Singapore’s forex trading market has grown incredibly over the past few years. It is the largest fx trading center in the Asia Pacific and the third largest, following New York and London. Statistics show Singapore’s share in global FX volume rose from  7.7% in April 2019 to 9.5% in April 2022. Moreover, there is a 45% hike seen in fx average daily trading volumes from April 2019 to April 2022 as it reached US$929 billion. Currently, the fx sector of Singapore trades above $0.5 trillion every day, having a considerable impact on the global market. Continue reading to know more about how Singapore’s trading market contributes to the global financial market.

Singapore’s Forex Market: Overview

Despite the high volatility in currency markets following rate hikes by the US Federal Reserve and other central banks in 2022, the Singapore dollar stood stable, keeping faith among forex traders of Singapore. Currently, it continues to be the best-performing currency in the region. Market experts speculate this currency will further strengthen this year. 

The Monetary Authority of Singapore (MAS) is Singapore’s Central Bank and financial markets regulatory body. Hence, every the best forex broker in Singapore must follow the norms of MAS for the smooth and progressive function of forex trading in Singapore. 

Singapore has become Asia’s top financial center while ranking third in terms of forex turnover by country and terms of financial secrecy (Tax Justice Network). Along with the growing trade, financial institutions began to develop, and maritime insurance,  trade finance companies, and currency services also grew. 

Singapore is the most significant financial center; the FX trading activity shows a significant increase in volume from investment institutions like insurance houses, hedge funds, and asset managers. With Asian investment flows expected to increase, the fx market has attracted many new regional forex players.

Factors Contributing to Singapore’s Forex Trading Growth 

Singapore FX trading is the best pick for investors looking to add stocks to their portfolios. Singapore has become the favorite trading place for investors and traders. The attraction of more investors and traders is that they can trade over 550 SGX-listed companies here while enjoying low fees and transparent pricing. 

Several more factors contribute to forex trading growth in Singapore, such as geographic location, technological advancement, favorable government policies, and skilled workforce. 

Regulations

Singapore has strict government regulations for all financial institutions. The Monetary Authority of Singapore (MAS) ensures a favorable environment for traders, investors, and other businesses to provide high security, safety, and transparency. The government authorities keep track of smooth functioning and low corruption rates. 

Geographic location

The geographical location of Singapore has played a vital role in its growth. The country’s trading facilities and dedicated banking support are difficult in any other region. Moreover, Singapore’s regulator has joined forces with the financial industry to develop Singapore as an FX trading hub and to expand the FX market infrastructure. 

Technology

Technology advancement has helped increase trading volumes. Trading currency through the online exchange has simplified the trading process and is also time-saving compared to traditional brokers. Online trading platforms have allowed traders to trade from any location at their preferred time. Traders can check the price of currency pairs from their online trading platforms anytime. Many platforms nowadays provide forex signal services to help traders make the right decisions. 

Workforce

Singapore’s regulatory framework ensures that a highly educated and skilled force manages Singapore’s FX market. MAS continuously tried to build a sustainable pipeline of professionals and experts in the financial sector. MAS also takes the initiative by providing training for finance professionals to help them develop their skills. With the help of such programs, MAS aims to provide opportunities for its people to attain technical expertise and global exposure.

Thus, geographical location, strict regulations, strong governance, technological advancement, and skilled workforce have attracted more foreign investors to Singapore’s forex trading. These factors have played a major role in Singapore’s Forex Trading Growth.

Impact of Singapore’s Forex Trading Growth on the Global Market

Singapore’s forex trading growth has contributed to the overall growth in the forex market. As per the Bank for International Settlements (BIS) reports, Singapore alone is responsible for  7.6% of global forex trading volume. Singapore is known to be the third-largest forex trading center in the world, with around a 45% increase recorded in fx average daily trading volumes from April 2019 to April 2022. 

Current statistics show that Singapore’s FX market trades around $0.5 trillion daily, which considerably impacts the global market. Singapore’s forex market growth has also led to growth in market liquidity. More financial institutions and traders are participating in the market, increasing the currency supply for trading. 

Challenges and Future Outlook for Singapore’s Forex Market

Although there are numerous benefits of trading in the Singapore forex market, another side must be understood. There are certain challenges that even the best forex trading platform Singapore is facing.

• The wide range of forex markets in Singapore provides numerous options to trade. Hence, it gives tough competition among Singapore’s best forex trading platforms. 
• Singapore’s strict and changing regulatory infrastructure could potentially limit many currency pairs, further limiting the forex trading options.
• With the increase in trading activity, there is always a risk of hacking or cyber-attacks. This can impact the reliability and number of participants for trading.

However, we can also see a bright future and expect continued growth in the fx market. 

• The adoption of digital technologies and advanced learning is likely to help sustain Singapore’s leading position in the Asia-Pacific region and also across the world.
• Singapore’s regulatory environment and location will increase demand for forex trading in Singapore. 

Conclusion

Overall, we can see tremendous growth in forex trading in Singapore in the past two years, making it number one in the Asia Pacific region and the third largest in the world. Advanced technology and the regulatory environment are key factors contributing to growth in the trading market. Certain challenges might affect the percentage of trading volume in the near future. However, there are other factors to deal with such challenges, and the growing interest in forex trading among the people will take forex trading in Singapore to greater heights.

Forex trading is all about buying and selling one currency against another. Forex trading has been regarded as one of the oldest forms of international trade since 1971. It has attracted immense popularity worldwide as one of the most popular forms of investing.

However, before you start putting your hard-earned money on the line – know its pros and cons. If forex trading yields profits, it can also cause a sudden loss because of risk factors rife in this trading industry. Understanding why forex trading involves risk is important. As a trader, you not only trade one currency against another but the entire international forex market, where such activity is carried out by millions of other traders like you on a vast scale. 

Managing risk, especially in the USA, is trickier because the markets are relatively more volatile and unpredictable. That said, gaining a sound understanding of the various types of risks associated with forex trading, such as currency, liquidity, and market risks, can help traders minimize the risk of incurring a financial loss and enhance their profits. 

Dos for Managing Forex Trading Risk in the USA

Understanding the Market and its Drivers 

Trading, whether done online or offline, constitutes some level and type of security risk to be put up with.

However, you can manage these risks to a great extent so that when things do not work favorably for you or you suddenly start incurring a financial loss, it is not a total financial disaster. Here are a few tips for managing forex trading risk in the USA:

• Understanding the global forex market

Every forex trader must understand the global forex market, which means the demand and supply in the Forex currency trading market across all of the different currency pairs. If you want to manage risk in the USA, you must understand which pairs are more likely to move vs. staying put and then focus your time on these pairs.

