Online Forex Trading Is Growing In Zimbabwe, We Interviewed One Of The Traders
We have been getting a lot of chatter regarding online forex trading locally. Some of it has been a little disturbing because it has been driven by people who are doing some kind of ponzi schemes around forex trading. Ponzi schemes are a bad idea. We interviewed a local trader (young guy) who has been doing it for a while to understand what’s happening in this space and how he got involved in it.
Since we don’t know how online forex trading is viewed by regulators we have chosen to withhold the name of our interviewee. Hope you can learn a thing or two about this sector and we look forward to learning more as well:
FT:I was introduced to forex trading by a friend of mine because I needed some financial liberty. I didn’t want to go to a job and have my time give me money. I wanted something to invest in and originally I was looking into real-estate but then that seemed like a long-term thing where you need a lot of money to get into it. I looked into stocks, I couldn’t find anything on Zim Stock Exchange and then I was introduced to forex by a friend of mine. He was teaching me about how he is doing things and how he is getting money. It’s basically been about 3 years now since I got into forex trading and two years were dedicated to learning.
When it comes to learning, I couldn’t find any course or school that offered me forex education locally (I was Chinhoyi University -CUT- at that time). I didn’t have time to go out of the country to go and learn. At the same time, the online courses that I was seeing were quite confusing as I didn’t know who was legit and who wasn’t. There was another friend of mine, again, who I had learnt with at CUT and is now Rwanda. He went through a trading course for about a year whilst he was there and he got his diploma. So this guy was sending me the materials that he was using and then I would research on different topics online, look for books. I read a lot of books! About 9-10 BIG textbooks and that’s how I learnt how to trade
TZ: Have you ever encountered any problems when you collect your money and how do you get your money? Do banks allow you?
FT: So what happened is; I started forex just after the implementation of that monetary policy that stated that US dollars don’t leave the country or something like that. I think it was just a month before that. I started actually doing the real accounts work – forex allows you to have demo accounts.
So what happens with you forex is that you’re not just going into a market and just saying, “I’m selling USD!” There’s what we call a broker; who/which is like a a site or a person that gives people a platform to sell and buy currencies. The broker is like a big bank where people just sell and buy. It actually just a big account, so you can deposit your money with a broker and at every minute someone is looking to buy or sell so you’ll never fail to find a buyer. You just click a button.
I deposited my money in USDs and using a Visa card I managed to make some trades before the monetary policy was changed. Now that it has changed, it’s a bit harder to get the money. To get my money I opened a South African bank account and when I withdraw it doesn’t come into Zimbabwe but it goes to SA. Then I use my South African Mastercard to transact
TZ: Can anyone enter into forex trading?
FT: Yes! The truth is anyone can enter into forex. All you just need is some money and a well-regulated broker. Some brokers are regulated whilst others are not. If you pick an unregulated broker you’ll face a lot of challenges such as scams, abrupt change of policies or actually just closing down without any notice and then your money is gone. Brokers need to be regulated and you can usually find this on their site. Some of them are in the UK, America, SA. They also need to be linked to the New York Stock Exchange, or London Stock Exchange.
My advice would be to look online. There are so many brokers and I can give examples; XM, JP Market from SA, IQ Options for those in binary options but I don’t recommend binary options because it’s more like a gambling mentality. With binary options you are prompted to guess on the market movement; basically, you are being asked to choose if the markets will go up or the opposite. If you are correct you get some money but if you’re wrong you don’t get anything.
In terms of brokers, I use Tradersway. It’s regulated in America and its a very good broker. They give me my money and it takes just about 3 days for RTGS transfers to South Africa. It takes less than 24 hours for a card transaction – to withdraw the money into a Visa or Mastercard.
TZ: What would you say to a person considering forex trade?
FT: Anything you invest time into you really profit from it. It’s not easy money like what most think. I think it’s something you put time into, something you can profit from it, like what mechanics do taking time to learn how to change gearbox the same applies to forex. Though Zimbabwe doesn’t have many courses right n