Top Forex brokers in Uganda: reviews and tips

Uganda has no official regulatory body that would oversee the Forex trading market in the country. The main institution that has some power over the market is the Bank of Uganda (BOU), which has multiple responsibilities of regulating the financial sectors but has little to do with the Forex market itself. The bank refrains from monitoring the Forex industry in Uganda. Therefore, traders from Uganda heavily rely on the market regulators in other countries of the region, notably the Financial Sector Conduct Authority (FSCA) in South Africa.

Due to the loose regulatory framework in the country, there are little to no restrictions on the Forex market. It means that there is no cap on maximum leverages offered by the brokers and no limitations to Forex promotional campaigns. However, the lack of monitoring of the market urges Ugandan traders to seek international brokerage companies that offer their services to the residents of Uganda.

The Ugandan shilling is not the most popular Forex asset, therefore it cannot be found among the exotic currency pairs. Usually, the Ugandan Forex traders will often trade ZAR currency pairs, which are frequently available with the best brokers on the market. However, traders looking for deposit options in the local currency have the possibility to choose M-Pesa as their payment method. Top Forex brokers in Uganda include M-Pesa and other popular payment solutions including Paypal and Skrill within their platforms.

Taxation on Forex incomes in Uganda is a bit complicated, as the country has no separate Capital Gains tax. Instead, the Capital gains are taxed together with the business income tax at the rate of 30%.

What are the top Forex brokers in Uganda?

The best Forex traders in Uganda are already cooperating with the international brokers and have managed to settle down with the top brokerage firms who are more than happy to assist the clients from Uganda. On the other hand, one has to be very careful when trusting a physically so far away firm. That is why we always recommend choosing a broker that holds a license from the regional regulator. For Ugandan traders, the regulated brokers by FSCA are the top options. Throughout the extensive research and experience in Forex trading, we have prepared the list of only the best of trusted forex brokers with FSCA authorization available for traders from Uganda:

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

1:1000

Year founded

2009

Trading platform

MT4, MT5, WebTrader

AvaTrade

Review of AvaTrade – Broker with over 15 years of experience

Minimum deposit

$100

Regulation

CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA

Bonus

Maximum leverage

1:400

Year founded

2006

Trading platform

MT4, MT5, WebTrader, AvaTradeGO

SAXO Bank

SAXO Bank Forex Review

Minimum deposit

USD 5,000

Regulation

FINMA, FCA, ASIC, FSA, MAS, AFM

Bonus

N/A

Maximum leverage

1:30

Year founded

1992

Trading platform

SaxoTraderGo, SaxoTraderPro

HotForex

HotForex Review – Trade 1,000+ of Symbols with this Broker

Minimum deposit

$5

Regulation

SVGFSA, FCA, DFSA, FSCA, FSA

Bonus

From 30% to 100%

Maximum leverage

1:1000

Year founded

2010

Trading platform

MT4, MT5

ForexMart

ForexMart Review – High-class trading experience

Minimum deposit

15

Regulation

CySEC

Bonus

30%

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4, WebTrader

CM Trading

CM Trading FX broker review – Is it legit?

Minimum deposit

$250

Regulation

FSCA

Bonus

Maximum leverage

1:200

Year founded

2012

Trading platform

MT4, WebTrader

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

30:1

Year founded

2008

Trading platform

Custom

Oanda

Oanda review

Minimum deposit

$0

Regulation

Australia, Canada, Japan, Singapore, UK, US, BVI

Bonus

From $500 to $5,000

Maximum leverage

1:888

Year founded

1996

Trading platform

MetaTrader 4, MetaTrader 5, fxTrade Mobile app

IQ Option

An in-depth IQ Option Review of fees, opportunities and more

Minimum deposit

$10

Regulation

Risk Warning: YOUR CAPITAL MIGHT BE AT RISK

Bonus

N/A

Maximum leverage

1:1000

Year founded

2013

Trading platform

Proprietary

Exness

Exness Broker Review – Should You Trade With It?

Minimum deposit

10 USD

Regulation

FCA, CySEC, FSA

Bonus

N/A

Maximum leverage

1:Unlimited

Year founded

2008

Trading platform

MT4, MT5, WebTerminal

OspreyFX

OspreyFX review – regulations, features and possibility of OspreyFX scam

Minimum deposit

$10

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2019

Trading platform

MT4, custom

EagleFX

EagleFX review – Start trading with safe and secure broker

Minimum deposit

$10

Regulation

Bonus

Maximum leverage

1:500

Year founded

Trading platform

MT4

Forex.com

Forex.com Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

200:1

Year founded

1999

Trading platform

MT4

easyMarkets

Can You Trust easyMarkets? There Are Things You Need To Know

Minimum deposit

$25

Regulation

ASIC, CySEC, FSA, BVI

Bonus

50%

Maximum leverage

1:400

Year founded

2001

Trading platform

WebTrader, MT4, TradingView

HYCM

Can you trust HYCM Forex broker? What you need to know?

Minimum deposit

100

Regulation

FCA, CySEC, DIFC, CIMA

Bonus

N/A

Maximum leverage

500:1

Year founded

1977

Trading platform

MT4, MT5

FPMarkets

Is FPMarkets reliable broker? Is it licensed to trade?

