The Bank Of Ghana has put together a docket to steer the future of Forex Trading in Ghana, but does it all mean for Ghanaian online traders?
New Regulations & The Future Of Forex Trading In Ghana
While forex trading has gained quite a foothold in Ghana, it remains an unregulated industry within the country itself, meaning that those choosing to trade online cannot do so in their own currency. But things are looking up as the Bank of Ghana has taken steps to advance the plight of Forex trading while also ensuring the safety of its users. The idea is to give the companies and/or enterprises who provide such services the required licenses – a move that is beneficial for a number of reasons.
Licensing companies instead of individuals
The red tape and bureaucracy required to license individuals who trade in Forex is something that would prove challenging to say the least. Even in countries like the UK where online trading via Contracts For Difference, or CFD trading is regulated, it’s done so via the required financial channels without placing the onus on the individual. It’s often been advised that Ghanaians should look into how Forex trading works in the UK and Europe, as this could provide all interested parties with valuable trading insights. If the Bank of Ghana goes through with it’s intentions, it would mean that the regulatory process itself would be more streamlined as enterprises can be more easily monitored than individuals can.
Regulation can help the economy
It would be impossible to overlook the tax implications of regulating the Forex industry within Ghana. Regulatory practices would mean that those profiting from their trades would be required to part with their pound of flesh. In other words, traders trading legitimately would be required to submit income tax. At this point various foreign financial institutions as well as major banks have expressed an interest in providing Ghanaians with online trading subsidiaries. This is not to imply that there aren’t already major financial organisations already doing this. The only problem faced by would-be traders would be scamming websites. For this and a number of other reasons, regulation is key to the future of Forex trading in Ghana.
Discerning between legit companies and scammers
When it comes to possibly profiting from the online environment, it’s vitally important to practice vigilance as scamming is not an exclusive endeavour. Just as legitimate banks issue warnings to their customers on a regular basis about what to be aware of when encountering a possible scam online, there are certain key things to look out for when signing up with regulated online trading platforms. Is exness a good broker.
For instance, European traders can make use of the Firm Registration Number (FRN) – something all regulated trading companies must have in the footer of their websites. This number can then be submitted to the Financial Conduct Authority (FCA) to confirm its legitimacy. As Ghana has not yet put in place the regulatory framework that the bank of Ghana has suggested, all those residing in the country electing to trade, have thus far done so with companies that service the UK and European market. The advantage to going via this route is that while these are foreign companies, they are still required to adhere to certain laws, rules and practices if they are to retain their licenses. In essences then, it is in the interest or the trading platform/company to ensure it’s ducks are in a row even when accepting memberships from individuals even if those individuals are from outside of its so-called jurisdiction.
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