Forex Trading South Africa: A Beginner’s Guide – Forex Trading SA

Forex Trading South Africa is created for South Africans as a guide to Forex trading in South Africa. Forex Trading SA is growing in popularity and many South Africans are venturing into Forex trading. To start Forex trading in SA, you need money, internet and device to trade Forex in South Africa.

If you are interested in making money with forex trading in South Africa, you’ve come to the right place to teach you all about Forex Trading SA. Forex Trading is the largest financial market in the world, with a daily volume of US $ 5.1 trillion. At Forex Trading SA, we are here to help everyone who is interested in this financial market. We carefully evaluate the vast number of Forex Brokers in South Africa and list the main characteristics of each one. After reading this Forex Trading South Africa for Beginners guide, you will be able to open a forex trading account and start trading forex in South Africa.

Best Forex Brokers in South Africa 2021

South Africa Forex Brokers Comparison: Compare South Africa authorized CFDs and Forex brokers in South Africa by reading their reviews and the table below.

Forex BrokerReviewMinimum DepositVisit Site
XMRead ReviewR 100 Visit Broker
CM Trading
Read ReviewR 3800 Visit Broker
Plus500Read ReviewR 1500 Visit Broker
HYCM MarketsRead ReviewR 1000 Visit Broker
Markets.comRead ReviewR 1000 Visit Broker
FXGM South AfricaRead ReviewR 3800 Visit Broker
AvaTradeRead ReviewR 1000 Visit Broker
easyMarketsRead ReviewR 1000 Visit Broker

What is Forex?

Forex or FX stands for Foreign Exchange (Exchange Currencies). It is the world’s most traded market, with turnover of $5.3 trillion per day.

With the increase of daily Foreign exchange transactions in the world, there’s also a rise of Forex brokers in South Africa. At Forex Trading South Africa, we make sure that we list the top regulated forex brokers in South Africa. We are here to help Forex traders in South Africa with useful information regarding Forex trading in South Africa.

South African investors have different options when it comes to the forex market. They can trade in forex spot trading through regulated forex brokers and in forex using the Johannesburg Stock Exchange (JSE) currency derivatives or through contracts for difference (CFDs).

In this Forex trading SA guide for 2021, we cover various FX trading topics and at the end, you will know exactly what currency trading is and how it works in South Africa.

🇿🇦 Amount of current traders in South Africa550 000+ ( Updated October 2021 )
🗺️Government Regulatory Body in South AfricaFSCA ( Financial Services Conduct Authority ) formerly known as the FSB ( Financial Services Board )
📍FSCA Physical Address and Details Address: 41 Matroosberg Rd, Ashlea Gardens, Pretoria, 0002
Phone: 012 428 8000
Website: https://www.fsca.co.za
Email: [email protected]
📢FSCA Official Twitter Page FSCA on Twitter
📢FSCA Official Facebook PageFSCA South Africa
📢Official Wikipedia Page of FSCAFSCA Wikipedia Page
📉Most Traded Currency*USD / EUR - USD / GBP
⚖️Is Forex Trading Legal in South Africa?Yes
💰Do you get taxed on forex trading profits? Yes
🌎Who is the number #1 Forex Broker offering ZAR denominated accounts?FXGM ZA
🕒 Best time to trade in South Africa?9am - 12pm UTC+02:00
🏆Top FSCA Regulated Forex Brokers in South AfricaPlus500, CM Trading, Markets, FXGM ZA, AvaTrade.
💳 How much money do you need to successfully get started trading forex in South Africa?$100 or R1500
📈 Fastest Growing Broker in South Africa* Plus500

Best Forex Brokers South Africa

To find the best forex brokers in South Africa, at ForexTradingSouthAfrica, we have listed all brokers that accept new customers from South Africa. These forex brokers are ranked according to their excellent services and customer care.

Here is our list of the best forex brokers in South Africa.

