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How to buy shares in Senegal

Introduction

Senegal does not have its own stock exchange. The Bourse Regionale des Valeurs Mobilieres (BRVM) was founded in 1998 and operates on the CFA Franc. It is a regional stock exchange serving the following West African Economic and Monetary Union (WAEMU) countries of Benin, Burkina Faso, Guinea Bissau, Ivory Coast, Mali, Niger, Senegal and Togo.

 

 

 

 

Ways to Invest in Foreign Stocks

Buying overseas equities allows many investors to diversify their risk and gain exposure to the growth of other economies. Many financial gurus recommend international stocks for a diversified portfolio. Conservative investors should allocate 5% to 10%, while aggressive investors should allocate up to 25%.

Emerging markets are regarded riskier in general. Their market value can fluctuate dramatically, and political risk can upend a nation’s economy. Also, international markets can be less regulated than US markets, increasing the danger of manipulation or fraud.

Investors today have access to 24-hour global news, but there is a risk of incomplete data from markets hundreds of miles away. This can affect an investor’s ability to perceive events.

There are six ways to obtain exposure to growth outside the US if you’re willing to take the risk.

US Deposit Receipts (ADRs)

ADRs are a straightforward way to buy overseas stocks. Foreign enterprises utilise ADRs to enter US markets and raise finance. ADRs have three levels and can be sponsored or unsponsored.

GDR Receipts (GDRs)

A GDR is a global depository receipt. In overseas markets, usually in Europe, depository banks issue foreign company shares for sale to investors in and outside the US.

Foreign Equities

Investors can buy foreign equities in two ways. You can open a global account with a broker or open an account with a local broker in the destination country. Foreign direct investment is for serious and engaged investors only.

Global Mutual Funds

Investors who want to learn about global markets but don’t want the inconvenience can invest in a global equity mutual fund. One of the benefits of mutual funds is simplicity.

ETFs

A foreign exchange-traded fund allows investors to easily access foreign markets. Choosing the best exchange-traded fund (ETF) is easier than building your own stock portfolio. Some ETFs cover many markets, while others just cover one.

Global Corporations (MNCs)

Investors who are sceptical of foreign stocks directly or ADRs or mutual funds can look for home companies that sell a lot of goods internationally.

 

Best Forex Brokers in Senegal for 2021

FXTM

Overview

FXTM is a Cypriot forex broker company established in 2011 and based in Limassol, with offices worldwide and regulations across Europe, the Middle East, Africa, Asia and Latin America.

FXTM offers excellent services and products, segregated accounts at top-tier banks, secure deposits and withdrawals, competitive leverage, tight spreads, and the ability to trade 250+ instruments.

 

Pros and Cons

PROS CONS
Low EURCHF and EURGBP fees High stock CFD fees
Digital and fast account opening Inactivity and withdrawal fees
No deposit fees charged Limited product portfolio
Great educational tools  
Quick deposit and withdrawal  

 

 

Features

Feature Information
Regulation CySEC, FCA, FSCA
Minimum deposit $10
Average spread from 0.1 pips
Commissions from None
Deposit/Withdrawal Fees No
Maximum Leverage 1:30 for the EU and UK, 1:1000 under other entity
Bonuses Only for international brand.
Customer Support and hours 24/5

 

CMC Markets

Overview

CMC Markets is UK-based Market Maker broker established in 1989, and regulated and authorised by FCA, ASIC, MAS, FMA, and IIROC.

Clients can trade more than 10 000 financial instruments across several asset classes through trading platforms such as Next Gen and MetaTrader 4.

CMC Markets offer comprehensive analysis, a variety of trading tools, educational materials, and the advantage of no minimum deposit requirement when registering a trading account.

 

Pros and Cons

PROS CONS
No minimum deposit No copy trading platforms
Multi-regulated No US Clients
Segregated client funds No PAMM or MAM accounts
Innovative platform tools provided No fixed spread accounts

 

Features

Feature Information
Regulation FCA, ASIC, MAS, FMA, IIROC
Minimum deposit from $0
Average spread from 0.7
Commissions from $0
Deposit/Withdrawal Fees None
Maximum Leverage 1:500
Bonuses None
Customer Support 24/5

 

Pepperstone

Overview

Pepperstone is an Australian forex broker company regulated in Australia and the UK, with offices in the United States, United Kingdom, China, and Thailand.

