The Best Forex Brokers in Tanzania – Brokers Listed and Rated

Forex trading has gained a foothold in Africa and has been at the forefront for quite some time. A lot of African traders are emerging, establishing themselves as one of the best in the industry.

Tanzania is no exception. Even though the country is just beginning, positive insights can already be seen in this regard.

The main regulatory body of Forex trading in the country is the National Bank of Tanzania (BoT). Within the country’s borders, there are no registered brokers. At the same time, the lack of regulations is visible and some people are afraid to engage in trading due to their absence. However, it does not mean that it is prohibited – you can still start trading by choosing a proper FX broker.

Best Tanzania Forex Brokers – Why We Chose Them

As you can only trade with foreign brokers in Tanzania, we have thoroughly researched the ones, offering services to Tanzania citizens. Here is a list of the top 3 brokers you can choose to start trading with

Best and most trusted forex brokers in May 2024

We decided to choose these brokers for several reasons. First of all, they are licensed, meaning that you can be sure about the trustworthiness of their services. Secondly, they already have some experience in the FX industry and can boast of having a lot of customers. Furthermore, they meet all the requirements and standards.

How We Chose The Best Tanzania Forex Brokers?

choosing a broker in tanzaniaChoosing the top-rated Tanzania Forex brokers was based on a particular methodology. We decided to explore the characteristics and features of brokerage companies. Initially, we had a look at licenses and regulations. Then we moved on to the local-currency accounts. Shilling is the official currency of the country. We also paid attention to the availability of payment methods and then researched trading conditions. While it is not the main criterion, we checked the UI and UX of the website, how navigation works and what the registration process looks like. Below you can have a look at the details:

  • Regulation – Before you begin to start trading in Tanzania you need to check for the regulations. As we have visited these websites, all of them have licenses credited by notable regulators and authorities. CySEC and FCA are the 2 most popular licenses and you should definitely check whether the broker has one of them at the bottom of the main page.
  • Local-currency accounts – Trading with Tanzanian shilling is a rarity and not a lot of people within the country’s borders mostly choose major currency pairs such as EUR/USD. Still, you can come across brokers where the possibility of trading with Tanzanian shilling is provided.
  • Local payment methods – Fast and secure payment methods are necessary to conduct trading more efficiently. Some of the most popular payment methods in Tanzania include PayPal, Visa, Mastercard, Skrill, Neteller. The brokers mentioned above offer clients from Tanzania a wide variety of options.
  • Spread sizes – Spread is the difference between the Bid and Ask price. It can be both variable and fixed. Among Tanzanian Forex brokers, spreads can be as low as 0 pip. Depending on the trading instruments and currency pairs, spreads can vary significantly, but you can choose your preferred option easily.
  • Asset diversity – Forex is one of the most popular options for trading, but there are hundreds of different trading instruments you can choose from. Stocks, metals, indices, shares – this is only a small list of assets to trade within Tanzania. The abovementioned brokers have different types available for trading, with all of them providing numerous benefits and advantages.
  • Customer service in native language – The official spoken language of Tanzania is both English and Swahili. English is widely spoken in the country and a lot of people have an excellent command of this language. Customer support is provided in English and you can turn to the support group any time you want.
  • Account type diversity – Diversity of trading accounts is necessary. The brokers that we chose offer customers different types of accounts, depending on their experience and preferences. There are neither best nor the worst accounts, as all of them, have different features and characteristics, but in terms of versatility, you can be sure to choose any type of account.

          How Are Forex Brokers in Tanzania Regulated?

          Forex trading in Tanzania is not regulated and there are no brokers with local licenses in the country. If you wish to start trading you should go for offshore companies. A lot of people abstain from trading because of these reasons, but it does not mean that you will be at risk of losing funds. Numerous international brokers are welcome in the country and you can feel free to create an account on their websites. Retail traders mostly go for this option.

          The main regulatory body, as has already been mentioned above, is the National Bank of Tanzania. It regulates matters related to foreign exchange, but you won’t see a list of approved brokers on its website. At some point the BoT took a harsh stance on several newspapers, who were using unofficial exchange data, leading to their closure. Even though there are no regulations set on trading, it is not as dangerous as it may seem at the first glance.

          If you are just beginning to trade Forex in Tanzania, choose a regulated broker with experience that will guide you through the path.

          How to Start Forex Trading in Tanzania – Step by Step

          Getting started is the part that scares a lot of novice traders, but there are no reasons to worry. As soon as you have a working computer or mobile device, you should find a decent and regulated Forex broker, you would trust your funds. Then you need to create a new account and before moving to real trading, it is better to start with a demo. You can look for the offers and possibilities related to educational material on the broker’s websites, which will only simplify the trading process.

          Step 1 – Find a Broker

          In Tanzania, there is no locally licensed Forex broker, but international companies are available. When you are searching for brokers you should first pay attention to the available license and check the proof of it on the website. While there is no list of regulations provided by the National Bank of Tanzania that would allow brokers to function within the country, you can do it by yourself. First, you need to check whether the broker offers negative balance protection. This feature ensures that clients do not lose more than they have actually deposited. The broker should also be compliant with the AML measures. It is preferred for the broker to have a CySEC or FCA license, but offshore regulations can also guarantee the safety of any broker.

