Forex Trading in South Africa: Best Forex Brokers in South Africa for 2023. Find the best South African brokers that are regulated by the FSCA. In this article you will learn more about Forex Trading SA, Forex Trading South Africa for beginners. Is Forex Trading in SA legal? Yes, Forex trading is legal in South Africa and regulated by the FSCA.
What is Forex Trading? A basic introduction
Forex trading is a pretty complicated field. There’s a lot that goes on when one says Forex Trading. To simplify the concept itself, Forex Trading SA has put in the effort to devise a simple yet effective definition that’ll help you along the way.
Forex Trading refers to Foreign Exchange Trading – the act of transacting multiple currencies. But it’s not as simple as it may seem. The process itself is trivial. And profit does not always come your way. Suffering financial losses is part of the job, but that occurs in bulk amounts. That means you can become bankrupt within minutes if you do not know what you’re doing. Forex Trading SA involves currency trading through conversion goals that include trade and speculation. In simple words, Forex traders speculate on different currencies for conversion changes with hopes of making a profit.
Foreign currencies are constantly changing, i.e., the conversion rates fluctuate immensely. Such volatility intrigues many traders and shareholders to invest in forex trading. Even though the greater volatility always accompanies risks.
In this article, we here at Forex Trading South Africa will help you navigate through the foreign exchange world and will cover every aspect of it. And we’ll also help you earn a means of living through forex trading, i.e., if you’re willing to risk it.
South Africa is a pretty popular market for Forex Trading. In fact, over R350 billion Rand gets traded every day. So, it is a fruitful occupation – if done correctly.
The Legitimacy of Forex Trading in South Africa – How Does it Work?
Forex training is a pretty legit business. Trading on Forex South African platforms is legal. That is if they are FSCA-licensed. The Financial Sector Conduct Authority is a regulatory institution that oversees all financial transactions within South Africa. And to promote the efficiency and integrity of the financial market within South Africa. So, if you’re looking for a Forex Broker, make sure they FSCA-authorized. Thus, proving their legitimacy.
The FSCA overlooks the Forex markets in SA to ensure no illegal activities occur between brokers and traders. And for that, it imposes rules and regulations on African and Non-African brokers wanting to trade foreign exchange in SA. That includes their licensing in FSCA with the main office in South Africa.
While trading forex online in South Africa on non-FSCA-approved foreign platforms is not prohibited, all SA traders are encouraged to work with brokers having one or more licenses in leading jurisdictions to ensure that trading goes smoothly without a problem and with maximum security.
As for the financial regulations, Africa approved two independent supervisory departments. The former is FSCA which overlooked financial servicing companies like forex brokers. And the latter is South Africa’s Prudential Authority which takes account of the activities of finance-related sectors that excludes bank.
With such precautions, Forex trading has become a legit business for many people both within and abroad. And for that, South Africa is still rising among the countless forex trading countries.
How Does Forex Trading South Africa Operate in South Africa?
The process of forex trading in SA is easy once you get the hang of it. The procedure begins with a Foreign Exchange broker who quotes a price for particular currencies in a pair (currency trading pairs shown later). The traders themselves buy and sell these currencies at the same time each time they trade. In the currency pair EUR/USD, the EUR is the base, while the USD is the quote. And if the price of the pair is 1.49, it would mean that a EUR equals $1.49.
In forex trading, you’ll always find two prices for a currency pair; the buying and selling price. And their difference is called the spread. So, if you predict a base currency to increase with respect to the stated price you can proceed to buy or sell it. It all depends on you and how accurate your speculations are.
The fluctuations between different currencies and their conversions could be for many reasons. These include inflation, politics, employment, imports, exports, etc. The more money exchanges that occur in favor of a country’s local currency, the more its value will appreciate in terms of others, who themselves will seemingly depreciate. Successful trading requires a trader to analyze various forex graphs and other insights. And for this, they prefer an online trading platform with a personal broker as they’d have access to multiple researching and trading tolls along with high-speed transactions.
