country, check to see the Forex brokers licensed by the regulatory body. For a country like Nigeria, where the market is not restricted, consider foreign brokers who are licensed by global licensing authorities.

The next thing to do is to check out the trading platforms offered by these brokers. Check for their deposit bonuses, ratings, minimum deposit, and payment options before making a decision. For a practical trading experience, a Forex demo account should be featured where you can try your hands before going live. Do not invest real money if you haven't fully understood how the platform works.

How To Stay Safe While Trading Forex

You should avoid any unlicensed Forex broker in Africa. The amount of Forex scams in African countries is on the high side, and it has resulted in grave losses for the victims. By going with a well-licensed broker, this risk is almost eliminated, and you can trade more assuredly.

Additionally, you should be cautious when making a substantial investment when you don't fully understand the Forex market. Likewise, you should control your emotions and don't spend all your money on Forex trading.

Conclusion – The Future Of Forex In Africa

Interest in Forex will undoubtedly continue to rise in the coming years. The sensitization level is currently high as Forex trading is advertised on newspapers, TVs, radios, websites, etc.

There are equally Forex seminars and programs to create awareness. More overseas Forex brokers are also picking interest in offering their services to African countries. Consequently, better regulatory policies will be imposed in countries that lack them so that aspiring traders can trade safely.

This article was originally posted on FX Empire

More From FXEMPIRE:

Can Forex Trading Be Profitable for Me? - DailyForex.com

Posted: 30 Apr 2020 06:23 AM PDT

We have all heard statistics quoted such as 95%, 90%, or 80% of people who open an account with a Forex / CFD brokerage blow their account within six months. Some people tend to believe this out of respect for the Pareto principle, which says that 80% of profit is made by only 20% of cases. Is there any way to know for sure whether any of these estimations might be true? Yes, thanks to new ESMA regulations in the European Union, which oblige Forex / CFD brokers to disclose prominently on their websites what their average retail investor's percentage loss or gain. So, let's take a look at the current statistics published by some of the biggest Forex / CFD brokers in the world (in terms of trading volume) at the time of writing:

A few important conclusions can be drawn from this self-reported data:

All the largest retail Forex / CFD brokerages report very similar data, so it is reasonable to assume approximately 70% of all retail CFD traders lose money.
The percentage of losers is very similar between brokers, suggesting it is the market and the traders themselves, not the brokers, who are responsible for their clients' long-term losses.
Although this data includes clients trading non-Forex products, there is no reason to believe results differ between clients trading Forex and non-Forex CFDs.
Even retail Forex traders seem to be more profitable than is widely believed, as traditional estimations of 80% to 90% as losers appears to be an over-estimation.

Why do 70% of Retail Forex Traders Lose Money?

Now that we have established that for about 70% of people who try it, Forex trading is not profitable, we should ask why. After all, if markets are random as the classic "efficient markets" hypothesis suggests, then shouldn't winners and losers be divided at roughly 50 – 50?

An even division between winners and losers might make sense if Forex were a zero-sum game, as there has to be a loser for every winner, and vice-versa. Yet retail Forex / CFD trading is not a zero-sum game, it is a negative-sum game, because the retail Forex trader:

Must pay either a spread, a commission, or both in order to enter and exit a trade.
Must usually pay an overnight fee on any open trades which are held over 5pm New York time.

This means that the odds are stacked against the retail Forex / CFD trader. However, it is not impossible to overcome these odds, as the 30% of profitable retail traders can testify.

Some years ago, one large retail Forex brokerage released data which showed two clear differences between profitable and losing traders. Traders who:

Made higher deposits into their accounts, and
Used lower true leverage

were more likely to be profitable. We'll examine each of these factors in turn, although they are related, because traders with lower deposits tend to use higher leverage.

Why are Better Capitalized Forex Traders More Successful?

Retail Forex traders who make larger deposits may be more likely to take their trading seriously, because they have more money at stake, and know instinctively that their chance of making a meaningful profit is greater too. For example, a trader who deposits $100 and makes a return of $20 should be just as proud of themselves as a trader who deposits $10,000 and makes a return of $2,000 as it is the same trading achievement – a 20% return. Yet very few people anywhere in the world will be able to get very excited over making $20. So, to some extent, this might be just a question of focus and meaning.

Why are Forex Traders with Lower Leverage More Successful?