          Step 2 – Compare Brokers

          When you have a choice, look for a better one. You might find the broker that satisfies your needs and requirements, but searching for the additional ones should not be omitted. First of all, when you have several options, it is way easier to choose between them by comparing different features and conditions. For example spreads, leverages, currency pairs, and bonuses could be different. Some brokers have more competitive spreads, while others are not suited for beginners. Leverage is worth your attention because with increased leverage risks rise as well. Novice traders in Tanzania should understand that while leverage guarantees better chances of more profits, it can also incur losses.

          As for the bonuses, do not expect to get more than a $100 bonus on your first deposits. Frequently, bonuses range between $20-100 depending on the broker, but the initial amount will be helpful in trading.

          Step 3 – Choose Your Account

          Forex brokers in Tanzania offer 3 main types of trading accounts: Cent, Standard, and Islamic. Cent and Standard accounts have numerous subcategories, but usually, they are the same, with conditions changed slightly. Normally, brokers provide detailed conditions on features. The minimum amount of deposit is also set for opening the account.

          Islam is the second religion with the number of followers in Tanzania, so traders who are of the Muslim faith can freely choose this type of account on the brokers’ websites. Islamic accounts need to be explained separately. They are a swap-free account. That is, they do not charge a commission for transferring a position to the next day and are not charged, as in the case of a positive swap. Therefore, Islamic accounts can be convenient for long-term trading, when it is necessary to hold transactions for several days or more. There are also no fees or commissions. Customers are offered fixed spreads. This avoids some uncertainty and accidental profit if the spread collapses with increasing liquidity.

          Step 4 – Subscribe to Educational Material

          If the broker allows an educational platform then there is no more reason to choose it. Does not matter whether you are an accomplished or novice trader in the industry – knowledge is never abundant – especially in Tanzania where this field is still in the development stage. Only by learning new things and getting the experience you can achieve success in trading.

          Educational material can be divided into several categories: VOD, eBook, and instructive courses from prominent traders. VOD stands for Video on Demand and they are available on the website directly. You do not need to download them. They are not too long and explain the main concepts of trading from beginner to advanced levels in Layman’s terms. eBooks are digital books, written by traders or experts of the Forex industry, sharing their knowledge and experience. Instructive courses are almost the same but they are conducted in a video format.

          Step 5 – Start With a Demo Account

          The beginning steps should start with a Demo account. Every broker on our list offers an option of a demo trading account. With these accounts, you can start trading in a simulated environment. Unlike real trading, the wins and losses in a demo account do not affect your balance. You are given virtual money that you can use to understand the basics of the market – how the market moves, what are the price changes, how transactions are executed, etc. A demo account is a perfect tool for you to get some experience before moving to live to trade.

          Usually, a demo account is available in a trial period for a limited period of time, but you can subscribe to this feature when the trial runs out.

          Step 6 – Switch to Live and Start Trading

          A demo account is beneficial during the initial period before you get used to trading but after some time you need to switch to real trading. If you become too dependent on demo trading you might put yourself at risk. When you are not risking your own funds, it is way easier to go for dangerous trades. While in real trading there are fears associated with losing money, you won’t make progress otherwise.

          Switching to live is possible by creating a new account. On the broker’s website first, you should go through the registration process and choose the one that suits your needs and preferences. A minimum deposit will be required and after downloading the trad platform, you will be ready to embark on a trading path.

          Risks of Forex Trading in Tanzania

          Every activity whether it is Forex or any other one is associated with certain risks. These risks are unavoidable but by getting proper knowledge and understanding, you can alleviate them to the greatest extent. Below you can find risks connected to Forex in Tanzania.

          • Lack of Regulations – Forex trading in Tanzania is not regulated. While the BoT supervises foreign exchange activities within the country, there are no specific set of rules you need to follow. Also, you cannot find brokers that have local licenses. This could cause safety concerns for some traders.
          • Hasty trading – Traders in Tanzania, especially the ones without experience, go for risky traders without prior knowledge and experience, putting themselves at risk of losing funds. You need to understand that hasty and reckless decisions will only lead to more dangers than benefits.
            • Connection Problems – In Tanzania, a lot of people have problems with getting a decent Internet connection. Even the slightest issue and bug can result in the loss of your position and hence – money. In order to guarantee safe trading, make sure that you have a good ISP that will provide Internet services swiftly and smoothly.

            Frequently Asked Questions (FAQs) on Tanzania FX Brokers

            Is trading Forex in Tanzania Legal?

            Yes, trading Forex in Tanzania is completely legal, with the BoT considered the main regulatory body, however, there are no specific regulations and laws that you can follow. Even though trading is legal, you might put yourself at risk by choosing a fraudulent broker.

            Do Tanzania Forex Brokers Offer Islamic Accounts?

            Yes, FX brokers in Tanzania offer customers the possibility to register on Islami accounts. These accounts are swap-free and you do not need to pay commissions for them. These accounts are characterized by unique characteristics. People in Tanzania can freely sign up and create a new Islamic account.

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