- Fully Regulated
- Expertly Reviewed
- Secure & Trusted
- Transparent Fees
- Mobile Friendly
Find The Best Broker For Your Trading Level.
Forex Trading Brokers in Tanzania
We explore everything from A -Z how to become a skillful trader and who are the best forex brokers in Tanzania for your style of trading.
10 Best Forex Brokers in Tanzania
Rank
Broker
Review
Regulators
Min Deposit
Official Site
For Tanzanian Investors, forex trading can be a way to diversify.
Tanzania is a lower-middle-income country with an agricultural-based economy. There has been a transition in Tanzania’s economy from a command market-based economy since 1985. Foreign exchange trading is a recent phenomenon in Tanzania.
Since more individuals are beginning to dabble in forex, this could take some time for the industry to mature in Tanzania
Quick Content
Best Forex Brokers in Tanzania
Forex Trading
Basics
Forex
Terminology
Currency
Pairs
How to Start Trading in Tanzania ?
Forex Trading
Strategies
Forex
Charting
Forex Trading Risk Management
Forex Trading Platforms
Pros and Cons of Forex Trading
Top 10 Forex Brokers in Tanzania
🏛️ Forex Broker | 👨🏿Accepts Tanzanian Traders | ⚖️ Regulation | 📈 Leverage | 💰 Minimum Deposit | 🔒 Open an account |
FXTM | ✔️Yes | CySec, FSCA | 1 : 30 | 23052 Tanzanian Shilling | 👉 Open Account |
AvaTrade | ✔️Yes | Central Bank of Ireland (CBI), BVI FSC, ASIC, FSCA, JFSA, FFAJ, ADGM, FRSA, CySEC, ISA | 1 : 30 | 231225 Tanzanian Shilling | 👉 Open Account |
HF Markets | ✔️Yes | CySEC, FSC, CFTC | 1 : 500 | 11562 Tanzanian Shilling | 👉Open Account |
Capital.com | ✔️Yes | CYSEC, ASIC, FCA and NBRB licence Seychelles coming soon | 1 : 30 | 46660 Tanzanian Shilling | 👉Open Account |
Forex.com | ✔️Yes | CIMA | 1 : 50 | 233300 Tanzanian Shilling | 👉 Open Account |
Alpari | ✔️Yes | FSC | 1 : 25 | 231225 Tanzanian Shilling | 👉 Open Account |
FP Markets | ✔️Yes | ASIC, CySEC | 1:400 | 233300 Tanzanian Shilling | 👉 Open Account |
Pepperstone | ✔️Yes | Australia, Bahamas, Cyprus, Dubai, Germany, Kenya, UK | 1:400 | 23330 Tanzanian Shilling | 👉 Open Account |
FBS | ✔️Yes | IFSC, FSCA (South Africa), ASIC, CySEC | 1 : 3000 | 2313 Tanzanian Shilling | 👉 Open Account |
Exness | ✔️Yes | FSCA, FSA, CySEC, FCA, CBCS, FSC (BVI), FSC (Mauritius) | 1 : Unlimited | 23124 Tanzanian Shilling | 👉 Open Account |
You’ll learn all you need to know about being a great trader and which forex brokers in Tanzania are best suited for your style of trading in this comprehensive guide. Tanzanian traders can easily take advantage of the competitive, exciting environment offered by forex trading as it is accessible to all over the age of 18.
️ Although many forex brokers will work with Tanzanians, there are currently no Tanzanian forex brokers that are authorized to legally do business in the country.
️ Tanzania is expected to increase in the following years, making it one of the fastest-rising African nations. In recent years, there has been a sharp increase in the number of Tanzanians interested in researching forex trading. This points to the fact that curiosity and interest in learning about FX trading are high.
️ The purpose of the Capital Market and Securities Act of 1994 is to promote the growth of a transparent, competitive, and efficient capital and securities market in Tanzania.
️ It is only via Approved Dealers, such as banks where consumers have accounts, that funds can be sent or spent overseas. It is mandatory to inform the Bank of Tanzania of such dealings. Certain restrictions apply to the conversion of foreign currencies.
️ Between 12 and 6 pm local time, when the London and New York sessions overlap, is the optimum time to trade forex in Tanzania. Peak market volatility occurs around this time.
How profitable is forex trading for individuals and retail traders? How much do you need to start trading forex in Tanzania? Can you keep your full-time job while you trade forex part-time? What are the significant risks involved with trading forex in Tanzania?
These are just a few questions that many Tanzanian traders may have as beginner forex traders. Explore our website to find the answers to these questions and more.
Foreign Exchange Trading is a legal activity in Tanzania that is governed by the Bank of Tanzania (BoT). While the Bank of Tanzania does not officially regulate forex brokers who carry out financial activities, regulators such as the FSCA, FCA, CySEC, and others, provide Tanzanians with protection.
We reveal the best brokers with verified regulations who offer their services locally in Tanzania. Tanzanians can rest assured that these are trusted and legitimate brokers that garner a high trust score and/or rating.
Forex Trading Pros and Cons
✔️ Pros | ❌ Cons |
The foreign exchange (Forex) market provides investors with considerable leeway. This is since there is no monetary limit on trading activity | Since the forex trading market operates on a global scale, establishing uniform rules for it is a complex matter |
The 24×7 availability of the forex online trading markets further enhances the adaptability of the trading environment | There are many risks involved with forex trading and a large one refers to counterparty risk, where the trader on the other side of the deal cannot carry out their contractual obligation |
Part-time and full-time traders are encouraged to choose forex trading because of the favourable conditions it provides for maintaining both occupations | Leverage can increase the potential for significant losses that could deplete the Tanzanian trader’s account |
Online forex trading provides traders with access to a wide range of features, including the ability to trade in a wide selection of currency pairings. In addition to futures contracts, spot trades are another alternative for traders | Management of Forex trading activities is complex |
Trading foreign exchange (Forex) online accommodates investors of varying risk tolerances and financial means | High volatility, or significant price movements, may put traders at risk for substantial monetary loss |
Transaction costs in the foreign exchange market are unbelievably cheap because of the prevalence of online currency trading. The percentage-based comparison shows that Forex trading has lower transaction costs than other marketplaces | |
Online foreign exchange trading provides traders with the highest leverage of any financial asset market | |
Foreign exchange markets have the highest trading volumes and are hence the most liquid markets. The term “liquidity” is used to describe the ease with which two currencies may be exchanged for one another |
Step-by-Step on How to Start Trading Forex in Tanzania
- Step 1 – Learn about Forex Trading
- Step 2 – Learn the Basic Forex Trading Terminology
- Step 3 – Register a Demo Account with A Broker of Your Choice
- Step 4 – Decide on a Trading Style
- Step 5 – Choose a currency pair to trade
- Step 6 – Create a solid trading strategy
- Step 7 – Identify the Market Sentiment
- Step 8 – Analyse the Forex Market
- Step 9 – Place your Trade
- Step 10 – Know when to Exit your trade
Step 1 – Learn about Forex Trading
Learning and knowledge are everyday necessities while trading forex. As the markets fluctuate and provide unlimited trading chances, it is imperative that you, as a trader, have access to the trading tools, knowledge, and methods that will allow you to take advantage of any trading opportunity that arises.
Modern, internet-based education and knowledge resources are abundant, and that is one of the best things about living in today’s technology-driven society.
