Top Forex brokers in Uganda: reviews and tips

Uganda might not be the country with the strongest and most stable economic system in the world, that is true. However, when it comes to Forex trading in Uganda today, you would be surprised but things are actually getting better there. By saying that we do not mean that the Forex flows are exceeding the ones in countries like China, USA, Canada. What we mean is that the degree of the development and stability of the Forex market is promising considering the fact that the overall economic state of Uganda is quite concerning.

At the same time, the market does not have officially established licensing institution for that, meaning that there are not enough reliable and trustworthy Forex brokers in Uganda. Without any more rambling, let’s jump into Ugandan waters of Forex trading and find out for what pitfalls you should prepare yourself for.

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

30:1

Year founded

2009

Trading platform

MT4, MT5, WebTrader

Tickmill

A comprehensive Tickmill review – Is this broker trustworthy?

Minimum deposit

$100

Regulation

FSA, FCA, CySEC

Bonus

$30 Welcome, more

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4/WebTrader

OctaFX

OctaFX Review

Minimum deposit

$50

Regulation

CySEC

Bonus

50%

Maximum leverage

1:500

Year founded

2011

Trading platform

cTrader, MT4, MT5

IQ Option

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

Minimum deposit

$10

Regulation

CySEC

Bonus

N/A

Maximum leverage

1:30

Year founded

2013

Trading platform

WebTrader

MultibankFX

MultiBank FX Review

Minimum deposit

$200

Regulation

ASIC, BaFin, FMA, CNMV, FSC, CIMA, RAK

Bonus

$50,000

Maximum leverage

500:1

Year founded

2005

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

AMarkets

Why you should rely on AMarkets reviews

Minimum deposit

No limit

Regulation

FSA

Bonus

25%

Maximum leverage

1:1000

Year founded

2007

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.

General Ugandan Forex brokers & trading overview

FX brokers UgandaForex trading keeps attracting newcomers who are seeking the source of additional profit, that is definitely not exclusion in Uganda, as well as other African countries. People do not have the best life there, that is why online trading with the cryptocurrencies appears to be a good option to make a good living there.

There is some controversy around the topic of whether the Uganda Forex brokers are licensed by any of the regulatory organizations at all. So, there is nothing like CySec available in Uganda. However, we found out that the market is not completely covered in mystery and is licensed by the central bank of Uganda. We will definitely speak about that later in more details. But for now, we would like to give you a better understanding of what the Forex market is like in Uganda and whether it is worth it to start trading there.

Encouragement for Forex traders in Uganda

As the Forex market has only started to develop, those who are taking the risk to participate are getting rewarded.  Thus, one of the most popular Forex bureaus in Uganda –  Egen Financial Ltd (Egenfx), decided to finance the Forex trading in the country and push it further. In 2016, they have announced that a total sum of $40,000 will be provided for those who would like to trade on Forex.

According to their proposal, every trader will be given $1,000 or less, depending on his/her trading skills. However, m0ney will be guaranteed for those only, who have already proven their experience and knowledge under the so-called Bfunded program. Then, the brokerage will take 30% of the profit made from Forex trading online.

Notably, Egenfx was one of the first online Forex brokers in Uganda that brought official trading platform there. Even though the broker is not originated in Uganda, it was planning to launch the physical office in the country.

Regulation of FX brokers Uganda

As we have already mentioned, that is still unclear whether there is any official regulatory body that would take care of Forex trading security in Uganda. There were some rumors that the government was planning to establish one. However, as we may clearly see that it did not happen, we may assume that those were just rumors and nothing more.

Forex trading brokers in UgandaGoing even further, Mr. Stephen Kaboyo, the director of the Bank of Uganda once stated: “It is not regulated. It’s really outside our regulatory provision as far as the Forex market is concerned”.  Thus, a logical question may arise, is the Forex market uncontrollable at all? No, that is not the case. Or at least not that we think it is.

After thorough research, we have found that the Uganda Business: Licensing Information Portal is able to provide some information and unveil the mystery around the Forex market in Uganda. Well, at least a little bit. Thus, we have learned that to become an official Forex bureau in Uganda, you might need to apply for a license from the Bank of Uganda. However, that is not obligatory as no one will actually check.

Requirements to apply for a license in Uganda

To make an application for an official license, you need to comply with a following list of requirements:

  • the brokerage needs to be owned by the bank, or at least to be its subsidiary
  • the valid bank statement for at least 6 months shall be provided
  • the brokerage shall be registered under the Companies Act as a limited liability company
  • the brokerage needs to provide the full name and juridical address of the company
  • the brokerage shall provide work permits for all non-Ugandan directors and employees
  • the brokerage shall prove that its director has never been caught on financial crimes
  • the brokerage shall provide a complete business plan

In return, the company will receive a license that will be valid for 1 year. Maximum processing time for application is 3 months. However, it should also pay the application fee of 400,000 Ugx, as well as a license fee of 1,000,000 Ugx and 1,000,000 Ugx for the renewal fee. As stated, the purpose of the fee is to ensure transparency of remittance and payment flows in and outside Uganda, as well as to secure society from money laundering and financial crimes.  All in all, Uganda FX brokers still have a chance to be honest and transparent with the traders. However, at the end of the day, that is completely up to them.

Forex trading in Uganda: policies and specifications

After all, Forex trading in Uganda might be attractive for those who are seeking for a simple registration process and beneficial conditions of trading. Forex trading brokers in Uganda are trying their best to provide traders with comfortable conditions, as well as bonuses and good leverage positions. That is usually mostly done because they understand how unreliable and volatile is the Forex market in Uganda.

Forex trading in Uganda todayThe first thing worth to be mentioned is that Ugandan local currency – Ugandan shilling – is not the strongest one. Surely, there is no surprise for you in that. However, you could actually benefit from trading with that, as it is not that volatile. So the price of the currency is not changing drastically without any warning.

However, one of the main disadvantages and risks of trading in Uganda is the fact that you shall constantly be aware of scams that might be everywhere in that country. Just imagine – no one actually controls the sector that has an average cash flow of millions of dollars.  Of course, there will appear those who will try to unlawfully take your money and run away. Unfortunately, that is the world we live in.

Benefits of trading Forex in Uganda

Now we will try to draw a bottom line and explain why we think that trading on the Ugandan Forex market is not the worst idea. As by just looking at the stories of successful Forex traders in Uganda, we can understand that it is possible to make money out of currency trading there. They could do that, so why you think you can’t?

Even if you can’t find a reliable Ugandan Forex broker, you may still choose to go with offshore ones just like the one that was mentioned earlier, Egenfx. Notably, with that broker, as well as others we simply did not mention in that article, you may easily open an account. Without worrying over complicated verification processes.

With the majority of Ugandan Forex brokers, you can choose to trade on a demo account first and not risk your money.  That, in turn, might give you a chance to gain experience and knowledge, find out the points you need to work on and realize what the world of Forex is all about.

Once you have started to earn real money, you will not face any problems with depositing or withdrawing money. As most of the brokers provide various payment solutions like Neteller, U Money, Skrill and so on. 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 bank and broker first.

Moreover, with Ugandan brokers, you can enjoy high leverage positions, low minimum deposit levels, as well as the well-known trading platforms and even trading schools. The latter is actually a thing in Uganda for the past few years. More and more successful traders are deciding to open their own Forex trading schools and teach others, mostly students and youngsters, how to trade and which thing to avoid doing. Yet another great factor that speaks in favor of trading in Uganda is that most of the brokers there allow you to trade on your mobile device.

So, all in all, the Forex brokerage Uganda is still in its bud. However, it grows every day attracting more and more experienced traders who want to expand their market.