What you need to know:
- Like many East African countries, Tanzania is seeing a rise in the number of people who are actively trading foreign currency.
The foreign exchange market (Forex) is the world's biggest financial market. BIS data from 2019 shows that its daily currency exchange volume has risen to almost $6.6 trillion. The retail forex trading sector is another promising area of expansion for this business. Like many East African countries, Tanzania is seeing a rise in the number of people who are actively trading foreign currency. There are many dishonest brokers operating in the Tanzanian Forex market since the Bank of Tanzania (BOT) has not yet regulated the local business. Some Tanzanian brokers may be trustworthy, but until there is more oversight, investors in Tanzania are better off working with foreign firms that are subject to regulatory frameworks in other countries.
When it comes to regulations and financial issues, the main authority in the country is the Bank of Tanzania. The key roles of BoT are monetary policy implementation and improving the national economy. The foreign currency reserve is managed by the Bank of Tanzania to guarantee adequate capital preservation, satisfy liquidity requirements, and increase national revenue.
When it comes to Forex trading one of the main things that investors should do is seek proper, reliable, reputable, and regulated Forex brokers. However, as mentioned the brokers are not regulated in a local manner. This means if a Tanzanian investor wants to get the most out of his trading process, he should find a Forex broker from another country, which will be regulated and will provide him with a plethora of significant and useful services.
Some investors, especially those who are new in the industry, might find it difficult to choose the best Forex broker, which fits their goal. However, a newly launched platform, called investfox, allows traders and investors from all around the world to see expert-reviewed Forex brokers. These reviews show the features of a financial services provider. Each of these features is estimated with points from 0-5. The better the feature is for a certain broker the bigger point it gets. As a result of the objective reviews by industry experts, many investors are using this website to start collaborating with a proper Forex broker, including Tanzanian investors, who want to trade with Forex assets and want to find a reputable Forex broker with lots of useful features.
In this guide, we’ll review top-rated Forex brokers in Tanzania based on investfox.com data. In this list, we’ll include the following Forex brokers:
- CM Trading
Forex, stock CFDs, commodities, equities, precious metals, energy, and shares are all available via XM, a broker that has been around since 2009 and is considered among the best regulated in the market. XM is one of the oldest and most reputable online brokers, serving over 5 million customers from over 190 different countries. XM is available globally, including in Tanzania, and is regulated by several financial authorities: the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), the Financial Services Commission of Belize (FSC), Financial Service Commission of the UK (FCA).
When it comes to the pros and cons of this broker, there are many more advantages that Tanzanian investors can get from it rather than disadvantages. One of the main pros is that the financial service provider, as the investfox page shows, is licensed in five jurisdictions. What does this mean for those investors who trade in Tanzania? The main thing about being regulated by such authorities is that it provides investors with extra safety. That’s not all, XM broker also allows the investors to trade with more than 1200 assets, which can be a big advantage for those investors who want to diversify their portfolio.
There’s no difference between you being a novice and a seasoned trader. If you are a newcomer in the forex industry, you can see many high-quality educational materials, including videos, guides, and several others, which will help you to get more information about the way the Forex market works. On top of that, those who want to test their strategy and get more practice in Forex trading can open an XM demo account, which can be quite beneficial for Tanzanian FX investors.
For forex investors, it’s crucial to have a Forex trading platform. How does this work in the case of XM? Tanzanian investors don't have to worry about it, because XM provides some of the most popular trading platforms in the industry - MT4 and MT5, which have a big number of tools, charts, timeframes, and indicators. These platforms will help traders to analyze the market and get more rational decisions. The fact that opening an account with an XM broker takes less than a day is icing on the cake.
One of the first things you should ask about the broker is fees and costs. XM broker does not charge withdrawal fees and besides furnishes traders with a very low spread, starting at 0.6 pips. Even though XM broker has so many advantages the main disadvantage of the financial service provider is that it doesn’t have a 2FA when it comes to login into the account. Because of that in the field of safety, as we can see on the page of investfox, XM owns 4 points out of 5.
