Ethiopia was invited to join BRICS and will become a member in January 2024, which could boost much-needed development and drive demand for Forex trading.
Ethiopians seeking to increase their income opportunities and prosperity have started considering Forex trading.
We have reviewed dozens of Forex brokers catering to Ethiopia and compiled our list of Ethiopia Forex brokers with the most competitive choices.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- Exness, Tight spreads + leverage up to 1:2000.
- FP Markets, ECN trading with leverage up to 1:500.
- FXGT, Great mix of Forex and crypto assets.
Best Ethiopian Forex Brokers Comparison
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Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | CMA, CySEC, FCA, FSA, FSC Belize, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA | CySEC, FSA, FSCA |
Year Established | 2006 | 2008 | 2005 | 2019 |
Execution Type(s) | Market Maker | Market Maker | ECN/STP | ECN/STP, Market Maker |
Minimum Deposit | ||||
Average Trading Cost EUR/USD | 0.9 pips | 0.6 pips | 1.2 pips | 0.1 pips ($1.00) |
Average Trading Cost GBP/USD | 1.5 pips | 0.7 pips | 1.4 pips | 0.1 pips ($1.00) |
Average Trading Cost Gold | $0.29 | 11.3 pips | $0.16 | $0.15 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5 |
Islamic Account | ||||
Negative Balance Protection | N/A | |||
| Visit Website | Visit Website | Visit Website | Visit Website |
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade is an excellent choice for beginner traders in Ethiopia, which shines with its industry-leading spun-out Ava Academy. Traders benefit from a reasonable commission-free pricing environment, landing AvaTrade a spot on our best Ethiopian Forex brokers list. The Guardian Angel plugin for MT4 is another quality beginner trading tool.
Traders also get a choice of trading platforms, including the specialized Ava Options and Ava Social. WebTrader and AvaTradeGO have embedded Trading Central services, providing quality trading tools and services. MT4 and MT5 cater to algorithmic traders and have embedded copy trading services, while copy trading provider DuplitTrade is also available.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
Exness
In Summary Tight spreads + leverage up to 1:2000Exness is the most established broker on our Ethiopian Forex brokers list, with a $3.3 trillion turnover from 500M+ traders and $1.3+ billion in quarterly client withdrawals. Beginners get 400+ educational videos, and its Pro account features ultra-low trading fees from 0.1 pips. Exness also stands out with its instant 24/7 withdrawals and payment processor choice, including cryptocurrencies.
Exness developed its proprietary web based Exness Terminal and user-friendly mobile app, Exness Trade App, which is ideal for its Exness copy trading service. Algorithmic and copy traders may also use MT4/MT5. Exness also publishes transparent financial reports that are reviewed and verified by Deloitte.
Pros & Cons
- Instant withdrawals, based on the payment system, from a trusted broker with numerous payment methods
- Multi-regulated broker
- 24/7 multi-lingual customer service
- No education for beginners
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets presents traders with a well-balanced asset selection and competitive, commission-based trading fees, complemented by its excellent choice of payment processors, including 15+ cryptocurrencies, placing FP Markets on our best Ethiopian Forex brokers list. FP Market also maintains a cutting-edge MT4/MT5 infrastructure due to its 12-plugin upgrade package plus services by Trading Central and Autochartist. cTrader is also available to Ethiopian Forex traders.
Copy traders can diversify via embedded MT4/MT5/cTrader copy trading services, the proprietary FP Markets alternative, the well-known Myfxbook Autotrade service, or the fee-based Signal Start. Algorithmic traders get low-latency 24/5 market access through free VPS hosting.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
FXGT
In Summary Great mix of Forex and crypto assetsSouth African broker Global GT, founded in 2020, offers the novel approach of combining Forex and cryptocurrency trading under one roof. It supports its business model by accepting cryptocurrencies for both deposit and withdrawal and as account base currencies. With a minimum deposit of $5 and maximum leverage of 1:1000 plus negative balance protection, Global GT offers South African traders a trusted domestic broker with a competitive product and services portfolio. The six-tier dynamic leverage system ensures that risk remains in check and supports traders with their risk management. Traders seeking the best trading conditions at Global GT will get them in the ECN account for a low minimum deposit of $250.
Global GT remains a genuine African broker with regulatory licenses from the South African FSCA and the Seychelles FSA plus a capital adequacy ratio of 40%. Both regulators continue to gain confidence from global brokers, offering a competitive mix of trusted regulation and a competitive business environment. Global GT offers traders the out-of-the-box MT5 trading platform and maintains two bonus offers. Global GT delivers on its hybrid Forex-cryptocurrency business model and supplements a competitive choice of cryptocurrencies with synthetic crypto pairs.