• Understanding the factors that drive forex market fluctuations

The main factors that trigger forex market fluctuations are as follows:

Interest rates: Interest rates are among the most popular indices traders use to speculate on potential market trends. The more the interest rate, the more gainful it is to borrow currency. 

Trade Balance: The trade balance comes in handy for traders in evaluating the rates of exports and imports to indicate how effectively a country’s economy is performing.

Inflation: Inflation is another salient aspect of forex trading as it will urge the price trend for most traded goods. As inflation increases, the value of the currency it represents decreases. 

• How to stay updated on market developments

One of the best ways to stay updated on market developments is to keep tabs on the news regularly so that you can know about the latest happenings in the global financial markets. You can scout online to find some of the best websites offering the best forex trading strategies to maximize your chances of success in the market.  You can also learn about current news from US and world-class forex traders such as Mark Mobius, Terry Housh, Rolf Adler, etc.

Using Proper Risk Management Techniques

It is always important to develop proper and effective risk management techniques. These apply to any type of trading and can help you lessen and better manage your forex trading risk in the USA. Here are a few tips:

• Different risk management techniques and how they work

Implementing a few popular forex trading risk management strategies is a great way to ensure your trading is safe, spread out, and not focused on only one or two trades. Some of the most effective and proven strategies include stop-loss and take-profit orders.

• Implementing stop-loss and take-profit orders

Try to use stop losses to minimize losses on trades that either start poorly or where there has been a sudden significant change in market conditions. When your trade reaches the predetermined percentage or dollar amount loss from when you bought it, you can set a stop loss order to close out the trade at a loss to limit further damage.

Take-profit orders are another risk management technique that can help manage the overall forex trading risk in the USA. Take-profits are the average percentage for a trade to be closed out at a profit, and this is placed as part of the trade deal before it is initiated. They are also known as trailing stops.

• Managing leverage and margin effectively

Another important step in managing forex trading risk in the USA is to use leverage and margin correctly. It will go far beyond simply setting the right margin requirements. Long exposure to trade can have significant and potentially devastating implications, so you must know all of your options regarding managing forex trading risk in the USA.

Choosing the Right Broker 

• Importance of choosing a reputable broker that is regulated in the USA

Investing in forex trading to gain profits is very popular, but owing to the complexity of the market, choosing the best forex broker in the USA that is regulated is crucial. Not only will this ensure that your financial transactions are being watched by the U.S. Securities and Exchange Commission (SEC), but it also ensures that a federal law called the Investor Protection Act protects your investments.

• Things to consider when selecting a broker

1. If you are a brokerage firm’s customer and have a trading account with it but, for some reason, cannot transfer your account to a different platform, take the step to check whether the transfer is free of cost. It will help you save the fees worth $75 (per account) this year from paying!
2. Another important factor is the type of customer service and the fees they charge for each transaction. Simply put, having great customer service and affordable fees helps keep clients engaged in their trading strategies. It also helps you differentiate between standard and substandard brokers in the market.
3. As one of the critical conditions set by some brokerages, traders need to keep their accounts open for a specific period before they can get their trade going with them. While these conditions are subject to be set by brokerages, adhering to them seems better, as it will deliver a more consistent trading experience.
4. As mentioned above, the forex broker you choose must be regulated in the USA, and you can be sure about it by conducting some research in advance. Also, consider delving into customer records; failing to do so will reduce your preferences and lead you to a lesser-known brokerage firm not legally bound to carry out client interests.

• Examples of trusted forex brokers in the USA

The number of trusted forex brokers in the USA is plentiful, so you can expect the best platform regulated by individual states. These brokers help enhance the odds of success in trading and bypass potential scams or frauds that commonly occur in forex. Some of the most trusted forex brokers in the USA include:

– IG US
– TD Ameritrade
– Forex.com
– Interactive Brokers
– Ally Invest

Don’ts for Managing Forex Trading Risk in the USA 

Don’t Trade Without a Plan

Typically, forex traders trade to make a profit. However, as with any investment, losing every last bit of your money is possible if you don’t have a plan. You should always trade with the goal of making profits and constantly manage risk so that losses are minimized.

• Importance of having a Forex trading plan

An FX trading plan will prevent the “speculative trader” from speculating with company funds. It will allow you to define your risk and reward, determine the appropriate position size, and generally keep emotions under control. A written trading plan is critical for traders of all experience levels as it guides future action and avoids emotional decision-making – one of the main reasons traders fail in the forex market.

• Elements of a good forex trading plan

Always trade a plan, and have realistic expectations:

Have a Trading Plan:

A trading plan never guarantees a profit, but if followed correctly, it will help traders to limit their losses and maximize their gains. Ideally, you should always trade your plan without expecting unrealistic gains. 

Never Trade with Emotions:

As a forex trader, you need clarity of mind and emotional control. If you feel emotional, you are bound to make emotional decisions. Emotions make trading very hard and can cause you to misread the market.

Don’t Attempt the Impossible:

When executing your forex trading plan, you should trade only in a market that has equal chances of profits and losses. Trying to trade in a market where most of the time, one side will win is simply impossible to predict. 

Don’t Overtrade: 

Avoid trading overly or making too much effort to ensure guaranteed profits at all times since doing so will incur a loss to you or urge you to get out of the business once and for all. You need to know when the risk overbalances the reward, and it is time to change your trading strategy.

• How to stick to your plan

Sticking to your plan is a great way to attract enormous success to your trading activities. To help you determine exactly why so, first ensure what elements can, in general, be instrumental in carrying out your plan, including the exact factors that will urge you to take action. Next, nail down the rules that you will have to implement. The nitty-gritty of the rules is to implement them in the market in a way that can deliver profit to you and bypass losses in an equal way. You can stick to your plan in all market conditions and adjust it depending on the market dynamics.

Don’t Overtrade or Take on Too Much Risk 

US brokers tend to make too big and overtrade trades, giving them the illusion of being profitable even when losing money. 

• Risks of overtrading and taking on too much risk

• If a trader takes on too much risk, they will carry high leverage, one of the margin call triggers. If a margin call is triggered and not met by the trader in time, it will lead to forced liquidation.
• Overtrading can exhaust account functions and resources. It can push traders to take on more risk than they are comfortable with or that they have the resources to sustain.
• Overtrading can lead to psychological issues such as fear or greed. Fear of missing out on profit opportunities will drive traders to take on too much risk to avoid losing profits from their winning trades. Greed is the opposite. Fear of losing out on profit opportunities will push traders to take on too much risk and trade in such a way they are exposed to a high risk of loss.