The next Forex broker on our list is HF Markets. HF Markets is a well-known international broker with a long history. A decade has passed since its inception. Multiple governments have authorized HF Markets to operate as a broker; they include Kenya, Seychelles, South Africa, St. Vincent, and the Grenadines, the United Arab Emirates, and the United Kingdom. That's why you can be assured trading with HF Markets is safe.
The main pro of the Forex broker for Tanzanian investors is that the financial service provider offers its clients zero-spread accounts, which allow investors to spend their money. In addition to that, in contrast with XM broker, which allows people to trade with 1 200 assets, HF Markets has a really wide range of financial instruments (almost 3 200). Investors should not worry about deposit and withdrawal fees, because the Forex broker doesn't have any. On top of that, it should be stated that this broker has dedicated accounts for micro and Copy trading, which makes it easy for new Tanzanian investors to get profits when it comes to trading in the volatile Forex market. The main drawback of the broker is that the withdrawal process, as investfox shows, might last up to 10 business days (based on the payment method you choose).
HYCM is among investfox’s top-rated Forex brokers for Tanzanian investors. Henyep Markets (or HYCM for short) is a major FX and CFD broker across the world. Henyep, HYCM's parent firm, was founded in 1977. The Financial Conduct Authority (FCA) of the United Kingdom and the Cyprus Securities and Exchange Commission (CySEC) are only two of the many financial regulators that regulate a broker.
Similar to the HF markets, the HYCM doesn't require fees for depositing and withdrawing money from the account. In addition to that, for Tanzanian newcomers, the financial service provider has many qualitative educational materials, which will help them to get more theoretical knowledge about the Forex market and the way it works. Those who want to trade with Forex assets can use MetaTrader trading platforms with streaming Forex news headlines. As a consequence, those traders who follow a strategy of news trading can use this chance successfully. It should also be noted that the process of opening an account is quite easy, straightforward, and fast. The main drawback of the broker is that it charges Tanzanians and investors from other countries with inactivity fees.
The next financial service provider on our list for Tanzanian investors is AvaTrade. Founded in 2006, AvaTrade is a worldwide CFD and FX broker. The Central Bank of Ireland is one of the major financial regulators that oversee the industry. There are 150 nations where the corporation has a presence. There are presently over 200,000 users and over 2 million transactions are processed each and every month. For these reasons and more, traders may put their faith in AvaTrade.
The fact that the forex broker is regulated by 9 jurisdictions makes it easy for investors to understand that their money is safe and secure at this Forex broker. AvaTrade offers its customers more than 1 250 assets, which can be quite beneficial for those who like diversifying their portfolios. In addition to that, the fact that the broker furnishes its customers and clients with a myriad of trading platforms is a big plus for Tanzanian investors. Here, traders can start trading with the use of trading platforms like MT4, MT5, and other customized platforms. In Tanzania, accordion got the officials reports about 34% of the population is Muslim. AvaTrade, which furnishes customers with Islamic accounts, can be one of the best fits for them. It should also be stated that the company does not charge fees for depositing and withdrawing money and similar to other above-mentioned brokers the process of opening an account takes a little time. The drawback of the brokerage, that should be taken into account is that AvaTrade charges investors for inactivity, and besides, the spreads are higher compared to the above-listed brokers.
Last but not least, another Forex broker among the top-ranked financial service providers for Tanzanian investors is CM Trading. CM Trading is rated 2.45/5 by investfox and the company was founded in 2012 and according to the latest reports, it has more than 1 million users. The broker has two regulators, including FSCA and FSA.
Those investors who like copy trading and find it more suitable for them can use the platform - CopyKat, which is provided by the brokerage. In addition to that, similar to other Forex brokers discussed in this article, the company allows traders to get more information with the use of rich educational materials. The verification process for Tanzanian investors is quite easy and straightforward, which means that you don't have to waste too much time when it comes to opening an account. The biggest drawback of the broker is that it has high fees compared to other financial service providers.