Ghana has its own Forex market regulator – the Securities and Exchange Commission of Ghana (SEC Ghana) overseeing the local securities market, licensing the financial institutions, investigating fraudulent cases, and setting the market standards which Forex brokers have to follow. The Securities Industry Act enforced by the government in 2016 guards the local traders and protects their funds’ security, as well as the safety of traders’ rights.
Forex traders in Ghana pay the Capital gains tax only if their total taxable net income from trading Forex exceeds GHC50. In such a case, the capital gains tax payable is 15-25% of the net gains earned through trading currency pairs. For those individuals who fall into the category of the higher tax rate, there is an opportunity to lower the tax liability by choosing a flat rate of 15% tax.
Some of the top Forex brokers in Ghana accept deposits in the local currency, Ghanaian Cedi. The currency itself is not a popular Forex asset and you would hardly manage to find it among the exotic currency pairs. Moreover, Ghanaian traders have access to the diverse list of payment options that include globally accepted payment solutions, such as Skrill and PayPal, as well as the region’s favorite payment methods like M-Pesa.
There is a common misconception that traders should look for local brokerage companies. On the contrary, some of the best brokers will usually be international firms that are recognized in multiple jurisdictions. The multinational Forex brokers will often hold several licenses from various regulatory bodies that make them much more attractive than local options. Especially in Ghana, where the regulatory framework is not as strong and advanced to guarantee the excellence of local brokerage companies. It is strongly recommended that Ghanaian traders choose international Forex brokers instead. Below is the list of the internationally recognized brokers that work with the traders from Ghana.
5$
CySEC, FCA, ASIC
30$, 50%+20%
30:1
2009
MT4, MT5, WebTrader
$100
CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA
1:400
2006
MT4, MT5, WebTrader, AvaTradeGO
USD 5,000
FINMA, FCA, ASIC, FSA, MAS, AFM
N/A
1:30
1992
SaxoTraderGo, SaxoTraderPro
$5
SVGFSA, FCA, DFSA, FSCA, FSA
From 30% to 100%
1:1000
2010
MT4, MT5
15
CySEC
30%
1:500
2015
MT4, WebTrader
$250
FSCA
1:200
2012
MT4, WebTrader
100$
FCA
N/A
30:1
2008
Custom
$10
Risk Warning: YOUR CAPITAL MIGHT BE AT RISK
N/A
1:1000
2013
Proprietary
10 USD
FCA, CySEC, FSA
N/A
1:Unlimited
2008
MT4, MT5, WebTerminal
$10
N/A
N/A
1:500
2019
MT4, custom
$10
1:500
MT4
250$
FCA, NFA
N/A
200:1
1999
MT4
$25
ASIC, CySEC, FSA, BVI
50%
1:400
2001
WebTrader, MT4, TradingView
100
FCA, CySEC, DIFC, CIMA
N/A
500:1
1977
MT4, MT5
$100 AUD
ASIC
N/A
500:1
2005
WebTrader, MT4, MT5, IRESS
AUD$200
ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA
N/A
1:400
2010
MT4, MT5, cTrader, TradingView
$50
N/A
N/A
1:500
2015
MT4
1 USD
ASIC, FCA
10 USD
1:500
2005
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.
As mentioned above, Ghana has a separate regulatory institution that is responsible for checking the Forex brokerage companies in Ghana, ensuring that all business operations are legal and the company is transparent in the end. Such a governmental body is the Securities and Exchange Commission of Ghana. The government itself is interested in making the Forex market in its country as reliable, safe, and attractive as possible. Why is that? Simply because there is nothing new in fact that Forex trading generates huge profits that can not only benefit the population but also be taxed. Therefore, that is a win-win situation: people are happy, as well as the government. The fact that the government is trying to develop Forex trading in Ghana is also great for foreign traders, as they are receiving competitive trading conditions of the market.
Just like any other regulatory body, the SEC of Ghana is working on making Forex trading as transparent and clean as possible. That, in turn, is done in order to develop the economy of the country and provide the overall health of financial transactions within it. The institution operates in compliance with the Securities Industry Act of 2016 which provides guidance on establishing the competitive trading environment in the country, encouraging the investors to get involved in the industry, and rewarding any forms of participation. The SEC of Ghana does not impose strict rules that would limit the freedom of the traders or Ghanaian best Forex broker. For example, there are no caps on maximum leverages provided by the brokers and no limitation on types of trading assets acquired by the investors.
