Are you interested in knowing how to open a Forex trading account in South Africa? Read on to find out what is needed and why.
ALSO READ: What is forex trading and how does it work in South Africa?
Forex trading is a great business and is popular in South Africa. But how can an ordinary person get started with trading forex? The first thing you need to do is to find a broker, fund the trading account and start to trade.
Before you trade on a real account, it is best you trade using a forex demo account. Practicing accounts help beginners understand the basics of forex. Different brokers off demo accounts.
Basic Requirements to open a Forex account
The first step do to is to open an account with a South African broker. You will be required to provide your personal information to complete your account registration. Information include the following:
- Name and Surname
- Email Address
- Address
- Create a password for your trading account
- Valid Phone Number
- Account currency type
- Country of citizenship
- Date of birth
- Tax ID or Social Security Number
- Employment status
A broker will also ask you a few financial questions, such as:
- Your Net worth
- What is your annual income
- Trading objectives
- Trading experience
Industry Compliance
The reason Forex brokers want this kind of information is because they want to comply with the law. There are a lot of forex scammers out there. SA regulator, The Financial Sector Conduct Authority (FSCA) protects account holders from various types of harm.
The FSCA is determined to enhance the efficiency and integrity of financial markets, promote fair customer treatment by financial institutions, provide financial education and promote financial literacy and assist in maintaining financial stability.
It is rare to find any Forex broker in South Africa opening a trading account for you without wanting you to answer these questions. You should be suspicious if you find a broker that doesn’t ask you these questions.
Forex Trading and Risk
Forex is a risky business and during the final steps of opening your forex account, you will see risk disclosures. You need to take it seriously. You can lose all your money. There are few winners than losers. Brokers are required by the law to remind you that Foreign exchange can be a dangerous business.
Once you have provided all the information, your broker will verify and then ask you to send them some verification documents such as your South African ID and also your utility bill statement to verify your address and name. This process can take up to one or two days.
Once your account is verified, you can deposit money into your account and start trading. Advice for Forex trading beginners is to start trading Forex with little money before moving to bigger deposits.
Don’t put yourself in unnecessary risks. Don’t ever think you know a lot about FX.
Steps of opening a forex trading account in South Africa:
- Step One: Find A Broker
- Step Two: Try A Demo Account
- Step Three: Open A Live Account
- Step Four: Fund Your Account
- Step Five: Start Trading
Final thoughts
Forex Trading is one of the most interesting businesses. If you feel like you are losing your money, stop trading and re-evaluate your trading strategy. You will survive much longer in this market if you don’t involve your emotions.
Image Courtesy: thesouthafrican.com