• Setting realistic trading goals and limits

Setting realistic and achievable goals and limits is another way to ensure that risk is not taken on without thought. Traders should understand their position sizing and how much risk their account can handle. They should then set appropriate goals and limits for each trade that they take on. The good idea is to set position size and risk limits before making trading plans. 

• Avoiding emotional trading decisions

Emotional trading is more likely to cause losses when the trader is not in control. Emotional trading happens when traders with a loss continue trading in a losing position. It is the most common mistake that results in losses. All winning trades should be marked as closed trades, and new positions should be opened only after looking at the current trend and account value. 

Don’t Ignore Risk Factors

In trades like forex trading, in general, approx. 40% of all traders incur a financial loss by losing the money they have staked, and such incidents commonly occur at the end of investors taking on excessive risk. This phenomenon is commonplace among traders who overlook gaining general knowledge of the risks of forex trading and take the plunge to invest their money in excitement without thinking about the consequences. The best way to bypass such issues is to monitor risk factors, for example, fluctuations in trend and volatility at all times.

• Common risk factors in Forex trading

When calculating risk, traders should include all these factors:

• Risk of losing all positions
• Risk of losing account value
• Risk of losing customers’ confidence in their trading ability
• Risk of causing market panic or a flash crash
• The importance of staying aware of risk factors and adjusting your approach as needed

The relationship between risk, management, and profits is the most essential aspect of the trading industry. It is true for forex traders and those who trade other types of financial markets. To ensure that a trader will be profitable in the long run, they must consider their risk management and profit management strategies, monitor their trades frequently, and adjust their approach depending on the market scenario.

Conclusion 

Whether you had traded forex earlier or are currently trading it, the odds are that you already know that the market is volatile. That said, understanding Forex risk management is crucial for every new trader. Hopefully, through this article, we have done our best to provide you with a solid understanding of what to do and what not when managing risk in forex trading.

Even then, we mention below a few other unmentioned key points for traders to keep in mind while trading forex to avoid risk as much as possible:

• Diversify your trading by opening multiple accounts in different locations
• Utilize stop losses and trade only with a small amount of money
• Avoid margin trading or day trading – wait for the major price patterns to form first
• Place trades when the markets are open and in real-time, never before or after they are open
• Avoid trends that look too good to be true

The Covid-19 pandemic has virtually brought the world together. As a matter of fact, it digitally brought everyone to the same stage of survival and earning bread-butter. The result everyone has is seamless interaction across the globe backed by technology which has given people the power to earn from their convenience and knowledge.

Forex trading, to be fair, is nothing new; however, it has gained traction in recent months. For a good cause, one may assume, since the trading charts are only shining greener every day in terms of the number of traders. Per reports, the global market for trading has nearly crossed the mark of $17 trillion, followed by a rise in the number of traders on forex trading platforms – web browsers, mobile applications, or brokes.

Having said that briefly, it is now important to note that since a major portion of forex trading is happening over the internet with no or little involvement of another human, there is a dire need to understand the level to which cybersecurity is required by traders, often referred to as eTraders in the modern era.

Best practices for forex trading can include checking a platform for having regulatory approvals, fulfilling compliance requirements, using strong passwords, and understanding types of attacks that will ultimately result in forex trading profit for traders.

Understanding Cybersecurity Risks In Forex Trading

The key is to be vigilant at all times when trading in forex over the internet. It is hard to imagine another way for forex trading, but words had to be spoken anyway. Some common types of cybersecurity risks in forex trading are stealing funds and/or personal information of the traders. These are then misused to either cause more severe damage or vanish with the fund altogether.

The manner in which these threats come to a forex trader is not surprising at all; the same has been described below for a better understanding of forex traders.

Phishing Scams

Forex traders may be targeted by hackers through an email that appears to be official, but it is not. This could be done by posing as a banker, internet service provider, or in this case, forex broker.

Malware

Software may be notoriously installed to cause disruptions in the practices of forex trading, leading to the loss of millions of dollars of funds. Be it a computer or mobile, anything can be disrupted with malware.

Social Engineering Attacks

Specifically to forex trading, Social Engineering Attacks deal with manipulating the forex trader psychologically so that they perform certain actions even if that means losing money in the future.

Another manner to fool forex traders is the creation of a duplicate website of the broker that looks almost the same as the original one, making forex traders believe that they are actually accessing their forex broker and not a hostile element on the internet.

The manner of executing the attack may differ, but the ultimate objective is always to make the trader suffer. The potential consequence is that traders end up losing their hard-earned money and also their digital identity.

Forex markets, on the other hand, end up losing their reputation since the trading community begins to assume that there are more threats as compared to returns on their investment.

Best Practices For Ensuring Cybersecurity In Forex Trading

Admitting for a moment that forex trading has issues of cybersecurity within the ecosystem cannot be taken as a downside that there is nothing traders can do about it. Forex traders can take a protective approach in practicing forex trading under cybersecurity.

Get the Basics Clear

Meaning, set up a strong password when registering on a platform that is owned by the regulated forex broker. For instance, include special characters and use small-cap alphabets along with numbers. Needless to say, avoid linking passwords to something personal.

Enabling two-factor authentication is one of the best practices a forex trader can look into. Like social media, forex brokers with the facility of 2-FA allow their users to receive a message or an email to approve the sign-in activity. The request is rejected if the trader does not identify the action of sign-in.

Update Regularly

Softwares or mobile applications owned by forex traders often roll out updates. These deal with fixing bugs or patching the loopholes that could otherwise leave the platform along with traders vulnerable. Issues can be reported directly by traders to the developers. Another way, or rather an infamous way, is to know how someone hacked into the system and then fix it to avoid further damage.

This also gives forex traders a chance to refresh their user interface for an enhanced and smooth experience. This cannot be confused with an update always fixing the vulnerabilities. It can also be to integrate several tools and features that have been demanded by traders. All and all, updates should be looked into by traders.

Use VPN

Not to beat around the bush, Virtual Private Networks can help encrypt the data of a trader over unsecured networks. Using VPS can come in handy for forex traders, provided they first gain basic knowledge about it.

Email Communications

People on the other side are not visible while interacting with them over email. There is one way, though, in which forex traders can ensure that they are interacting with an authentic broker. Check for the structure of the email. Most professional forex brokers have a way of introducing themselves in a professional manner instead of saying, Hello, Dear. That is a red signal for every email communication, no matter the situation.