Minimum deposit

$100 AUD

Regulation

ASIC

Bonus

N/A

Maximum leverage

500:1

Year founded

2005

Trading platform

WebTrader, MT4, MT5, IRESS

Pepperstone

Pepperstone FX Broker – Everything You Need To Know About This Broker?

Minimum deposit

AUD$200

Regulation

ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA

Bonus

N/A

Maximum leverage

1:400

Year founded

2010

Trading platform

MT4, MT5, cTrader, TradingView

FXRoad

Review of FXRoad – Broker with Superior Islamic Accounts

Minimum deposit

250 EUR

Regulation

FSA (Seychelles)

Bonus

None

Maximum leverage

1:200

Year founded

2023

Trading platform

FXRoad web & mobile platforms

IMGFX

IMGFX Broker Review – Your Best Trading Experience

Minimum deposit

$50

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4

FXOpen

FXOpen Review – The most experienced broker

Minimum deposit

1 USD

Regulation

ASIC, FCA

Bonus

10 USD

Maximum leverage

1:500

Year founded

2005

Trading platform

MT4, MT5, WebTrader

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Who Regulates Forex brokers in Uganda?

Forex trading brokers in Uganda

The Ugandan securities market is monitored by the Central Bank of Uganda, with few of the best Forex brokers in Uganda being licensed by it. The Central Bank of Uganda is not a separate regulatory authority, but rather incorporates several responsibilities to oversee certain aspects of the financial sectors in the country. Even though the Bank of Uganda is responsible for monitoring and regulating the financial sectors within Uganda, the bank director made it clear that the Forex market is not regulated in the country. Even more, the director said that the Forex market is way outside their regulatory provision.

forex traders in ugandaSince the Bank of Uganda is not involved in the Forex trading market, the traders from Uganda have to look somewhere else. In most cases, the best solution is to approach the brokers that are regulated by the bodies residing within the same region. The African continent has few regulatory bodies that are quite famous globally, but, the most prominent one is undoubtedly the Financial Sector Conduct Authority of South Africa (FSCA). The FSCA stands next to the high-class market regulators like the FCA of the United Kingdom and the ASIC of Australia. That is why we recommend trading with the FSCA-regulated brokers for Ugandan traders.

Register with the FSCA-regulated broker XM

How is Forex trading taxed in Uganda?

legit forex trading companies in ugandaForex traders have to pay 30% of their net Forex income in tax. The tax system is very different in Uganda. In most countries, there is a special type of tax called Capital Gains Tax that applies to incomes generated through online trading in Uganda. However, that is not the case with Ugandan Forex trading. The government of Uganda combines the capital gains tax with business income tax. In total, the tax payable on Forex trading earnings at the end of the fiscal year is 30% of the net income. The net income is calculated according to the difference between the total asset price, in this case, the price of the Forex currency pair in the hold and the original cost of the currency pair.

All Capital Gains are regarded as the business income and therefore are subject to corporate tax of 30%. However, it is also possible to include the Forex earnings in the individual income tax category. The individual income tax ranges between 10 and 45 percent. Since there is no clear law regulating the Forex market, it is up to the individual interpretation of how Forex earnings are treated in Uganda.

Are local currency pairs available?

forex trading in ugandaThe first thing worth to be mentioned is that the Ugandan local currency – Ugandan shilling – is not the strongest one. As of now, we have not found the Ugandan shilling among the tradable currency pairs for brokers we can recommend. The brokers do not offer the currency within their exotic currency pairs portfolio due to its non-profitable nature for the broker. On the other hand, Ugandan traders can in fact invest in other regional currencies.

One of the most popular currency pairs traded by the Ugandan Forex traders is the South African Rand. Despite the considerable volume of ZAR traded on the global currency market, ZAR is still considered as a part of the exotic currency pairs. The most common pairs with ZAR include EUR/ZAR and USD/ZAR. Similar to all the other exotic pairs, ZAR currency pairs also come with high but fixed spreads. The average spread for the above-mentioned pairs is around 200 pips.

Trade ZAR with XM

Is there a cap on leverage for Uganda Forex brokers?

There is no cap on leverage in Uganda and the maximum leverage can go up to 1:2000. The flexibility of leverage is one of the attractive features of Uganda’s Forex trading scene. One of the benefits of the loosely regulated local market in Uganda is the lack of restrictions on brokerage services. Usually, highly monitored markets elsewhere in the world would come with numerous limitations including the caps on leverage. Since leverage is very much like a burrowed fund from your broker, you risk losing way more than you invest in a certain trading asset. However, if your trades are successful then the pay-off is quite decent, as well. That is why often Forex traders will want to have access to flexible leverage and then they will decide how much of it they would like to use.

Since Uganda does not restrict the usage of leverage, the maximum leverage offered by the brokers in Uganda can go up to 1:2000. Anything above 1:2000 should be avoided, as most probably you will not have that much risk-tolerance to take up the losses. But bear in mind that we strongly recommend that you stay away from sky-high leverages if you are a beginner or intermediate trader. Also, if the Forex market is new for you, probably it is better to remain within the limits of 1:500 leverage.

