Before African traders can start trading in global financial markets, they must first undergo the process of evaluating and selecting a broker through which trading activities will commence.
There are numerous brokers who offer CFD trading to African traders and although most African countries allow trading, traders must heed caution where unregulated brokers are concerned along with scam brokers.
There are many fraudulent and illegitimate brokers who seek to target unsuspecting traders into investing their funds, with no intention of using funds towards trading activities.
When traders try to make withdrawals, such brokers often inform the trader that issues have occurred during their withdrawal, or the trading account is mysteriously depleted of funds that the broker claimed went to hidden fees and charges.
When choosing a CFD broker, African traders are therefore urged to make use of reputable and well-regulated brokers that have a history of built-up trustworthiness, a good reputation, and excellent services.
Brokers that are well-regulated are required to keep client funds in separate, or segregated, accounts with top-tier banks. These funds are only used for trading activities and traders can withdraw their funds at any given time says Louis Schoeman, Senior Forex Analyst from Forexsuggest.com.
In addition, should traders have issues with a regulated broker, they are backed by a regulatory framework. It also provides traders with some assurance that they can get their funds back should the broker be unable to fulfill their financial obligations.
AvaTrade
AvaTrade is one of the most popular names in the trading industry. As a multi-award-winning Market Maker and STP broker offering a vast variety of CFDs, AvaTrade is suited for both beginner and Expert African traders seeking a competitive edge to their trading.
Pros and Cons
| PROS | CONS |
| Well-regulated | US Clients not allowed |
| Award-winning broker | Variable spreads not offered |
| Fast trade execution | Only one account type for either retail or professionals |
| Competitive trading conditions | |
| Social trading offered |
City Index
City Index is a leading CFD and forex trading broker offering African traders with the trade-in of more than 12,000 financial instruments. With City Index, traders can expect fast trade execution, award-winning trading platforms, innovative trading technology, and competitive trading conditions.
Pros and Cons
| PROS | CONS |
| Strict regulation | US clients not accepted |
| Negative balance protection | Limited payment methods |
| Advanced trading platforms | No fixed spreads |
| Trading signals |
Trading 212
Trading 212 is a reputable mobile trading platform that caters to traders from several African countries. With Trading 212, traders have access to zero-commission trading, more than 2,000 financial instruments, access to innovative trading technology, and a low minimum deposit requirement.
Pros and Cons
| PROS | CONS |
| Well-regulated | US Clients not accepted |
| FSCS member | Limited leverage for retail clients |
| Commission-free trading | MetaTrader not offered |
| Intuitive and user-friendly trading platform | |
| Low minimum deposit requirement |
ActivTrades
ActivTrades is an award-winning online broker offering traders from around the world the opportunity to trade in more than 500 financial instruments spanning across several asset classes. African traders have access to negative balance protection, commission-free trading, and exclusive trading tools to their disposal.
Pros and Cons
| PROS | CONS |
| Well-regulated | US Clients not accepted |
| Negative balance protection | Limited account types |
| ICS Member | No fixed spreads |
| Exclusive trading tools | |
| Commission-free trading |
eToro
eToro is another popular name in the industry along with being the lead social trading platform. With eToro, African traders have limitless social trading opportunities and a vast online community. eToro also offers competitive trading conditions and a powerful proprietary trading platform that can be used over a variety of devices.
Pros and Cons
| PROS | CONS |
| Strictly regulated | US Clients not accepted |
| Commission-free trading | Limited leverage for retail traders |
| Large online community | No fixed spreads |
| Competitive trading conditions | MetaTrader not offered |
Plus500
Plus500 is a multi-regulated and popular CFD broker which offers more than 2,000 tradable financial instruments to African traders. In addition, Plus500 also has low trading and non-trading fees, tight and competitive spreads, and low commission charges on trades.
Pros and Cons
| PROS | CONS |
| >Multiple regulations | Limited account options |
| Multilingual support | Desktop version of trading platform not available |
| Large variety of tradeable financial instruments | High inactivity fee |
| Low trading fees, tight spreads, and low commissions | Withdrawal fees charged |
| Adequate leverage offered | Limited payment options supported |
HotForex
As a Cyprus-based broker that is multi-regulated and reputable, HotForex offers African traders some of the best trading conditions in the industry and an array of bonuses and promotions, getting traders started on the right foot in CFD trading.
Pros and Cons
| PROS | CONS |
| Strictly and well-regulated | US Clients not allowed |
| Strong international presence | |
| Competitive trading conditions offered | |
| Vast variety of account types offered |
Alpari
Alpari has been offering its comprehensive trading services and solutions since 1998 and is a reputable STP and ECN broker. Alpari boasts more than 2 million registered traders from 150 countries, including several African countries. Alpari is constantly working to expand its client base, offering traders from all over the world competitive trading conditions.
Pros and Cons
| PROS | CONS |
| Well-regulated | Restriction on traders from some countries |
| MetaTrader 4 and 5 offered | Limited financial instruments offered |
| PAMM Accounts offered | Fixed spread accounts not offered |
Exness
Exness was established in 2008 and is a popular and reputable broker catering to various traders despite their trading needs, objectives, levels of experience, and styles. With Exness, African traders have access to a vast range of markets, powerful trading platforms, and low trading and non-trading fees.
Pros and Cons
| PROS | CONS |
| Strictly regulated | US Clients not allowed |
| High maximum leverage offered | Accounts not multi-currency |
| Powerful trading platforms | |
| Variety of financial instruments |
XM
XM is a well-established ECN and STP broker which features a rich history in providing traders with comprehensive trading solutions. When trading with XM, traders have access to an impressive range of markets, competitive conditions, a variety of account types, negative balance protection, and access to some of the most innovative, powerful trading platforms.
Pros and Cons
| PROS | CONS |
| Well-regulated | US Clients not allowed |
| Negative balance protection offered | Fixed spreads not offered |
| Competitive trading conditions |
