By Iposu Elijah O.
The Forex market is by far the largest trading platform in the world. With an estimated daily trading value of $5tn, it totally outstrips bitcoin which has an estimated total value of $10bn. Africa’s youthful population, means a more vibrant, dynamic and sparsely restless population, who are always in search of new opportunities to plug into. Many find this new opportunity in forex trading. In addition to the many qualities of a youthful population is inexperience and recklessness.
Forex trade is fast becoming the leading scamming game in many “developed” African countries. Many uninformed, educated illiterates take advantage of this growing interest in forex trading to deprive people of their savings and at times capital. At a workshop organised by Accum Forex, the Team Lead and Founder, Raymond Avornyoh talks about the trend in Ghana “recently we have seen a lot of scams, a lot of companies have been setup and they are collecting public funds, which they claim they are investing. Sooner or later they collapse or lose all the money.”
In his view before anyone ventures into the foreign currency market, you need information on how to get involved, what to look out for, how to identify scams and generally how to trade. Many people do not bother to study or be trained in forex trading. Due to the impact of the internet, many people have belittled the essence of one-on-one training. Many aspiring traders are reported to go online and download or watch videos that teach on trading. These are the things that expose aspiring or new traders to scams. “we are training people about forex market, how to get involved, who to trade with and how to spot scams. He encouraged Ghanaians to get involved in forex trading as their counterparts in Nigeria and South Africa are making a good living from trading. There are openings for traders the world over. Brokers are constantly in search of engaging experienced traders.
Traders lose millions of dollars annually to scam. It is important to know more about a broker before you engage their services. Any broker that is not regulated by any financial monitoring body is not reliable. Over the next 10 years, it is expected that forex trading in Ghana would have developed significantly to the level of other African countries. But there are steps required to curtail scam and to manage volatility in the market. “From a firm’s perspective, we will give information. For example how to trace a company that says it trades in the UK, Cyprus and other parts of the world. How to use Financial Conduct Authority, UK, Cysec-Cyprus, Companies House UK, US regulatory department, Australian Authority etc. help people find out whether a broker is duly regulated.”
What is more important is the role of government in developing policy guidelines on trading in Ghana “In the Ghanaian perspective it appears nothing is being done yet. We hope that SEC and other agencies will partner some of us in the industry to help develop regulations to help select brokers so that people don’t just entrust their funds or trade on just any platform. On the other part, people have been giving their funds to individuals who claim they are investing in foreign currency market. We need laws to regulate that so that when money is lost people pay back. We need laws to protect people who give money to others for proxy trading”
Forex trading is on the increase due to the open-ended, recession-free opportunity to make money. “It is an opportunity to make an extra income from an alternative market which is recession free. As we are in Ghana, we are in a recession. However, the foreign currency market trades $5tn every day. Irrespective of what is happening in any other economy, the forex market is still $5tn. It’s only wise to get involved. Also, looking at the Ghanaian situation with a high rate of unemployment, the market offers endless opportunities in terms of employment.” In his words, you can start trading with as little as $500 and can be managed till it becomes your personal income and you can look after your family.”
Accum Forex, the organisers of the event is a forex training and advisory service institution whose aim is to ensure aspiring traders trade profitably. This training is part of its CSR to guide and inform individuals on the benefits and risks of training. It is open to the general public and holds an average of once every quarter. It also provides paid training services for individuals and corporate bodies.
In order to be a forex trader, you need a laptop, some money and a regulated broker. The emphasis in this case is a “regulated broker.” Regulation is the clause that protects your funds.