Learn as much as you can from the wealth of trade-related resources available to you, such as video lessons, webinars, seminars, eBooks, and trading guides and manuals.
However, despite the theory out there, the best way to learn about trading is to get in headfirst by using a demo account offered by your forex broker, allowing you to learn a skill while you have the theory next to you to guide you.
There is a wealth of information out there, but it may be daunting to figure out where to begin. You can also consult forex forums and blogs to gain insight from more experienced traders.
Step 2 – Learn the Basic Forex Trading Terminology
There are many terms that Tanzanians will come across in the forex market. Therefore, traders must know some of the following terms and their definitions:
️ Forex Broker
️ Base and Quote Currency
️ Pip
️ Spread
️ Leverage
️ Margin
️ Long/Short Position
️ Bull and Bear Markets, and more.
Step 3 – Register a Demo Account with A Broker of Your Choice
Using a forex demo account for a certain amount of time, you will not only be able to grasp the intricacies of market entrance and exit but you will also be shown how often market conditions alter.
You will learn the ability to establish target objectives during your practice on the trial account. When utilizing demo money, it is much simpler to test your skills with an alternative, such as a minor or exotic forex pair, for example.
You will gain a fundamental understanding of the appropriate times to sell certain investments, as well as how to place stop-loss and limit orders.
Always remember the importance associated with being patient and going into the forex market slowly. Your awareness of the market will undoubtedly increase as a direct result of the fact that you will have first-hand experience of its dynamic nature, in which prices are constantly shifting.
Step 4 – Decide on a Trading Style
In the world of day trading, there are a few trading styles that tend to dominate the forex market. This category includes styles such as:
️ Scalping – In “scalping,” a trader enters a position and promptly closes it, all within a span of a few minutes and usually less than 5. The objective is to turn a daily profit or many daily profits. Scalpers sometimes trade on brief timeframes of one minute or less.
️ Swing Trading – This trading method is purchasing a currency pair and keeping it in one’s possession for an extended period, often a week or more. The hourly and four-hour time frames are common among swing traders.
️ Day Trading – The purpose of day trading is to spot a trend, buy or short a currency pair, and conclude the trade before the market closes for the day.
️ Carry Trade – To take advantage of interest rate differences between two nations is to engage in a carry trade. It is a straightforward idea: if the US dollar is earning 2% and the Japanese yen is yielding just 0.50%, then it makes sense to borrow the yen and invest it in the US dollar.
️ Copy-Trading – To trade like a pro, you may mimic the actions of a trader who has more experience than you have. Copy trading is made easier with the help of services offered by many brokers.
️ Algorithmic Trading – This trading style involves using forex trading robots and software, such as Expert Advisors, to trade on behalf of the trader.
Step 5 – Choose a currency pair to trade
Find a currency pair to trade that fits all your requirements. If possible, focus on trending or volatile currency pairings as it is much easier to buy and sell these pairs, and it is cheaper.
In the foreign exchange market, the most actively traded currency pairings are known as majors. These combinations account for around 85% of all trades. The United States, Great Britain, Japan, Europe, Canada, Australia, and New Zealand are all considered “FX majors,” or important economies in the forex market.
Minor Forex pairings are those that do not involve the US dollar. You may have noticed that every pair in the group of forex majors includes the US dollar. When trading foreign currencies, the US dollar is not used.
Exotic currencies are those that are seldom used and hence have limited liquidity and transaction volumes. The currencies of countries with emerging markets or developing economies are not actively traded on international financial markets and do not command high premiums.
Commodity bloc currencies include those of nations like Australia, New Zealand, and Canada, which have abundant supplies of natural resources. This section of the currency market is often influenced by the rise and fall of commodities prices.
Whether you trade currencies, commodities, or contracts for difference (CFDs), it is in your best interest to monitor the price fluctuations and correlations between the currencies in the commodity bloc and the commodities that impact them.
In addition, some currencies are regarded as “safe haven” investments in the FX markets, albeit this is not a formally organized FX category.
The Japanese yen (JPY), the British pound (GBP), the US dollar (USD), the Euro (EUR), and the Swiss franc (CHF) are all examples of “safe haven” currencies.
Step 6 – Create a solid trading strategy
You will need charts that correspond to the time window in which you want to trade, along with an open and analytical mind and some paper and pen to record your thoughts. You can then codify these concepts into a strategy later and “visually backtest” them on additional charts.
When you have put in the time and effort to develop a successful trading strategy, you are more likely to see it through to completion.
Once you have established a set of guidelines that would have enabled you to join the market and make a profit, you can next examine historical instances to estimate the level of risk you would have been exposed to.
Calculate the appropriate stop-loss levels for future transactions so that you may take profits without being forced to sell. Examine the after-entry price action to determine where a stop-loss order should be placed.
When you evaluate the moves, search for advantageous exit points. Indicators, candlestick patterns, chart patterns, percentage retracements, trailing stops, Fibonacci levels, and other strategies may be used to help you cash in on profitable trading opportunities.
Sometimes unexpected fluctuations in the market occur for a limited time, and you may capitalize on them to make money consistently. Although the effects of these methods may only be temporary (a few days at most), they are likely to be useful again in the future.
Keep note of your trading methods in a diary and utilize them as part of your overall trading strategy. If a strategy suddenly becomes ineffective, you can start exploring another one.
An opportunity exists to profit from a strategy in the market, especially when it is well-suited to the current environment.
10 Best Forex Brokers in Tanzania
Rank
Broker
Review
Regulators
Min Deposit
Official Site
Step 7 – Identify the Market Sentiment
If you are going to initiate a deal in forex, you should perform some research to figure out what the overall market sentiment is beforehand. The best course of action would be to observe the situation by:
️ Evaluating news sources to determine whether any events could be good or bad for a certain currency pair.
️ Create a currency watchlist where you can track the average range of prices.
️ Choose optimal currency pairs for trading.
️ Check your economic calendar to see whether any currencies could be influenced by global, regional, or local events.
Another strategy is to limit the number of currency pairings on your trading list to those that you expect to use often. Traders often choose the main currencies because of the reduced costs associated with such pairs.
Concurrently, you should do an analysis using comprehensive graphs. In this situation, technical analysis using moving averages and the relative strength index might be useful alongside price action strategies.
Step 8 – Analyse the Forex Market
Before you get into a transaction, the following step is to carry out any necessary research and analysis. In a perfect world, there would be three primary ways to analyse different currency combinations. These include:
️ Technical analysis includes examining a chart and making use of many technical indicators to make forecasts on the future movement of a market. Moving averages, relative strength index, and the moving average convergence/divergence (MACD) are examples of indicators.
️ The practice of fundamental analysis is a trading method that entails reviewing the most recent events in the world to forecast the movement of a currency pair in the future.
️ Price action analysis requires first examining a chart, after which several chart patterns, including triangles, flags, pennants, and wedges, are identified.
Step 9 – Place your Trade
You should make the transaction after finishing this analysis. You will quickly learn that there are two primary categories of deals available to you:
️ Market orders are filled immediately. If you purchase Euros using US Dollars, for instance, your deal will be done instantly.
️ Pending orders are transactions that will not be completed unless certain criteria are satisfied. Purchase and sale stop orders, as well as limit orders, fall under this category. Initiating a purchase transaction at a higher price and a sell deal at a lower price, respectively, is the function of a buy-stop and a sell-stop. Similarly, setting a purchase limit below the current market price will trigger a buy order to be placed.
