Forex trading in Tanzania – Everything that beginners should know
Forex trading in Tanzania is growing very fast and more and more people show interest in this market. Although Forex trading is legal in Tanzania, the laws and rules regarding currency trading in the country are not clearly defined.
The Forex trading market is officially regulated by the Central Bank of the country, however, there are no specific guidelines or rules that brokers have to follow to be able to offer citizens of the county trading services.
Technological advancements and the fast pace of development make Tanzania a potentially attractive destination for Forex trading, however, due to the lack of regulations, getting started in this market is quite difficult in Tanzania.
Because of the risks that Forex trading has, it is very important to only trade with regulated and licensed Forex brokers. In today’s guide to best Forex brokers in Tanzania, we are going to discuss how Forex trading works in Tanzania and what you should know about the market before you get started.
Broker of the Month
Discover our best broker for October and start trading today
Forex trading is a very risky market, and because of this, it is very important to only trust Forex brokers that own legit licenses from top-tier regulatory agencies. Jurisdictions around the world have created regulatory bodies that take care of the Forex trading market and make sure that everything happens under strict guidance.
Although there is a body that oversees the Forex trading market, the local trading rules are not clearly defined in Tanzania, which makes it a little hard to find a trustworthy Forex broker. This is one of the main reasons why the majority of traders in Tanzania go with international Forex brokers.
The Central Bank of Tanzania is the sole regulator of the financial markets in the country. However, Forex brokers are not required to own any license to offer local traders services. Because of this, it sometimes gets a little hard for people to tell which broker is trustworthy and which one is a scam.
That said, there are many international Forex brokers that offer local traders access to the market.
How to trade Forex safely in Tanzania
As we have already said, because the market is not well-regulated, there are numerous challenges that traders in Tanzania face. One of them is finding a trustworthy Forex broker. To make sure that you are trading with a broker that can keep your funds safely, you can trade with internationally acclaimed Forex brokers.
These brokers are mostly regulated with top-tier agencies around the world, such as FCA, CySEC, ASIC, and many others. These licenses are a guarantee that the safety and security of clients are the top priority of the brokers.
To make sure that you are staying safe while trading Forex, it is very important to only trust reputable Forex brokers. There are only a few local brokers in Tanzania, because of which, the majority of traders in the country choose to trade with international Forex brokers.
Anyone in the country who is over 18 years old can start trading Forex. There are numerous international Forex brokers that offer local traders of the country trading services. All you have to do is to find the one that fits your needs best, open an account, deposit funds, and start trading Forex.
The national currency of Tanzania
The national currency of the country is the Tanzanian shilling. The code of the currency is TZS. The currency came into circulation in 1966, replacing the East African shilling. The Central Bank of Tanzania is responsible for issuing as well as controlling the local currency of the country.
The central bank also is responsible for maintaining the price stability of the currency as well as controlling the monetary policy. The Tanzanian shilling is not a popular currency among traders. It is most commonly traded in pairs with USD.
The majority of Forex brokers who offer services to traders from the country also accept payments made in the local currency.
The economy of the country
According to the official data from 2019, the GDP of the country has reached as much as 186 billion US dollars. The country has seen an average growth of 3.5% annually, which exceeds the median number of East African Community member countries.
The economy of the country largely relies on the agricultural sectors, which make up for about 85 percent of the country’s total exports. Tanzania is known for exporting goods like sugar, tobacco, coffee, rice, sweet potatoes, beans, and so on. The country also exports gold. As for the tourism industry, it has developed significantly in recent years and makes up almost 18 percent of the total GDP.
Most popular payment methods among Tanzanian traders
There are numerous payment methods offered to traders from Tanzania. Among the most common payment solutions in the country, you will find card payments, such as Visa and Mastercard as well as wire transfers and direct bank transfers.
Many local traders are very actively using eWallets and the majority of brokers are accepting them as well. Mobile payments are also among the most popular payment methods in the country. Mobile payments are very efficient and easy, as well as reliable.
The majority of Forex brokers offering services in the country accept numerous different types of payment solutions, which means that you should be able to easily find the one that works the best for you.
Trading platforms offered by brokers in Tanzania
There are numerous trading platforms available in the Forex trading market. The single most popular Forex trading platform in Tanzania is MetaTrader 4, which is used by the majority of traders in the country.
MetaTrader 4 is very easy to use and is very user-friendly. In general, MetaTrader 4 is among the most popular platforms around the world and there are millions of traders using it every day. Another very popular trading platform in the country is MetaTrader 5, which was created by the same company that released MetaTrader 4. MetaQuotes is the software company that created both MT4 and MT5.
In addition to many popular trading platforms that are available around the world, there are some brokers who offer traders custom-created trading platforms.
Final thoughts on Forex trading in Tanzania
Forex trading is developing very fast in Tanzania. Although there are no strict regulations in the country that guarantee the safety and security of local traders, there still are many traders in Tanzania who are very actively trading Forex.
The Forex trading market in the country is developing rapidly and there are millions of people who are interested in the market. A huge majority of Forex traders in Tanzania are using internationally acclaimed Forex brokers that offer Tanzanian traders their services.
Are you sure you want to miss out on great trading opportunities?