Pepperstone was established in 2010 in Melbourne and offers low forex fees, easy deposit and withdrawals and advanced trading platforms.

 

Pros and Cons

PROS CONS
Fast and fully digital account opening Only forex, CFDs, and crypto
Free deposit and withdrawal No investor protection for non-EU clients
Low forex and equity index CFD fees High bank withdrawal fee outside EU/Australia
Low non-trading fees  

 

Features

Feature Information
Regulation FCA and ASIC
Minimum deposit $200
Average spread from 0 pips
Commissions from 7 units of the base currency per lot of the FX pair
Deposit/Withdrawal Fees $20 for clients outside the EU and Australia
Maximum Leverage 500:1
Bonuses No
Customer Support and hours 24/5.

 

Oanda

Overview

OANDA is an AMERICAN forex broker company that is based in New York City. OANDA was founded in 1996.

OANDA has offices in eight financial centres in the United States of America, Canada, the United Kingdom, Japan, Singapore and Australia and serves clients in 200 countries, offering Forex and CFD trading, corporate FX payments and exchange rate services for many companies and investors all over the world.

OANDA is a trusted company and some of the biggest international companies make use of them. These entities include big brands like Google, TESLA, Airbnb, KPMG, FedEx, IATA, PWC, Twitter, Expedia and others.

 

Pros and Cons

PROS CONS
Easy-to-use web trading platform Only FX and some CFDs available
Easy and digital account opening High withdrawal fee for bank transfers
No minimum deposit required  
Account opening process is fully digital  

 

Features

Feature Information
Regulation CFTC in the US, FCA in the UK, ASIC in Australia, IIROC in Canada, MAS in Singapore and the FFAJ in Japan
Minimum deposit $0
Average spread from 0.1 pips
Commissions from $0.01 USD per trade
Deposit/Withdrawal Fees No deposit fees but high withdrawal fees for bank transfers
Maximum Leverage 1:50
Bonuses No
Customer Support and hours 24/5

 

IC Markets

Overview

IC Markets is a well-regulated and reputable broker established in 2007, and one of the largest true ECN brokers.

It offers traders more than 230 tradable financial instruments to trade via advanced trading platforms and competitive trading conditions.

IC Markets allows a variety of trading strategies such as hedging and scalping, social trading opportunities, offers free deposits and withdrawals, and has transparent fee schedules.

 

Pros and Cons

PROS CONS
ECN-pricing model No fixed spread accounts
Allows hedging and scalping and supports social trading US Clients not accepted
Low trading and non-trading fees  
Tight and competitive spreads  
Well-regulated  

 

Features

Feature Information
Regulation ASIC
Minimum deposit from $200
Average spread from 0.0 pips
Commissions from $3
Deposit/Withdrawal Fees None
Maximum Leverage 1:500
Bonuses None
Customer Support 24/5

 

Alpari

Overview

Alpari has been a properly regulated broker for more than two decades with experience in offering traders comprehensive trading solutions globally.

Alpari was established in Russia in 1998, but now has offices in Saint Vincent and the Grenadines, Russia, and Africa to service more than 2 million registered traders in more than 150 countries. Traders can enjoy competitive trading conditions, with powerful trading platforms and multilingual customer support.

 

Pros and Cons

PROS CONS
Well-regulated No fixed spread accounts
PAMM Accounts offered Restriction on clients from some countries
Multilingual customer support Offshore broker
MetaTrader 4 and 5 as trading platforms  

 

Features

Feature Information
Regulation FSC, FSA
Minimum deposit from $5
Average spread from 0.4 pips
Commissions from $1.5 per lot per side
Deposit/Withdrawal Fees Yes
Maximum Leverage 1:1000
Bonuses Yes
Customer Support 24/5

 

 

 

Forex.com

Overview

Forex.com is a STP, ECN, and DMA broker that was established in 2001.

Forex.com is authorised and regulated by a number of reputable entities and offers traders from around the world a secure and dynamic trading environment with which they can trade more than 300 financial instruments via advanced trading platforms.

