Forex trading has gained momentum in most countries amid the COVID-19 pandemic and the same was witnessed in Africa. There are several reasons for the region becoming one of the hottest for currency investment.
Africa is a heavily populated continent equipped with more than 1 billion people and this has increased the potentiality of more investments. The African economy is growing abreast of more people entering into the workforce and thereafter looking to invest in the money market to get good returns in short term.
Even though the GDP growth rate of most countries in the world has dropped due to the COVID-19 pandemic and lockdown, a couple of African countries have witnessed a drastic increase. A good example to mention here is Libya. It has witnessed enhanced growth for several years, as revealed by the World Bank data. It is therefore no wonder that currency trade has increased in the continent.
A big share of the African population is young people. A Worldmeter data reveals about 60 percent of the population is within the age of 24. The younger generation is likely to have access to speed and stable internet connections on mobile devices and this means they are equipped with the capability of trading forex on the go.
As the potential customers are in great number, several trading companies are stepping into the continent and building up headquarters to serve traders better.
Forex is a 24-hour a day market from Monday to Friday and this means it never sleeps for five days a week. People find the non-stop nature attractive and perfect to take care of their investment along with continuing their other job or profession. They can trade during the lunch break when at work and even while at sleep at home as long as high speed and stable internet is available.
Most analysts believe the young population is growing and soon would become ready for trading. This means that the demand for forex trading is to increase in the near future as more Africans enter the world of trading and investing. The demand will further widen with time.
The reasons mentioned here will not change in near future and hence the expansion of forex trading further in the continent is somewhat guaranteed. This is great newsÂ for both investors as well as brokers alike in Africa.
More to all these, Africa is located in an advantageous position. People can invest in the American session and also the European one. Both the time zones are suitable. One can invest during the lunch break as well as at night.