Urgency is created only by those who want you to take quick action without giving it a thought for a single second. Easier to guess such emails should be ignored with no information about trading shared with them.

Avoid Suspicious Elements

Elements here for forex traders refer to links and documents that are sent to them. For instance, an email may ask forex traders to click a link that will redirect them to withdraw their funds. First of all, that rarely happens since the official platforms are the only source for taking all the actions. Second, suspicious links contain the wrong domain or a different misspelled domain. Such links should be avoided by forex traders in South Africa.

Documents are sent only if required, most of them also being available on the platform. Forex traders should avoid downloading unidentified documents – zipped in a folder – so that the probability of unknowingly downloading malware goes down.

Information Storage

Information is unlimited mostly because there is a lot to store and analyze for the future. A lot of forex brokers design their platforms dedicated to the way in which traders can revisit their strategies in terms of hours or even months. That is the safer way, but forex traders may choose to store other types of information – payment or customer ID – someplace where no one else gets access.

Simply put, a print can be taken when a bank shares the certificate of a savings product instead of going around and keeping it in the draft. Hardcopies may not always be possible except that the core remains certain of how information should be stored by forex traders.

Online Exposure

Participation in online forums or online discussions on different social media platforms is now common. Irrespective of how the market performs, everyone wants to showcase the level of intelligence they possess on the internet. This comes out as a nice sign if points are productive; however, it could ruin everything if forex traders are not careful while talking with others.

Limiting the exposure is the best thing forex traders can do if the capacity to hold on to their social urges is pretty high. Anything said on the internet can end up coming to harm forex traders in unexpected ways.

All these practices for a safer forex trading experience are subject to updates depending on what kind of cybersecurity threat comes up in the future.

Choosing A Secure Forex Broker

Choosing a secure forex broker is important to make sure that the cybersecurity threats are reduced, funds are safe, and data is not shared with a hostile third party. All the regulated forex brokers in South Africa operate under the Financial Sector Conduct Authority. Similarly, forex brokers in other regions are regulated by the respective regulatory authorities of the region.

This sets up a reputable tone for their functions and guarantees the security of forex traders.

Other pointers that can be considered to know if a forex broker is secure or not are:

• Commissions – Spreads
• Leverage – Margin
• Ease & speed of deposit/withdrawal

Every reputable forex broker in South Africa would be registered under the FSCA, following all the legal compliance and keeping sufficient margins for their traders.

Conclusion

Cybersecurity in forex trading is important to make sure that the funds are invested in a safe environment and that all the personal information of forex traders is securely encrypted to avoid any kind of theft. Measures to implement cybersecurity should therefore be taken as they serve benefits not just to traders but also to the market at a macro level by preserving its reputation. Forex traders are also recommended to take all measures possible to avoid falling into the trap.

The Dubai forex market is truly the best destination not only for its locales but also for worldwide foreign investors due to the ultimate safety and cost-effectiveness the emirate city features. That is why the Dubai forex market has become the leading hub for a legion of global traders interested in entering it. It is all a breeze to start trading in the Dubai Forex market: all you need to do is create a Dubai Forex account and fund it using Bitcoins or any other cryptocurrency you choose.

Although the Dubai forex market is relatively young, yet is attaining prominence fast with time. The Dubai forex market emerged after the UAE recognized foreign exchange trading in 1989. Before all this took place, no trading involving speculation or buying and selling foreign currencies existed. Considering the evolution of foreign currencies universally, several wholesale individuals and trading companies opened stores in Dubai to provide brokerage services for business people and traders interested in buying and selling various currency pairs.

Dubai is the best destination for forex trading for investors worldwide. As a new trader excited to start your forex trading but are on the fence about it, continue reading this article.

Overview of Dubai’s Forex Market

The Dubai forex market is teeming with several banks offering customers multiple global currencies. The market size is so vast that it takes up most of the international trading volume. Dubai is also a burgeoning banking hub, which is accessible to its citizens and is drawn to the world’s most liquid markets. This makes it a perfect hub for inbound and outbound foreign exchange trading due to its proximity to international shipping hubs and its accessibility for worldwide visitors traveling for business or leisure. For example, currency trading in Dubai is thriving so rapidly that it has become the sixth busiest exchange in the world. Therefore, if you are looking to start trading in Dubai, it is up to you to decide what type of forex trading account will fit your needs.

The forex market in Dubai is almost similar to the forex markets in other countries in terms of functionality. The Dubai forex market is so thriving that investors from far and wide consider preferring the country over others for trading. Forex trading in Dubai is regulated and managed by the DFSA or the Dubai Financial Services Authority. Therefore, the currency pairs traded in Dubai are the USD, Euros, GBP, etc., the most significant currencies in the world.

When it comes to instruments traded there, the DFM or DMA is the most common. The DFM or Dubai Financial Market refers to a bid/ask quote system about the service related to the foreign exchange markets. It implies that traders can place bids and ask for each available currency pair. DMA or Dubai Market Access refers to forex markets and stock markets.

The range of Forex trading in Dubai is vast. The country is today a prominent hub of several financial banks and brokers who offer their services to foreign exchange traders. Some of Dubai’s most prominent financial banks are HSBC, Barclays, Lloyds, and Standard Chartered. In addition to these banks, there are brokers like Forex, FXCM, and FXPIG, which offer forex trading tools, currency trading strategies, and diverse financial resources all in one place.

Regulatory Framework 

Forex trading in Dubai is governed by The Dubai Financial Services Authority (DFSA), which regulates the Dubai financial market and oversees international transactions for all non-Dubai entities. The DFSA connects with the more comprehensive global network of financial markets, institutions, and traders. It monitors trading activity to identify any potential risk or illegal activity and undertakes surveillance activities, for example, anti-money laundering efforts.

Trading in Dubai is mainly conducted over the phone and electronic platforms rather than through the traditional exchange model. This has several advantages for Dubai’s forex market; firstly, it reduces costs and increases liquidity. The availability of other financial products is also crucial since Dubai forex brokers provide them for traders so that they can also trade in derivatives and spot forex or CFDs.

