Which Forex brokers in Uganda should you trade with and why?

It’s no secret that Uganda’s economy isn’t the strongest and most prosperous in the world. We all know that. However, despite that, Uganda has a pretty decent Forex trading environment, and as you will learn below, Forex brokers Uganda potentially, may be of great interest to you, depending on your goals and requirements. A lot of international Forex traders, many of whom have experience with a lot of different Forex brokers in different countries, are showing an increased interest in the Ugandan Forex market, and it’s mainly due to how fast it’s growing, and the new opportunities it provides. However, due to several significant issues that still persist, it definitely isn’t a perfect market. In this guide, we will discuss how Forex brokers in Uganda have established themselves as one of the most interesting growing markets over the last few years, what challenges they have passed, and what challenges still remain to this day. If you want a quick sneak peek before the guide, check out XM, one of the best brokers available on the Ugandan market.

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Our list of top Forex brokers in Uganda

Being honest, compiling this list was no easy task, as the market is still in its very beginning stages, and there’s always lots of events taking place and conditions constantly changing. Moreover, with the country not having its own local brokerages, the available options boil down to international websites that offer worldwide services. Nevertheless, we ranked them according to which ones would be the best for specifically Ugandan traders, based on many factors such as market conditions, bonuses and promotions, and many more.

XM Group

XM Group Forex Review

Minimum deposit

5 USD

Licences

CySEC, IFSC, ASIC

Maximum leverage

1:30*

US Clients

No

Forex.com

Forex.com Review

Minimum deposit

100 currency units

Licences

CIMA, FCA, NFA

Maximum leverage

1:200

US Clients

Yes

IQ Option

IQ Option Review – can the broker be trusted?

Minimum deposit

10 USD

Licences

CySEC

Maximum leverage

1:1000

US Clients

No

 

reliable forex brokers in UgandaRegulation

Lack of proper regulation and licensing policies was perhaps the biggest issue that Forex brokers in Uganda were facing for many years now. The situation is actually a bit complex, as there’s no official regulatory body overseeing Forex trading in the country. Well, that’s only partially true, as it’s a sort of grey area. The government hasn’t put forward any separate official agencies that would directly regulate Forex trading in the country, raising the issue of security. Although very loosely and to a very small degree, Bank of Uganda has been taking the charge in setting up at least some semblance of a regulatory structure. As a Forex broker in Uganda, you can apply for an official license from the Bank of Uganda and be registered in their records. Though, truth be told, even this practice isn’t enforced to as much of a degree as it should be.

What does it mean to have a license from the bank of Uganda, and what are the requirements?

To become licensed Forex brokers in Uganda, companies have several requirements, and most of them are quite easy to meet for any committed broker:

  • To obtain a license, the brokerage needs to be owned by a bank, or be one of its subsidiaries
  • The brokerage must be registered as a limited liability company under the Companies Act of Uganda
  • The company must provide a valid bank statement going at least 6-months back
  • The company must provide an extensive and detailed business plan
  • The company must provide full details like address, names, and other relevant information
  • The company must provide work permits for all of its employees that are not from Uganda
  • The company must provide complete proof that its director has never been caught for any financial criminal activity

For meeting these very reasonable requests, companies can become government-recognized and registered Forex brokers in Uganda. There’s an application fee for the license, which is a modest amount of 400,000 UGX (About $105 as of this writing). For the qualified applicants, the license fee of 1,000,000 UGX must be paid, along with the same amount of renewal fee every year.

With these conditions at hand, many people think, that there are not many reliable Forex brokers in Uganda, and rightfully so. However, we can tell you that that’s definitely not the case. The thing is, the license from Bank of Uganda, while still a nice gesture of safety from the companies, still isn’t as significant as many people think. Most of the international companies that operate in other countries besides Uganda will have multiple other licenses from other well-established and well-known regulators from different countries. If a broker has been around for many years in many different countries and has licenses from other major regulators like FCA or CySec, you can feel as secure as anywhere, as these regulators have been there for a very long time now, and have impeccable standards for Forex trading companies, and that includes Forex trading companies in Uganda. The point is, if you can feel secure with an FCA-licensed company within the UK, you can feel secure with them in Uganda too.

Though obviously not perfect, these are the regulatory conditions in Uganda, and for now, but according to the government, there’s work in progress on coming up with more coherent and effective regulations that would further improve the security of the investors and make it easier for companies to enter the market. Though, as we said, if you go with legit Forex brokers in Uganda, meaning legitimate international companies with a proven track record, you won’t have any issues, even if these companies don’t have licenses specifically in Uganda. As you can see, it is definitely possible to trade safely in Uganda, as long as you go with a trusted broker. If you are looking for a reliable broker that has good reviews by thousands of traders online, check out XM, where you can start trading today!

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best forex brokers in ugandaWhat bonuses and promotions do the Ugandan Forex websites have?