In addition, you should always use a stop-loss and a take-profit after making a transaction to ensure its success. A stop-loss is a trading instrument that closes a position when losses reach a certain level, while a take-profit order terminates a transaction after profit targets are met.
Step 10 – Know when to Exit your trade
The very last thing you do is close out all your open positions. If you have followed the advice given above, then the transactions will be stopped by the take-profit and stop-loss orders, respectively, in most instances.
However, there are circumstances in which you will need to halt your transaction manually. For instance, you may want to terminate it before going away for the weekend or before the conclusion of a day during which the levels have not been checked.
7 Best Currency Pairs for Beginner Tanzanians to Trade
It is not a straightforward effort, contrary to what a lot of people assume, to figure out which currency pairings are the most profitable to trade in when you are just starting in the market.
A lot of new traders make the common mistake of trading the very first currency pair that comes to mind. However, many of these beginners later find out that they should have done further research to find more suitable currency pairs. This is a common mistake made by a lot of new traders.
For those just starting in forex, it is best to start with these currency pairings:
- USD/EUR
- USD/JPY
- USD/CAD
- AUD/USD
- NZD/USD
- USD/HKD
- EUR/GBP
USD/EUR
Because of its role as the world’s primary reserve currency and its status as the currency of the biggest economy, the United States Dollar (USD) is the most actively traded currency.
Since the European Union Euro (EUR) is the second most traded currency in the world, this pair is the most formidable in terms of liquidity and accounts for the highest share of market activity.
The USD/CHF pair is adversely correlated with this one, whereas the GBP/USD pair is favourably correlated with it.
USD/JPY
The US dollar and the Japanese yen are the second most traded currency pair in the world (JPY). Because of the political environment between these two superpower economies, this combination is more volatile than others.
The term “gopher” has come to be used to describe this duo. The USD/CHF and USD/CAD currency pairings are favourably correlated with this currency pair.
USD/CAD
One of the most volatile commodity exchange rates is the US dollar against the Canadian dollar. This is a touchy subject since Canada is a major supplier of natural resources to the United States.
Oil is one of Canada’s most important exports because of its crucial role in the world economy. More than 2 million barrels per day are shipped from Canada to the United States.’
Because the country relies on exports of this commodity, the Canadian dollar is susceptible to swings in the price of oil. The Canadian dollar has had a positive association with oil of over 75% on average over the previous ten to fifteen years, albeit this correlation has been volatile.
AUD/USD
AUD/USD, sometimes known as the “Aussie,” is the symbol for the exchange rate of the Australian dollar to the United States dollar, and 54% of daily FX deals included it in the most recent triennial study.
Australia’s metal and mineral exports, including iron ore and coal, make for a significant amount of the country’s gross domestic product, and hence, the value of the Australian dollar (GDP).
The difference in interest rates between the Reserve Bank of Australia (RBA) and the US Federal Reserve also influences the AUD/USD exchange rate.
If interest rates in the United States are low, for instance, the US currency (USD) may fall versus the Australian dollar (AUD), increasing the price of purchasing one AUD in exchange for one USD.
NZD/USD
Even though it is a small country, New Zealand packs a punch in terms of its wealth of natural resources. However, the designation as a “commodity currency” is due to the country’s substantial agricultural presence.
It is not surprising that the New Zealand dollar is impacted by global commodity prices given the country’s abundance of natural resources and the volume of its foreign commerce.
Contrary to the Canadian and Australian dollar pair, however, the New Zealand dollar is not often linked to swings in the price of a specific product. Instead, the value of the currency is determined by a wide range of goods, including milk, meat, and fruit, which are all major exports.
USD/HKD
The US dollar is valued against the Hong Kong dollar. From 2016 to 2019, the amount of trade in this currency pair increased by more than 200 percent, from 1.5% to 3.3% of total daily FX trades.
As part of a one-of-a-kind arrangement known as a linked exchange rate, the Hong Kong dollar’s value is fixed relative to the US dollar. Traders are free to take advantage of any price changes in the Hong Kong dollar so long as they occur within the range of HK$7.75 to HK$7.85 to US$1.
Because of this tight range, the pair exhibited abnormal stability throughout 2020 and early 2021, a time when the pandemic was responsible for severe volatility in several other currencies.
USD/HKD
The US dollar is valued against the Hong Kong dollar. From 2016 to 2019, the amount of trade in this currency pair increased by more than 200 percent, from 1.5% to 3.3% of total daily FX trades.
As part of a one-of-a-kind arrangement known as a linked exchange rate, the Hong Kong dollar’s value is fixed relative to the US dollar. Traders are free to take advantage of any price changes in the Hong Kong dollar so long as they occur within the range of HK$7.75 to HK$7.85 to US$1.
Because of this tight range, the pair exhibited abnormal stability throughout 2020 and early 2021, a time when the pandemic was responsible for severe volatility in several other currencies.
EUR/GBP
The EUR/GBP currency combination is often regarded as one of the most challenging to forecast the price of. This is due to the closeness of the UK to Europe and the consequent strong trade linkages between these two economies, which have historically linked EUR and GBP.
Despite the difficulty in forecasting its price, the Euro to British Pound exchange rate still accounts for 2.0% of daily deals, placing it tenth on our list of most actively traded currency pairs.
Traders should pay attention to any statements made by the European Central Bank or the Bank of England that may have an impact on the value of the euro or the pound.
In 2021, Brexit and the Covid-19 pandemic were contributing to EUR/GBP’s wild swings in price. Traders may find the high degree of volatility appealing, but they should be prepared with a risk management plan before entering a position in a turbulent market.
6 Best Currency Pairs for Professional Tanzanians to Trade
How can you choose which currency pairings to trade to maximize the amount of profit that is added to your account when there are so many different combinations that could be traded?
In terms of raw volume and liquidity, the most popular and extensively traded currency pair on the market is the US Dollar to the Euro (USD/EUR).
However, depending on the specific outcomes that you want to see, other pairings could be more appealing to trade than the ones you are now considering.
- USD/KRW
- USD/CHF
- NZD/CHF
- AUD/CAD
- EUR/TRY
- USD/THB
USD/KRW
The US dollar and South Korean won are involved in the USD/KRW exchange rate. In the first decade of the new millennium, the South Korean economy expanded to become the tenth biggest in the world and the fourth largest in Asia, both in terms of nominal GDP.
Traders and speculators may be seeking exposure to other major Asian market, in addition to Japan, China, and Hong Kong, which may explain the recent uptick in USD/KRW activity.
Miracle on the Han River is a common phrase used to describe South Korea’s phenomenal economic progress, notably following the conclusion of the Korean War in 1953.
South Korea’s participation in the United Nations, the OECD, and the G20, along with its recent economic boom, have made the nation and its currency an intriguing prospect for many in the financial markets.
USD/CHF
The term “Swisse” is often used to refer to this currency pair. There seems to be an inverse relationship between the USD/CHF and the EUR/USD and GBP/USD pairings.
The Swiss franc has a long history of being seen as a refuge currency for investors during times of political and economic uncertainty.
NZD/CHF
The New Zealand dollar and Swiss franc make up this small currency pair. Any trader interested in this pair, given New Zealand’s expanding agricultural influence across the globe, should keep a watch on global agricultural product prices.