A characteristic of retail Forex trading is the relatively high leverage offered by many Forex / CFD brokers, especially those located outside the European Union (Australia allows leverage on Forex as high as 500 to 1). Many brokers also allow accounts to be opened with deposits even lower than $100. This means that a lot of retail Forex traders might deposit $50 and use 400 to 1 leverage to make one trade sized at $20,000. This trader will then either wipe out their account or maybe triple it, which would then probably lead to another over-leveraged trade with a similar result. While there is some logic at work here – a series of winning, highly leveraged traders would a way to make a huge return quickly in theory – the odds against such a gamble resulting in anything except a blown account after a few trades are vanishingly small.

It is also worth remembering that lower leverage makes it easier to control and limit risk, which is a key factor in long-term profitability. This risk issue is best illustrated by the fact that once a trader is down by more than 20% from peak equity, it begins to become exponentially more difficult to recoup the loss. A loss of 20% requires a profit of 25% to be regained; a loss of 50%, a profit of 100%.

How Can I be a Profitable Forex Trader?

Use Very Low or No Leverage

Now we've looked at the evidence, the odds are looking better for you. 30% of retail Forex traders are profitable, and that number would surely be considerably higher if it did not include all the traders using overly high leverage. So, the first thing you can do is only use very low leverage or even no leverage. In practice, this means not risking more than 0.5% (ideally 0.25%) of your account on a single trade. Don't try to be greedy, in Forex trading, it is counterproductive. Forex trading can be profitable, but don't try to push it too far or it will bite back at you.

Make a Meaningful Deposit

If you can only afford to deposit $100 that is OK, but you have to respect that $100 without getting greedy. If the $100 does not mean much to you, you almost certainly won't be motivated enough to trade it well.

Use a Realistic Trading Strategy

You can't expect to just start putting on trades and making money. You need to wait for opportunities where you think the market is putting the odds in favor of either long or short trades, and then take the trades according to your plan. If you do not have a strategy to identify those opportunities, then you will be groping in the dark.

It has been quite well established that markets are not efficient, and that trend-following strategies, if executed carefully, are profitable over the long-run in liquid markets, and that includes major Forex currency pairs such as EUR/USD and USD/JPY. One of the strategies which has worked best in Forex markets over recent decades is to trade breakouts to new 50-day highs or lows on these two major currency pairs, using relatively tight stop losses and some kind of trailing take profit. Pullback trading strategies can also be used to trade Forex currency pairs profitably while they are in strong trends.

Most of the time, Forex pairs range: if the price goes up one day, it is most likely to go down the next day. It is difficult to profit from this, but when it seems obvious that a Forex pair's price is going nowhere, you might try to trade the bounces from the limits of the range on short time frames, using tight stops to increase the reward to risk on winning trades.

Trading strategies which rely upon fundamental analysis are arguably less successful in Forex, but fundamental analysis can be used to effectively filter trade entry signals generated by technical trading strategies.

Follow Your Trading Strategy and Be Consistent

Having a good, profitable trading strategy won't help you use any money unless you execute it correctly. It is important not to get depressed or frustrated by losing trades – remember, it is all part of the plan to have some losing trades, and it is not a big problem as long as you are keeping individual trade sizes small. You should expect losing streaks, which you will more than make up for during the winning streaks. Paradoxically, Forex trading can only be profitable when you are prepared to accept the possibility of meaningful losses, even if they are only temporary. Yet, you must be consistent as if you stop taking trades, you will probably miss winners which would have made the difference.

It is important to control your emotions – most traders get emotional, but profitable traders find a way to stop their emotions from ruining trade execution.

How Much Money Can You Make Trading Forex?

In Forex trading, profits tend to come irregularly, so it is best to look at long-term performance as the most profitable performance possible. Results can vary and there is no guarantee of profit, but good Forex traders tend to outperform stock market benchmarks. I've looked at the best ways to turn $10,000 into $1 million trading Forex before.

Bottom Line

Although Forex trading is not profitable for most retail traders, you can put the odds of profitability in your favor by using very low or no leverage, keeping your maximum risk per trade low, and following an effective trading strategy without getting greedy or impatient.

FAQs

Can you get rich by trading Forex?

It is possible to get rich by trading Forex, but it is very difficult to do so unless you start with a large amount of money, as 70% of retail Forex traders lose money over the long-term. However, outperforming stock markets over the long-term is a realistic goal.

How much do Forex traders make a day?

A Forex trader may win or lose any amount of money in a single day without worrying about it as long as losses are not excessive. It is long-term performance which counts, as one day's trading is statistically irrelevant.

Is trading Forex a good idea?

Trading Forex can be a good idea if you are adequately capitalized and trust yourself to follow a good trading strategy over the long term while limiting risk, as it is accessible and can be a diversified investment.

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ForexTime FXTM review: Could this be the best forex trading tool? review - Techradar