However, since the SEC is a relatively new institution and has a lot of responsibilities, the overall trading scene in Uganda still has a lot of room for growth. That is why you will not find a leading offshore brokerage company having SEC of Uganda regulation. On the other hand, most of the best brokers in Uganda will have a license from the Financial Sector Conduct Authority of South Africa (FSCA). The FSCA has relatively more experience in the Forex industry and has been renowned as one of the advanced and reliable regulatory organizations globally.
Trade with FSCA-regulated broker AvaTrade
All earnings generated through trading currency pairs online are taxed as Capital gains in Ghana. The amount of the Capital gains tax depends on the size of the annual income of a person. There are several rules for exemption, as well. The Forex traders in Ghana are exempt from paying the Capital gains tax if:
If none of the exemption conditions are present, then a Forex trader is liable to pay 15-25% of the total net income as a Capital Gains tax. Since the Capital Gain is usually taxed at the highest marginal rate, some individuals might fall in the higher tax rate category. But, the government gives them the opportunity to opt for a flat tax rate of 15 percent.
All residents of Ghana are required to submit a Capital Gain Tax Return form to the Ghana Revenue Authority. The form should include the list of all the chargeable assets and the summary of payable taxes on capital gains.
At the moment of writing this review, we could not find any best Forex broker online Ghana offering Ghanaian Cedi among the exotic currency pairs. The reason is that GHC is not an attractive option for Forex traders currently and therefore, due to low interest, brokers avoid including the currency within their trading portfolios. However, there are several regional currencies available as Forex trading assets, such as South African Rand (ZAR). Forex brokers from our list above in the paragraph, such as XM broker, AvaTrade, and HotForex offer some of the exotic currencies with the South African Rand. Two of the most popular currency pairs with ZAR are USD/ZAR and EUR/ZAR.
The conditions with exotic currency pairs differ from those with popular currency pairs. The reason is that the interest for exotic currency pairs is much lower, therefore, the cost of trading them is higher. You could find USD/ZAR and EUR/ZAR pairs with a fixed spread of 200 pips.
Trade ZAR currency pairs with AvaTrade
Leverage is often thought of as a burrowed funds from the broker. It is extremely useful when traders do not have that much cash balance available and would like to enhance their trading positions. Especially, since the price change in the Forex market is relatively small, leverage is used to generate greater profit. However, leverage can also impose a great risk of financial losses if the trades are unsuccessful. Therefore, traders have to be always careful when choosing the best brokers online Ghana with sky-high leverages.
Some of the countries, especially the European Union impose multiple restrictions on leverages. For instance, it would not be rare to come across a cap on leverage limiting it up to 1:30. However, in most African countries there are no caps on leverage, including Nigeria, Uganda and Kenya. In Ghana, brokers can freely offer leverages up to 1:500, or even up to 1:2000. But, Ghanaian traders still have to take into account that when trading with international regulated Forex brokers the brokers might be limited in offering the maximum leverage by their respective market regulators. Remember to always use leverages carefully while trading Forex.
Another pleasing aspect that needs to be mentioned is that there are plenty of payment methods available for Ghanian traders. The payment options vary from one broker to another. But some of the most popular payment methods are all accepted by Forex brokers in Ghana. The list includes Access, United Bank for Africa, Zenith, Groupe Bank of Africa Ghana, Fidelity Bank, Skrill, and PayPal. Thus, you have quite an impressive choice when it comes to depositing or withdrawing funds from your account balance. One of the most popular choices in African regions is the M-Pesa payment system which is supported by all leading brokerage companies.
The international brokers operating in Ghana do not have any limits on withdrawals and deposits. You can easily find a broker with a minimum deposit requirement from 5 USD up to 250 USD according to the benefits of trading accounts. Furthermore, any amount can be withdrawn from the account at any moment by the traders with the payment methods mentioned above.
Unfortunately, throughout the past few years, there have been multiple cases of frauds and scams recorded in the country. In general, scams are common in every corner of the globe, however, the African region is especially vulnerable to them due to loose regulatory frameworks. In other regions, the regulatory organs and authorities are actively investigating the cases of frauds and punishing the scam companies. Despite the fact that there is an official institution in Ghana, the SEC, the single authority cannot monitor the whole market, especially when there is an abundance of international brokers that claim to be the best Forex brokers online Ghana.
In order to avoid scams in the Forex industry, one has to conduct thorough research on brokers before actually starting to trade with them. The research should reveal the nature of the brokerage company, the regulations, and licenses that it owns, the terms and conditions of trading, and the safety or security measures implemented by the broker. For your safety, it is always better to trade with regulated Forex brokers and double-check the information regarding the licenses within the databases of the regulators themselves.
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