In addition, the value of this pair is further influenced by the actions of the Reserve Bank of New Zealand.
AUD/CAD
Since the US dollar is quoted in the AUD/USD pair, it tends to have a negative connection with the USD/CAD, USD/CHF, and USD/JPY pairings. Both the Canadian dollar and the Australian dollar, as commodities block currencies, have a strong connection with each other, which contributes to the positive correlation with USD/CAD.
EUR/TRY
Nineteen nations in the European Union have unified to accept the euro as their currency. It serves as the foundation for this pair of currencies. Both Turkey and the Turkish-controlled part of Northern Cyprus use the Turkish lira (TRY).
The TRY (the “new” Turkish lira) only came into being after a series of economic reforms in 2006. Before that time, the TRY was widely regarded as one of the world’s least valued currencies.
However, in 2019, its value dropped by approximately 45% versus the US dollar because of a significant debt problem, a subpar president, and a current account deficit.
Despite this, Turkey has been hailed as a major developing market. Over 45% of its exports are sold in the European Union, with Spain being a major market. Turkey also ranks high in the export of automobiles.
Because of the extreme volatility in the market before the crisis, forex traders were attracted to this pair. Strong monetary policy in Europe, which strives to ensure price stability, has reduced this volatility in recent years.
USD/THB
Despite previous climates that were typified by poor and fragile ties between China and the United States because of the earlier trade wars along with the 2020/2021 Coronavirus pandemic, the USD/THB currency combination has done well in 2023.
Previous reports from Bloomberg indicated that the Thai baht is one of the few developing market currencies that has not been as affected by the downturn in China’s economy.
Because of this, once tensions in trade between China and the United States rise, the Thai Baht to US Dollar exchange rate is seen as a refuge or “safe haven.”
In addition to the country’s enormous current account surplus and substantial foreign exchange reserves, the low yield on Thai bonds has contributed to the baht’s rise in value on the currency market.
In addition, Thailand has a growing export market that is placing it in the running against other exotic currencies. However, the Thai unemployment rate is one of the lowest in the world and the economy is the sixth biggest in Asia.
Thailand’s trade partners include the US, China, Hong Kong, and Japan, and its most popular exports are electronics, equipment, and lumber. In addition, the USD/THB exchange rate is overly sensitive to the Bank of Thailand’s monetary policies.
8 Best No-Deposit Forex Brokers in Tanzania
To help newcomers to the forex market get their feet wet, several forex brokers provide “Forex No-Deposit Bonuses,” which is free money (in the form of trading credit) that cannot be withdrawn, but that could be used to trade currency.
Free bonuses provide traders with a fantastic chance to become acquainted not only with the Forex market but also with the feelings of excitement and anxiety that come along with trading with real money.
A great method to get started trading without the risk of losing money is to take advantage of bonuses that do not call for a deposit to be made. The best No-Deposit Forex Brokers for Tanzanian traders are:
️ SuperForex – $88 No-Deposit Bonus
️ MTrading – $30 No-Deposit Bonus
️ FBS – Up to $100 Quick Start and $140 Level-Up Bonus
️ XM – $30 No-Deposit Bonus
️ RoboForex – $30 No-Deposit Bonus
️ InstaForex – $1,000 No-Deposit Bonus
️ Trade Nation – 1,000 points when Botswanans register an account
️ Tickmill – 10% Reward
SuperForex
SuperForex provides a $88 bonus with no first commitment. Request it via the login page of your personal trading account, which you can only access after opening a live account and verifying your account.
However, to get SuperForex’s no-deposit incentive, you must choose USD as the account’s base currency upon registration.
MTrading
If you are a trader in Tanzania and you sign up for a live trading account with MTrading, the broker will give you $30 in trading credit free. However, Tanzanian players will need to go through the whole verification process to get this no-deposit bonus.
FBS
Under the jurisdiction of the International Financial Services Commission (IFSC), FBS provides two different no-deposit incentives. To help new traders get their feet wet without risking their own money, FBS offers a $100 Quick Start Bonus for use on the FBS Trader platform.
In contrast, if you follow the instructions laid out by FBS, you may get a no-deposit bonus of $140 completely free of charge. When certain requirements are completed, the no-deposit bonus from FBS may be withdrawn.
In addition, profits gained from bonus funds are still available for withdrawal by the trader.
XM
For new customers, XM provides a $30 No Deposit Bonus upon verification of a Real Account.
The no-deposit bonus may only be used for trading, however, any profits made are fully withdrawable after the volume of transactions in the associated actual trading account hits 10 micro-lots (0,1 standard lots) and 5 round turn deals have been performed.
RoboForex
To get your $30 free bonus from RoboForex, you can register and verify a live trading account. You have the potential to make substantial gains via trading. The bonus and any profits made from trading it are yours to keep after you reach the minimum number of lots necessary.
InstaForex
When you sign up as a trader with InstaForex, you have immediate access to more than 300 distinct market tools. To entice new customers to pick InstaForex as their broker, the company offers them the chance to get a $1,000 incentive.
Once a trader has requested and been granted their welcome bonus, the funds will be sent into their account upon approval.
Trade Nation
After verifying their identification and opening a trading account with Trade Nation, Tanzanians are eligible to participate in a loyalty program that awards them 1,000 trading points.
Additionally, Tanzanian traders could earn points for every base currency unit transacted via their Trade Nation Account.
Tickmill
To get your $30 Welcome Bonus, you must open a new trading account with Tickmill. Make a profit of up to $100 by trading with the bonus money. However, to receive your profits, you must first register a Live MT4 account and deposit $100.
Forex Trading – Stock Trading – Cryptocurrency Trading Compared
📈 Forex Trading | 📊 Stock Trading | 💰 Crypto Trading | |
📅 Market Hours | 24/5 | 9 am – 3 pm (GMT+3) Monday to Friday | 24/7 |
📈 Trading Speed | Instant | Slow | Instant |
✴️ How is it traded? | OTC | Exchanges | OTC/Exchanges |
📊 Price Fluctuation | Fast | Slow | Fast |
✴️ Min. Trade Size | 0.01 lots | 1 share or fractions | 1 lot or fractions |
🌐 Volatility | High | Low | High |
🌐 Liquidity | Very High | Blue Chip Stocks are the most liquid | Only major crypto e.g. BTC, ETH, LTC, DOGE, etc. |
📈 Trading Volume | High | High | Medium |
⚖️ Regulation | $6.6 Trillion | 7,369,200 | $500 Billion+ |
📈 Investment Horizon | Short, Medium, Long-Term | Medium and Long-Term | Short, Medium, Long-Term |
📊 Average Leverage Ratios | 1:100 – 1:3000+ | <1:100 | <1:10 |
✴️ Susceptibility to Macroeconomic Factors | Rarely as turbulent as Crypto | Economic Performance | Supply and Demand |
How to Choose a Forex Broker in Tanzania
Broker Type and Business Model
There are four main categories of forex brokers that cater to individual investors. There are many types of brokers, including Market Makers, ECNs, DMAs, and STP (brokers that process orders directly with the exchange).
The order execution practices of market makers (dealing desk brokers), electronic communication networks (ECN), direct market access (DMA), and straight-through processing (STP) brokers.
Spreads and other trading charges may vary depending on whether a trader uses a broker with a Dealing Desk or an NDD.