Best Forex Brokers South Africa for 2023
A broker is a person or an organization that overlooks and arranges the transactions between a buyer and seller for a commission fee based on the money exchanged. Due to the extreme popularity of forex trading, it’s no wonder that South Africa has seen its fair share of brokers to assist countless traders. At Forex Trading South Africa, we have dedicated our time to researching and compiling only the best brokers in South Africa. And with this, we hope to change the lives of many traders looking to earn a means of living through forex trading.
The following list comprises those forex brokers that excel in their field and are happy to accommodate new traders from South Africa. Their rank is on the basis of their excellency. Take a look:
- CM Trading
A safe and credible broker usually is the best in the business. Offering competitive fees and spreads with up to a leverage of 200:1 for many assets, including CFDs and currencies.
- Markets.com
Many consider Markets.com to be the best Online Trading Platform for many reasons. They charge no commissions per trade. And to have a decimal pricing of up to 5 decimals.
- AvaTrade
Like others in this list, AvaTrade has the name of the best broker in South Africa in 2023. It does not take a commission from trades and is a reliable online broker with a trusting score of 94 out of 99.
- XM
XM offers lower risks when compared to others and has two tier-1 regulators, two tier-2 regulators, and one tier regulator. So, it is considered a good platform for forex traders in SA.
- Plus500
Plus500 is amazing for CFD traders looking to earn considerable profits. It is reliable, having a trust score of 99 out of 99, and is associated with low risks. And has four tier-1 regulators (high trust), among others, that define its authorization.
- EasyMarkets
EasyMarkets has average risks when trading forex online in South Africa through trading platforms. And it scores 84 out of 99 for its trust. However, it has a crucial feature for reclaiming your losses within 60 minutes of trade. Therefore, ensuring your money.
What are the different Forex markets in South Africa
The forex market is a global foreign exchange market specializing in betting, buying, and selling different currencies. And such transactions occur through traders, banks, investors, etc., all of whom look for a way to earn profit from the constant changing of conversion rates. This over-the-counter (OTC) market is open for five days, 24 hours each time. The forex market determines the conversion rate of every currency, including that of South Africa. In other words, the Forex market is the hub of all foreign exchange traders. Be they from South Africa or elsewhere.
In SA, three smaller Foreign Exchange markets branch from the decentralized one. These are:
- Forward Foreign Exchange Market: This market emphasizes the sale and purchase of different currency pairs on behalf of a legally-binding contract that stipulates its price for the future in the forex market.
- Spot/Physical Foreign Exchange Market: This form of forex trading in SA involves the physical transfer of cash for currency pairs within a short time period.
- Future Foreign Exchange Market: The Future forex market indicates the transactions of a certain amount of currency pairs at prices decided within future dates.
These three markets indicate three forms of forex traders, each of which functions within one of the above categories. Or they can simultaneously trade in multiple markets altogether. Creativity is not limited to trading forex in SA.
What are currency pairs, and which of them work in Forex markets?
A currency pair refers to the price of a pair of two currencies. The first is the one bought. And the second is the one sold. If these two currencies were to be traded in the foreign exchange market simultaneously, they’d be considered a currency pair. In the previously mentioned EUR/USD currency pair, the EUR (the base currency) is the one bought. And the USD (the quote currency) is the one sold. As a matter of fact, EUR/USD is the most popular currency pair due to possessing the highest liquidity and accounting for more than 20% – 30% of the Forex markets trading volume.
With the largest economy in the world, the US dollar has become the most dominant currency in the world. And for that reason, many areas consider it the standard and reference all other transactions based on it. As for South Africa, the Rand rates as the 20th most-traded currency in the forex market. And its rank is slowly increasing thanks to many improvements in the South African market.
As for the currency trading pairs themselves, there are numerous of them available in the forex market. However, the most popular ones are:
- EUR / USD
- GBP TO USD
- USD / JPY
- USD / CHF
- EUR / JPY
- USD / CAD
- AUD / USD
These are the most influential currencies in the world. And their changes account for the market’s volatility, lowering the spreads.
A Quick Start Guide to Forex Trading South Africa for Beginners
More on the top 3 currencies in Forex Markets?
You’ve already read about the currency pairs and how their fluctuations decide the volatility of the forex market itself. So, let’s dive deep into the main currencies and learn more about them.
- USD
The United States Dollar is the most popular and influential currency in the market and the world. And with that, more than 90% of all currencies are quoted with the USD. 86% of all transactions in the forex markets are in USD, and many investors that put their money in metals like gold and platinum do so with US dollars. Therefore, variations in these assets result in fluctuations in the USD. Hence the volatility of the whole market itself.
- EUR
The European euro is the second-most popular currency in the forex market and accounts for nearly 37% of forex trades. Accepted by over 18 European Union Members, there’s no surprise that this currency is the only one that can rival the USD in the forex markets. Its price fluctuations depend on various factors, as previously mentioned.
- JYP
Next in line is the Japanese Yen, and this currency associates over 20% of forex rates and is the most influential currency in Asian Financial markets. The JYP is a stable currency due to the country’s various modes of earnings.
How to start forex trading in South Africa?
Prior knowledge is crucial before one can begin to earn through different means. The same goes for forex trading in South Africa. Therefore, without a proper plan, you’re never going to win. So, to become a forex trader, you need to enroll in different courses highlighting the key features of trading forex, especially in South Africa. They’d even let you in on techniques that’d help you succeed as a forex trader.
Once that is done, follow the subsequent steps:
- Prepare the necessary infrastructure
Step 1 is to ensure you have all the essential prerequisites to become an online forex trader. That includes advanced computers (although regular ones can suffice) and a high-speed internet connection. The latter is vital for you to make a name in the forex market and ensure quick profits. Conversion rates can change within seconds. So, you always need to be updated.
- Examine different online South African Brokers
They will help you trade more efficiently than if you were to do so alone. Make sure you scrutinize thoroughly and take note of the regulatory bodies. For South Africa, see if they are FSCA-Licensed.
- Create an account
Next, you need to open an account on the platform provided by your broker. If you could get a hold of a demo account, that would be better as you can practice on it and understand its workings.
- Fund the account
Now it’s time to invest in your account. Different platforms have different policies for the minimum account deposit necessary for trading. Some brokers even allow funding through checks or even debit cards.
- Begin trading
If you’ve followed all the steps we mentioned up till now, you should be ready to begin trading. Any prior knowledge gained from those courses will help now that you’ve funded your account. Remember to work with a cautious mind. Market conditions can change within minutes.
Everything You Need to Know About Forex Trading In South Africa
Five tricks to excel in Forex Trading in South Africa
Once you start forex trading in South Africa, you’ll find many people that seem to excel unimaginably. So, what do they do that allows them to succeed exponentially? Well, here are some of their tricks mentioned below:
- They try to learn a lot
The desire to know more is a characteristic feat found in many successful traders. They have a persistent curiosity which triggers them to gain more knowledge. With that, they understand the various ways in which one can excel in fields like that of trading forex in South Africa.
- Formulating trading strategies
We have yet to find flourishing forex traders that earn immeasurable profits by simply going with the flow. No! To be triumphant in trading forex, you must have a plan of action – a trading strategy. That will assist in clearing your mind for trading and ushering in an agenda for you to follow.
- Never giving up
Many traders tend to give up on forex trading once they suffer from a loss. Whether small or big, failures always have a lesson in them that will help you move to higher goals. With that in mind, you should never let your emotions control you once you begin forex trading in SA.
- Calculate risks beforehand
A good trader doesn’t just invest on a whim. They take the necessary precautions to calculate the risks involved when investing in assets. Once you effectively begin to work out the risks, you can minimize your losses by over 60%.
- Cutting losses and moving on
Many traders keep increasing their losses in hopes of the market miraculously turning around and granting them profits. Never base your experience on luck. If you see your asset failing, drop it and move on. Why prolong your problems when you can simply start again?
Small, exotic, and cross currency pairs – Everything there is to know
Small currency pairs refer to those that do not incorporate the USD. And in that case, there are many pairs that have yet to be regarded in terms of the US dollar. However, even in this category, major currencies blow the dollar reside. These include Euros, British pounds, Yen, etc. For example,
- CHF / JPY
- EUR / GBP
- EUR / AUD
- GBP / JPY
- NZD / JPY
Exotic currency pairs are exactly what they sound like. These refer to those pairs that incorporate the main currency and one that represents an economy in development. Such countries include Hong Kong, Argentina, Mexico, etc. Such exotic pairs rarely ever get traded in the forex market. And the reason behind it is their low liquidity compared to other currency pairs. Some exotic pairs include:
- EUR / TRY
- USD / HKD
- JPY / NOK
- GBP / ZAR
- AUD / MXN
Cross currency pairs are those that exclude the US dollars. In other words, a currency pair that gets traded in the forex market but does not involve the US dollar is considered a cross currency pair. Some of the famous pairs of these category include:
- CHF / JPY
- EUR / CAD
- AUD / CHF
- AUD / JPY
- GBP / AUD
The pros and cons of Forex Trading in South Africa
As much of a blessing as something might seem, they always have some drawbacks. Forex trading is one such candidate. Let’s look at some of the advantages and disadvantages of trading forex in South Africa.
Pros
- Little to no cost
Perhaps the greatest advantage of trading forex online in South Africa is its low cost. In fact, many online broker platforms do not even charge a commission fee for trades occurring between different parties. In fact, what usually happens is that the broker benefits from the spread between the currency pairs.
- Extensive liquidity
Among other financial sectors, the forex market has the highest liquidity rates. And thus, the lowest volatility rates. Such liquidity allows for bulk transactions without a tangible effect on currency rates. So, forex traders do not need to worry about a sudden drop in market rates.
- Low initial investment
Tighter spreads result in low initial investments from traders wanting to begin their trading careers. In other forms of trading, foreign exchange trading wins the cake for being the trading market that requires low investment to produce profits.
Cons
- High competition with low transparency
The forex market has been around for quite some time. And its deregulated nature results in traders competing with professionals like big corporations. And if you’re a broker-driven trader, the market may not be transparent for you.
- Risk of huge financial losses
Like any other form of online trading, forex trading also comes with the hazard of losing immense amounts of finances. Even more so than what you invested. Therefore, you must always trade with a cautious mind.
- Unpredictable volatility changes
Although we said above that forex generally has low volatility rates, certain political and social developments in countries can result in their countries’ depreciation. And this can result in major losses for forex traders.
What is Forex leverage and margin in Forex Trading
Forex leverage is pretty self-explanatory. It refers to the action of a broker lending an investor a sum so that they can invest more than their original balance. And the way the loan is decided is through ratios. Which themselves can be 2: 1, 3: 1, 10: 1, 20: 1, 50: 1, 100: 1, 1:100, and 200: 1 to 500: 1. For example, imagine you had invested $100 for a currency pair who recently had its rate increased by 100 pips (more on that later). Let’s say that you made a profit of $1. With forex leverage of 1:100, each of the $1 you invested now has a value of $100. So, with your investment of $100, you could open a $10,000 deal!
A forex trading margin, on the other hand, refers to the initial deposit you make with another trader with leverage. And this is usually a portion of the amount you will invest for a trade. Let’s assume a trader deposits $20,000 in his account on leverage of 1:25. His applicable margin would equal 4%. And if he were to purchase two lots of EUR/USD at 1.200, the minimum amount required in his account would correspond to $9,500 (4% of $240,000).
What is a pip, and how is it crucial to Forex Trading?
To put it simply, a pip (a percentage in point) refers to a unit of measurement that correlates to the changes in values of currencies. A variation in their value equates to the pip value that correlates to the base currency. For example, if the EUR/USD has a value of 1.4900 and, in the future, it changes to 1.4901, the change in the value of the currency pair is 0.0001, and the pip value, therefore, is 1 unit. It may get confusing but stick with us.
Each currency is in relation to the other in a currency pair. And due to this, we can easily calculate the pip value for the base currency. Let’s assume the EUR/USD to be at 1.3500. This means that every euro equals 1.3500 dollars. We then work out the value of a pip as 1/1.3500. That means the spread equals 0.7 on Forex trade.
A pip is very crucial in the forex market. Essentially, they tell one how much a trader will pay. In other words, they calculate the various rates on which a trader will pay for a currency pair. The currency with which an account comes to life determines the value of the pip.
Different Strategies to achieve success in Forex Trading
Over 70% of your success in trading forex in South Africa solely depends on the trading strategy you use to approach the market. And if you fail to plan, you can prepare yourself to face huge failures. To help you out, Forex Trading South Africa has compiled a few common strategies many traders utilize to increase their chances of success. Remember that trading strategies are customizable and not hard-and-fast concepts.
- Day trading
Day trading is the act of trading assets within a particular allotted time. With a time limit, forex traders can help prevent over-investment alongside suffering from overnight currency changes.
- Price action
The price action strategy usually applies to analysts. So, if you’re one of those gifted with a high intellect and a knack for accurate insights, then this strategy is just for you. You will have to study charts, analyze market conditions, predict currency changes, and invest accordingly.
- Trend Trading
A trend trader buys and holds currency for small or large periods of time and looks for directions in which the currency pair moves. They analyze the trend and wait for it to reach its maximum height. In this, they usually ignore minor setbacks and hope to earn profits at the peak of the pair.
- Range Trading
Range traders operate within the same time frame as that trend traders. The difference here is that the currency pairs have no definite direction. Their range is easily predicted. Range traders tend to buy when the pairs are at their minimum. And then sell when it is at its peak.
Forex Vs Stock – A battle of assets
A popular question frequently arising is; are forex and stocks the same? And the confusion usually relates to newcomers who joined the market. As similar as the two terms may seem, they’re not. In fact, they are actually polar opposites. Fresh traders often have the problem of mistaking one market for the other. And if the light fails to shine on them soon, they may create havoc for themselves. Understanding their differences is crucial.
Forex, as mentioned above, refers to foreign exchange. Its market deals with the transaction of currencies on the basis of their conversion rate fluctuation. Stocks, also known as shares, refer to an investor’s ownership of a company. And their percentage ownership correlates to the number of shares they possess. Profits earned by the company are split among shareholders based on the number of shares or stocks they carry.
As you can see, the two are different. But the differences do not stop here. In fact, many people still have trouble identifying which of the two markets is better. Read on to find out how you can make an effective comparison between the two.
How do people rank the two
Every person is different. And they have their own views and preferences. Each of them carries their own personality and personal likes and dislikes. Therefore, ranking the two always tends to be biased. Thus, for anyone asking how to compare the forex market with the stock market, there is no definite answer. The same goes for answering the question of which is better.
Some might consider forex markets as they excel in producing accurate insights towards currency changes. Others may claim stock markets as their trading strategies may provide them with more profits than when they try trading in forex. Therefore, the answer does not depend on facts. Instead, it varies through personal opinions.
So, if you want to compare the two to find which would benefit you the most, you need to look inwards and see what kind of investor you are and which form of trading you’re comfortable with. Providing you with the facts and figures of both markets is our job. Making a decision on which is better is yours.
Which is bigger, Forex or Stocks?
Firstly, let’s compare the sizes of the two markets. According to a report, the global foreign exchange market is worth about $2.41 quadrillion. And consists of about daily transactions worth $6.6 trillion. And this is the accumulated price of all the foreign exchange markets. If you think this is big, imagine how much of it would be of South Africa – a population of more than 50 million.
In comparison, the global stock market is worth over $100 trillion. And with that, its daily transactions amass to over $6 trillion. As of yet, there are 60 stock exchanges. And the data provided is an accumulation of all of them.
Judging by this, there is no doubt that the forex market is significantly times larger than the stock market in terms of size and trading volume. However, more popularity means more competition.
And the reason behind this is that forex tends to produce quick and small profits, while stocks tend to give slow and big profits. Other than that, forex trading often seems more convenient to people in South Africa than trading in stocks. Nevertheless, the stock market is a giant in making profits.
Does the foreign exchange have higher liquidity than stocks and shares?
When we talk about trading volume, the question of liquidity in both markets always arises. Higher liquidity of both markets is essential for their continuous prosperity. So, what is liquidity?
Liquidity refers to how quickly one can convert their assets into money. And how easily they can do so at that. Let’s say you have some assets that you want to sell in order to receive cash equal to the asset’s value. If you find a buyer easily, that means the market is highly liquid. The converse is true too, i.e., if you see it arduous to locate a buyer, that corresponds to the market’s low liquidity. It is quintessential to trade with a high liquidity rate. Else you may suffer from losses on account of prolonging a devaluing asset.
The currency pairs in forex markets are more liquid than stocks in the stock markets. They have low transaction costs and even lower spreads. On the other hand, securities like stocks and ETFs also possess a high liquidity rate during trading hours.
Different Forex and Stock strategies in South Africa
For the forex market, the available strategies to trade with are numerous. The only problem is that not all the approaches apply to the assets. As mentioned before, each investor is different and has a different goal in mind. Some want quick results, while others prolonged ones. For example, the buy-and-hold strategies would not suffice for a forex trader looking to trade pairs quickly with small profits. It would only work for those investors who want a major price appreciation before the withdrawal.
The stock market is usually low on trading strategies. And the reason for that is stocks are stored until their values reach a certain point at which a huge profit can be made. In forex trading, strategies like day trading, range trading, and price trading are usually what prevails among the many traders who generally carry out transactions every time the price of a pair fluctuates.
Forex and Stock assets – The same or different?
Here is a category in which both markets excel in their own unique way. Firstly, the assets traded in South African Forex Markets usually correlate to currency pairs. And those transacted in stock markets can vary significantly.
Often, you can only trade the major currencies, which are of 8 types. So, there really is not much diversity when talking about unique assets in forex trading. On the other hand, the stock markets include hundreds of public companies, all of which have their stocks readily available for you to buy. So, even if the stock market comprises only stocks, each stock uniquely represents a different company. So, you have hundreds of assets to purchase and sell. In forex trading, you look at currencies and their values. However, in stock trading, you look at companies and their performance rather than their stocks.
Again, the choice solely depends upon the type of investor you are and the type of asset with which you are comfortable trading. And if you look forward to trading within a narrow focus of high liquidity, forex trading may be your best option. But if you want to expand your trading options, in hopes of earning a maximum profit, then stock trading is for you.
Other comparison factors
Other factors, and conditions, to compare the two include market hours, commissions, risks, etc. For market hours, it seems that forex operates 24 hours a day. As for the stock market, the timing itself may vary from place to place as trading usually occurs through major indexes around the world.
As for commissions, most South African online forex trading companies and platforms charge little to no commission fee per trade. Instead, their means of earning lies in the spreads. A spread represents the difference between the quoted price for a currency and the asked price for that same currency. Other modes of making a living for such online forex brokers include the various services they provide. For example, forex signals may be one such way. In stock trading, the traders usually pay higher spreads, which include the commission fee, to the broker.
