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How to legally trade forex

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How to legally trade forex in Botswana

 

Forex trading is becoming increasingly popular in Botswana. However, while this volatile financial market creates many opportunities for financial profit, the decentralized nature of the Forex market might make new traders particularly wary about the legalities of Forex trading.

In this article, we explore the legality of Forex trading in Botswana, and show you how to enjoy a secure Forex trading experience.

 

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The legality of Forex trading in Botswana

Traders in Botswana can freely engage in foreign exchange transactions. Both the National Bank of Botswana and the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) play a role in policing the financial sector in the country.

In this context, “legal broker” refers to a broker who has been granted a licence by the appropriate financial authorities for Forex trading on Botswana. If a company is found to be operating illegally, its licence to do business could be removed.

It is suggested that you employ brokers who have a physical presence in Botswana. All businesses in Botswana are required to pay taxes. Income tax payments must be made. Botswana’s legal brokers make Forex trading available around the clock, although they are closed on weekends.

That said, there are currently not many, if any, regulated Forex brokers that have a physical presence in Botswana. For this reason, it is a good idea to sign up with an international Forex broker that is licenced by leading offshore regulators when Forex trading in Botswana.

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appropriate financial authorities for Forex trading in Botswana. If a company is found to be operating illegally, its licence to do business could be removed.

 

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Regulation of the Forex market as a whole

Foreign exchange, or Forex, is the world’s largest and most liquid market. The sheer scale of the market makes it difficult to regulate effectively. Where do you draw the line when trying to control activity in a global economy that never sleeps?

Foreign exchange (Forex) trade is regulated on a global scale by a network of government and independent agencies. These include, but are not limited to, the following:

  • The National Futures Association (NFA) Commodities Futures Trading Commission (CFTC)
  • Financial Conduct Authority (FCA)
  • The Australian Securities and Investments Commission (ASIC)
  • The Financial Services Agency (FSA)
  • The Investment Industry Regulatory Organization of Canada (IIROC)
  • Cayman Islands Monetary Authority (CIMA)
  • The Securities and Futures Commission (SFC)
    • The Monetary Authority of Singapore (MAS)Foreign exchange (FX) is governed by international supervisory bodies, which establish regulations and requirements that all regulated forex brokers must meet.

      Some examples of these norms include being audited frequently, informing customers of specific changes to their service, and registering and licencing with the regulating agency. Because of this, it’s more likely that money transactions will be conducted in a way that’s both honest and fair.

       

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      Trading legally in Botswana

      To trade legally in Botswana, the best method is to sign up with an international Forex broker that is regulated by one of the abovementioned entities.

      As such, signing up with a regulated Forex broker will ensure that traders receive the necessary legal protections, including transparency, clear and legal fee structures, account segregation, and due recourse in case of complaints or foul play on the part of the broker.

 

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