Why Online Trading is Set to Take the Ghanaian Community by Storm

Similar to other African nations, Ghana is experiencing the ongoing effects of the digital revolution. This is clearly exhibited by the recent Facility Investing for Employment (IFE) programme. Not only are a growing number of businesses translating their services into the online community, but the world of investing is set to be equally transformed. This highlights some pertinent questions that should be addressed in greater detail.

What types of digital trading platforms are the most popular and what makes them so appealing? How can Ghanaian institutional traders capitalise upon these opportunities? Are there any stumbling blocks that Ghana still needs to overcome in terms of digital integration as a whole? Ambitious individuals who are keen to take advantage of the opportunities at their disposal should find the observations outlined below rather interesting.

Why Ghana and Why Now?

This very same question could be posed when examining the status of many African nations that have begun to embrace the digital domain. One driving factor involves infrastructure. The simple fact of the matter is that more traders have access to wireless communications (such as 5G Internet) when compared to a handful of years ago. This provides them with a reliable means to keep up to date with the latest market movements and, therefore, to become actively involved.

A second major variable involves the virtually ubiquitous presence of quality investing platforms that are now available for smartphones. Perhaps the most well-known example is the MetaTrader 4 app. Traders are no longer hampered by geographical boundaries or a lack of user-friendly interfaces. These opportunities alone have ushered in an entirely new generation of budding investors.

The Appreciation for Global Partnerships

One of the most common past hindrances when discussing digital investments involved the rather limited scope of domestic options. Although there were indeed an appreciable number of stocks and shares within the Ghana Stock Exchange (GSE), these were not often able to provide the international exposure that institutional traders desired.

Thanks in no small part to foreign investments, many international companies are now keen to become involved with nations such as Ghana. This has given Ghana more clout upon the digital stage. Note that overseas investments will also provide an additional level of financial stability that can be used to offset worries such as inflation.

A Tech-Savvy Younger Generation

Individuals who were born after the year 2000 are now reliant upon digital services when performing a host of everyday activities. This knowledge base makes it much more likely that they will begin “thinking outside of the box” when it comes to issues such as securing an additional source of capital.

We are not only referring to online trading in this sense. A growing number of qualified individuals are seeking an education abroad. They might then return to Ghana with a wealth of knowledge that can be employed within the domestic ecosystem.

Opportunities for Growth

According to recent statistics, the Ghana unemployment rate stands at just over 3.5 per cent. This is quite impressive when we consider that unemployment hit an all-time high of 10.46 per cent in 2000. It is also a clear indicator that the economy has become more diverse over the past 20 years.

This trend has not been lost on those who are looking to add another “string to the bow” in terms of generating a reliable source of capital. Although individual traders would have been forced to rely upon third-party brokerages in the past, platforms including MetaTrader 4 and a more advanced version known as the MetaTrader 5 app have all but done away with the need for outside assistance.

Multinational asset firms have also taken a more proactive stance. Ghanian traders can now access these advanced institutional services when managing portfolios of a considerable size. This provides them with the means to work in tandem with trained industry professionals; vastly increasing potential profit margins and providing a level of insight that might otherwise be difficult to achieve.

Challenges Ahead

There are nonetheless some issues which still need to be overcome. Perhaps the most pertinent involves the lack of Internet access in more rural areas. When combined with an infrastructure that is lagging behind other nations such as Nigeria, it is clear that additional progress is required. However, the government realises the opportunities that the digital domain can offer. There is little doubt that Ghana is set to enjoy a bright future.