Measures that the DFSA has taken to ensure investor protection and market stability:

• The DFSA has accepted several steps to ensure the protection of traders and the strength of the UAE financial market. These include:
• They provide continuous surveillance of all market activity to protect investors and eliminate fraudulent practices from the market. Supervision is carried out on orders placed, trade settlements, money transfers, and customer complaints. The central objective is to protect investors by eliminating fraudulent practices and ensuring fair competition between domestic and international financial institutions for investor business.
• The establishment of an industry-backed clearing house. This is overseen by the UAE Central Bank and ensures a smooth, reliable mechanism for dealing with cross-border money.
• The creation of several committees overseeing the regulations and rules regarding forex trading in Dubai. Emirati experts, including financial experts from other member states, chair these committees.
• The establishment of a forex ombudsman committee that deals with disputes. This committee comprises local, international, and professional experts and has the power to hear complaints settle disputes and award compensation to investors.

Advantages of Dubai’s Forex Market

Dubai is a perfect destination for getting a business started. If forex trading in Dubai is what you plan to embark on, it is good to learn the advantages of doing so in advance. So let us look at some key advantages of investing in Dubai’s forex market:

1. Tax benefits: There is not much to hash out when considering tax benefits. However, new traders should note importantly that traders need not pay any wealth tax in the UAE.
2. Low barriers to entry: To start forex trading in Dubai, having a substantial amount of money is not required. Traders can start trading with fewer funds.
3. Access to a wide range of currencies: The forex market in Dubai is highly cost-effective and, therefore, undoubtedly worth entering. You can start trading by accessing various currencies, for example, the US Dollar, Euro, British Pound, and UAE Dirhams.

For new traders, it is essential to note that Dubai’s location and burgeoning economy have made it an influential hub for business.

Over the last few recent years, Dubai has become the premier choice for multinationals relocating to a managerial destination.

Dubai is politically neutral in the Middle East and, therefore, not vulnerable to war or imbalance.

All these factors importantly grab the attention of an increasing legion of multinational individuals and companies looking for new markets and opportunities outside of Europe and ready to start investing in Dubai’s thriving market, known for offering outstanding cost-effectiveness to its traders.

Challenges and Risks

A forex market is a hub for trading various global currencies, for example, GBP, USD, AED, etc. The market helps traders profit by purchasing these currencies during deflation and selling them during inflation. Many individuals and companies make their fortune by investing in this market and making a quick profit. However, those who are planning to start trading in Dubai Forex should know the various potential risks and challenges related to it. So here are a few key risks and challenges that new traders must look at: 

1. Unpredictability: Forex markets are highly volatile in general. That is why it is wise not to wager your money randomly until you know the ropes of it, and sidestepping it will only bring about the financial loss to you always. You can enhance the chances of your success in trading by choosing a forex broker who will help you at every step.
2. Regulatory changes: Dubai’s forex market is marginally regulated. The laws regulating forex trading are not as hard and fast as those implemented for other financial needs, such as stock or share marketing. Some traders misuse regulatory oversight during transactions and get around the rules about high-risk investments.
3. Currency fluctuations: Different currencies of global countries fluctuate depending on the performance of their underlying economies. So, for example, if you plan to invest in the Dubai Forex market and its national currency AED goes into recession, the value of your currency will also drop.

Traders can overcome the trading risk mainly by following the tips mentioned below:

1. Survey: Traders, relatively or entirely new to the forex market, find it hard to decide which currencies to invest in. Therefore, to enhance the odds of maximum success in the market, such traders should survey currencies thoroughly.
2. Diversify your investment: Many traders commit the mistake of investing in one currency and incur losses sooner or later. After all, predicting which currency will deliver the best ROI and which one not is too hard for anyone. Therefore, rather than investing your hard-earned money in one currency, consider diversifying your investment in various currencies, and you will succeed.
3. Exercise caution: Although forex trading is a great way to earn maximum profits, for new traders especially, doing so seems hard owing to their lack of knowledge. They do not know which currencies are worthy of investment and which ones are not. Therefore, it is wise to exercise caution and follow in the footsteps of a professional forex broker.

Conclusion

Dubai is considered among the top destinations in the world for foreign investors interested in forex trading due to its very safe and cost-effective forex market. The DFAS regulates the emirate’s financial system, providing investors with seamless protection against scams and other financial risks and challenges. Additionally, the Dubai government runs the extra mile for its investors by installing multiple measures to ensure that all transactions are made crystal-clear and safe.

The Dubai forex market is genuinely beneficial for its investors. The market allows traders to choose from various worldwide currencies to carry out trading. Also, the market enables them to branch out their portfolios and make the most of global opportunities. Moreover, the market is rife with an extreme level of liquidity, allowing traders to conduct trading immediately without concerning liquidity issues. All this quickly makes Dubai a perfect destination for foreign investors looking for a safe hub for making investments. So any foreign investor looking to invest in the forex market should consider Dubai once and for all. Do it, and you will see how cost-effective and secure the market is.

If you are of the opinion that simply copying and pasting the forex signal into your forex trading account can make you rake in booming profits, then you can think again. Read on to find out more about the reasons why a trader needs more than mere forex signal services from the best forex signal service provider to make profits.

Besides the forex signal, what more does the forex trader need from the forex signal service provider?

Trust

A trader needs to be able to trust the forex signal service provider. He invests his fortune with the service provider with the hope of extracting profits by trading the forex market. But what if the service provider is fraudulent? If you continue to dwell on such doubts, then you will end up never taking part in trading at all. But if you do not give much thought to it, then you will run the risk of incurring tremendous losses. The only way to resolve the dilemma is to build a relationship of trust by conducting demo trading during the free trial period. Register for the free trial period and assess every aspect of the best forex signal service provider along with testing the signal.

Schedule

If your time zone differs from that of the forex signal service provider, then you will miss out on every signal, and end up making no profits at all. Not only your time zone, but also your daily schedule should match the signal service provider. You must not miss out on any signal if you seek to extract profits from the forex market.

Account size

The best forex signal service provider should be able to advise the trader on account size and draw-down, apart from generating the forex signal for trading. The forex signals providers and professional forex traders conduct trading with significant account sizes and go through the period of draw-down as well. However, several traders prefer to conduct trading with a small account size, which fails to withstand the draw-down period and consequently collapses. Therefore, the forex signal service provider should advise about the account size to the trader.

Psychology

Psychology is highly important when it comes to forex trading. A trader cannot afford to let emotions take the upper hand while making swift trading decisions. The best forex signal service providers have mastered the art of trading dexterously with stern psychology. Examine the psychology of the forex signal service provider during the trial period before signing up for the services.

What should you check about the forex signal service organization before subscribing to the services?

1. Transparent

It is of utmost importance to verify that the best forex signal service provider is honest and transparent. A guaranteed way of ensuring that is the availability of detailed information and services during the free trial period. The service provider should not charge any hidden charges, either.