 

Pros and Cons

PROS CONS
Strictly regulated by several authorities Fixed spreads not offered
Advanced, powerful trading platforms Limited payment methods
US Clients welcome  

 

Features

Feature Information
Regulation ASIC, CFTC, FCA, FSA, IIROC, JFSA, NFA
Minimum deposit from $50
Average spread from $0.11 on XAU/USD
Commissions from $0 – $5
Deposit/Withdrawal Fees No
Maximum Leverage 1:50
Bonuses Yes
Customer Support 24/5

 

 

IQ Option

Overview

IQ Option is a Cypriot forex broker since 2013 and based in Limassol but managed and owned by IQ Options Europe Ltd.

IQ Option provides financial services to clients from the European Economic Area (EEA) with a vast amount of tradable financial instruments across several asset classes. Its trading platform is intuitive and features a variety of tools for traders of all skills, knowledge, experience, or trading style.

 

Pros and Cons

PROS CONS
Strictly regulated US Clients not allowed
Segregated client funds and member of ICF Restricted leverage
Vast variety of financial instruments No fixed spread accounts
Advanced trading platform  

 

Features

Feature Information
Regulation CySEC
Minimum deposit from $10
Average spread from 5 pips on GBP/USD
Commissions from $0
Deposit/Withdrawal Fees Some fees may apply
Maximum Leverage 1:30
Bonuses No
Customer Support 24/5

 

 

CM Trading

Overview

CM Trading is an STP broker based in South Africa, offering traders in the rest of Africa opportunities to trade in a variety of financial instruments through MetaTrader 4 and Sirix. CM trading offers competitive trading conditions and is properly regulated to trade Forex, Index and Commodities, including Cryptocurrencies.

 

Pros and Cons

PROS CONS
Regulated High minimum deposit requirement
Hedging and scalping allowed Charges fees for deposits and withdrawals
Daily market analysis offered  
Commission-free accounts  

 

Features

Feature Information
Regulation FSCA
Minimum deposit from $250
Average spread from 0.9 pips
Commissions from $0
Deposit/Withdrawal Fees Yes
Maximum Leverage 1:200
Bonuses Yes
Customer Support 24/5

 

 

 

How to verify if a broker is regulated

The first step in determining whether or not a forex broker is regulated as an Investment Service Provider (ISP) is to locate the broker’s register number, which can be found at the bottom of the firm’s homepage disclosure text.

Be careful of any broker or investment advisor who contacts you from a company with whom you have never done business and who does so without your permission.

Speak with the organisation and ask questions about what it offers and its experience with clients that have requirements comparable to your own. Inquire about the prices, fees, and commissions that apply.

Simple web searches may turn up new releases or media stories of suspected misbehaviour or disciplinary proceedings, client conversations on online forums, background information, and other relevant material, among other things.

 

Advantages of investing in the Senegal stock market

Senegal has a liberal economy where the private sector is unreservedly supported by the authorities. The vast privatization programme, the free competition, the simplification of the regulatory and legal framework and the dynamism of the investment promotion mechanism favour a healthy business climate.

As an influential player in Africa, Senegal is a signatory to international conventions on the protection of the environment, human rights, trade, copyright, labour law, etc. It stands out for its leadership in making major decisions in favour of Africa.

Major advantages include:

  • Part of the West African Monetary Union (WAEMU)
  • A stable and open country with a strong track record of political stability
  • A healthy, relatively diversified and competitive economy
  • Quality human resources
  • Significant oil and natural gas reserves off the coast, as well as many other minerals, including gold, phosphate, platinoids, iron and barite
  • Modern and structuring infrastructure
  • An incidental legal and tax framework
  • Privileged access to regional and international markets with support from international donors under the Emerging Senegal Plan, in particular the IMF with its Economic Policy Coordination Instrument
  • Headway in business climate (average score, except for insolvency resolution) and governance (even though corruption persists)

 

 

Disadvantages of investing in the Senegal stock market

  • Growth and exports at the mercy of weather events and commodity prices (groundnuts, cotton, horticulture)
  • Net importer of energy and food products
  • Inadequate energy and transport infrastructure
  • Significant debt
  • Half the population is affected by poverty

 

FAQ

Can one invest in foreign stocks?

Yes, it is possible, but an investor must make sure that a reputable broker is used.

 

Can one buy shares in Senegal?

The Bourse Regionale des Valeurs Mobilieres (BRVM) is a regional stock exchange serving some West African Economic and Monetary Union (WAEMU) countries like Senegal.

 

What risks are there to invest in stocks in Senegal?

You can face several risks including market risks, liquidity risks, credit risks, and several others.

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

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