Forex trading is slowly but surely becoming a popular venture around the world. Over the past few years, the market has become very popular throughout Africa, with many of the countries adopting favorable regulations in terms of Forex trading.
Although the country has suffered a lot due to political and economical hardships, the newer generation of Angola tends to be very interested in modern technology and the financial markets.
Because of the interest that the people of Angola have in Forex trading, the country has become one of the top destinations for Forex brokers around the world. The country does not have a strict regulatory framework when it comes to Forex trading, because of which, it might be a little harder for beginners to start trading in Angola.
In today’s guide to Forex trading in Angola, we are going to discuss every detail about the market and discover everything that beginners should know about the market. So, if you want to know how you can start trading in the country, follow our comprehensive guide.
Broker of the Month
Discover our best broker for July and start trading today
When you are trading Forex, one thing that you should be focusing on the most is the safety and security of your funds. When it comes to trading Forex in countries like Angola, where regulations are not as straightforward, it is a bit harder to decide which broker to trust and why.
The Forex trading market is very risky, and for maximum safety, it is a great idea to trade only with brokers that own official licenses from a top-tier regulatory agency.
Angola does not have a specific regulatory agency that takes care of the financial markets in the country. The whole market is controlled by the National Bank of Angola, which is the central bank of the country.
Although the Forex trading laws are not that strict in the country, the National Bank of Angola works very hard to make it safer for investors. The central bank is in active development of the financial inclusion policies and is also a member of the Alliance for Financial Inclusion.
While Forex brokers can get registered locally, they are not required to do so, which is creating a lot of problems for the local Forex trading market. It is a very common practice around the world for regulatory bodies to require brokers to be registered locally. However, there is no such requirement in Angola.
How to stay safe while trading Forex in Angola?
Although the lack of regulations makes it difficult for local traders to find a safe space for Forex trading, there still is a way to trade Forex in Angola without risking losing all of your funds. One of the best things that you can do is to trade with internationally acclaimed Forex brokers.
Due to the huge interest in the Forex trading market of the younger generation of the country, there are numerous Forex brokers that offer services to the citizens of the country. Among these brokers are some that are very well-known around the world.
To make sure that you are staying safe while trading Forex in Angola, you can directly contact the regulatory agency that the broker claims to be owning a license from. You can ask the regulatory agency if the broker is really licensed by the regulator or not.
To stay as safe as possible while trading in Angola, you should trade with brokers that own licenses from leading regulatory agencies around the world. Also, there are some things that you can focus on to make sure that the offerings of the broker are legit. In most cases, if a broker claims that there are no fees charged, and the general services are too good to be true, in most cases, the brokers are scammers.
Why does Angola lack a regulatory framework?
One of the main reasons why the regulations in the country are not as strict as in other jurisdictions around the world is the situation of the country. For the majority of the 20th century, the country went through some tough times, making it harder for the country to focus on things like financial markets.
The country started developing faster in the first half of the 21st century, having one of the largest economic growth. As of today, the majority of the country’s population is still heavily dependent on the agricultural sector.
The economy of Angola & conditions for Forex trading
Although the country had some positive developments in the past few years, the economy of the country still remains to be heavily influenced by the challenges of the last century.
The country had one of the fastest-growing economies in the world at the beginning of the 21st century, however, it seems to not have been enough. As of today, the country largely depends on oil and gas resources, exports of which represented 64 percent of government revenue in 2017.
Because the country has faced so many challenges in terms of its economy as well as politics, Forex trading did not have much time to develop. That said, the newer generation of Angola is showing an increased interest in the Forex trading market and there are many people who are starting to look for ways to become part of the market.
Due to the things that we have talked about above, there are not so many Forex brokers in the country. Because of this, the majority of the Forex traders in the country have to trade with international Forex brokers that offer traders of the country their services.
The national currency of Angola
The national currency of the country is Angolan Kwanza, AOA. The currency was introduced in 1999 replacing the Kwanza Reajustado, AOK. The central bank of the country is responsible for taking care of the currency and its stability.
Trading Angolan Kwanza is not that popular among Forex traders, and if traded, it is mostly used in pairs with the USD.
Which trading platforms are popular in Angola?
When it comes to Forex trading, one of the most important things that you should keep in mind is the trading platform that the broker offers. You will be spending most of your time using the trading platforms, opening and closing your positions, doing market analysis, etc. Because of this, it is very important to use the trading platform that works best for you.
Forex traders in the country are most likely to be trading with international Forex brokers that mostly offer trading platforms such as MetaTrader 4 and MetaTrader 5. Both of these trading platforms are very intuitive and easy to use even for those who have just started trading.
They offer traders dozens of different technical indicators, charting options, timeframes, and many tools that make Forex trading a lot easier. Both of these trading platforms were created by the same developer, MetaQuotes. While MT4 largely focuses on Forex trading, MT5 also offers traders access to other assets, such as CFDs, stocks, indices, and so on.
Available payment methods in Angola
The most commonly used payment methods in Angola are Visa and Mastercard. The citizens of the country are also able to use online wallets, such as PayPal. The Union Pay International card was also launched in the country in 2018.
There are also several mobile payment solutions available in the country, which makes transferring funds a lot easier. Using mobile payment methods, you can deposit funds on your trading account in just a few clicks.
Final thoughts on Forex trading in Angola
Angola has had a very hard time over the past few decades in terms of politics as well as economics. The country had to totally reinvent itself and because of this, it didn’t really have much time to keep up with the developments globally.
Although there are no strict regulations of the Forex trading market, the younger generation of the country is still very interested in the market. There are many risks associated with Forex trading in Angola, however, there still are ways to stay safe while trading FX in Angola.
There are numerous internationally acclaimed Forex brokers offering services to local traders of the country, which is a very important thing for Forex traders of Angola.