Is Forex Legal in Uganda?

Forex trading in Uganda falls under the scope of the Foreign Exchange Act, 2004, which governs all dealings in currency for speculative or commercial purposes. Under this law, any person or entity that buys or sells foreign currency in physical or electronic form must hold a valid licence from the Bank of Uganda (1).

The Bank of Uganda issues and renews licences for authorised Forex bureaux and money remittance businesses. Detailed procedural and capital requirements are outlined in the Bank’s Guidelines for the Licensing and Operation of Forex Bureaus and Money Remittance Companies, 2018, ensuring that only qualified entities provide currency exchange services (2).

"Except as permitted by any other law, no person shall engage in the business of dealing in foreign exchange without a licence issued under this Act. The Bank of Uganda may issue or renew a licence under this section."

While licensed Forex bureaux operate under strict oversight, online margin and spot Forex trading is not explicitly regulated by Ugandan law. As a result, many Ugandan traders access international brokers licensed by foreign authorities to execute trades.

Uganda’s Anti-Money Laundering Act and the Financial Intelligence Authority’s reporting requirements also apply to large or suspicious foreign exchange transactions. Prospective traders should confirm that any platform or bureau holds a current Bank of Uganda licence and consult legal counsel if in doubt.

Source:
https://bills.parliament.ug/attachments/Laws%20of%20Uganda%20%28Acts%29%20-%20THE%20FOREIGN%20EXCHANGE%20ACT%202004.pdf
https://businesslicences.go.ug/kcfinder/upload/files/Guidelines-for-the-licensing-and-operation-of-Forex-Bureaus-and-Money-Remmittance-companies-2018.pdf

Last updated: 17-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.