A guide to finding best Forex brokers in Ethiopia

The common misconception about the countries in Africa is the widespread poverty, economic hardship, and long way to go until some sort of economic stability is achieved. While this may be true for some, this is most certainly not true for every single country on the continent.

The Federal Democratic Republic of Ethiopia is a good example of how the stereotypes about African countries are often far from reality. The country is located in the Horn of Africa and shares borders with Sudan, South Sudan, Djibouti, Somaliland, Kenya, and Djibouti.

With an overall territory of 1,104, 300 square kilometers, the Ethiopian population is over 126 million people, and it is home to some of the regions’ most diverse demographics – there are over 80 different ethnic groups currently residing in Ethiopia.

With the rapid development of the country, as well as the introduction of modern technologies and Internet access, Ethiopian citizens are now able to join the global Forex market. Although it is completely legal to trade Forex in Ethiopia, this market is still in its early stages, and there are currently little to none brokerages licensed and based in the country. On the upside, residents of this country can open accounts with global brokers.

In this guide, we will take a closer look at what Forex trading in Ethiopia is like, including the existing regulatory mechanisms and the legal requirements that you will have to meet in order to be legally eligible to become a trader in the country. Moreover, we will provide you with top brokers list.

The best Forex brokers in Ethiopia

As an amateur trader, you probably find yourself overwhelmed with the number of brokerages that are currently offering their services in the market. Finding the most suitable broker is indeed a challenging task, however having a good broker is definitely an essential component of successful trading.

Every Forex broker is different. Some offer access to trading multiple instruments, such as CFDs (Contracts for Difference) on stocks, indices, commodities, etc. While others offer various account types and low trading fees. Depending on your goals, you should look for a broker that best fits your needs. We have reviewed many different brokers and came up with the top brokers list. You can press on the broker’s logos to read detailed reviews.

Regulations and Ethiopian Forex market

The main regulatory body in Ethiopia is the National Bank of Ethiopia (NBE), established back in 1963. Shortly after this institution was created, it was abolished due to the change in the governance and was inactive until it was reestablished in 1991.

Today, the National Bank of Ethiopia is responsible for monitoring the supply of the country’s currency, as well as the country’s international reserves. On top of that, the NBE oversees the functioning of the country’s financial markets, banks, and other lending institutions. The National Bank also controls the foreign exchange rates of the national currency, maintains the price and exchange rate stability, fosters sustainable economic development, and issues licenses to the relevant financial institutions.

Unfortunately, Ethiopia is yet to introduce a working regulatory mechanism, aimed exclusively at the local Forex market. Because of this, there are almost no Ethiopian Forex brokers in 2023. Furthermore, in the absence of any regulations, the local market is flooded with scammers and fraud schemes. To avoid scams, it’s important to always look for a regulated broker.

There are many internationally regulated and reputable brokers that offer financial services to the residents of Ethiopia. All the brokers that we have recommended in the top brokers list above are international brokers.

How to become a trader in Ethiopia

Becoming a Forex and CFD trader is easy, as there are low barriers to entry. Most brokers have little to no minimum initial deposit requirements, registration and account opening typically takes less than a day, and brokers offer desktop, mobile apps, and online web trading terminals.

In order to be legally eligible to become a Forex trader in Ethiopia, you need to be aged 18 or older. In addition, you need to collect some documentations during the registration process, such as proof of your ID and proof of your residence.

Many beginners wonder whether it is free to become a Forex trader – and it is, but it is also not at the same time. Most brokers offer free to use demo accounts that help traders develop their trading skills in a risk-free environment, however, to make money trading, investors need to deposit funds to live accounts. The amount is of money that you need to deposit to trade professionally is subjective and depends on your level of risk tolerance, expectations and goals.

Most popular trading platforms in Ethiopia

A trading platform is an important component of your trading success. It will ultimately define how exposed you will be to the various trading assets, and how smoothly and quickly your orders will be executed. We recommend that you take your time to research various trading software options to determine which one suits you best. As mentioned earlier, there are a lot of international Forex brokers that operate in the Ethiopian FX market, thus, it is no surprise that you can find a variety of platforms to choose from. The most popular trading platforms for desktop computers are:

• MetaTrader 4 (MT4): MT4 is best suited for trading solely currency pairs.
• MetaTrader 5 (MT5): MT5 is a multi-asset platform that also supports trading stocks, bonds, and futures.
• cTrader: cTrader is a modern looking platform that offers user-friendly interface and advanced analytical tools.

MT4 was developed in Russia in 2005, by a company called MataQuotes, MT4 and MT5 have soon become so popular that they are now used by almost 90% of the brokerages worldwide. The reason why MetaTrader can easily be named as one of the best online trading platforms in Ethiopia is because of its reliability, efficiency, and user-friendly interface. Moreover, you, as a beginner will be able to benefit from the extensive community of MetaTrader users, that you can refer to for advice on how best to use the software.

Summary

The field of Forex trading in Ethiopia is still in the early stages, and the market is not yet regulated properly. There are no significant local brokers operating in the country, and the marker is full of con artists disguised as the legitimate brokerage. However, Ethiopians can open trading accounts with internationally regulated brokers. Brokers, such as XM, that are licensed by reputable financial institutions are highly trustworthy.

FAQs on finding the best Forex brokers in Ethiopia