This article describes forex brokers who accept the use of Ecocash for forex deposits and withdrawals. But what is mobile money all about?
Ecocash is a telecom company-driven mobile money solution that operates in Zimbabwe. It is a product of Econet, a telecom company that operates in several countries in Africa. To understand Ecocash better, you can say it is the Zimbabwean equivalent of Kenya’s M-Pesa which is the mobile money solution that is run as a partnership between Vodafone and Safaricom in Kenya. Ecocash is, therefore, a mobile money solution that is targeted primarily at the unbanked population in Zimbabwe but can also be used by those with conventional bank accounts. Indeed, Ecocash has a facility that allows individuals with a bank account to link this account with their Ecocash mobile wallets. Ecocash mobile wallets are cheaper to operate than bank accounts in Zimbabwe as they do not attract monthly fees.
The importance of Ecocash as a method of transactions has increased over the years as a result of the economic difficulties faced by Zimbabwean citizens, which were a fallout of the land reforms conducted in that country twenty years ago. The local currency has also been changed several times and a dual currency regime was operated for close to 10 years before it was cancelled by the present government last month. In a country with such an unstable currency regime, the importance of Ecocash, especially for forex traders, cannot be overemphasised.
As a result of the severe weakness of the country’s currency (the Zimbabwean Dollar), the US dollar gained popularity during the period that the multi-currency regime was used in the country. it is because of this that forex trading and other forms of investment have become very popular as they are seen as a means of earning precious foreign exchange that could be used locally to combat the effects of the crippling inflation the country has had to grapple with.
What Forex brokers accept Ecocash
The number of forex brokers that accept Ecocash for deposits and withdrawals is still relatively low. Despite this fact, there are already a couple of solid forex brokers who work with Ecocash.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
¹ Variable spreads vary according to the current market conditions, recorded for EUR/USD on 06.05.2020 at 10:42 GMT+1.
* Available to traders outside the European Economic Area.
*Spreads were recorded for the currency pair EUR/USD, please check the respective reviews to find out when spreads were measured.
Getting Started With Ecocash: The First Step
The individual is required to purchase a special SIM card from Econet and to conduct biometric registration to tie the SIM card to the individual owner. Upon registration, the individual is required to generate a unique PIN that will be used to initiate transactions. This is a form of two-step authentication to ensure that unauthorized persons who have gained access to a person’s phone containing the Ecocash SIM cannot transact on the phone owner’s account.
Ecocash as a Funding Method
Ecocash provides a foreign currency wallet that allows its users to carry out transactions in foreign currency. Therefore, if you operate a foreign currency account with a forex broker that accepts Ecocash as a payment method, you can prefund your Ecocash wallet with US Dollars and use the same to fund your forex account. All that is required is for you to find an Ecocash-compliant forex broker in order to perform the transaction. You can also cash out your forex earnings in US dollars using Ecocash.
Some forex brokers that accept Ecocash make use of a payment gateway called PayNow. You may have to register an account on PayNow so you can receive your login details before you can deposit with Ecocash on your forex broker account. When you want to make a deposit, you click on the PayNow button. Login to your PayNow account on the page that displays. This page is located within your members’ area provided by your broker, under the section for account transactions.
Enter the amount that you want to use to fund your forex account. When you are done with this step, you will be directed to a new page which displays the payment channels that are offered on PayNow. Click on the Ecocash button or check against the checkbox beside the Ecocash option. You will Be asked to provide your full name, your registered ECONET phone number and other Ecocash details as required including your PIN. An authorization request to be sent to your AC unit phone number and this serves as the 2-Factor authentication procedure required to complete the transaction under an atmosphere of extra security. Once you open the gate the transaction by entering your PIN, the deposit transaction is concluded instantly.
Registration on Ecocash requires that you buy a SIM card from the Econet telecom company, have it registered against your personal and biometric details, and generate your PIN which is what you will use to authenticate transactions. This provides an infallible means of identification, allowing the user to perform transactions on your mobile phone. Withdrawals follow the same authentication process. As mentioned earlier, the withdrawals can also be performed in foreign currency. So if your forex account is denominated in US dollars, you can withdraw US dollars to your Ecocash wallet. Appropriate conversion rates and charges are applied.
Benefits of Using a Forex Broker That Accepts Ecocash
The benefits of using an FX broker that accepts Ecocash are as follows
- a) Instant deposits and withdrawals: Transaction times are very fast, as transfers are processed in a matter of minutes.
- b) Allows for both local currency and foreign currency transactions.
- c) It is a widely available method of foreign transactions available to the local population of Zimbabwe.
- d) No need to fill any forms and there is no waiting time. Everything can be done on your phone.
Drawbacks of Using a Forex Broker That Accepts Ecocash
What are the drawbacks of using forex brokers that accept Ecocash?
- a) Loss of the phone and SIM card used in registering for the account can be potentially dangerous to the user.
- b) Forex brokers that accept Ecocash are very few, thus narrowing the user’s choice of brokers that can be used.
Choosing a Forex Broker That Accepts Ecocash
The proximity of Zimbabwe to South Africa and Mauritius, two well-established forex trading jurisdictions in Africa, allows to traders from Zimbabwe to trade with brokers from these two countries. This is because some of these brokers offer forex account funding using Ecocash in order to attract forex traders from Zimbabwe to their platforms. There are a number of forex brokerages available from these countries for Zimbabwean traders.