2. Accurate

The signaling service should be accurate; otherwise, there will be no profitability. Automated forex signal service is highly accurate as it can operate 24×7 and conduct an advanced technical analysis of the market. However, manual forex signal service is accurate, too, as the service provider is highly professional and can stay updated on news events that affect the forex market. You can assess the accuracy by verifying the track record of the best forex signal service provider.

3. Honest

Honesty is indeed the best policy when it comes to forex signal services. Conduct demo trading during the free trial period to check if you can extract maximum profits. Read the unbiased reviews of the service provider on authentic websites to confirm your opinion of the service provider’s honesty.

4. Good customer service

The quality of the best forex signal service provider depends upon the customer service. The customer service help-desk should be highly responsive, reachable at any hour, and capable of a resolution of any query regarding forex trading. There are numbers of best forex trading software available, which brings efficiency to the work of forex traders.

5. Understand which currency signals you are interested in the most

Not every currency signal is profitable for the trader. And so, the best forex signal service provider must furnish the trader with detailed information regarding the currency pair, prior to trading. Conduct demo trading during the trial period to know more about currency signals.

Conclusion

Assess every aspect of the forex signal service provider before subscribing to the services. Establish a relationship of faith and trust and make the best use of the free trial period to ensure the quality of the service provider.

The Forex market, the largest financial market, has the potential to reap huge profits in the arena. Thus, it attracts Forex traders of different levels: from those looking to learn about the Forex market to experienced professionals who have years of experience. Since access to the Forex market is simple – with significant leverage, 24 hours sessions, and low costs – many Fx traders enter this market quickly and then exit after facing setbacks and losses. Every forex trader can earn a decent profit at times, but those who aim to make a regular income from Forex trading may need a consistent Forex trading strategy. In this blog, let’s find out how you can earn maximum profits from Forex trading. 

Can You Really Make Profits From Forex Trades? 

This question has been discussed for a very long time. It is because lots of investors have not had success while trading Forex. Moreover, their experience has cast a pretty doubtful shadow on its viability. But, for a financial market that trades-in nearly $5 trillion in volume every day, some traders are profiting from Forex trades. Else, this market would have been infamous and faded out. 

Which Are the Strategies to Get Profits From Forex Trading? 

Below are the most important strategies that can help new traders avoid losing their money and get profits from Forex trading: 

Selecting and Testing a Constant Trading Strategy

While discussing how you can make constant profits in the Forex trading world, the first step is to select a trading style. Though there are lots of options, they generally fall into the ones mentioned below: 

Day trading 
Scalping
Long term trading
Swing Trading

The main difference between them is their timeframe. When it comes to scalping, positions can be opened and closed between 1 and 15 minutes. With day trading, you need to close every active trade before a business day ends. With swing trading, traders can keep their position open for several days or even weeks. However, long-term trading lets you make trades that can last for many months. 

Next, you need to select either one or many trading strategies. You can choose one from moving averages, Bollinger bands, or any other technical indicators. You can even focus on the economic news as well as other fundamentals. Ensure to test every strategy to find out which one works the best for you. 

Setting a 1:2 or higher risk/reward ratio

Traders cannot be guaranteed ever to attain over 50% of the winning trades. A simple method to address this issue is to set a 1:2 or even higher risk/reward ratio. Setting up this ratio can significantly enhance the chances of success of the traders. It can work as a helpful insurance policy. 

Setting a realistic profit target 

Setting the correct risk/reward ratio may not be sufficient for making consistent profits. Another vital aspect to consider is to set a realistic profit target. It is mainly because each currency pair comes with different daily volatility. 

Don’t use high leverage 

Leverage is a well-known double-edged sword. The issue is that over-leveraged Forex trading can result in huge losses, recovering from which won’t be simple. There is a limit of 50:1 on the maximum leverage that can be used with every major currency pair and 30:1 for minor ones. Thus, new traders can consider applying a 1:10 or even lower leverage amount to protect themselves. 

Keeping Good Records 

A Forex trading journal is a great means to learn from both success and loss in trading. Keeping a complete record of your trading activities, including instruments, dates, losses, profits, and emotions, and performance can be very advantageous to become a successful trader. When reviewed periodically, a journal can offer vital feedback that can make learning possible. Without good record keeping and a trading journal, a trader will make the same mistakes and thus minimize their possibilities of becoming successful and profitable traders. 

How to Limit the Risks to Get the Maximum Profit in Forex Trading?

To limit your risks and earn the maximum profits in the Forex world, you need to use a stop-loss. Stop-loss is the fail-safe in the Forex trading world. It is the method with which traders can balance their risks and rewards without needing to stay on their screens 24/7. Stop-loss lets you define your trade’s closing price, and then the trade will be automatically closed at that level. So, once you put a stop-loss, rest assured knowing that you won’t lose more than expected.  

How Much Can Forex Brokers Earn in a Day? 

The short answer to how much forex brokers can earn in a day is simple. They make lots of money every day. It is pretty hard to find out how much they exactly make. It appears to be a highly profitable business for people who know to start and market it. 

Conclusion

The Forex market is enticing to lots of traders due to its low account requirements, 24-hours trading, and high leverage. When seen as a business, Forex trading can be rewarding and profitable. But reaching success is pretty challenging and takes a lot of time. The Forex traders can enhance their chances by following strategies to avoid losses. However, if you are searching for the UK forex brokers, then you must read our content where you will get the top list of it all in one place. Therefore, without any further due just take a glance over it!

Contracts for Difference (CFDs) are arrangements made in financial derivatives trading. The difference in the settlements between an open trade price and a closing trading price is cash-settled; no delivery of securities or physical goods occurs with CFDs. Traded directly with a broker instead of the market, CFDs allow buying and selling of underlying instruments at a future point but at a rate stipulated today. So, be very careful while trading CFDs. This article will discuss how to make a trading plan for trading CFDs, the tips to become a successful CFD trader, and how to find the best CFD broker. 

How to Build a Trading Plan for CFDs? 

The goal of CFD trading is to close positions with profits. To do this, you need a plan. Since CFD trading is leveraged, a good CFD trading plan is vital to have. Once individuals know about the advantages of CFDs trading, they wish to get started right away. But resist the temptation and spend time considering how you will approach and handle your CFD trades before putting your capital at risk. To build a CFDs trading plan, consider the following: 

Your Strategy: Create a strategy that you can use again and again. Without proper planning and trading strategy, you would find it hard to find out what happened because of good management and what happened with your luck. 