  • CM Trading – Best 2021 Broker
  • Markets.com – Best Online Trading Platform
  • AvaTrade – Best Overall Broker 2021, Most Trusted
  • XM – Best Forex Broker South Africa
  • Plus500 – One of the Best CFD Providers
  • easyMarkets – Top Rated Broker in South Africa

Please note that not all Forex brokers are required to become authorized by the Financial Sector Conduct Authority (FSCA) to accept South African customers.

The Financial Sector Conduct Authority is a financial institutions regulator and a successor agency to the Financial Services Board (South Africa) in South Africa.

What is Forex Trading?

Forex, also known as Forex trading or foreign exchange, is the conversion of one currency into another. The world has different currencies. People travelling to other countries, or businesses operating from other countries, have to convert their currency into the another country’s currency. This is where forex trading is involved.

As mentioned, foreign exchange is trading of different currencies between seller and buyer. In the past, the forex market only consisted of central banks and big companies. However, today individual retailers are also venturing into the market with only $100 as a minimum initial amount to invest. But small fluctuation in the prices sometimes put traders in a risky position.

Trading Forex in South Africa
Trading Forex in South Africa

But despite this risky situation, why is it more and more in individual retailers are venturing into this market? Some of South Africa Forex Trading advantages include the following:

Easy Accessibility:

Its easy accessibility is one of the reasons why it is gaining a massive popularity. You can trade in the comfort of your home because it’s done online. You just need a smartphone, PC or laptop and strong internet connection to become part of this $6.6 trillion market.

24/7 Open Market:

The forex market does not have a particular running time just like the stock market has. This is an international market and has fifteen independent worldwide exchanges, open weekly from Monday to Friday, each with unique trading hours. So this mean that retailers in South Africa can work with people in Asia during normal business working hours. So you don’t have to quit your 9 to 5 job to focus on forex trading in SA, you can it during your spare time.

Little Margin of Manipulation:

Another benefit of the FX market is its high levels of liquidity. This means that you can buy one currency from the market without encountering any severe change in its actual price. The money exchange market is the biggest market with a lot of people involved. Some work on it 24/7 and it makes it difficult for people to scam others and manipulate the market price. This is the reason the forex market is referred as liquid and convenient for beginners who are scared of scammers.

If you are also considering some ways to earn some extra money while keeping your 9 to 5 job, then forex trading SA might be good for you. You just have to be aware of its instability and volatility. Besides this, it is a good thing.

Forex Trading South Africa Regulations

At forextradingsouthafrica.co.za website, we discovered that many people became aware of the forex market since the initial start-up of the internet. However, South Africa started participating in foreign exchange about 17-years ago.

During this time, there were no regulations or institutions such as FSCA that prohibited people or companies to start their own forex trading companies in South Africa. This led to forex investors and traders losing millions due to fraud. To make sure that forex traders in South Africa do no lose their money, regulations were established to prevent fraudsters from scamming people. Regulators also make sure that brokers follow the law and they provide insurance for the traders’ funds.

The Financial Sector Conduct Authority (FSCA) is the institution that protects South Africans in the non-banking financial sector. When you choose a broker, you are advised to always check the FSCA list to see if your broker is regulated and for what instruments.

If the selected broker is not regulated by the FSCA, check if it’s regulated by another regulator such as the FCA (United Kingdom), CySEC (European Union) or ASIC (Australia).

Forex Market Trading Hours

Forex trading hours in South Africa, Forex works 24/7 and 5 days a week except for the weekends. The main trading centres are in New York, Tokyo, Hong Kong, Paris, Sydney, Frankfurt, Zurich, London and Singapore. However, banks across the globe also participate in trading.

  • Sydney Open – 07:00 AM Sydney Close – 4:00 PM (US Time) – 08:00 AM in South Africa
  • London Open – 08:00 AM London Close – 4:00 PM (US Time) – 06:00 PM in South Africa
  • Tokyo Open – 09:00 AM Tokyo Close – 6:00 PM (US Time) – 10:00 AM in South Africa
  • New York Open – 08:00 AM New York Close – 5:00 PM (US Time) – 11:00 PM in South Africa

How Forex Trading Works in South Africa

Right now, things get gradually expensive. Some South African citizens can manage through all the expenses and some are working as hard as they can for minimum wage. Others may be forced to work two or in some countries, may be more than two jobs a day.

