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 in this region.

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 reaches 109,224, 414 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.

In this guide, we will have 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 there.

Which brokerages are the best in Ethiopia?

As an amateur trader, you will probably find yourself overwhelmed with the number of brokerages that are currently offering their services in the market. What’s more, you are probably unsure as to how to approach the search for the one that suits you best, and how to avoid fraud schemes disguised as a legitimate brokerage.

Since the field of Forex trading is still very young in Ethiopia, we decided to help you stay safe and carry out our own research of all the FX brokers operating in this country. What we came up with is a complete list of the best Forex brokers in Ethiopia, which you can find below. By choosing one of the brokerages from this list you can be sure that you will both be receiving a high-quality service and have your funds protected at all times.

XM Group

XM Group Forex Review

Minimum deposit

5 USD

Licences

CySEC, IFSC, ASIC

Maximum leverage

1:30*

US Clients

No

Exness

An in-depth review of Exness Forex broker

Minimum deposit

1 USD

Licences

CySEC, FCA, FSA

Maximum leverage

1:Unlimited

US Clients

No

IQ Option

IQ Option Review – can the broker be trusted?

Minimum deposit

10 USD

Licences

CySEC

Maximum leverage

1:1000

US Clients

No

EagleFX

EagleFX Review – Is it worth your time and money?

Minimum deposit

10 USD

Licences

N/A

Maximum leverage

1:500

US Clients

No

RoboForex

RoboForex Broker

Minimum deposit

0 USD

Licences

CySEC, IFSC

Maximum leverage

1:2000

US Clients

No

How is the Ethiopian FX market regulated?

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 2021. Furthermore, in the absence of any regulations, the local market is flooded with scammers and fraud schemes.

Having said that, we should also mention that it does not mean that one should avoid the Ethiopian Forex market altogether. There is a way in which you can both launch your career as a Forex trader and remain safe at all times.

A simple way to do it is to join one of the international brokers that offer their services in Ethiopia. Of course, not every single one of the international Forex brokers is trustworthy, however, if the brokerage is licensed by a reputable regulatory authority ( such as the Cyprus-based CySEC, or the UK’s FCA) you can be confident that you will be protected at all times.

One last factor to keep in mind is that the information that the broker discloses on their official website is not always accurate. In order to avoid significant losses and fraud schemes, we recommend that you take your time to contact the relevant regulatory authority directly and check if the best Forex broker in Ethiopia that you have chosen does, indeed, possess a license issued by it.

Who can become a trader in Ethiopia and is it free?

Now that you have learned about the country’s regulatory mechanisms and the brokers that are safest to trade with, you are probably wondering – what does it take to become a Forex trader in Ethiopia? Luckily, the process is pretty straightforward, and once you complete it, you should be able to start trading in no time.

In order to be legally eligible to become a Forex trader in Ethiopia, you should only be able to meet one requirement – you should be aged 18 or older. Having met that, the only other requirements that you should be worried about are the ones that your broker of choice has in place. Those are also quite easy to meet in most of the cases, and they revolve around your employment status and the monthly income.

Many beginners wonder whether is free to become a Forex trader – and it is, but it is also not at the same time. It is true that signing up with one of the best Forex brokers in Ethiopia in 2021 will not cost you a dime and if a brokerage offers a demo account you can use it to practice your trading skills for as long as you like, and, often, free of charge.

However, if you wish to access the real FX market, you should be prepared to make a deposit. The requirement for the minimum deposit varies from broker to broker, but they usually stay within the frame of 5 – 500 USD or equivalent.

The size of the minimum deposit requirement should not be treated as the single indicator of how good or bad the brokerage is – you will find that even on the top Forex brokers list provided earlier, such requirements are very different. You should, of course, find the one that suits you best, and the general recommendation is to only deposit what you will be comfortable losing.

Which trading platforms do brokers in Ethiopia use?

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. You will probably learn that some brokerages offer their own, custom-made platforms, while others prefer more popular pieces of software, such as cTrader, MetaTrader 4, and MetaTrader 5.

The latter two are often cited by the professional trades as the best options for beginners. First 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.

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.

Are there any bonuses and promotions available in Ethiopia?

The good news is yes, most of the best Ethiopian Forex brokers do offer various bonuses and promotions to their clients. But what are the bonuses that we keep mentioning anyway, and why would you want to receive them?

The provision of bonuses is a way for a broker to expand their customer base, and for the traders to kickstart their trading sessions. Some countries prohibit the provision of such bonuses as an aggressive form of marketing of a potentially risky financial enterprise, but Ethiopia is not one of them. There are two main kinds of bonuses that you will come across:

  • A welcome bonus is usually available to those who first sign up with a brokerage. It is either issued immediately after the registration is completed or once the first deposit has been made. The deposit itself cannot be withdrawn, but it can be used to increase your potential profits.
  • Refill bonuses are available periodically to the returning clients. This bonus, too, cannot be withdrawn, and its size will depend on the amount that you deposit. The refill bonuses are usually announced in advance by the brokerage itself.

If you wish to incorporate bonuses, into your trading sessions, you will be able to find a lot of them with the top Forex brokers in Ethiopia. You, should, however, study the terms and conditions of getting and using them in order to know exactly what you are signing up for.

Forex trading in Ethiopia  – the final verdict

The field of Forex trading in Ethiopia is still in the early stages, and the market is not yet regulated properly. There are no local brokers operating there, and the marker is full of con artists disguised as the legitimate brokerage.

However, the market still has a lot to offer to the local traders, and the national economy is developing at a rapid speed. If you are a citizen of Ethiopia who has long been interested in Forex trading, we recommend that you join one of the regulated Forex brokers in Ethiopia and explore the market with no risk to your hard-earned funds.