Do you live in Rwanda and need a forex broker? Check out FOREX.com for all your trading needs.
Rwanda has been clawing its way out of economic turmoil and social upheaval since 1994. The developing nation has seen steady gross domestic product (GDP) growth of 5% year over year in the last decade. While the Rwandan franc (RWF) has made remarkable strides over this period, it is often an “overlooked” currency among foreign exchange (forex) traders. Traders interested in operating in the RWF should weigh Rwanda’s available trade opportunities against the elevated level of risks inherent in trading the exotic currencies of a developing nation.
Rwanda promotes a liberal forex market where commercial banks are allowed to buy foreign currency at administered floating rates. This is partially due to Rwanda’s dependence on foreign investments and export trading. To trade RWF, a broker must be licensed by the National Bank of Rwanda and sign up for the Rwanda Forex Bureau Association Information System (RFBAIS). Given Rwanda’s business-friendly stance on forex, you can easily find a well-regulated international online forex broker to trade currencies through from Rwanda.
Get Started with Forex in Rwanda
With the right technology and some risk capital, there is no reason why anyone could not get involved with forex trading. Participating in the global foreign exchange market does require having the right infrastructure and following the simple steps outlined below.
Connect to the Internet
Having a strong and reliable internet connection is a must to connect with your online forex broker. If you are looking to do your trading in Rwanda, you’re in luck. Rwanda ranked 1st among African countries in internet connectivity and download speed, so finding a stable connection there should not be a problem. Moreover, Rwanda is a market with several East African and central bank connections favorable to CFD traders.
Get a Fully Regulated Forex Trading Broker
Make sure any broker you choose has the appropriate license from a reputable regulatory authority and verify their compliance.
Open an Account
Visit your preferred broker’s website and go through the account opening process. Choose an account type that is right for you given your risk capital and trading needs.
Fund your Account
Reputable brokers should accept funding through your bank account, debit card or e-wallets.
Choose Your Trading Tool
Your trading platform should provide access to the forex market through several devices including your computer and your smartphone.
Now that your account is open and funded with your forex trading platform of choice, you can start trading forex right away.
Rwanda Forex Trading Strategies
Understanding the type of trader you are is a key part of trading forex successfully. By matching your trading style with your personality, you can further improve your trading results.
Day trading strategies encompass a wide variety of trading strategies in which positions are closed out the same day they are initiated. The frequency of trading is typically much higher than the average swing or trend trader, but the profit taken on each winning trade is generally smaller.
Swing traders, sometimes called momentum traders, typically closely watch momentum technical indicators for signs that a market’s direction is either supported or ready to reverse so that they can profit from both trends and corrections. Swing trades can be held overnight, and they could take as long to close out as a few weeks or as little as a few hours. Swing trading generally does not have the greater frequency of day trading, but traders may take on several positions at once. Identifying the support and resistance points that often spark a market reversal is another technique swing traders can use.
Trend traders, sometimes called position traders, typically do not place as much attention on chart patterns and price action as they do on fundamental geopolitical and economic trends. For example, if a country decides to export 30% less of its No. 1 product than it did the previous year, there will likely be a significant effect on demand for that country’s currency. The trend trader generally aims for more than just a quick, small profit from day trading. They seek to identify market trends quickly to achieve the larger profit potential that comes from capturing as much of the entire move in that currency pair as possible. It’s not uncommon for trend traders to wait for months or even years before taking or closing out a position.
Forex Trading Example in Rwanda
Although most forex traders in Rwanda will probably want to trade far more liquid currency pairs like EUR/USD, consider instead an example involving the RWF. Let’s say your forex broker’s exchange rate quote for USD/RWF is 967.00/25, and you wish to enter an order to buy $100,000 against the RWF at 967.25. To purchase $100,000, you will need at least $2,000 in your trading account to use as a margin if your broker allows you to use a 50:1 leverage ratio.
After 2 hours, the USD/RWF exchange rate rises to 968.00/25, so you sell your $100,000 position at 968.00. This gives you a 75 pip gain, which translates into a profit of ($100,000x0.75) = 75,000 RWF. If the market had instead fallen to 966.50/75, your position would have lost 75 pips or 75,000 RWF in value.
Making Money with Forex in Rwanda
Now that you know the basics of forex trading, you can start to learn more complex techniques:
- Carry trading: This typically longer-term strategy involves taking advantage of the interest rate differential between two different currencies by holding the higher interest rate currency, as well as ideally profiting from the general direction the pair’s exchange rate is presently moving in.
- CFDs: An abbreviation for contracts for difference, CFDs are derivative financial instruments that let traders profit or lose from movements in the underlying asset without actually having a position in that asset.
- Binary options: These exotic options involve the payment of a premium by the buyer that then results in a fixed reward to the buyer if some specific market condition is met.
Best Forex Trading Brokers in Rwanda
Rwanda allows residents to participate in the global foreign exchange market. There are foreign exchange controls in place to prevent fraudsters. Below you'll find reputable and well-regulated online forex brokers that currently accept clients from Rwanda.
- securely through Forex.com's websiteBest For:Forex Trading in and Outside the U.S.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- securely through IG Markets's websiteBest For:Forex Execution
For USA residents: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. Be advised that CFDs are not available in the U.S. from this provider.
Outside of the USA: CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
- securely through eToro Forex's websiteBest For:Demo Accounts
CFD trading is not available to U.S. users. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
If you’re going to trade forex, you probably need to understand that language.
- Pip: An acronym for “percentage in point,” that is typically equal to $0.0001, although it would be $0.01 for USD/RWF, and that represents the smallest movement in a particular exchange rate.
- Lot size: A standardized trading amount. The standard lot size among most online brokers is 100,000 base currency units.
- Orders: Instructions you give to your broker to execute trades on your behalf.
- Calls: Contracts that give you the right to purchase one currency against another at a specific price at or before a given future date in exchange for an upfront premium.
Forex Trading is Legal in Rwanda
Though the country aims to become less reliant on outside funding sources, Rwanda is still a developing country. The country has also created an economy that is cooperative with the global forex market and a regulatory environment that allows online forex trading. Rwanda will most likely continue with its liberal forex trading policies, which means that an opportunity may exist for an aspiring retail forex trader. Always make sure you do your due diligence when selecting a broker to trade forex through before giving them a margin deposit.
Bookmark this page and this website as your primary source for information on forex trading in Rwanda. Benzinga’s experts operate at the forefront of the forex market, gather information and deliver it to you in an easily accessible format.
Is forex trading in Rwanda legal?
Yes, trading forex in Rwanda is legal.
Is trading forex in Rwanda safe?
Rwanda is still a developing country, but as long as you use a liscensed forex broker, trading forex in Rwanda is safe.
How do I find a licensed forex broker in Rwanda?
You can find a licensed forex broker in Rwanda on the list above.
Get a Forex Pro on Your Side
FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets with low pricing and fast, quality execution on every trade.
You can also tap into:
- EUR/USD as low as 0.2 with fixed $5 commissions per 100,000
- Powerful, purpose-built currency trading platforms
- Monthly cash rebates of up to $9 per million dollars traded with FOREX.com’s Active Trader Program
Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.