Well, in this article we will try to help you by introducing an interesting method of making more money to cover up your expenses and make you wealthy. That is the fascinating world of Forex Trading in SA.

To start up, before knowing how forex trading work in South Africa, you must basically be introduced to what Forex is. Forex (FX) which stands for foreign exchange is the international marketplace for trading and exchanging currencies. Currency exchange is crucial across the globe in order to conduct foreign trade and industries.

The Forex Market is the most massive and most liquid market in the world. The daily turnover of the market is five trillion dollars. Such an intense amount of cash!

The greatest and most unique feature of Forex is that there is no central marketplace. Forex transactions are conducted electronically over the counter. This means that the transactions occur online between traders from all around the world.

The market is open for 24 hours for five and a half days, making it one of the most available marketplaces ever. Currencies are exchanged in the great financial centres of London, New York, Tokyo, Zurich, Hong Kong, Paris and Frankfurt. Forex Trading is authorized by almost all the countries.

How Forex Trading South Africa Works

Forex trading is basically the act of purchasing and selling currencies in order to make a profit. The prices of multiple currencies is linked in a trade. So, while trading, you’ll be constantly working with two currencies.

It seems a bit simple but you shouldn’t underestimate Forex Trading SA. In this particular industry, the rate of failure is exceptionally high among new traders, as there the learning methods are almost nowhere to be found now.

Even traders that are aware of that tend to be careless as well. They think to themselves “Why would it happen to me?” In the end, the majority of these traders walk away empty-handed, not quite sure what happened to them, or maybe even feeling a bit scammed. While the ugly truth is, they were careless and foolish.

Forex trading SA is an industry that is essentially set up for insiders that understand it. New traders should try to survive long enough to understand the inner workings of foreign exchange trading and become one of those insiders, and this will come with studying the market, understanding the terminology, and learning trading strategies.

For a beginner, it’s always better and safer to start step by step and with less money. Don’t rush things up. It’s common that your first trade might not go as planned. You should also think of having and executing a backup plan in case everything doesn’t turn out as it seemed at first and the trade isn’t as profitable as expected. Walking out of a losing trade is better than continuing in it and turning everything into a complete disaster. The most important thing is never to consider giving up an option. You should see failure as a chance or a warning for you to keep learning and trying again.

Forex trading South Africa has a simple aim. Just like any other form of speculation, you want to buy a currency at one price and sell it at a higher price in order to make a profit.

All currencies are divided or grouped in pairs. This means, you’re actually trading two currencies simultaneously, you purchase one and you sell the other and vice versa.

How to forex trading South Africa

The first currency of a currency exchange pair is called the base currency, while the second is called the counter currency. If we take EUR/USD exchange for example, euro would be the base currency, and the US dollar the counter-currency. If you want to buy the EUR/USD exchange pair, you’re actually buying the euro and selling the US dollar at the same time.

In Forex, you can trade using a lot of international currencies like: US dollars, euros, Australian and Canadian dollars, Swiss francs, Great Britain pounds, Japanese yen, New Zealand dollar, Russian ruble and many more

The most famous and the most preferred currency to deal with is the US dollars. Of course, due to the massive and wide range of the American economic power, it becomes nothing to think about for people to trade using US dollars.

Now then, in order to enter this world of Forex Trading South Africa and browse the financial markets and currency exchanges, you have to create a brokerage account. Opening a brokerage account is pretty easy and can be done in mere moments by filling out the registration form on the broker’s website. After that, the broker will check your application and activate your account, which makes it then ready for investing. Many brokers accept credit and debit cards, online payment services, and bank wire transfers for deposits, so you can choose the way that is most convenient for you.

Best Forex Brokers in South Africa – Top 5

Below are the top 5 forex brokers in South Africa. At forextradingsouthafrica.co.za, we’ve carefully reviewed and selected these brokers so that both beginners and experienced traders can profit from Forex trading in South Africa.

