Online trading in local currency gets better with ...

Online trading in local currency gets better with arrival of TP Global on the scene

Jay Mukono, 21, believes TP Global FX CEO Nitish Sharma’s visit to Zimbabwe is great news for local online forex traders.

“This is a big thing. After the exit of Skrill and Neteller exited Zimbabwe the only real option for trading in forex online using local currency left was Deriv,” says Mukono.

Nitish Sharma is in Zimbabwe for a visit as TP Global FX launches services in Zimbabwe. He is meeting with brokers and other stakeholders over a three-day period.

Locals can access global trades using platforms like Ecocash, Zipit, Mukuru, InnBucks and other local payment platforms.

In addition to choice, TP Global FX is a market leader and the fact that they are coming into Zimbabwe right now is a confidence builder for the local currency,” says Mukono.

Forex trading is legal in Zimbabwe according to The Securities and Exchange Commission (SEC).

The Reserve Bank of Zimbabwe is currently finding ways of legitimately mopping up excess ZWL on the markets in a bid to halt devaluation of the currency.

Introduction of gold coins on 25 July this year has so far seen a gradual merge between official and parallel rates indicating some success.

A highly accessible revenue stream

The World Bank puts Zimbabwe male unemployment rate for 2021 at 4.63 percent against a world average of 7.70 percent from 181 countries.

Mukono says he did not set out to become a highly engaged online trader and counts himself lucky for having been lucky enough to get exposed.

“I just kind of stumbled into it when a friend of mine talked about it. He walked me through the process. Although I didn’t fully understand it, I decided to try it also because the entry level is so low.”

One needs a minimum of USD 10 to start trading online in forex currency. The broker gives the day’s rates. There are a number of online brokers active in Zimbabwe.

Mukono believes that ignorance is the biggest barrier to more Zimbabweans trying their hand at online trading. He thinks agile minded young people can create their own employment instead of getting frustrated on the job market.

“Most people, especially the older generations, have a blocked mind when it comes to online trading. But some young people who could get into it are also not bothering to learn about it. Yet it is viable way to earn a living,” Mukono says.

According to invetsopedi.com, online forex trading entails participants using forex to hedge against international currency and interest rate risk, to speculate on geopolitical events, and to diversify portfolios, among other reasons.

Caution is the name of the game

Mukono says while there are super profits to be made for those with large amounts to invest and the ability to correctly predict market winds, one should be realistic in their expectations:

“I have made some exciting trades and got some good profits. But this is not a quick get rich scheme. You have to be prepared for losses and also reinvesting so you get bigger.”

Just as on the stock exchange and other trades based on predictions, one has to invest a lot of energy in understand world dynamics so as to be able to guess which trades will gain or lose.

Currently many online traders are watching the value of the USD which has been the de facto world currency but is now facing headwinds due to global power shifts.

As with many online opportunities, separating genuine dealers from scammers is the biggest skill that one needs to invest in trading.

There are reports of people giving their money to brokers who guarantee quick and huge returns, only to disappear with the deposits.

Mukono advises investors to only deal with verifies brokers.

Here’s a breakdown of the top 10 best forex brokers in Zimbabwe: