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EGP FX trading accounts
The Egyptian pound (EGP) is Egypt's official fiat currency, divided into 100 piastres or 1000 milliemes. Its history dates back to 1834 when it was first introduced as the "geneih," replacing the Egyptian piastre. From 1962 until 2001, the pound was pegged to the USD, but since then, it has been floating freely. Being a floating currency allows it to be traded and speculated on, as its price is directly influenced by market forces of supply and demand. Traders can use it as a base currency for trading accounts, and using FX brokers that offer accounts in pounds provides several advantages for Egyptian traders.
One significant benefit is the avoidance of currency conversion fees. Conversion fees are applied whenever the trader uses a currency other than the account-based currency for FX trading. By avoiding these fees, traders can increase their available capital for trading and investing. Additionally, using locally accepted payment methods enables traders to benefit from low transaction fees.
Egypt does not charge capital gains tax on Forex trading profits, which is highly advantageous for Egyptian traders. They can withdraw profits without worrying about excessive taxes and costs.
Below is a list of some of the best Forex brokers that offer EGP accounts.
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In Egypt, the regulatory authority overseeing forex trading and brokers is the Egyptian Financial Supervisory Authority (EFSA). However, using EGP fx trading accounts with EFSA-regulated brokers comes with several disadvantages. The maximum allowed leverage for retail forex traders is set at 1:10, meaning traders can only trade with a maximum of 10 times their account balance. This low leverage restricts traders with smaller budgets, making it challenging for them to operate reasonably in the FX market.
On the other hand, using Forex brokers with EGP accounts requires Egyptian traders to deposit significantly more capital. The advantage, however, is that they won't pay taxes on profits, which reduces conversion and transaction costs. An alternative option for local traders is to select well-established brokers regulated in other jurisdictions that allow higher leverage. This could be a better approach for beginners with low budgets.
For experienced traders with substantial capital, Forex brokers with pound accounts in Egypt could be a better option for maximum safety. Being regulated by a local authority ensures that traders' funds are in safe hands, as brokers must adhere to local laws and guidelines.
In conclusion, experienced traders should opt for well-regulated brokers that offer trading services inside Egypt under EFSA regulations. For beginners, it's acceptable to choose FX brokers from other jurisdictions to increase their leverage in the market. Each approach has its benefits, and traders should carefully consider their budget and level of experience when making a decision.