  • Plus500 – For experienced traders

Plus500 review summary

As you can see in the review, Plus500 is respected as an innovative and reliable broker worldwide. It offers customers a highly efficient and easy-to-use platform to conduct their trades, along with many other exclusive services that make trading easier and more profitable. If you are interested in starting to trade in the CFD market, open a Plus500 demo account and get to know the platform and tools offered.

  • XM – The best broker for beginners in South Africa

XM review summary

It is true to say that XM has all the features that make its platform an ideal environment for those who want to trade. The broker pays close attention to its clients and offers a variety of differentiated services. XM is proud to put all of its 1.5 million customers first, no matter how long they have been trading or how big the account is. The reason for this is the focus on human values ​​to stand out among the large number of brokers in Portugal.

Also, customer service on the 5 days of the week was rated as good, but it could be better if it was expanded to 7 days a week. In this way, traders could also get the help they need during the weekends. XM offers a virtual balance of $ 100,000 for its demo accounts and 16 different platforms for traders to choose from. That way, the customer can safely test the services, anywhere and still use any device. When all of this is combined with the high leverage of 1: 888 and the low deposit, the client testifies that XM is really excellent for new traders.

  • IronFX – Best Forex Broker in South Africa

IronFX review summary

IronFX is considered a market leader and completely reliable broker and has many unique features and services to offer. It provides a highly efficient business environment with reliable services that still facilitate negotiations. For more information, you can visit the IronFX website and open a free demo account. Take a look at all the services that the broker is offering.

  • Markets.com – For traders on the go

Markets.com review summary

As with any company that places customer service as one of its main objectives, it is likely that customer comments will be taken into account, well answered and triggered as something for the company to work on. Markets.com is an excellent broker with a strong and established brand in the market. This is mainly due to the unique name that they have created for themselves through their exclusive services.

  • Libertex – One of the best Forex Trading South Africa sites

Libertex review summary

Analyzing Libertex’s history of success and the awards it has already received, we can say that it is a great broker. In addition to having a modern and easy to use platform, it works with all currency pairs, as well as cryptocurrencies.

It is interesting to visit the Libertex website and point out the benefits offered by this broker. You can also open a free demo account and start testing the services available through this broker now.

Meaning of forex

Forex is an acronym for the expression “Foreign Exchange Market”, which is a global decentralized market for currency trading. This includes all aspects of buying, selling and exchanging currencies at current or determined prices. It is the largest market in the world, where the trading volume is over 5 trillion dollars a day.

What is the Forex market?

The Forex market works 24 hours a day for 5 days a week, so you can open and close positions anytime you want.

What is the working mechanism in the Forex market?

The process of selling and buying currencies takes place through electronic trading platforms, and the MetaTrader 4 platform, which is considered the most famous and widespread platform in the world, because it is very easy to deal with. The way you deal with these platforms is in the form of currency pairs where traders sell and buy a currency simultaneously. We have the EUR / USD pair, for example, where traders sell and buy EUR / USD; the currency on the left (EUR) in the previous example is the main currency in which buying and selling is done against the other currency (USD).

In the Forex market, there are dozens of currency pairs and there are six pairs of them that are well known as major currency pairs:

  • European Euro against the US Dollar (EUR / USD)
  • Pound sterling against the US dollar (GBP / USD)
  • Dollar vs. Japanese yen (USD / JPY)
  • Dollar vs. Canadian Dollar (USD / CAD)
  • Dollar vs. Swiss franc (USD / CHF)
  • Australian dollar against the US dollar (AUD / USD)

Types of currency pairs

There are several currency pairs that are used in the Forex market. As the US economy is the largest in the world, it has the advantage of having the US dollar as the dominant and most influential currency in the market. It is often used as a reference or base currency in monetary transactions worldwide. While the US dollar is the dominating currency in the global retail forex market, the rand is the 20th-most-traded currency and is projected to improve. Some of the most liquid currency pairs traded on the global Forex market are:

  • EUR / USD
  • GBP TO USD
  • USD / JPY
  • USD / CHF
  • EUR / JPY
  • USD / CAD
  • AUD / USD

These pairs represent countries with great financial powers that are traded worldwide. The change in the price of these currency pairs makes the market volatile, and the spread tends to be lower.

