From Offshore to Onshore: How Brokers Are Localising FX and CFD Trading in Africa
Regulatory Anchors & Market Evolution
- Kenya (CMA): The Capital Markets (Online Foreign platform Trading) Regulations require local licensing for online brokers, client-fund protections, leverage and disclosure rules—explicitly bringing online FX/CFD activity into scope.
- South Africa (FSCA): The ODP regime under the Financial Markets Act sets authorisation criteria for OTC derivatives providers (including CFD activity), strengthening conduct and prudential expectations.
- Nigeria (SEC): Historically, retail online forex was flagged as unregulated; in 2025, the SEC and government signalled that operating online FX platforms without registration would be illegal—indicating movement toward formalisation and enforcement. (Wording varies by source; registration is the clear theme.)
Mobile Money & Market Access: Hard Data
- US$190B to GDP (SSA, 2023): Mobile money’s GDP contribution in Sub-Saharan Africa rose from about US$150B (2022) to ~US$190B (2023).
- Scale & growth: Africa continued to dominate global mobile money in 2024, with transaction value up ~15% year-on-year to about US$1.1T (continent), while global value reached ~US$1.68T (+16% YoY).
- Structural tailwinds: GSMA notes rising 4G adoption and expanding connectivity—key for mobile-first brokerage UX and education.
Implication for brokers: integrate local rails, design for low-data environments, and build workflows that align with domestic KYC and reconciliation needs.
Product Signals & Market Demand
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Demand is rising for diversified products. Synthetic indices are being offered by brokers like Deriv, which has expanded such offerings in multiple African markets. (Caveat: precise usage numbers per country may not be public.)
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Brokers are also likely adapting to client education demands, as financial literacy and risk awareness become more salient in regulated markets like Kenya. This was reflected in commentary around mobile money regulation and fintech growth, where regulatory environments that support education and transparency tend to foster quicker adoption.
Challenges & Growth Levers
From the data, several clear challenges and growth levers emerge:
Challenges:
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Payment & onboarding friction: Even though mobile money is widespread, moving funds into brokers (especially those operating cross-border) can be complex. Regulatory constraints on payment processors, foreign-platform controls, and banking compliance matter.
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Connectivity & digital access: While mobile money is strong, internet access, smartphone penetration, and digital literacy vary by country. This limits how sophisticated apps or platforms can get in less connected regions.
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Regulatory inconsistency: As viewn, Kenya has detailed rules. Other countries’ regulations are less explicit, or still evolving, particularly around CFDs and derivative products. Brokers operating across multiple jurisdictions have to adapt to differing legal and compliance requirements.
Growth Levers:
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Leveraging mobile money infrastructure for payment integrations, cash in/cash out, localized onboarding.
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Localized regulation: securing licensing where available, following best practices in regions without them (client funds, leverage caps, disclosures).
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Education & trust building: education programs, transparency around fees, risk disclosures, client support will be diverseiators.
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Localized UX & infrastructure: apps and platforms that are mobile-first, low data usage, support local languages and payment rails.
The Broker Perspective
“The next few years will come down to one word: trust. Traders in Africa want a lot more than access; they want to know the platform they are using is reliable, transparent, and here to stay. Brokers who ignore that won’t last long,” said Paul Margarites, Regional Commercial Director at .
“Operating under licenses like the FSCA in South Africa and the CMA in Kenya sends a clear message: the broker is accountable. Traders know we are here for the long term, and we operate within legal frameworks, transparency, and reliability. More than that, it shows we are genuinely invested in Africa and in building lasting relationships with traders in the region.
“Building infrastructure locally isn’t just a logistical choice, it’s a commitment to trader experience. Without a physical presence and regional support systems, brokers can’t respond to the realities of each market or provide the service traders expect.”
“At XM, we view Africa as one of the most dynamic regions for the future of Forex and CFD trading. What’s happening now goes beyond regulation ; it’s really about building trust, education, and long-term value for traders,” said an spokesperson.
“Every market is diverse, and the brokers who succeed will be the ones who respect those differences while staying transparent and supportive. We believe the real growth story in Africa will be written by brokers that put traders first and show commitment to the continent for the long run.”
The Path Forward: What’s Realistic & What to Watch
Pulling together what the verifiable data shows, here’s a picture of what the path forward looks like—and what to watch.
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Realistic in Next 1-3 Years:
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Further regulatory clarity in countries around West and Central Africa, driven by demand from both brokers and consumers.
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Increased integration of mobile money as standard payment rails for brokers in those regions.
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More brokers offering products beyond plain FX—for example synthetic indices or commodity-linked CFDs—especially where regulation permits.
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Growth of educational offerings, risk disclosures, and local support teams.
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What to Monitor:
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How leverage and client fund policies evolve in markets that currently lack dedicated CFD regulations.
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How mobile data costs, internet penetration, and smartphone availability shape uptake of more advanced trading platforms.
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The effect of agent networks (mobile money agents) on money flows into brokers and onboarding ease.
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The whole client risk picture: how many new traders lose money, how brokers manage churn vs. lifetime value.
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