Entry Point: You should find out which trades you want and what circumstances will activate an entry in a position. Ensure that you do not change reasons for entering a trade after entering it. After you begin doing it, you can explain getting into a trade by changing the reason around. 

Exit Point: You should know where you’ll exit a position. Also, make out how much risk you can take before placing a trade. Although you cannot tell your exit point always, you should be clear with the conditions that should be satisfied to exit a trade.  

Record-Keeping: Be clear about keeping a track record of all your trades. With proper record-keeping, you can look back and find out things you need to change. 

Tips to Trade CFDs Successfully 

If you want to bolster your profits while trading CFDs, you should consider the best tips given by the experts. Learn from the mistakes of top traders and avoid falling into expensive pitfalls. 

Maintain a Journal

Keep a journal to write descriptions of your crushes for entry/exit points, position size, price, and more. It will be your trading book to look back at your mistakes. A CFD trading journal is often overlooked, but its use can be invaluable. By maintaining a CFD trading journal, you can identify patterns, streamline strategies, and look at your emotions while trading. A good CFD journal should include: 

• The instrument
• Reasons for a trade, news-based, technical, and more
• The time of entering/exiting a trade
• Was it a loss or profit?
• Your learnings from the trade
• Review of the trade performance

Control Your Leverage 

If you make the right trade, leverage can be your biggest asset. If you are winning, you are attracted to boost your position size. But there is a possibility of loss as well. You have to be smart. No one wants the stress and margin calls that come with huge losses. To begin with, you should start small. As your money grows, you can increase your leverage slowly.

Education

The best traders and investors don’t stop learning. Stay updated with the market developments while perfecting and practicing CFD trading strategies. You can also learn from successful traders. For this, you can use many resources like courses, blogs, forums, PDFs, videos, eBooks, and more. 

Use Stops 

If used correctly, stops can help minimize your losses and keep you longer in the game. Every trade you make should have a clear stop. Ensure to outline a CFD stop out of the market hours and religiously stick to it. It will help you predict maximum losses. 

Demo Accounts 

Once you have done your research and got the capital for trading, it is hard to resist trading. Test your strategies using a demo account. Most brokers these days offer practice accounts. These accounts have virtual money. It makes them the best place to try their trading strategies and make mistakes before investing real money. Demo accounts are also an efficient way to try a broker’s CFD trading platform. With them, you can ensure that the broker has all the analysis and charting tools a trading plan needs. 

How to Choose a CFD Trading Broker? 

To assist you in the broker selection procedure, here is a guide of main factors that you should look at while selecting a CFD trading broker: 

Regulations: This is the first thing to look at when choosing a CFD broker. A good broker should be regulated by competent regulated agencies. For example, you must select the best Australian forex brokers regulated by ASIC if you are from the Australian region. By working with regulated brokers, you get the guarantee that the broker meets the standards imposed by regulatory bodies. 

Trading Software and Platform: You should make sure that a trading platform is reliable. Most brokers offer traders many trading platforms to select from. A good broker has many trading platforms and the best software. The vital features of a trading platform include: 

• Risk management tools
• 1-click trading
• Wide variety of technical indicators
• Complete charting package

Customer Services: Most new traders forget to consider customer services while choosing a broker. They don’t realize that customer services play an essential role in their trading experience. Irrespective of how knowledgeable or experienced a trader is, there is a time when help is needed. Check whether the broker has different ways to contact their customer support. 

Account types: Most CFD brokers offer traders a range of trading accounts that cater to different types of traders. They generally include – a Micro account, a mini account, and a standard account. With both the mini and micro accounts, a low initial investment is needed to start trading. However, with a standard account, the minimum investment amount may differ from one broker to another. You should choose a trading account that best suits your investment capital. 

Conclusion

Trading CFD is less risky as compared to other instruments. Still, it can be quite challenging to create and implement a profitable strategy while trading. If you wish to become a successful and profitable CFD trader, you’ll need to use various educational resources and follow the above tips. 

However, now you have learned how to build a trading plan for CFDs, you also need to start with a good platform for it, check out the Review of CMC Markets and understand it in detail, and start exploring your strategies with it and earn huge profit.

Swing trading has become even more popular with people looking for ways to get in some extra income. Swing trading is a type of trading where traders hold a position for more than a day. This active trading style captures the swing in the market sentiments and lets you enter/exit a position at both levels. With swing trading, the trading strategies are driven mainly by technical analysis. 

What Is Swing Trading? 

Swing trading refers to a trading style that involves holding a position for anywhere between a couple of days and weeks. It lies in between day trading and trend trading. Day traders keep an asset from a few minutes to some hours but not over a day. Trend traders examine the long-time fundamental trends and hold an asset for some weeks or months. However, a swing trader may keep a specific asset for a time ranging from a few days to a few weeks. They generally trade the assets on intra-month or intra-week oscillations between pessimism and optimism. 

Traders look to make the best from downward and upward “swing” in an asset’s price. They look to capture small moves in a large overall trend and intend to make many small wins that can add to noteworthy returns. Most of the swing traders use the daily charts to select the best entry/ exit positions. But some of them may also use a shorter time frame chart like 4 hours chart or hourly chart. 

Which Are the Swing Trading Methods? 

Different swing traders use various swing trading methods and strategies. Below are the most common ones: 

Retracement Trading

Retracement trading includes looking for prices to reverse temporarily with a bigger trend. A price can temporarily retrace to a previous price point. Later, it will continue to go in the same route. Sometimes, reversals are hard to predict and differentiate from a short-term pullback. While a reversal refers to a trend change, a pullback refers to a mini-reversal during a current trend. 

Reversals begin as a potential pullback always. However, the challenge is knowing whether it is a pullback only or a trend reversal. If it is a retracement, the price going against the initial trend should be relatively brief and temporary. 

Support & Resistance 

For those who follow the trends, support and resistance are the most vital indicators. In swing trading, support recognizes the bottom levels of trading ranges, and resistance refers to the ceiling. The price of an asset moves in this range. However, if the price crosses the resistance or support levels, it denotes a reversal. The region below support is where overselling takes place. The price that goes over the resistance level is recognized as an overbuying situation. It indicates that the buying pressure will finally decline, and selling will take over. 

T-Line 

Investors use a T-line of charts to decide the best time for entering or exiting a trade. If a security moves above this T-line, it is a sign that the rate will rise constantly. If the security goes below this T-line, the price will fall continuously. 