The main Forex currency pairs

The main Forex pairs are those that include the US dollar. They are the most traded currencies in the Forex markets. They include the euro against the US dollar, the US dollar against the Japanese yen, the British pound against the US dollar, and the US dollar against the Swiss franc. (GBP / USD, EUR / USD, USD / JPY, and USD / CHF).

  • US dollar: Dominates, is the most influential in the foreign exchange market, almost all currencies are quoted in terms of US dollars. It accounts for about 86% of total foreign exchange transactions on the Forex market. Investors who trade in precious metals like gold, platinum, silver, palladium, etc. trade at US dollar-denominated prices. Therefore, any fluctuation in demand and supply for these items directly influences the dollar’s value.
  • Euro (EUR): It is the second dominant currency in the foreign exchange market and represents about 37% of foreign exchange transactions. It is widely accepted and used by 18 member countries of the European Union. Its price depends on consumer price inflation (CPI) in Germany, the European Central Bank, the unemployment rate and export data.
  • The Japanese yen (JPY): represents 20% of the global exchange rate; it is the most traded currency in the Asian money market. The JPY’s monetary risk is related to currency devaluation. Since the Japanese economy is more than an export economy, the currency is a safe haven during a period of market risk aversion.
  • The pound sterling (GBP): This is the currency of the United Kingdom, which represents about 17% of all transactions in the global money market. It is the fourth most traded currency, and is often used as an alternative to the Euro. Factors affecting the currency include inflation, the country’s gross domestic product (GDP), and the financial market.
  • The Swiss Franc (CHF) is the Swiss currency. Its price depends mainly on the central bank’s policy, and is more volatile due to the lack of liquidity.
  • The Swiss Franc (CHF) is the Swiss currency. Its price depends mainly on the central bank’s policy, and is more volatile due to the lack of liquidity. The Canadian dollar (CAD): Canada’s economy is based on the export of crude oil, which is its main export product. The price of the currency is strongly affected by the demand for and supply of crude oil (a commodity-oriented currency).

When it comes to Forex trading SA, it is necessary to choose a maximum of three pairs to trade, and the general advice is to choose the currencies that are making the rounds in the financial market.

Smaller Forex Currency Pairs

We call a currency pair that does not include the US dollar a smaller currency pair. The most traded smaller pairs include the British pound, the euro or the yen. Examples of smaller currency pairs are:

  • CHF / JPY
  • EUR / GBP
  • NZD / JPY
  • EUR / AUD
  • GBP / JPY

Exotic Forex Pairs

A pair of exotic currencies consists of one main currency and one that represents the developing economy. Some examples of countries with developing economies are Mexico, Argentina, Turkey, Thailand, Hong Kong, etc. Exotic currency pairs are rarely traded on the Forex market due to their high volatility and lack of liquidity. Exotic currency pairs include EUR / TRY, USD / HKD, JPY / NOK, NZD / SGD, GBP / ZAR, AUD / MXN.

Cross Currency Pairs

A cross currency pair indicates a currency pair that does not include the US dollar. Foreign currency trading allows other currencies to take the trader’s position. Some examples are:

  • CHF / JPY
  • EUR / CAD
  • GBP / AUD
  • AUD / CHF
  • AUD / JPY

What is CFD trading?

A CFD (Contract for Difference) is defined as the difference between the current price of the currency / commodity (when opening the transaction) and its price at the end of the contract (when closing the transaction). In this case, traders do not own the assets that they sell or buy. They speculate on price movements. For example, when buying EUR / USD, it does not mean that traders have the EUR instead of the dollar. They expect the price of that pair to increase to get the difference between the entry price and the closing price as a profit. However, if the price drops, they will have the difference between the entry price and the closing price as a loss.

When to sell and when to buy?

As we discussed earlier, currency pairs in Forex are treated as goods that we buy when we expect the price to rise. They are bought at a low price and sold after the price has risen and vice versa, when we expect the currency to fall, we sell at higher prices and buy back after prices fall. For example, when we expect the euro to rise and the dollar to fall, we buy EUR / USD and sell it after the price goes up.

