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.
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- Octa, A commission-free broker with a proprietary copy trading service.
- XM, Exception range of assets + negative balance protection.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
Best Ethiopian Forex Brokers Comparison
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Regulators | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, SCB | CySEC, FSCA, MWALI International Services Authority | ASIC, CySEC, DFSA, FSC Belize | FMA, FSA |
Year Established | 2005 | 2009 | 2011 | 2009 | 2014 |
Execution Type(s) | ECN/STP | ECN/STP, Market Maker | Market Maker | Market Maker | ECN/STP, No Dealing Desk |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.2 pips | 1.0 pips | 0.9 pips | 0.1 pips | 1.3 pips |
Average Trading Cost GBP/USD | 1.4 pips | 1.2 pips | 1.3 pips | 0.2 pips | 2.0 pips |
Average Trading Cost Gold | $0.16 | $0.12 | $0.30 | $0.19 | $0.90 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
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
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap established itself among the best Forex brokers due to its superb trading infrastructure, excellent order execution amid deep liquidity, competitive fees, and cutting-edge trading tools. Manual traders get a well-designed AI-powered economic calendar, and Eightcap upgrades MT4 via Capitalise AI, which enables algorithmic trading in a code-free environment. MT5 traders benefit from Flash Trader, while the dedicated cryptocurrency solution Crypto Crusher caters to cryptocurrency traders.
Copy traders get the embedded MT4/MT5 services, and Eightcap connects social traders to the active TradingView community. Beginner traders get an outstanding educational and research offering via Eightcap Labs and Eightcap Trade Zone.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
Octa
In Summary A commission-free broker with a proprietary copy trading serviceOctaFX delivers commission-free, instant deposits and withdrawals with fast processing times. It features 21M+ trading accounts, 60 industry awards, and $31M+ in paid-out bonus funds, making it the Forex broker on our best Ethiopian Forex brokers list with ideal conditions for beginners. The choice of highly liquid assets is excellent for scalpers and algorithmic traders.
Besides MT4/MT5, traders can use the proprietary web-based alternative, the OctaFX Mobile App or the OctaFX Copytrading App. OctaFX streamlined the latter for copy traders using its in-house developed service. Traders also benefit from a maximum Forex leverage of 1:500 with negative balance protection.
Pros & Cons
- Quick withdrawals and deposits
- 0% commission and no overnight charges
- Space with personalised trading ideas
- Customer Support 24/7
- Mobile copy trading services available only for Android
XM
In Summary Exception range of assets + negative balance protectionI rank XM among the best Forex brokers for beginners as it provides exceptional education, with the live education room available Monday through Friday between 06:00 and 15:00 GMT at its core. Beginners also receive actionable trading recommendations, and the $5 minimum deposit ensures accessibility to all traders, boosted by deposit bonuses.
XM rewards active traders with a four-tier loyalty program and supports algorithmic traders with VPS hosting. The well-balanced asset selection exceeds 1,000 assets, and the proprietary copy trading service pays signal providers up to 50% profit share. Swap-free trading and low trading fees ensure a competitive edge.
Pros & Cons
- Outstanding trading tools and loyalty program
- Low minimum deposit, high leverage*, and competitive trading cost
- Excellent research and education
- Trustworthy and transparent with generous bonuses and incentives
- Inactivity fee
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
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.