Bonuses are usually one of the most significant points for all traders when they are choosing a website to start trading at, and this is probably even more so the case for traders from countries with poor economies like Uganda. At the right time and place, bonuses can completely change your experience from worst to best. Whether that be helping you out after suffering a huge loss or giving you some much-needed breathing space in the form of extra credit when coming up with your trading strategy, they are always welcome. Bonuses and promotions come in different shapes, forms, and sizes, and it all depends on which broker you go with. However, there are several bonuses that are the most common with Ugandan Forex brokers and international brokers operating in Uganda. Let’s discuss these bonus types below, so you can learn which one is most suitable for you, and how to make the most out of them:

Welcome Bonuses

Welcome bonuses are probably the most common category of bonuses. Forex brokers online in Uganda and everywhere else in the world use them as a tool for attracting investors, and it’s very effective. The reason for that is because they are very helpful for all types of traders. An independent trader can take the welcome bonus and use his experience to potentially multiply it, all for free. With the beginner traders, it’s even better, as any extra credit can be of great help when starting out. Welcome bonuses actually split mainly into two different types:

First-time deposit bonus

These bonuses are given to players who sign up and make their first deposit. The amount varies from broker-to-broker, but it’s usually a percentage of your actual deposit. The deposit amounts are usually capped, again depending on your broker. These bonuses are very attractive to experienced traders who are looking to try out a new broker. If you find a website to be interesting due to its qualities like leverage, success rate, etc, then having a nice little bonus on top can definitely help you in making a final choice between the best Forex brokers accepting traders in Uganda.

No-deposit bonuses

No-deposit bonuses are available to pretty much all new players who sign up on a website, just by the virtue of signing up. These bonuses are especially attractive for the absolute beginners who have zero experience with trading. Getting into the trading world can definitely be an overwhelming process for the beginners sometimes, especially in countries like Uganda where Forex trading isn’t as established as in other countries. A brokerage giving you this kind of no-risk bonus can be a huge encouragement It removes lots of the risks that most beginners commonly face, like losing money purely due to lack of experience, which can sometimes be very discouraging and leave them with a bad first experience, resulting in them giving up trading altogether. Due to the popularity of these bonuses, many online Forex brokers in Uganda offer these bonuses on a regular basis, making it a very effective tool for attracting new traders. These bonuses usually come with a restriction on withdrawals, meaning you can’t just claim the no-deposit bonus and take it out without opening any trades. This is done to ensure the safety of the broker and prevent the abuse and exploitation of this feature.

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Reload Bonuses

This particular bonus is more geared towards the experienced players, the ones who have already made at least one deposit in the past, and are now re-depositing on their account. The goal of these promotions is to incentivize the already-existing traders to keep returning to the broker and keep trading, and it’s very effective. With the market being so diverse and dynamic, brokers in Uganda, and everywhere else in the world for that matter, have to constantly stimulate their players with recurring bonuses, so they may always look forward to something new. This is exactly why the reload bonuses are so popular among traders in Uganda.

Referral bonuses

One of the best ways to earn extra bonus money for Ugandan Forex traders is to utilize Referral Bonuses. With the economies and markets where word-of-mouth and recommendations by others can mean a lot, these Referral bonuses can be one of the most effective ways to attract new traders and investors for brokers.

Referral bonuses work by rewarding the members for recommending the broker to other people and getting them to sign up. Depending on the structure of the referral program, you may earn a reward for each newly referred friend, or after reaching a certain milestone of the number of people brought. It all depends on the brokerage itself, and their own specific policies.

Referral bonuses can be an extremely effective way of increasing the trader base for a brokerage, and most of them know this full-well. That’s why, if you pay enough attention, you will notice that there are tons of ads and promotions that encourage you to bring your own friends to the broker. As long as you are dealing with reputable, trustworthy, and legit Forex brokers in Uganda, there’s absolutely no reason not to utilize these bonuses!

forex trading brokers in ugandaWho can start trading Forex in Uganda and How much does it cost?

Seeing as there’s still no official regulatory authority for regulated Forex brokers in Uganda, as a general rule, anyone who’s over age 18 should be qualified to do Forex in Uganda, as that’s the required age for most of the international Forex companies that are operating in Uganda. Beyond that, you should be checking if there’s any specific set of requirements or rules that you need to be qualified for before you can start trading. This, again, depends on your specific broker.

The same can be said for the minimum amount required to start. With Forex in general, the main advantage that it has over other forms of investing and trading is that you are the one who decides exactly how much capital you want to start with, how big is your budget, etc. So, there’s no “universal” amount that can be said is the required monetary amount to start. With that being said, most Forex trading platforms in Uganda will have some kind of a minimum deposit limit, which will also be different based on the broker. It can be as big as $250, but it can also be as little as $5. Usually, for countries like Uganda, brokers will be offering a lower entry point. If you are a beginner looking to start off your trading journey easily and affordably, check out XM, one of the most commonly-picked brokers by the beginner Ugandan traders.

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Best forex brokers accepting traders in Uganda

What does the future hold for Forex trading in Uganda?

Despite having some definite issues which we discussed above, the Ugandan Forex market is, without a doubt, showing great signs of progress, with lots of international companies showing keen interest in entering the Ugandan market. The local population has a huge interest in Forex trading, and therefore there’s always a potential for lots of growth. As the government increases its efforts to establish a higher standard of regulation in the country, and as the experience of Ugandan FX traders increases with time, the country can really become one of the most interesting Forex destinations on the global market.