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Finding the best forex broker in Zambia involves evaluating key factors to ensure safety, ease of use, and quality service. It is advisable to consider factors such as regulation, payment options, the reliability of the trading platform, and strong customer support. Before committing to any broker, explore the platform using a free demo account with play money to ensure it meets your expectations before you make any deposit.
Below, we have compiled a list of key points to consider while evaluating online forex brokers available in Zambia.
Key Point to Consider When Comparing Forex Brokers in Zambia
Regulation
Established in 1964, the Bank of Zambia (BoZ) is the central bank of Zambia, and one of its many tasks is to license, regulate and supervise banks and financial service institutions in Zambia. With that said, the Bank of Zambia has not yet developed any specific licensing route for online forex brokers active on the Zambian market. Therefore, forex traders in Zambia tend to chose an international forex broker that is licensed by a strict and reputable authority outside Zambia, e.g. by the FCA (UK), ASIC (Australia), or CySEC (Cyprus, in the European Union).
You can verify a broker’s regulatory status through the respective authority’s official website. Do not blindly trust the information on a broker´s web page – always pay a visit to the official web site of the licensing authority and verify that the broker is actually holding an active license with this authority.
Payment Methods
To ensure easy and affordable deposits and withdrawals, many forex traders in Zambia prefer to use fx brokers that accept transactions through local payment methods, e.g. bank transfers with Zambian banks, or Mobile Money solutions such as Airtel Money and MTN Mobile Money. If using the Zambian Kwacha for deposits and withdrawals is important to you, make sure you pick an fx broker and transaction method that makes this easy.
Note: Using international wire transfers can be costly enough to significantly erode your fx trading profits, especially if you are a small-scale hobby trader making small deposits and trades.
Trading Platforms
Your forex broker will give you access to one ore more trading platforms suitable for forex trading. Some brokers have their own proprietary platforms, while others will utilize independent platforms such as cTrader, MetaTrader 4 (MT4) or MetaTrader 5 (MT5).
Before you make any deposit, it is a good idea to open a free demo account with the broker and explore the trading platform using play-money. That way, you can leave if you realize that the platform is a poor fit for you, your preferences and your fx trading strategy.
Examples of features that you may want the trading platform to have are charting tools, real-time news feed, and the ability to automate trading strategies. Some platforms come with mobile apps for on-the-go trading, which can be an added benefit.
Commissions, Spreads & Other Costs
Check all the broker fees, including spreads, commissions, over night fees, and deposit/withdrawal fees. Review if there are any inactivity fees or account maintenance fees, to ensure you’re not caught off guard by unexpected charges.
Account Types
Some brokers that are active in Zambia offer multiple account types, e.g., Standard Account, Micro Account, and Professional Account, to cater to various needs. It is important to pick the account type that is best for your trading strategy, as the fee structures can be very different from each other. Account type can also impact factors such as mimimum deposit and maximum leverage.
Leverage
Leverage allows you to trade using borrowed money to finance a part of each position, and it will amplify both profits and losses. In Zambia, it is common for fx brokers to offer leverage in the range of 1:30 to 1:500. If you elect to use leverage, you are borrowing money from your broker, and this money must be repaid even if the market goes against you. Using leverage is not recommended for novice forex traders.
Customer Support
Reliable customer service is key for resolving issues, including problems related to deposits, withdrawals, and platform functionality. Ideally opt for brokers that offer 24/5 or 24/7 customer support through live chat, email, and/or phone. Check if they offer support in a language you are comfortable using, since this can make communication easier.
If phone support is important to you, check if there is a toll free number or local Zambian number available. Otherwise, you may be required to make a costly phone call to another country to get phone support.
Educational Resources
Some brokers active in Zambia provides access to educational resources like:
- Webinars
- Market analysis
- Trading guides
- E-books
- Instruction videos
These resources help you stay informed about market trends and enhance your trading skills.
Examples of Popular Forex Brokers in Zambia
Several international brokers are popular among Zambian traders due to their reliable services and support for local payment methods. Here are a few examples:
1. FXTM (ForexTime)
- Regulation: FCA, CySEC, FSCA
- Payment Methods: Airtel Money, MTN Mobile Money, bank transfers
- Platform: MT4, MT5
- Pros: Strong educational resources, fast deposits/withdrawals.
- Additional info: Higher spreads on certain accounts, so make sure you read the fine print.
2. Exness
- Regulation: CySEC, FCA
- Payment Methods: Mobile Money, bank transfers
- Platform: MT4, MT5
- Additional info: Tight spreads, low minimum deposits. Customer support can be slow at times.
3. HotForex
- Regulation: FCA, CySEC, FSCA
- Payment Methods: Mobile Money, bank transfers
- Platform: MT4, MT5
- Additional info: Wide variety of account types, good customer support. No or very limited bonuses or promotions, although this is in line with the restrictions placed by the FCA and CySEC.
4. XM
- Regulation: FCA, CySEC, ASIC
- Payment Methods: Bank transfers, Mobile Money
- Platform: MT4, MT5
- Additional info: Low minimum deposits, responsive customer service. Spreads can be high on certain currency pairs.
This article was last updated on: September 23, 2024