Forex Trading In Egypt Guide
Forex trading in Egypt is one of the country’s newer forms of investment, and it has drawn a growing number of investors in recent years. Related reading: Forex Market Trading Hours.
Forex (“Foreign Exchange”), or currency trading, is the largest financial trading market in the world, with daily trading volume reaching 4 trillion. This far-reaching market also influences stock markets and commodities such as oil.
Forex markets deal in exchanging currencies against one another between multiple parties worldwide — international institutions and companies as well as individuals — through financial brokerage firms on a trading platform.
Every buyer and seller can carry out financial transactions globally and at the same moment, according to the rules and terms agreed locally and internationally.
Currency trading itself is an old business, but in recent years it has spread widely through the internet and social media. Forex trading has grown across Egypt and the Arab world until it became the largest trading market in the world.
Risks of Forex Trading in Egypt and Worldwide
The risks of forex trading in Egypt and worldwide come down to several points:
1. Falling victim to fraud. Many of the companies promoted on social media are fake entities that exist only online, hold no genuine licence from any regulatory body in the country, and attract clients by publishing fabricated profit stories.
2. Other risks relate to trading itself. The currency market as a whole is exposed to very high risk, and it takes real financial experience to understand the transactions, the leverage involved, and the sharp swings that currency values go through.
3. Some companies hack their own clients’ accounts and place losing trades without the client’s knowledge.
4. Some companies refuse to return a client’s money for unreasonable excuses.
How to avoid forex risks in Egypt and worldwide
1. Stay away from unlicensed and fake forex companies in Egypt. Look instead for well-known firms licensed and authorised by the competent regulatory bodies, whether inside the country or internationally.
These regulators step in when fraud occurs, escalate matters to the courts, and work to protect their investors’ rights.
Selection criteria worth applying
- Trading companies based inside the country’s borders, where they exist
- Provided they hold a licence from a local regulator
- Then a licence from the relevant international regulators (the UK Financial Conduct Authority FCA and the US Commodity Futures Trading Commission CFTC).
2. If an investor has no financial experience with trading itself, they should turn to the advisers and experts at accredited brokerage firms, who study the investor’s goals and means and identify the option that fits them best, in line with their outlook and investment capacity.
3. The counterparty an investor deals with is usually a financial institution or a bank. In that case it is possible to deal with them directly without a broker, but a broker remains preferable, given the range of options that can be matched to each client’s circumstances.
4. Experts and advisers recommend not being swayed by advertisements and phone calls carrying tempting offers of quick returns — in most cases the aim behind them is to defraud the client.
5. Even when dealing with brokers, analyse the figures and stated returns logically. This point should never be overlooked when judging a brokerage firm’s credibility.
Read also: Forex companies in Egypt — a list of the best 11 forex brokers
The main international regulators that license currency (forex) trading companies:
1. The UK Financial Conduct Authority (FCA).
2. The US Commodity Futures Trading Commission (CFTC).
The Central Bank of the UAE is also one of the most important Arab regulators involved in approving and licensing currency trading companies in the region, including forex companies in Egypt.
Personal traits of those suited to investing in forex markets
After making sure you have chosen a licensed, well-known trading company — with the help of the brokerage firms’ experts and advisers — what remains is the client’s own side of the equation. Studies have narrowed the causes of financial loss down to three:
1. Greed
2. Fear
3. Poor management
Experts stress that greed, or sometimes unjustified fear, leads to poor financial management in general, on top of its heavy influence on the client’s buying and selling decisions and on online investing as a whole.
Many clients want quick gains, and that affects how they manage their investments — using leverage without patience or study, which can expose them to heavy losses later.
How to verify a forex company’s international licence:
To reach the website of the UK Financial Conduct Authority (FCA):
1. Go to the Investing website.
2. Click on Brokers, then Regulators.
3. Click on the FCA, located in the United Kingdom.
Steps to confirm a forex company is approved and licensed by the FCA:
1. Go to the FCA’s official website.
2. Click on Consumers, then choose the first link, Avoid investment scams. (This page contains the steps for checking the licences of companies that claim FCA authorisation.)
3. Choose the third step and click Check our Financial Services Register — you will be taken automatically to a page with a search box.
4. Type the name of the company you want to look up, to confirm whether it is authorised.
5. Click Search the Register.
The company’s status will appear — whether it is licensed and authorised or not — along with all the information held on the company you searched for, so you can confirm the results match what you were looking for.
International forex companies licensed by global financial regulators:
1. EXNESS
EXNESS is one of the stronger names globally and has worked in forex for many consecutive years, with no complaints recorded about obstructing withdrawals or deposits, or forcing clients into specific trades.
2. FBS
FBS is classed as a company with a wide range of deposit and withdrawal methods, letting each client handle deposits and withdrawals in the way that suits them. Thanks to that variety, the number of traders on the site has reached 9 million so far.
3. NSFX
NSFX stands out for following European Union rules and electronic banking regulations, which can limit deposit and withdrawal methods — these are handled through Visa card, Mastercard, or the e-wallets Neteller and Skrill.
4. IC Markets
IC Markets is one of the best-known forex companies. It holds the Australian ASIC licence for currency trading, regarded as one of the strictest licences regulating financial dealings worldwide.
Forex companies in Egypt and the Arab world licensed by the UK FCA:
1. One Financial Markets.
2. Amana Capital.
3. Hanib.
Forex markets keep gaining importance among the various online markets worldwide, and they now influence all related markets both directly and indirectly.
Interest keeps rising among people hoping to make money through online trading. Experts therefore advise anyone starting out in the forex markets in Egypt to invest only surplus funds — money not carved out of essential living needs, and not debt or bank loans — so that a loss of any size does not affect their life in general.
Frequently Asked Questions
Is forex banned?
It differs from one country to another. Some countries allow trading in the forex market legally, while others ban it completely.
Is forex profitable and easy, or not?
Profitability in forex trading depends on several factors, such as the trader’s level of experience, knowledge of the market, the strategies used, and the risks that come with trading. In general, forex trading can be profitable if risk is managed well and the returns achieved line up with the risks taken. As for ease, studying the forex market and understanding how it works — along with technical and fundamental analysis — takes time and effort, so trading may feel difficult at first; with practice and training it becomes more manageable.
Which banks work with trading companies in Egypt?
Trading companies are usually dealt with through local bank accounts in Egypt. Among the main banks that can be used in Egypt: the National Bank of Egypt, Banque Misr, the Commercial International Bank, the Arab African International Bank, the Arab National Bank, and others.
Is forex available in Egypt?
Yes, trading in the forex market is legal in Egypt, and several trading companies and brokers operate in Egypt offering forex trading services.
Risk Disclaimer: This article is for educational purposes only and does not constitute investment advice or a recommendation to trade. Forex and CFD trading carries a high level of risk, and leverage can magnify losses as well as gains; you may lose all of your invested capital. Only trade with money you can afford to lose, and verify any broker’s licence with the relevant regulator before depositing funds. Some links in this article are affiliate links, meaning we may earn a commission at no extra cost to you.
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