How to Start Forex Trading in South Africa in 2023? There are many South Africans who don’t know anything about Forex trading in SA. Luckily, at Quick Read Magazine, we’ve done our research on how to start trading Forex in South Africa. If you are interested in learning how to join the Foreign Exchange Market, you will find this article useful. In addition, we also discuss key points you need to follow to trade Forex safely and successfully. Forex trading is legal in South Africa and regulated by the Financial Sector Conduct Authority (FSCA) in South Africa.
As of April 2019, South Africa was ranked as the 18th most-traded currency in the world by the Bank of International Settlements (BIS). According to the BIS, trading in foreign exchange (FX) markets reached $6.6 trillion per day in April 2019, up from $5.1 trillion three years earlier. Daily total turnover for the currency, including spot, forwards, swaps and options, was $72 billion. Let’s look at the steps on how to start Forex trading in South Africa.
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How to Start Forex Trading in South Africa
Here’s How to Start Forex Trading in South Africa:
- Find a broker: Before you can start trading forex in South Africa, you need to sign up for an account with an FSCA licensed broker. You can find a list of regulated Forex brokers in South Africa and create an account.
- Open a demo account: For beginners, you are advised to open a practice account, also known as demo account. Trade forex with virtual money and learn how to place orders and know how to place a stop loss and take profit levels. A demo account will help you get familiar with the forex market, broker and the trading platform they use. When you feel comfortable, you can begin trading forex in South Africa with real money.
- Open a live account: Once you are comfortable with your trading skills, you can now open a real money account. All legal and registered Forex brokers will require some form of FICA from you. They will also require your proof of your address and a copy of your ID. The broker’s compliance department will verify your identity and the admin process takes a few hours to a few days to complete. Once your account is verified and active, you may log into your trading account. The next step is to deposit money into your trading account.
- Fund your account: Before you fund your account, make sure you link your bank account with your trading account. You can make a local EFT into their bank account. You can also fund your account with PayPal, Skrill, or some of the other online payment processors. After funding clears and the broker receives your funds, you may begin trading Forex in South Africa.
- Download a trading platform: Many Forex brokers in South Africa have proprietary trading platforms. Make sure you download the best online forex trading platform so that you can make your investments into the Forex market.
- Start trading: Now your trading account is set. You can begin trading Forex in South Africa.
How Much Money Do I Need to Start Forex Trading In South Africa
How much do I need to start trading Forex in South Africa? You can start trading with at least R500. This will be enough to open a trading account with brokers like XM, however, many Forex brokers in South Africa require at least a minimum deposit of between 250 USD and 500 USD. A minimum 250 USD deposit is advised since your trading account balance will determine how much leverage you can use.
As the demand for Over-the-counter (OTC) Forex in South Africa is rising, so are the risks for traders. There are many factors that you need to consider before you start Forex trading in South Africa.
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