Tanzania Best Forex Brokers List – Listed & Rated

The financial market of Tanzania is regulated by one major institution – the central bank of the country, also known as BOT (Bank of Tanzania). As for now, the Forex trading market is untouched, meaning that it is not regulated and you will not be able to find local licensed brokerage companies there. Despite being unregulated, the Forex industry is still growing in the country as more people are getting involved in the trading market. Investors that wish to participate in trading do so via international brokers that are fully licensed & regulated and accept traders from Tanzania.

There are some rules when it comes to foreign exchange trade and they are set by the Bank of Tanzania. For instance, interbank trading is restricted to 250,000 USD per transacted unit. Other than that, you will not be able to find out much about Forex trading in Tanzania – as we already mentioned, this industry is completely unregulated at the moment.

Traders from Tanzania can use several payment methods that are introduced on different international platforms including Visa, Mastercard, PayPal, and Wire transfers.

Forex traders in Tanzania, whether they are trading with the international broker or not, are subject to income tax. Tax can be up to 15% depending on how much income you had during a year.

List of the best Forex brokers in Tanzania

Considering the fact that the Forex market is not regulated in the country and trading is not very safe, it might not be an easy task for some people to find a platform that they can trust, especially if they are newcomers to the industry. That’s why we decided to do a research for you. While there is basically nobody to trade with locally, we advise you to go for other options. For instance, FSCA regulated brokers from South Africa might be a good choice for you. Below, you can see the list of trustworthy Forex brokers that deserve your time, money, and attention.

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

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 Tanzania?

As we already mentioned, Forex brokers are not regulated and that is the main reason why you will not be able to find any licensed Forex brokers in Tanzania. The majority of people consider trading unsafe because of this, but that is very far from reality. As long as you know how and where to trade, you can make your trading experience safe and enjoyable.

One thing that we know about financial regulations on foreign exchange trades is that the BOT (Bank of Tanzania) restricts minimum tradable currency limits to $50,000 and interbank trading is also restricted to $250,000 per unit. New rules were set at the end of 2020 which also bans banks from accepting currency from people who do not have accounts with them.

best broker in tanzaniaThe fact that you will not be able to find specific laws that mention anything about the Forex market, leaves some people questioning whether trading is legal or not. Trading is not illegal, as a lot of people in Tanzania have already found an alternate way to trade through international brokerage companies. They allow customers from the country to open trading accounts and make deposits & withdrawals as the rest of the world does that.

Going for the platforms that are licensed is always a better idea than choosing the one with no regulatory body available. Forex trading is regulated in most places of the world including Africa, Europe, and Australia. For instance, South Africa has one of the oldest and most reputable market regulators on the continent. FSCA (Financial Sector Conduct Authority) is a financial regulatory body that supervises all financial institutions providing financial services – that way, FSCA ensures the safety of all the customers involved in trading. That’s why Tanzanian traders can go for South African brokerage companies that offer a safe and transparent trading process.

Trade with a regulated Forex broker – XM

How is Forex trading Taxed in Tanzania?

best broker in tanzaniaIndividual Forex brokers are subject to income tax – you might need to pay different taxes depending on which type of trader you are. Individuals can either be small or medium traders. Small traders are taxed by a presumptive system, while medium determines taxes from audited accounts. For instance, if your total annual income exceeds Tshs 12,000,000 ($5,170), you will have to pay 13.05% plus 30% of the amount in excess of Tshs 12,000,000.

As Tanzanians use international Forex brokerage companies, traders often think that they do not need to pay income tax as profits were made in international website’s accounts but sadly, that is not true. If you are Tanzanian and generate profits from trading while staying within the borders of Tanzania, your money is considered as taxable income and you need to declare it in tax returns.

Are local currency pairs available?

At the moment of writing this review, we were unable to find any Forex brokers offering TZS pairs. That’s why we instead suggest for local traders to find accounts in ZAR, as most popular Forex brokers such as XM Group, IQ Option, AvaTrade, and HotForex offer different types of accounts/currency pairs with the availability of ZAR.

