Africa sees massive growth in forex trading during COVID-19

The forex trading industry has witnessed a significant surge in activity amidst the global COVID-19 pandemic, with Africa at the forefront of this growth trend. Infinox Capital, a leading brokerage firm, has reported a substantial increase in trading volumes, particularly in Africa, where trading activities have surged by over 700% in the past year. This surge is attributed to a combination of global factors, including the American election, the COVID-19 pandemic, and the ongoing Brexit negotiations. The increase in trading volumes has been driven primarily by trade in gold, Euro dollar, and pound dollar pairs. The pandemic has forced individuals to work from home, providing them with more time to explore online trading and develop new strategies. Moreover, the economic uncertainty caused by the pandemic has prompted many to seek additional sources of income, leading to a growing interest in financial markets. Cryptocurrencies, which have been highly volatile in recent months, have also played a role in driving traders towards the forex market. The greater liquidity and stability offered by forex trading have attracted traders looking for more predictable investment opportunities. The rise of online trading platforms in Africa, coupled with lower transaction costs and improved internet connectivity, has made trading more accessible to a wider audience. Additionally, the emergence of social trading platforms has allowed traders to interact, learn, and share strategies with each other, further fueling the growth of trading activities in the region. Infinox Capital has reported a 700% increase in trading volumes from African clients, highlighting the growing interest in forex trading across the continent. The profile of traders engaging in forex trading varies widely, ranging from individuals seeking a side hustle to established business owners and licensed brokers. The shift from cryptocurrencies to traditional forex markets signals a growing preference for stability and predictability among traders. Despite the risks associated with forex trading, such as leveraging and market volatility, many traders are drawn to the potential for financial growth and are willing to dedicate time and effort to become profitable traders. Ultimately, the surge in forex trading activity in Africa underscores the resilience and adaptability of the region's financial markets amidst challenging global circumstances.