Online forex trading uganda
It is here and it has taken forex trading to another level. However, despite the vast amounts online forex trading uganda money involved, no government institution is in charge of regulating the trade. This is because there is no legal framework governing it as Walter Wafula writes. Online forex trading uganda growing number of daring Ugandans is engaging in an extremely risky but lucrative internet-based business.
Forex trading is the buying and selling of different currencies by either firms or individuals. One currency is usually traded for another. The business is conducted by internet and foreign exchange Forex savvy traders across the world with a network of agents across the globe. For one to trade, he or she needs a forex account from the participating brokerage firms or online forex trading uganda. But to make profits in the money markets, just like in the stock markets, one has to be quite knowledgeable and up to date with information across the globe.
You must have the right information and must do it at the right time in order to make money. Business Power has observed and spoken to market players over the past few months and discovered that the trade is now worth billions of shillings in Uganda.
Despite the vast amounts of money online forex trading uganda, no government institution is in charge of regulating the trade. This is because there is no legal framework governing it. The business is, however, recognised as any other and has attracted at least daring Ugandans. But that value takes into account his customer deposits, accumulated interest and other investments the business holds.
They have entrusted him with at least Shs1. The company has a partnership with Cyprus-based FxPro Group, a rapidly expanding forex brokerage company in the world. Besides making money by trading for others, online forex traders are making money by training others how to make money in the business. Online forex trading uganda are given tips on how to operate the trading platforms that international brokerage firms provide and also when to buy and sell currencies.
A trainer who spoke to Online forex trading uganda Power but also preferred anonymity said he is currently training 10 people how to trade currencies in global markets. He also has six customers he is helping trade their money. Both deals are signed before attorneys to increase trust. Forex traders generate income interest by buying particular currencies when they depreciate and selling them when they appreciate online forex trading uganda other currencies.
The difference between the buying and selling price is called a spread. The spreads range from between 0. The higher the spread online forex trading uganda more money the trader or online forex trading uganda and his client earn. But Mr Joseph Lutwama, a senior legal officer at the CMA, last year told journalists that the business is illegal in Uganda and there are some individuals who are building pyramid schemes out of the trade.
Mr Stephen Kaboyo, the director of financial markets at Bank of Uganda equally disregarded the business despite being in charge of currency markets in the country.
If you are interested, you go in. Market players like Mr Kasumba who are making big bucks from the trade and building business empires are beginning to restructure their operations to improve governance.
The restructuring is also aimed at making customer deposits safer. Reilag has online forex trading uganda operating two accounts namely; the Guaranteed Account and Personally Managed Account. The business online forex trading uganda largely been built on the guaranteed account which will be phased out by The better way is letting clients open their global FX accounts and be in control of their deposits.
But the trading will be carried out by the Reilag, which will then expect a commission from the client. But to achieve that, strict rules of engagement will have to be laid as his clients may online forex trading uganda be as trustworthy as he has been.
By controlling the number of clients, the firm wants to have a number of exclusive clients it can diligently serve without getting itself in a mess. Mr Kasumba is also hoping that the government can come up with a law to govern the growing trade as soon as possible. To deal with the risk of collapse and loss of customer deposits, he said the firm is now seeking the services of an insurance firm to underwriter the funds Reilag holds. While Reilag Investments appears to be working towards becoming a reputable legal entity, there are many brief case companies that are attempting or planning to get involved in the same business.
The government should therefore come up with regulations that can govern how the business is conducted to prevent any loss of hard-earned money by individuals and businesses in Uganda. In Summary It is here and it has taken forex trading to another level.
Although Forex trading seems complicated, it is really quite simple once you understand how it is done. Basically, whenever you trade Forex, you are actually trading a currency pair, meaning that you are buying a certain amount of one currency while simultaneously selling another.
Top Forex Broker for Uganda. Its exchange rate is 1: You wait for two weeks, and then the exchange rate becomes 1: Of course, you may have noticed that you need a lot of money in order to make a profit from Forex, but this issue can be addressed easily, as we explain below. Trading Forex is usually done through a broker. You need to use the services of a broker since there is no central exchange to trade forex, unlike stocks or other securities.
The broker acts as an intermediary between you and a buyer or seller. Fortunately, as a result of high competition among Forex brokers, the spreads have been driven very low. This means that you will usually only pay the broker a few dollars for a trade that is worth thousands of dollars. You interact with a broker using a trading platform. This is a software program that allows you to enter and exit trades and also offers a variety of other features, such as access to real time Forex data and charting software that allows you to create charts using price data so you can identify trading opportunities.
Usually, you have to download the software into your computer, but many brokers now offer the option of allowing you to trade using their online platform, so you can trade from any computer. But one important service that the Forex broker will provide you is leverage. Leverage essentially means that you can trade using borrowed money. To illustrate how this works, let us say that your broker will provide leverage of 1: The broker is willing to extend leverage because they want to encourage people to get into Forex trading, and to make more trades.
But they also know that they can usually get their money back, even on losing trades. If the proceeds of the trade were not enough to cover the debt, the broker would simply get the remainder from your trading account. Thus, you can trade Forex even if you only have a limited amount of capital by availing of leverage. Leverage also allows you to greatly increase the profits you earn from the capital that you do have.
Of course, the opposite is also true: This is why you must use leverage very carefully. Unfortunately for those who would like to trade Forex, there are no reliable brokers in Uganda at present.
But you can use the services of an offshore broker one who is based abroad. There are many Forex brokers who are more than happy to deal with Ugandan Forex traders. It is very easy to open an account with them; you can do so in just a few minutes.
Many of them allow you to trade using demo accounts, so that you can make paper trades without risking any money. This allows you to gain experience in Forex trading safely, as well as letting you practice how to use the online trading platform. When you are ready to start trading using real money, you can easily deposit money into your account using a payment solution such as Neteller, Skrill, U Money, and so on. Many brokers may also allow bank transfers if you would like to transfer larger amounts of money, although you should confirm with them first.
For your guidance, I have checked the online brokers that accept traders from Uganda and who provide the best trading conditions, as well as the most accessible methods for depositing and withdrawing money.
These brokers offer high leverage, low minimum deposit requirements and have advanced trading platforms. In addition, they allow you to make trades through your mobile device so that you can continue trading anywhere there is an Internet connection. Even better, they have a lot of educational resources that you can use to learn more about online Forex trading and how to make money from it.
Please enter an answer in digits: Forex Brokers and Leverage Trading Forex is usually done through a broker. Forex Brokers in Uganda Unfortunately for those who would like to trade Forex, there are no reliable brokers in Uganda at present. Top Forex Broker for Uganda These brokers offer high leverage, low minimum deposit requirements and have advanced trading platforms.
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