These are the differences between the two humungous financial markets. In the end, the choice to rank the two depends on you. And the option to choose one of the two also depends on what intrigues you and what will prove easier for you. Remember, trading with confidence and comfort has a higher chance of generating a profit.
Different methods of making money in forex markets of South Africa
Money making in South African online Forex trading solution is not limited to your typical manner of buying pairs when their low and selling them when they are high. In fact, there are other ways you can opt to make money instead. Why are we telling this to you? Well, to open new doors of opportunities for you! Take a look:
- Binary Options
The binary option is more like a gamble. Instead of waiting for currencies to reach their peaks here, you can predict a set price for it on a particular date. If you guess correctly, you win the money. But if you do so wrongly, you lose what you invested.
- Carry Trading
Carry trading is the mode of earning through interbank interest rates of different currencies. In forex markets, possessing multiple currencies is similar to holding them in a bank. You earn from those earnings through their interest. Carry traders use this to their advantage and invest in currencies with high rates.
- Shorting
When shorting a currency, forex traders tend to borrow the currency they feel will have a lower value in the future. So, they sell it at a high price and then purchase it later when it is cheaper.
How to choose the perfect broker to suit your needs
With countless online brokers in South Africa, it’s no surprise that many would find it arduous to locate the perfect one. However, if you’re looking for an appropriate broker, you need to figure out what you want as a forex trader. Not all brokers are the same. And not all of them are for you. So, here are some crucial details to look for in good online brokers in South Africa:
- Regulated by the FSCA
- Have good reviews
- Demand an appropriate fee
- Allow suitable leverage for your strategies
- Provide the currency pairs you want to trade
- Opens an account themselves for you
Remember to check the trading software provided by the broker. These brokers usually supply their own platforms for trading. Make sure that the platform includes multiple trading and researching tools that will help you make a profit. And do ensure that platform you joined serves the necessary currency pair you want to trade along with other educational materials to help fresh forex traders begin their trading journey in South Africa.
Summary
To summarize what we’ve mentioned this far, forex trading is the act of transacting different currencies in the foreign exchange market. Forex Trading is a popular method of earning in South Africa, and departments like the FSCA personally overlook these transactions.
The process requires the simultaneous buying and selling of currency pairs – the base currency is bought while the quote currency is sold in exchange for it. The fluctuation in currency values and their conversion rates fuels the forex market and provides a means of living for forex traders.
To begin forex trading, you need a forex broker Like CM Trading or Plus500. And through their help, you must create an account (preferably a demo one to practice on) and then fund it. Once the account deposit withholds the necessary amount (as per the policy of the platform), you can start trading.
Forex trading is a fruitful business. And apart from its risks, it offers immense profits. In fact, with forex leverages, you can increase your overall profits by the associated amount. And if the buying and selling method does not suit you, you can always carry trade or utilize currency shorting to make your profit.
Overall, the forex market in South Africa allows many to make great profits. And if you’re willing to join those people, we suggest you read the details mentioned above.
Forex Trading in South Africa, Everything About Forex in South Africa
FAQs
What is Forex trading?
It refers to the transaction of foreign exchange (currencies) in the forex market.
What is the biggest problem of forex trading in SA?
It comes with an immense risk of losing all your investments overnight.
Is forex trading legal in SA?
Yes, it is legal.
Who are forex brokers?
They are forex service providers that help you join and trade in the forex market through trading software.
Can you make money through trading forex?
Yes, you can. But other methods include carry-trading, binary options, and shorting of different currencies.
Which is the best South African broker?
Some of the best SA brokers include CM Trading, AvaTrade, and Plus500.
How can I start trading forex in South Africa?
You need to contact a broker and open an account on the forex trading platform they provide. Fund the real one, and then begin trading.
Do forex traders pay taxes in South Africa?
Yes, they are required to pay a flat fee of 28%, through their brokers, of their taxable income.
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