What Payment systems are available in Uganda?

trusted forex broker Most of the Forex brokers that accept mobile money in Uganda will offer the solutions like Neteller, U Money, Skrill, M-Pesa and you can easily find the payment method that works best for you. You can also usually transfer money to your account from any other bank account. That might come in handy if you are planning to transfer large amounts. That, however, needs to be confirmed with both the bank and the broker first.

The Forex brokers will usually exempt their clients from any withdrawal or deposit fees. However, depending on the payment service provider that you choose some charges may apply. For example, Visa/Mastercard withdrawals come with proportionate fees but offer instant transactions. Some of the payment solutions might provide free withdrawals and deposits but the transactions may take up to several working days. Always double-check that your broker cooperates with the top-tier banks so that your transactions and funds are completely safe.

Start trading with XM using M-Pesa

What should you look out for when trading Forex in Uganda?

In 2019, thousands of Forex traders lost over USh 50 billion of investment to Dunamiscoins famous Forex scam. The company was registered locally and operated for quite some time on the market, but never in fact getting involved in Forex trading. The Bank of Uganda was not able to identify the fraud on time and as a result numerous people lost their funds without any possibility to get refunds ever again. Alarmingly, more and more scam brokers are appearing on the market and they lure inexperienced clients into their traps, misleadingly make them invest money and then disappear forever. Understanding the idea behind regulation is the very first thing that will help you avoid getting scammed. Look for regulated brokers with decent conditions, analyze the promotional campaigns of the brokers, and do not simply trust the attractive amounts. Do your research, read the reviews written by professionals that suggest the best trading firms, and triple-check that they are regulated by the official regulated bodies!

FAQs on the best Ugandan Forex brokers

How much money do you need to start Forex trading in Uganda?

You can start trading Forex in Uganda even without any investment. The starting capital depends on the size of your pocket and your plans associated with trading. For example, if you decide to start currency trading in Uganda but you are not sure whether you would want to risk the money as a beginner, you could look for no-deposit bonuses offered by various brokerage firms. No-deposit bonuses would allow you to trade with the money placed on your account by the broker without any need for you to make the initial deposit. You could also start with as little as $5 and as much as tens of thousands of dollars.

What bonuses are available for Ugandan Forex traders?

Various brokers around the globe offer no-deposit, deposit, and welcome bonuses. A no-deposit bonus means that without any deposit from your side, the broker places money on your trading account and you can start trading with a no-deposit bonus. If you lose, well, it was not money from your pocket anyways, if you win then you retain the earnings. The deposit bonus means that after your initial deposit you receive a certain proportion (usually as a percentage) of your deposit as an addition to your account. The deposit bonus would enrich your account and would allow you to trade more freely. Welcome bonuses will vary from broker to broker and they can be anything from cash bonuses to certain promotions, deals, or special conditions applicable to your account. You should check the bonus systems directly with the broker.

Which payment methods can be used by Ugandan traders?

Most of the broker firms will be quite flexible in terms of payment methods and many of them will accept credit cards or debit cards as their favored payment method. Frequently, wire transfers through the bank account are valid payment methods, as well, however, depending on the location of the broker’s country and the bank, wire payments could take longer to be processed. What’s more important is that an increasing number of brokerage firms began to accept different payment solutions, such as Neteller, U Money, and Skrill. It is almost unthinkable that a broker would not be able to fix a solution for the payment method for you, no matter the country of residence or the distance in-between.

Which Forex broker is the best in Uganda?

XM Group should definitely be distinguished as one of the top brokerage service providers, because of its extensive experience and because it is a top choice of most Ugandan traders. XM Group has numerous beneficial policies, bonuses, and assistance available for the first-timers who would like to try Forex trading. Another broker deserving a mention – Exness Uganda traders would love, with its zero spread accounts, low deposits, and flexible leverage options.

Who is the richest Forex trader in Uganda?

The place for the richest Forex trader in Uganda is vacant at the moment, even though thousands of people have taken up Forex trading in recent years. Quite many of them were successful as the sources suggest, however, there is no single notable name under the category. Outside Uganda, the richest Forex trader award would definitely go to George Soros, the man who broke the Bank of England as many call him. George Soros is currently holding the first place of the richest Forex traders with 8.3 billion USD. He started trading in the past century, made one of the biggest trades in history on the British Pound in 1992, and became the role model of every Forex trader out there.

How to choose a broker in Uganda?

First and foremost, the trader must look for a licensed and regulated broker company. The regulation is a must. Licensed brokers have to follow the rules that ensure and protect the trader’s equity and rights. There are regular audits carried out in the brokerage firms which make sure that there are enough funds available on the broker’s account to satisfy the transaction needs of every single trader. Conducting your own research on available broker firms is the next step. Check the trading conditions, legitimacy of the broker, fees, and bonuses. The most famous brokers will also offer demo accounts. A demo account will allow you to trade with virtual money but in an actual market, without any potential damages to your finances and you end up being experienced enough to go for the real account later if you decide so.