The Bank of Ghana (BoG) has given approval to ICAP FX Global and 5 other companies to participate in the FX Brokerage Business in the country.
The 6 firms lincensed to undertake FX Brokerage business would join other commercial banks that have the approval to trade on behalf of their clients when it comes to participating in foreign Exchange Market supervised by the Bank of Ghana.
The other 5 companies include; ICAP Plc, Obsidian Achemer, Fenics MD, Emerging Africa Ltd., and Cougar.
According to portion to Section 3.13.1 of the Ghana Interbank Forex Market Conduct: “Local and International FX Brokers who want to operate in Ghana’s forex market are required to obtain prior approval from the Bank of Ghana at the beginning of every calendar year. The Bank of Ghana shall publish a list of approved Local and International FX Brokers on its website.”
The Bank of Ghana recently reminded the public that it would only allow firms and banks that are licensed, to participate in the Foreign Exchange Market.
What is Forex Brokerage
A forex brokerage is an entity that connects retail forex traders with the forex market. The Forex market is traded on the “interbank”, which is a another way of saying banks trade electronically with each other at various prices that may change from bank to bank.
A forex trading account is similar to a bank account. It is used to purchase and hold currencies. Currencies are specifically purchased in pairs. If one buys the EUR/USD, there is a speculation of a drop in value of USD per EUR over time. In this instance, the Euro must appreciate in value per USD for gains to be realized.