How can we predict the rise and fall of prices?

There are two methods that are used to predict the rise or fall of currencies: fundamental analysis and technical analysis. The fundamental analysis is that which forecasts a currency’s exchange rate through the country’s economic situation. For example, when the country’s economic situation is good, the price of its currency goes up and vice versa. Brokerage firms offer what is known as an “economic calendar”, which shows all economic indicators related to the country’s economic situation, which are likely to affect the exchange rate of their currency. Technical analysis is one by which we predict currency prices based on the graph and by studying the currency’s history, we can predict its future movements. This type of analysis is based on the principle that says: “history repeats itself”. Technical analysis is currently the most common and there are many tools and methods used in this type of analysis.

What is the best forex trading strategy?

It is wrong to say that there is one forex trading strategy that is better than the other or that there is a method of analysis that is the best of all. The methods and strategies are many and diverse. Therefore, the trader, especially if he is a beginner, should start to study the different methods of analysis, concentrate on his strengths and try to make his own negotiation strategy, because what suits one may not suit others.

What are the profit and loss rates in the Forex markets?

You cannot say that there is a certain percentage of profit or loss in this market or that there is a forex trading strategy to achieve a 100% profit. The likelihood of loss exists, as well as the likelihood of gain. Even the best professionals and traders can sometimes win or lose. However, successful traders are those who have managed to make the profit outweigh the loss and, finally, have made a good return on the money that has been invested.

Best Forex Trading Strategies And Forex Tips

Be a wise trader and use tested techniques for your transactions or develop your own strategies with the help of the Demo Account!

  • Trade wisely, follow rules and apply strategies.
  • Read our guide and find out more about foreign exchange transactions.
  • The techniques and strategies tested by other traders are a real help.

Forex strategies are the backbone of any transaction. Trading on the Forex market without a well-established strategy would be like embarking on an expedition without knowing the route or the final destination. As exciting as it may seem to some, you end up wondering what the risks are and to what extent you can take them.

Whether we are talking about loss or profit, each consequence is a direct reflection of the plan you create.

What are Forex trading strategies?

As the name suggests, Forex trading strategies are techniques that determine the extent to which it is profitable to buy or sell a particular currency pair at a given time.

Of course, before setting the strategy, it is important to have already gone through the stage of informing and familiarizing yourself with the specific terms on the market, looking for a reliable broker and setting the budget.

In fact, the choice of strategy is sometimes conditioned by the broker you have chosen. Depending on the brokerage company you choose, you will see what options you have available, how great the flexibility is and what limitations there are. Documentation is, and in this phase, an essential step.

We will discuss some of the most common Forex trading strategies and why they may be of interest to you.

  • Best forex trading strategies on the Forex market
  • There are countless strategies developed over time by transaction enthusiasts, economists and more.

Here are the Popular Forex strategies worldwide:

Scalping

It is a strategy by which traders try to make a profit through short transactions of a few minutes. The trader seeks to profit from the difference between the bid price and the ask price.

The gain is quite small, 5-10 pips per transaction, so scalping involves opening a larger number of short-term transactions (in some cases even 100 transactions per day).

The price on the Forex market is not stable; it fluctuates constantly. A scalper relies on a short position and will not necessarily be concerned with market trends, political or economic events. He will seek to profit from the slightest price oscillation.

How do you know if your scalping strategy suits you? Although it can be profitable, it is not an easy strategy at all. It requires a lot of effort, but also a certain resistance to stress. If you like to follow the charts, to analyse the situation of the market as a whole, and the fast changes create discomfort, then probably scalping is not for you.

Swing Trading

Unlike scalping, the swing strategy allows you to keep the position open for days, or even weeks. You will be concerned to catch a major movement in the market that will bring you profit. Thus, you get benefits from upward or downward swings.

It is important to follow the way the price moves and to use technical analysis to forecast market movements.

How exactly can you do this? One of the tools for technical analysis is the RSI (Relative Strength Index) indicator, which allows you to assess market prospects and opportunities, price developments and the development of future trends. It is a tool that can be used in several strategies, not just swing, as it gives you information about the intensity of market movements, which you can then use to your advantage.