Dealing Desk Brokers (DD)
Market makers that use dealing desks determine the bid/ask spread, and traders who use them are cut off from global liquidity sources. The trader’s counterparty is the market maker, which does internal order matching.
Trading and commission charge computations may be made easier for novices thanks to the predefined spreads offered by market makers.
No-Dealing Desk Brokers (NDD)
NDD execution is available through ECN, DMA, and STP brokers since they match orders with external liquidity sources. Traders may access large global liquidity providers using either ECN or STP brokers, although STP brokers have more say over where their liquidity comes from.
In addition, DMA broker clients have unfettered access to markets and can see quotes from all relevant liquidity providers. Brokers may provide trading accounts that use a combination of execution techniques or use entirely innovative technology.
NDD brokers’ spreads are the narrowest, and their business model is best for day traders, scalpers, and those who use Expert Advisors.
Regulation and Authorization
Financial rules and regulations might differ depending on where you live. To avoid falling victim to fraud, traders should only work with a broker that is supervised by a reputable financial regulatory agency.
Brokers regulated by the Financial Conduct Authority (FCA) and the European Securities and Markets Authority (ESMA) in the EU and the UK are subject to some of the most stringent laws in the world.
Most of the world’s leading financial regulators mandate that brokers keep client funds separate from company funds. These entities include, but are not limited to:
️ The Australian Securities and Investments Commission (ASIC)
️ The Cyprus Securities and Exchange Commission (CySEC)
️ The Financial Conduct Authority (FCA) of the United Kingdom
️ The European Securities and Markets Authority (ESMA)
️ The Singapore Monetary Authority (MAS), and many others
Spreads, Costs and Trading Conditions
Pricing or transaction charges are an apparent factor to consider when selecting a broker. Now that the world’s top brokers are in a state of fierce rivalry with one another, individual investor accounts have access to the same strict institutional-grade pricing that large institutions enjoy.
When trading forex, several brokers provide clients with the option of choosing between the different commission and spread structures.
Standard accounts provide bigger spreads but no commission costs for traders, while ECN-style trading accounts with flat-rate, round-turn commission rates enable ultra-competitive spreads as low as 0.0 pips.
Account types where the spread varies based on market conditions, flat rate commission charge customers often have access to lower spreads than those with fixed spread or standard account types.
Commission Accounts: ECN-style accounts that provide low spreads and flat-rate commission costs. Commissions are assessed per side or round-turn and are calculated depending on the volume of a deal. Finding a broker with minimal commission fees is important for making the most of a forex account.
With a commission-free standard account, all you pay is the spread while accounts that feature fixed spreads (micro accounts) have spreads that are always the same, independent of fluctuations in the market.
If you are just starting in the forex market, you may find the more stable pricing structure of a fixed spread account more appealing than the more volatile variable spread accounts provided by the finest brokers.
Other fees to consider include overnight or rollover fees that apply to traders who hold leveraged positions for more than a day. These traders must pay overnight finance costs in addition to commissions and spreads (aka swap rates).
A financing cost based on interest rates will be paid or received by a trader depending on whether their leveraged position is long or short. In addition, many brokers impose monthly inactivity fees on accounts when the trader has been inactive for an extended period (often 6-24 months).
Risk Management Tools
To hedge against the extreme volatility of the market and the inherent risk of forex trading, many traders look for brokers that provide a variety of order types and practice accounts.
When dealing with foreign exchange, order types can be used to limit losses when market conditions are against you. While most brokers and exchanges provide standard order types like Market and Stop Loss, some may not.
Some brokers enable traders to pay a fee to put guaranteed stop-loss orders (GSLOs), which ensure that a transaction will be terminated at the price the trader specifies regardless of price gaps or market volatility.
You must ensure that your selected broker has the risk management tools you need, such as GSLOs and more complex order types.
Demo accounts provide traders with the chance to try out the platform and practice trading techniques before committing to a real account, which is useful whether the trader is a novice looking for an intuitive user interface or a seasoned investor looking for innovative trading tools.
Demo accounts are a great method to mitigate the significant risk associated with trading foreign exchange (Forex), as they allow traders to hone their tactics and put their trading robots through their paces using actual market data.
Some brokers’ demo accounts have no time limits and limitless virtual money, while others impose such constraints.
Customer Support
It should not be difficult or time-consuming to contact your broker. In addition to the many ways of contact, it is essential to take notice of the business’s hours of operation.
While most forex brokers will provide client assistance 24 hours a day, 5 days a week, only a select number will do so around the clock, seven days a week.
Email, phone, and live chat are all common ways to contact your broker. Because traders can rapidly engage with customer support experts via online live chats and get their questions resolved, live chats are gaining growing amount of popularity.
In addition, most traders will want multilingual customer service depending on where they are located. A leading forex broker should provide customer help in many languages, including support for lesser-spoken languages.
For new traders just starting out, customer assistance is necessary. Those who are new to forex trading will benefit from the ability to discover answers in a timely and effective manner, whether they encounter technical challenges or have questions about the financing of their accounts.
Education and Research
In addition to teams dedicated to providing client service, many brokers also provide substantial educational materials that may be of use to traders of any level of expertise.
A trader’s comprehension of the FX and CFD markets might significantly benefit from the quantity of information made available by brokers. The following are examples of resources to watch out for:
️ eBooks
️ Seminars
️ Online Courses
️ Platform Tutorials
️ Guidelines
️ How-To Videos
️ Webinars
️ Lessons
️ Classes
Different Trading Styles and Features
MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader are the top three most often used third-party forex trading platforms.
Each platform is well renowned for its automated trading capabilities, which are just as well-received as the simplicity of use and technical analysis tools.
Traders may automate their entry and departure from the market with the help of complicated algorithms they create or download in the form of Expert Advisors (EAs) for MetaTrader or cBots for cTrader.
Expert Advisors and cBots give the resources necessary for complex algorithmic methods, as well as vast markets to buy or download free trading robots, while other proprietary platforms provide automated trading capabilities.
Social and Copy-Trading are two types of automatic trading that may be more approachable to novices in the foreign exchange market is social-copy trading.
In addition, to duplicate trading using MetaTrader Signals on platforms like MT4 and MT5, several brokers provide account mirroring via social trading networks.
For example, many brokers have social trading platforms and portals that facilitate copying the moves of more seasoned traders while staying abreast of market developments through newsfeeds and discussion boards.
Trade Execution and Overall Execution Policy
Due to the unpredictable nature of the foreign exchange market, it is crucial to work with a broker that offers rapid execution and low slippage.
Slippage is the deviation between an order’s target price and the price at which it is executed. Trading slippage may be minimized by using only the services of brokers that provide quick execution.
Many brokers now employ fibre optic connections to link up with the largest liquidity providers, including banks and financial institutions, to expedite the execution of client orders.
With data centres in the world’s most important financial centres, brokers may experience minimal latency no matter where they are located, thanks to Equinix servers in New York and London.
In selecting a broker, speed of execution is a crucial consideration. Copious quantities of slippage might result in financial losses for traders if orders are not executed properly.
Market Orders
Comparisons of market order and limit order execution times are used to see which broker offers the least amount of slippage. Market orders, which are often employed in algorithmic trading, are executed at the price at which the market is currently trading.
Limit Orders
Limit orders, on the other hand, are carried out automatically when the prices at which the traders want to purchase, or sell are reached.