South African Forex traders looking for a trusted broker with a secure trading environment and choice of cryptocurrency assets alongside Forex should consider Global GT. The trading conditions are competitive, and Global GT remains well-positioned to grow in lockstep with the cryptocurrency market.
Pros & Cons
- Deposit bonuses and financial transactions in cryptocurrencies
- Tier1 liquidity aggregation and low latency trade execution
- Good cryptocurrency selection, including synthetic cryptocurrency pairs
- Low minimum deposit and high leverage with negative balance protection
- Clients resident in USA, EU, and UK not accepted.
Forex Trading in Ethiopia
The brokers on our Ethiopia Forex brokers list offer excellent choices, but the domestic infrastructure remains challenging. Less than 17% of the population has an internet connection, although mobile penetration is above 55%. However, only 5% of the people are social media users. Poverty and the lack of education present additional obstacles.
What to Look for in a Forex Broker in Ethiopia
Our Ethiopia Forex brokers review focused on the below aspects.
All competitive Ethiopian Forex brokers should offer the following:
- Regulation - 10+ years of a clean regulatory track record.
- Low trading fees - Low trading fees and swap rates, including positive ones.
- Trading platforms - Availability of algorithmic and copy trading platforms.
- Asset diversity - Well-diversified, liquid trading instruments.
- Deposits/Withdrawals - No internal fees with low minimum requirements.
Forex Trading Regulations in Ethiopia
Ethiopia does not regulate Forex brokers, and international Forex brokers, like the ones on our Ethiopia Forex brokers list, handle retail Forex trading.
The National Bank of Ethiopia regulates physical Forex transactions and implements rules for foreigners and domestic residents.
How Much is Forex Leverage in Ethiopia?
There is no limit, but the brokers from our Ethiopia Forex brokers review offer the industry-standard 1:500 on major currency pairs with negative balance protection. Ethiopian traders should always use proper risk management to avoid magnified trading losses.
How to Start Forex Trading in Ethiopia
Before funding an account with a broker from our list of Ethiopia Forex brokers, traders should consider the tips below.
Here are tips on how to start Forex trading in Ethiopia:
- Start with in-depth, quality education.
- Respect Forex trading as a highly skilled profession.
- Master trading psychology, as it separates up to 90% of traders from profitable ones.
- Understand the importance of leverage and its relationship to risk management.
- Use leverage properly, which is a necessary tool, but it magnifies profits and losses.
- The importance of risk management ranks on par with the trading strategy.
- The personality of traders remains reflected in their trading strategy choices.
- Low trading costs are the primary component of a competitive trading environment.
- Learn the proper placement of take profit and stop loss levels.
What is the Best Trading Platform in Ethiopia?
The best trading platform in Ethiopia remains the industry leading MT4, as it fully supports algorithmic, copy, and API trading. MT5 and cTrader come in as the second and third-best choices. All Forex brokers on our Ethiopia Forex brokers list offer MT4, MT5, or both, and some upgrade the out-of-the-box version with plugins.
Forex Trading Taxation in Ethiopia
Ethiopia has a capital gains tax of 30%, but per PricewaterhouseCoopers, a Big Four accountancy firm, the tax applies to shares and bonds. Limited information exists about Forex taxation in Ethiopia, as Ethiopia does not actively regulate online Forex retail trading, and international brokers like the ones from our Ethiopia Forex brokers list cater to slowly expanding demand. Therefore, Ethiopian traders must consult with a legal professional to seek tax advice in Ethiopia to ensure compliance with local rules and regulations.
Pros & Cons of Forex Trading in Ethiopia
Traders should evaluate the pros and cons of Forex trading in Ethiopia before funding an account.
The pros of Forex trading in Ethiopia are:
- Lower capital requirements versus other assets
- 24/5 decentralized trading
- Passive income opportunities
- Copy and social trading.
- PAMM/MAM accounts
The cons of Forex trading in Ethiopia are:
- Low internet and mobile penetration
- Demo trading that yields a false sense of accomplishment
- Disconnect between leverage and its relationship to risk management.
Bottom Line
The young Ethiopian population presents an excellent growth market, and the brokers on our Ethiopian Forex brokers list offer a competitive choice with excellent education. Regrettably, most Ethiopians are offline, with an internet penetration below 17%. While mobile usage is better at 55%, only 5% are active on social media. Education remains paramount to the success of Ethiopian Forex traders, who should prioritize it before finding an account.
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