Trade ZAR with XM Group

Is there a cap on leverage for Tanzania Forex brokers?

With the Forex market being unregulated in Tanzania,  it will be no surprise to say that there is no cap at leverage for Tanzania Forex brokers at this moment. Generally, financial regulatory bodies restrict brokerage companies from having very high leverage ratios, in order to protect customers from losing their funds. If you are from Tanzania and use an international website for trading, you can easily check maximum leverage on a specific platform’s webpage.

Despite not having a cap on leverage, you should expect it to be somewhere near 1:200 – 1:300 as it is considered the industry’s standard. If you come across something above that, this might be a red flag especially if the broker does not hold a decent license. We advise you to check leverages before starting trading and avoid platforms that offer ratios that do not correlate with what’s considered normal on the market.

What Payment systems are available in Tanzania?

forex in tanzaniaThe most common payment systems available in Tanzania include Visa, Mastercard, and PayPal. As traders from Tanzania mostly choose platforms that are based in another country, they can easily use payment methods offered by them. For instance, the best Forex broker in Tanzania – XM Group has Debit/Credit cards, along with Skrill, Neteller, Bank Wire Transfers available. However, it is important to note that each of these comes with its own specifications and requirements – some of them may have commission fees and speed transactions are different as well. Usually, the fastest one is PayPal that needs 1 working day, while Visa and Mastercard may take up to 5 days.

Some Forex trading websites might also have limits on deposits and withdrawals, so it is always a good idea to check the details before going for a specific payment method.

Trade on XM using Skrill

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

forex tanzaniaTrading Forex in Tanzania may be connected to some risks due to the fact that the country does not have any financial regulatory body that will control the trading market. That leaves the possibility for fraudulent companies to trick newcomers into their systems and if something inconvenient happens (e.g. they steal your money, the company goes bankrupt), you will not be able to do anything in terms of legal actions.

The first thing traders from Tanzania should look out for is fully licensed & regulated international brokerage companies – trusting them with your money does not involve risks as market regulators will be present to protect you from negative consequences in case you get scammed. We advise you to always do research before trading with any Forex platform. For instance, you can read reviews from experienced traders to save time and money. Reading guides for beginner traders might also be a good idea.

FAQs on Best Forex Broker in Tanzania

Is Forex trading legal in Tanzania?

Trading Forex in Tanzania is legal. There is no law in the country that would prohibit trading Forex. However, there exists no regulatory body for the Forex market that would oversee the operations of the local brokerage firms. Therefore, it may be illegal to open a brokerage company in Tanzania. On the other hand, Tanzanian traders can easily work with international brokers without any legal consequences.

Who is the best broker in Tanzania?

The best broker in Tanzania is an XM broker. XM is an international and multi-regulated broker with relatively cost-efficient and cheap services. Traders can open a real trading account with just 5 USD and enjoy the benefits, such as flexible leverage of 1:888, tight spreads, and no commissions. Furthermore, new registering users can claim XM 30 USD no deposit bonus once they complete account activation and verification processes.

How do I start Forex trading in Tanzania?

First, you need to find a reliable Forex broker that holds at least one regulation. The broker should also match your budget, requirements, and trading goals. Then, you fill in the registration form on the desired account type. The personal data that you indicate in the registration form should match your legal documents information. You will be required to verify your identity and potentially your residential address, as well.

How to choose a broker for Forex trading in Tanzania

Choosing a Forex broker is your first step to becoming a successful trader in the Forex industry. However, it might also be the hardest stage due to a number of reasons. First of all, you have an abundance of options which broker to choose from. Secondly, you have to know what you are looking for specifically in the Forex broker. The requirements of the traders will vary significantly based on the background of the trader, knowledge and expertise, trading budget, how much risk a trader can tolerate, and the goals and strategies in trading. Therefore, some might prefer average brokerage firms that provide convenient trading platforms and simple tools for trading, whereas others will be seeking expert solutions.