Client Security and Fund Safety
Trading Platform
Choose a trading platform that gives you access to the markets and the trading tools you need to meet your financial goals, whether they include social trading or the development of complicated algorithmic methods.
Many investors prefer brokers that allow them to use third-party trading platforms, which often have a more robust set of trading tools and a more robust trading community. Your choice of trading gadget is an additional factor that you must consider based on your own needs.
While seasoned traders may benefit from using complex desktop platforms that simulate those found in financial institutions, novices may do better with lightweight applications optimized for mobile devices.
There are a variety of brokers that provide online trader platforms, which may be accessed from any device with a web browser.
Deposit and Withdrawal Options
Brokers have different requirements for initial deposits, accept different payment methods, and charge different fees for financing accounts. Be sure to ask your potential broker whether there are any additional costs associated with the form of payment you want to use.
To open a trading account with a broker, a client must first pay a deposit. When comparing online brokers, Tanzanian traders might use the fees charged as a benchmark.
One broker may provide one free withdrawal per month with fees for any further withdrawals, while another broker may charge a fee for each withdrawal.
It is a red signal for traders if the broker’s website does not provide a clear charge schedule. Tanzanians who find inconsistencies on broker websites may choose to contact customer service to verify or correct the data.
14 Forex Terms you Must Know
When you first start trading forex, you will come across several words and phrases that are unique to this market.
As a new trader, you should familiarize yourself with this jargon as soon as possible. Because knowing the language of foreign exchange might be the difference between profit and loss.
There is economic jargon to understand in addition to the lingo associated with selecting a broker and paying any associated fees. Better educated deals are more likely to be successful if you use the appropriate terminology.
- Currency Pairs
- Major/Minor Currency
- Base and Quote Currencies
- Bid and Ask
- Pip
- Spread
- Lots
- Leverage
- Margin
- Slippage
- Long and Short Positions
- Bullish/Bearish
- Hawkish/Dovish
- Inflation
Currency Pairs
A currency pair is a pair of currencies used to show the relative worth of one currency relative to another.
When participating in foreign exchange (Forex) trading, one might benefit from the fluctuation in the value of a currency pair. Foreign exchange rates, like the euro to the dollar, are written in the form XXX/YYY.
Major/Minor Currency
It is customary practice to divide currency pairings into three broad classes. All the most actively traded currency pairings (Majors) feature the US dollar.
The absence of the US dollar in a currency pair is indicative of its minor status, with these currencies known as Minor Forex Pairs.
All other currencies that are not grouped into Majors or Minors are referred to as Exotics, containing a major currency and another from a developing or emerging market.
Base and Quote Currencies
In a currency pair, the first currency is known as the base currency, while the second is known as the quote currency. Where the EUR/USD currency pair is concerned, the Euro serves as the “base” currency and the US Dollar is the “quote” currency.
Bid and Ask
Each currency pair contains two quotations, the bid, and the ask. You may think of the bid price as the amount your broker is prepared to pay in quote currency to acquire your base currency.
If you want to buy the base currency from a broker, you may do so at the ask price, which is the amount of quote currency the broker is ready to take in exchange for the base currency.
Pip
A pip is the unit of measurement used to indicate a one-cent movement in exchange rates. One pip is equivalent to $0.0001, which is what would happen if the EUR/USD rate moved from $1.1001 to $1.1002. Pips are the fourth decimal place in a quotation for major currency pairings.
Spread
The spread is the difference between the ask price and the bid price, represented in Pips, which are the smallest measure according to which a price can either increase or decrease in the forex market.
Lots
Lots are the standard commercial unit of measurement. There are three popular lot sizes: a standard lot, worth $100,000, a mini-lot, for $10,000, and a micro-lot, worth $1,000.
Leverage
Leverage allows you to take a greater position in the forex market than you would be able to fund with your own funds alone. The ratio of leverage, for instance, can be written as 1:50.
What this implies is that you may maintain a position fifty times greater than your current account balance.
Margin
Margin is utilized in foreign exchange trading to enable traders to open positions larger than their available cash would otherwise permit. Initial margin and variable margin are the two most important margin concepts to learn.
The minimal amount required to establish a trade is known as the initial margin, while the margin required to maintain an open position is known as the variation margin.
Slippage
When your deal is executed at a different price than expected, this is called slippage. For several causes, including delayed software and high order volumes, this may occur.
When discussing changes in the execution price, “slippage” is used regardless of whether the change is a decrease or an increase.
Long and Short Positions
A trader who buys a currency pair in the hopes of a price appreciation is said to be “going long” on that currency pair.
In this case, the trader will have made a profit. When a trader sells a currency pair with the anticipation that it will decline in value, they are said to be “going short.”
Bullish/Bearish
One who takes or contemplates a long position in a currency pair is said to be “bullish” on the pair or the currency in question.
For instance, one might have a positive outlook on the Euro and, more specifically, the EUR/USD pair. Bearish refers to an outlook that is negative toward a currency or currency pair.
Hawkish/Dovish
As opposed to retail traders, there is no way for a central banker to take a bullish or negative stance on the market.
This means that central bankers may take either a hawkish or dovish stance, with this the same as either bullish or bearish respectively for typical retail traders.
Inflation
is the general rise in prices over time for consumer goods and services. Inflation is seen in the world today. The price of a cup of coffee, for instance, may have gone up from $2 last year to $2.10 this year.
Despite its importance, inflation is not included in your economic calendar and the reason is attributable to the term “CPI”, which more accurately describes the statistic you want. This metric represents the economic reflection of changes in consumer pricing.
Understanding Forex Charting
When researching the foreign exchange market, Tanzanian traders will employ a wide variety of charts. In most cases, the trading strategy or kind of analysis will play a role in determining the chart that should be used.
Most traders now make use of charts since they provide a simple as well as a pictorial understanding of the movements of the market. In addition, patterns, trends, and other visual cues that might assist traders in recognizing potential trading opportunities can be shown on charts.
A price chart is a graphical depiction of the price of a certain instrument over a specified amount of time. This instrument might be a currency pair in forex trading, stock indexes, precious metals, or any other financial asset.
Learning how to read price charts is one of the most essential skills for novice traders to acquire. To carry out a technical analysis of the market in which they want to engage in trading, they must understand how they function.
The chart provides a graphical representation of a predetermined amount of time over which trading activity is taking place on the asset. This time frame can range from one minute up to seven days.
The time scale is shown along the x-axis of the charts, which is the horizontal axis, and the price scale is represented along the y-axis, which is the vertical axis.
Traders can discover patterns and evaluate the possibility that the value of the asset will rise or fall by using technical indicators and analysing the chart from left to right (where the most recent price change is presented on the right side of the chart).
Analysis of foreign exchange markets, as well as any other technical analysis of a financial asset, makes use of a wide variety of charts. One chart can be more useful to you than another, depending on the way you trade or the kind of research you do.
The following are the three most common kinds of forex charts:
- Line Chart
- Bar Chart
- Candlestick Chart
Line Chart
In terms of readability, line charts are much superior to other types of charts. Close prices at certain time intervals are shown, usually using a continuous curving line connecting dots depicting price changes at specified time intervals.
If you want a rapid overview of the market position and where it is headed, a line chart is your best bet. This style of the chart is great for novice traders since it is easy to understand and follow, and it teaches the fundamentals of chart reading that can be expanded upon using candlestick charts.
