The coronavirus lockdowns have caused millions of job losses. Lots of people have been forced to eat into their life’s savings to survive. However, the economic crisis caused a surge in the number of active Forex traders in South Africa. Their number has grown exponentially in recent months as people are looking for alternative ways to earn money.
South Africa is more or less a hub of trading as lots of people there wish to make some extra money. The majority of them develop a keen interest in trading, particularly in the foreign exchange market.
When COVID-19 spread across the globe, people had to stay home during lockdowns, which lasted for a few months. There is still a danger that such restrictions will be necessary again.
But while everyone tried to stretch their money due to the crisis, they were still stuck at home with lots of time on their hands and were desperately looking for something to do, earn some cash. As analysts observed in recent months, people are extremely interested in trading and are willing to take on risks to see some gains.
Even though lots of traders suffered significant losses, there were those who managed to gain against the odds. During the pandemic, the foreign exchange market was externally volatile. This offered opportunities that typically do not come along every day.
The number of Forex traders is increasing
According to reports, instead of reducing the number of active traders, it rose by about 20%, not just in South Africa but around the whole world. It seems that COVID-19 has pushed many people from trading as a hobby to trading full time for a living.
There is another reason why there has been exponential growth in FX trading in South Africa. The trading industry does not discriminate. If they have an inclination, anyone with or without a degree can trade.
Additionally, South African traders don’t need to use a foreign currency allowance. They can invest directly in their native currency, the Rand. They can then get back their money in the form of the Rand. That makes trading even more convenient.
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