Forex trading in South Africa
In 2016, with an average turnover of $5.1 trillion per day, forex trading was the largest and most liquid financial trade globally. And particularly South Africa is by far the largest retail forex market in Africa.
Reporting by the bank of International Settlement, in 2017, the daily trading volume of retail forex trading in South Africa stood at $19.1bn, making it the most significant importance of Africa. Moreover, South African currency (RAND) is the 18th most traded currency worldwide.
Forex trading course is the conversion in currencies to make a profit by the movements in exchange prices. To become a forex trader, you need to choose a currency pair, which is a strategic direction you expect to fluctuate. Then you can close your trade to get profit or lose according to the exchange rate between two currencies.
Forex trading is not for everyone as it requires specific education, discipline, strategies to build a profitable trading career. But If you lack of all such essential elements, you eventually face loss.
Forex trading is legal in South Africa.
Forex trading is legal in South Africa as it is well regulated by Financial Service Conduct Authority, or FSCA. FSCA must hold all the forex brokers to secure the client’s funds and avoid foul plays. Moreover, it’s not an astringent rule for the international brokers to be regulated by FSCA.
A step-by-step guide to starting Forex trading in South Africa
If you’d begin to forex trading in South Africa, you may need to acquire specific knowledge, skills, and strategies to build a highly profitable trading. Be ready to become a forex trader by learning the basic requirements for forex trading.
Strong Internet connection
Firstly, make sure that you have accessed to a solid and stable Internet connection. Because the forex market fluctuates with a blink of an eye, if your accessibility is slow, you’ll see loss eventually.
Secondly, find out the best forex broker in South Africa that FSCA should regulate. If you’ve already heard about Brokers, then immediately open a financial account to process funds.
Platforms that are being used for your trading, often offered by forex brokers. Some brokers come with their own trading platform but mainly support third-party applications, including MetaTrader 4, MetaTrader 5 CloudTrade, and so on.
For first-time traders, it will be efficient to create a demo account to learn the basics of the forex market game and about market platforms without any risk of losing money.
Minimum deposit to start forex trading in South Africa
For beginners to start a forex trading, a minimum deposit in between $100-$500 will be efficient with a sensible approach to risk. In addition, deposit size largely depends upon how much the trader can afford and how much risk he is willing to take.
South Africa is set a remarkable place in forex trading with day by day increasing interests of traders, dominant currency (RAND), regulatory sector, and market conditions.