An advanced trader’s trading strategy frequently needs more data than what a simple line chart can provide.
For many trading methods, more information is needed than what is provided by a line chart, which only shows the asset’s closing price at a given moment in time, as opposed to the candlestick chart, which provides the asset’s open, close, high, and low values for the day.
Bar Chart
Bar charts, commonly known as OHLC charts after its acronym, are an improved variant of the line chart that displays data for all three price levels (Open, High, and Low). Typically, a vertical line with two horizontal lines on each side of it is used to depict them.
The bottom and top of the vertical line represent the day’s highest and lowest prices, respectively, while the open and close prices are represented by the two horizontal lines. On a bar chart, you could show data for any given timeframe, from a few seconds to a week or more.
Since each bar represents a certain amount of time, investors may tailor their analysis to fit their own objectives and strategies by switching between many timeframes.
While a week might be optimal for a long-term investment, 30 seconds, a minute, or even 5 minutes could be more suitable for a day trader.
Candlestick Chart
The opening and closing prices throughout the timeframe are represented by the top and bottom of the candlestick body, respectively.
When the closing price is lower than the starting price, the body of the candle is often red or black. The body will be green or white if the closing price is greater than the starting price.
In this scenario, a price decline is shown by black candlesticks, whereas a price increase is indicated by white candlesticks. Popular colours for showing price increases and decreases include red and green, although these may be readily changed.
The candlestick body begins at the opening price and ends at the closing price for the time horizon or timeframe chosen.
If the ending price of a candle is lower than the opening price, the body of the candle will be coloured red or black. A green or white body indicates that the closing price was higher than the opening price.
Black candlesticks indicate a downward trend in price, whereas white ones show an upward trend. Although red and green or black and white are often used to show rising and falling prices, these colours can be simply modified to suit individual preferences.
Effective Risk Management for Tanzanian Forex Traders
There is danger involved in trading in the forex markets, as there is with any other market. Therefore risk management is considered crucial by the vast majority of the world’s professional and successful traders.
When first learning the ropes of trading, it is recommended that you never risk more than 1% of your cash. If you want to be successful in foreign exchange trading, you need a risk management approach.
Determine whether or if you are a high-risk taker, or would you want to take moderate risks?
Having a firm grasp of one’s own personal risk profile or willingness to take risks is crucial while handling FX transactions. Always remember that you can tailor your trading approach to your comfort level with risk.
It is also important to consider position size when calculating your risk exposure, since the amount you invest in each transaction may have a significant effect.
The potential gains and losses are proportional to the amount of your stake. However, it works in both directions where smaller position sizes make trading easier to handle, but they also reduce the gains and losses that may be realized.
You should always keep in mind the importance of position size management in preserving your trading cash overall, in addition to:
- The option to customize your stop loss settings is a useful feature of most current trading systems. One of the most efficient techniques to manage trading risks is to set a stop-loss for each transaction. Consider the stop loss a tool in your trading arsenal.
- Leverage: Like stop loss, the amount of leverage you utilize in forex trading may be chosen and pre-set by the trader. If you are just starting in the forex market, you should limit your use of leverage. Always remember that leverage may increase both your gains and your losses.
- Trading psychology is just as crucial to know your own trading psychology as it is to know your own risk profile. This requires being truthful with yourself while dealing with large market gains or losses. Learning to understand your own mental makeup and how you respond to changes in the market will put you in a position to be well-prepared for any number of scenarios.
Best Forex Strategies for Tanzanian Traders Revealed
Although everyone takes a different approach, some tactics often have certain basic characteristics. The following is a list of some common foreign exchange strategies that you might want to consider:
- Trend Trading is a trading method that is straightforward and widely used. It entails recognizing profitable trends and opening a position to capitalize on the momentum. It is often a plan with a medium to long-term focus.
- Range Trading entails locating critical support and resistance regions where prices are more likely to rebound from the level than to break through it. When there is no obvious trend, such as during times of consolidation, it functions effectively.
- Swing Trading – Swing trading is a trading method in which traders try to forecast the peaks and troughs that certain currencies will reach and then choose long and short according to their predictions.
- Position Trading – The term “position trading” refers to the practice of maintaining a position for an extended amount of time, which may range anywhere from a few weeks and even up to several years. Both technical analysis and fundamental analysis are available to position traders.
- Day Trading – Day trading is the reverse of position trading in that deals often only last a few minutes or hours and are finished before the markets shut for the day. This kind of trading is on the more speculative end of the spectrum.
- Scalping – Scalping refers to a trading method wherein traders attempt to profit from minute fluctuations in price. They may only maintain their places for a few seconds at a time.
Spot, Forwards, and Futures in Forex Trading
Forex spot market
The spot market for foreign exchange is the biggest in the world, and you may have participated in it without even realizing it. Participation in the forex spot market might be considered to have occurred whenever an individual visits a bank to exchange currencies.
Forex futures market
The purchase or sale of a currency pair at a predetermined time, date, and quantity is how futures contracts are executed. This market is conducted on futures exchanges located all over the globe, which is also the location where contracts are transacted.
These are contracts that are enforceable in the eyes of the law and enable the seller to take the risk that the currency will become less expensive on the spot market before the end date of the contract.
The market for forex forwards
The forwards market consists of transactions that take place either between a consumer and a bank or from bank to bank.
Forwards contracts, on the other hand, are malleable and may be tailored to the specific needs of a trader, in contrast to futures contracts, which have predetermined characteristics like size and age.
Ask and Bid Price in Forex Trading
The foreign exchange market, like other financial markets, features something called a bid-ask spread. This refers to the simple difference between the purchase price and the selling price of a currency pair.
When you first carry out a trade, you will see that the “profit” column has a negative value in it. This is due to the reason stated above. When engaging in forex trading, it is essential to have a solid grasp of which currency pairings provide the most advantageous spreads.
Although the spreads on the main currency pairings and even on some of the crosses are reasonable, the spreads on some of the more exotic currency pairs may be very wide, which can result in a significant loss as soon as a transaction is entered.
The currency pairings that see the most daily activity also tend to have spreads that are the tightest. The bid-ask spread of a currency pair is subject to change based on the trading session that is currently active.
Because of a significant influx of trades that take place during the London and New York sessions, the bid-ask spread will often be at its lowest point during these two sessions.
Spread and Pips in Forex Trading
Your broker will always provide you with two prices to choose from: the bid price and the ask price, regardless of the currency pair you are trading.
The bid price reflects the value at which you can sell the base currency of the forex pair, whilst the ask price reflects the price at which you can purchase it from the broker. (It is important to keep in mind that the base currency is the one that is stated first.)
The spread refers to the difference between these two prices, and the ask price (purchase price) is always going to be greater than the bid price (sell price).
For instance, with the AUD/USD currency pair, you will see that your broker is displaying a sell price of 0.76594 and a purchase price of 0.76604 on the screen.
When the selling price is subtracted from the purchasing price, you will arrive with a spread of 0.0001 dollars. Thus, the literal meaning of the abbreviation “pip” is “percentage in point.”
Considering this, a standard unit of measurement known as a pip is a unit of measurement that specifies the lowest conceivable price difference between a pair of currencies.
For instance, a broker may make an announcement stating that they provide minimal spreads on the AUD/USD currency pair beginning at 0.6 pips. When describing the spread, some brokers may also use points rather than pips.