Bollinger Band Method

A Bollinger band is a price band placed on both sides of a trend line. It helps to create a range between the asset’s price moves. The swing traders use these bands to plan entry/exit points within the market. 

Channel Trading

It is an easy way involving trading assets that show a solid trend line with trading in a channel. When using channels, you should trade only with the trends. 

How to Become a Successful Swing Trader?

By studying and incorporating the following swing trading tips in your current market framework, you can learn to become a successful swing trader. 

Short Weakness And Long Strength 

Look for suitable short trades during the period of bearishness. Find a long trade during the period of bullishness. 

Use the News

The markets are continuously moving according to the news events. Lots of resources offer commentary and market analysis using price action, weekly charts, and volume. If used properly, the news can assist in highlighting prospective options and assets to keep your eye on. 

Align your Trades with Market Directions 

While discussing trends and trades, start with the primary and interim trends of the market. The trends can provide the perspective for all traders to make trading decisions for the short-term. Recognize the long-term trends to ensure that you move with the flow. 

Apply “Multiple Indicators” Rule 

A highly profitable trade occurs when every available technical tool gives the same message of a rise in the price of an asset. Keep in mind that there is no magic for profitable trading, and there is nothing like free money. Only technical analysis can boost the chances of making the right swing trading decision. 

Enter Trades With Clear Plans 

Swing trading can result in impulsive buying. However, with clear plans, you are trading, not gambling. Preservation of the capital is vital. So, set up a stop-loss always. It is best to set a stop loss before you make a trade. 

Integrate Fundamentals in Technical Analysis 

Swing traders hold positions for many days to many weeks. So, they largely advantage from better understandings of fundamentals. 

Enter Trades in The Beginning 

The faster you identify a trend in the trading world, the more profitable and successful a trade will be. Pay attention to the market averages. When these are oversold or overbought, they are prone to reversal. If a market is testing the zone of resistance and support, look to new lows, highs, and the decline/advance line. 

Manage Time Like Price 

Time is indeed money when it comes to financial markets. Know your hold period for each trade. Keep a watch on the clock to be a market survivor. 

Control Risks Before Getting Rewards

Wear the market chastity belt always. Attention to profits is a symbol of immaturity. And attention to losses refers to experience. The market has no intention to offer profits to those people who do not earn them. 

Conclusion

Every swing trader uses a different strategy. The more experienced ones will use complex, advanced methods. But our trading strategies will assist you in laying down a solid foundation. Whether you can swing trade or not, you cannot deny the significance of learning different trading methods to become a successful trader. You can check here the best forex trading platform, which provides a swing trading facility. Apart from this, you must also go through Zerodha review to know about this trading platform in detail so that you can utilize the strategies with it and further gain huge profit.

The week has kicked off on a high. Global stocks are on an upswing on the back of traders awaiting new economic data and announcements from the Federal Reserve economic symposium at the Jackson Hole summit this week. Traders have chosen to put the pessimism of the COVID-19 pandemic behind them and instead focus on the optimism of the development of a vaccine.

The Trump administration has added a silver lining to this trend. It has decided to bypass Federal regulatory constraints and fast track an experimental vaccine on the anvil at the Oxford University, UK. Traders are thus looking beyond the increasing COVID-19 cases in Europe and choosing to put their money on Forex.

The net result is that the dollar after major fluctuations last week has now steadied against the major currencies. Added to it is the positive sentiment of new data on business activity and home sales. But all is not hunky-dory as there are concerns that more easing of monetary policy to fuel economic growth may not be happening soon.

The Trump administration is not helping the cause of the money markets either as the simmering U.S-Sino ties continue to be on the front burner, making traders nervous and jittery. However, on Sunday, he has hinted at the possibility that the U.S economy will be delinked from China in major areas of global trade and technology.

However, the dollar has performed reasonably well and held its own against the major currencies. It is $1.3095 against the British pound, $1.1803 against the Euro, fetching 0.9121 Swiss francs, and transacting at 105.76 yen. In all cases, the dollar has either gained over Friday or held on to last week’s gains.

Junichi Ishikawa, a senior foreign-exchange strategist at IG Securities, feels that the dollar is stable in the short-term only. He said,

All eyes are now on the Jackson Hole Symposium beginning next Thursday, where Federal Reserve Chairman will delve further on the contours of the monetary policy of the future. The summit is sponsored by the Federal Reserve Bank of Kansas City and is held at Jackson Hole, Wyo. Every year, top financial analysts, central bankers, and finance ministers take part. This year because of the pandemic, it will be a video conference symposium. Much is at stake for the dollar on what transpires at Jackson Hole.

Zimra (Zimbabwe Revenue Authority) is collecting a mere 25% in the form of forex tax even when there is a rise in forex deposits to the tune of 1.1 billion dollars. As per RBZ (Reserve Bank of Zimbabwe), about 50% of all local transactions are presently occurring in forex after the government gave the go-ahead to the utilization of free funds for local trading.

Forex Tax Malpractices

The poor tax performance related to forex clearly indicates tax non-compliance and the malpractices carried out by business players.

On June 17, the dual pricing system was announced by RBZ and from that time, forex taxation started drawing more attention. This dual pricing system meant that businesses were now allowed to accept foreign currency payments.

Ms. Faith Mazani, Zimra Commissioner, has mentioned that malpractices have been observed by the tax authorities related to forex tax. The reason is that transactions are not being recorded by many businesses where foreign currency is involved in the transaction. Ms. Mazani made this statement yesterday while speaking at a virtual press conference, jointly organized by tax authorities and RBZ on the topic of forex business income and its taxation.

Ms. Mazani added that when any transaction is being recorded, the tax-related declaration is not happening for either entire or partial foreign currency amount. She mentioned that when any foreign currency transaction occurs, it is entered in manual registers, but operators are getting foreign currency and issuing customers receipts for RTGS.

Ms. Mazani also revealed that foreign currency that someone tenders is not getting banked. Where foreign currency is involved, transactions are being recorded using parallel manual invoicing and also, the declaration is not happening for such invoices for tax purposes.

Violation of VAT and Finance Act’s Provisions

According to Ms. Mazani, it is a direct violation of the VAT and Finance Act when separate offline systems are kept for foreign currency-related transactions.

RBZ Governor, Dr. John Mangudya, who was part of the press conference, said that presently forex deposits have moved up to one billion dollars and foreign currency accounts hold around 405 million dollars. However, despite an increase in forex transactions, forex tax collection has not increased significantly. He added that they are working towards creating a mechanism that will help in enforcing compliance.