Are you new to the Forex market in South Africa? Forex trading South Africa sounds hostile and difficult, but it is not that difficult. This is similar to simple trading where the trader buys low and sells high. However, Forex trading is all about buying and selling trading currencies in the Forex market. In this article, you will learn more about Forex Trading South Africa or Forex Trading SA.
What is Forex?
Forex is one of the largest financial markets in the world. The Forex market carries out trillions of currency exchanges daily as it operates 24 hours, seven days a week. Hence, it is considered the most liquid financial market in the world.
Trading is relatively more affordable and more liquid compared to other financial markets such as stocks. The Forex trading market is not centralized over a specific area. It works 24 hours a day all over the world. It starts in Sydney and ends in New York to trade the foreign exchange market without regard to local time.
Previously, trading through the Forex platform was available to large financial institutions, including banks. In addition, it has been provided to large companies, multinational corporations and professional foreign exchange dealers. This was due to the high and complex financial requirements of the Forex market. In the past, small businesses and individual traders were unable to trade on the Forex platform.
In the late 90s, Forex became available to all interested parties and small businesses due to the high telecommunications technologies in South Africa and neighboring countries. Better internet equipment attracts people to enter the Forex market in order to generate more income for their families.
Here is a step-by-step guide on the basic things to know before considering Forex trading South Africa.
Choose the Right Forex Broker South Africa
The first step is to choose a suitable broker to open an account in the Forex market. Then you have to check if the chosen broker is regulated by at least one organization or not. This is an important part to consider before entering the market as a trader.
Forex Broker Selected. What’s Next?
After choosing a Forex broker in South Africa, you will have several options to start your trading career. Each broker offers different types of accounts on their platform. Here are some of them:
- Micro Account: This is an account for newbies with a minimum deposit fee. If you want to start real trading initially, you can open a micro account on the Forex platform. In most cases, the minimum deposit is 3000 ZAR.
The Medium Account is the most well-known account for ordinary traders, which allows you to trade with an average deposit. It provides maximum profit and benefits, as well as a better experience with some of the professional tools at a lower cost.
ALSO READ: How to Trade Forex Online in South Africa
- VIP Account: It offers the highest minimum deposits of R 70,000. It is mainly used by experienced traders. It provides maximum leverage and the best trading platform tools.
- A demo account: This is the best practice trading account for beginners. You will be able to trade the original trading markets without any risk.
After opening an account, you can start selling and buying currency pairs already available in the Forex market. In South Africa, the most popular currency pairs are the highly liquid and affordable USD / ZAR currency pairs.
Bottom line: Forex Trading South Africa
Forex trading always involves significant risk beyond the promise of profit. A newbie to the South African Forex Trading Market should start trading with a demo account with no real money deposit. With experience with the platform’s tools and indicators, you can start investing real money in the trading market. Start with these Forex trading South Africa tips and you will have a good understanding of the fundamentals of the market and how to make successful trades in the Forex market.
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