Most currency pairings that brokers quote go out to four or five decimal points. Check the value of the currency pair’s fourth decimal place to see whether there have been any price shifts.
This is because a pip is equivalent to a price movement of 0.0001 and applies to the majority of the main currency pairings.
However, it is important to keep in mind that the bid and ask prices for currency pairings involving the Japanese yen are only given to two decimal places. Because of this, the value of one pip for JPY pairings is equal to 0.01.
An Introduction to Day Trading
Trading foreign exchange (Forex) daily, or “day trading,” involves making trades using charts that only extend one day (for example, 15-minute charts).
Traders may frequently use technical analysis tools to help them decide when to enter and exit a position over minutes to hours. It is a strategy for making trades in volatile markets that calls for concentration and self-control.
Day traders have a far shorter time horizon than position traders, who may leave a trade open for many months or even a year, or swing traders, whose positions may only last a few weeks. However, this time frame is far longer than that of a “scalper,” someone who enters and quickly leaves a deal.
An Introduction to Swing Trading
Swing trading is a strategy that aims to profit from price fluctuations in stocks (or other financial instruments) that last from a few days to a few weeks. Swing traders rely heavily on technical analysis to identify market swings and profit from them.
Swing traders may also use fundamental analysis to supplement their price pattern and trend research. Holding a long or short position for more than one trading session, but often less than several weeks or a couple of months is characteristic of swing trading.
This is a broad time range, since a trader may consider a deal that lasts longer than two months to be a swing trade. Swing trades may also occur throughout a trading session; however, this is an unusual occurrence brought about by exceptionally volatile market circumstances.
Swing traders aim to profit from market fluctuations by buying low and selling high. Some investors seek equities with large price swings, while others may be more comfortable with stocks that are quite stable.
Swing trading, in either scenario, involves anticipating where an asset’s price is likely to go next, opening a position, and taking partial profit if the anticipated price movement occurs.
Best Forex Brokers in Tanzania
Best MetaTrader 4 / MT4 Forex Broker in Tanzania
Overall, Alpari is the best MT4 forex broker in Tanzania. Alpari offers four retail trading accounts to Tanzanian traders and both instant and market execution. Forex spreads start from 0.4 pips EUR/USD and Tanzanians can expect low commissions from $1.5 per lot, per side.
Best MetaTrader 5 / MT5 Forex Broker in Tanzania
Overall, Exness is the best MetaTrader 5 forex broker in Tanzania. Exness reports that customer support is offered in 18 languages across several communication channels 24 hours a day, 7 days a week.
Exness offers MetaTrader 5 across desktop and web-based platforms with the benefit that Android and iOS devices can download the mobile app for the platform.
Best Forex Broker for beginners in Tanzania
Overall, IG is the best forex broker for beginners in Tanzania. Tanzanian beginner traders have unlimited access to the IG Academy when they register an account and make the minimum deposit.
Several other tutorials and guides offered by IG can help Tanzanian traders develop an effective trading strategy.
Best Low Minimum Deposit Forex Broker in Tanzania
Overall, HF Markets is the best Low Minimum Deposit Forex Broker in Tanzania. Apart from an ultra-low minimum deposit of 11,600 TZS, HF Markets also offers zero-pip spreads and some of the lowest commission charges.
Best ECN Forex Broker in Tanzania
Overall, Tickmill is the best ECN forex broker in Tanzania. Tickmill is both an STP and ECN broker that offers superior trade execution through prominent and trusted liquidity providers. Tickmill is a MetaTrader-only broker that has more than 80 financial instruments that can be traded.
Best Islamic / Swap-Free Forex Broker in Tanzania
Overall, OANDA is the best Islamic / Swap-Free forex broker in Tanzania. OANDA offers a dedicated Swap-Free account to Muslim traders that are commission-free and features spreads from 1.6 pips EUR/USD. Muslim traders are given access to 26 instruments and there is one-click trading offered.
Best Forex Trading App in Tanzania
Overall, XM is the best forex trading app in Tanzania. XM offers a proprietary trading app that can be used to trade more than 1,000 financial instruments. Tanzanians have unlimited access to instant orders that do not have any requotes.
XM provides more than 90 technical indicators on its app and full integration with MetaTrader 5 for additional features.
Best Lowest Spread Forex Broker in Tanzania
Overall, Axi is the best lowest spread forex broker in Tanzania. Axi is a MetaTrader 4-only Forex and CFD broker with variable zero-pip spreads and affordable commission charges. Tanzanian traders are given access to mobile trading solutions through MetaTrader 4’s app for Android and iOS.
Best Nasdaq 100 Forex Broker in Tanzania
Overall, Pepperstone is the best Nasdaq 100 forex broker in Tanzania. Pepperstone serves more than 170 countries and records trading volumes of more than $8.3 billion daily.
Pepperstone is one of the largest brokers that offer Tanzanians Nasdaq 100 as a CFD instrument along with several other asset classes.
Best Volatility 75 / VIX 75 Forex Broker in Tanzania
Overall, AvaTrade is the best Volatility 75 / VIX 75 forex broker in Tanzania. AvaTrade is a popular and reputable STP and Market Maker broker that offers over 1,250 tradable instruments.
Tanzanians have access to the Volatility 75 index when they trade CFD instruments through AvaTrade’s Standard or Professional Account.
Best NDD Forex Broker in Tanzania
Overall, InstaForex is the best NDD forex broker in Tanzania. InstaForex offers Tanzanians one of the best No-Deposit bonuses in the industry in addition to free VPS. InstaForex is one of the best No-Dealing Desk brokers with tight variable spreads and competitive commissions.
Tanzanian traders can carry out micro-lot trading and gain access to commission-free trading options.
Best STP Forex Broker in Tanzania
Overall, Markets.com is the best STP forex broker in Tanzania. Markets.com is well-known for its massive range of over 2,200 tradable instruments. Markets.com is also an STP broker that offers fast and reliable executions.
Best Sign-up Bonus Broker in Tanzania
Overall, RoboForex is the best sign-up bonus broker in Tanzania. When Tanzanians register a live trading account for the first time, they can qualify for RoboForex’s Welcome Bonus once they meet the terms and conditions.
In addition, RoboForex also offers several other beneficial bonuses that can help Tanzanians kick-start their forex trading career.
FAQ’s
Is Forex Trading legal in Tanzania?
Yes, it is legal to trade forex in Tanzania as the Tanzanian Government does not have any laws that are currently governing forex trading. However, the Bank of Tanzania is currently overseeing and controlling cash flow from the country.
How do I join Forex Trading in Tanzania?
You can obtain a device that can connect to the internet and decide what your objectives are in trading forex. Next, you can find a broker that meets these objectives, learn about forex trading, register an account, and start trading.
What is the best time to trade forex in Tanzania?
The best time to trade forex in Tanzania is between noon and 6 pm local Tanzanian time. During this timeframe, the London and New York sessions overlap, providing high liquidity.
Which broker is the best in Tanzania?
The overall best broker for Tanzanian traders is Exness because of the versatility that it provides beginner and professional traders.
Is it good to invest in Tanzania?
Yes, investments in Tanzania are all protected against any political risks along with nationalization and expropriation. While there are no forex brokers regulated by the Bank of Tanzania, other regulatory entities such as the FSCA keep an eye out for other African countries.