The swing strategy is usually preferred by traders who have a full time job in parallel. Because it does not require a permanent presence in front of a laptop, it is enough to check the progress from time to time by analysing the price movement on the charts.

Positional Trading

This is a long-term strategy that allows you to maintain an open position for weeks, or even months. Profit is generated by major market movements.

As with the swing strategy, position trading is less stressful and time consuming. However, in order to make a profit you need knowledge about the movement of prices and the market as a whole, as well as more capital.

Since we are talking about a long-term strategy, the number of transactions is much lower and there is a risk that you will not be able to make a profit every year.

Intraday Trading

It consists of a set of day trading strategies that involve opening and closing a transaction on the same day. It is also a short-term strategy, in which transactions are kept open for a few minutes or hours.

As a trader who applies this strategy, you will be interested in capturing intraday volatility.

As in scalping, knowing the major, long-term trends is not a direct concern. The focus is on tracking quotas and moving assets throughout the day.

As an intraday trader you can open several transactions on the same day and close them at the time you deem appropriate. Of course, you will need more attention and patience. Profit opportunities can be many and great, especially if the market moves in your favour.

As disadvantages, it is a method that involves a higher degree of risk because you can lose a large amount of money in a relatively short time. It can also be more expensive and time consuming, since you always have to check the charts before opening a new transaction.

Pyramid Trading Strategy (Forex pyramid trading strategy)

It is one of the trading methods that allows you to increase your chances of profit with a minimum degree of risk. It can have a negative connotation among traders, but it is successful if it is used correctly.

Through the pyramidation technique you will continue to add profitable positions as the price or market moves in your favour. When a position shows signs of growth, you place a stop loss order to protect your profits when you add another position. Thus, the risk of the transaction remains the same or decreases as you “block” the profit.

It is important to remember that not every transaction meets the conditions for pyramidation. In fact, only a few can really make a profit and only if they are used properly.

Forex Hedging

Hedging is a risk management technique where traders can minimize potential risk by taking opposite positions in the market. In Forex, this can be done either by opening two opposite positions in the same currency pair (for example, by opening a long and a long position in the GBPUSD pair at the same time) or by opening opposite positions in two correlated currency pairs.

The Martingale Strategy

The martingale strategy whereby, for each losing trade, the trader doubles the investment in future trades to recover his losses, once he has a successful trade. For example, if you invest 1 EUR in your first transaction and lose it, in the next you will invest 2, then 4 EUR, then 8 EUR, and so on. Please note that this strategy is extremely risky in nature and is not suitable for beginners!

The Grid Strategy

The grid strategy uses buy and sell stops based on natural market movements. These orders are usually placed within a range of 10 pips, and by having these orders placed in place, the trader will be able to automate his trading strategy.

How do you know which strategy works for you?

Finding a trading strategy in a volatile market such as Forex is not an easy task, especially if you are just starting out. Fortunately, with proper documentation you will increase your chances of success.

The traders who get the most profit attribute their success to the effective trading strategies they use.

There are a few things to keep in mind before you start implementing:

  • Find a reliable strategy, tested and used before, that has helped others to progress in the trading activity;
  • Any strategy involves a degree of risk and, of course, a potential for loss. Before you give up a strategy, make sure you’ve tested it long enough;
  • No strategy can guarantee absolute success ; beyond what can be sold to you, there is no universally valid “recipe”;
  • Discipline and rigor in following the rules of a strategy are vital if you want to be successful;
  • In general, the most valuable strategies are those that suit your trading style ;
  • Determine where you want to go with the trading activity: how much time you can allocate, what results satisfy you and how high your risk tolerance is.

Create strategies, but follow the rules

The ability to make money through simple transactions can be tempting for anyone.

Remember that these investments in transactions are complex operations, in which the investor must be a good strategist, knowledgeable of the economic market and the way it works, but also in anticipation of trends.

There are many strategies and techniques that you can use to succeed in the Forex market. However, in order to achieve your goals, it is advisable to maintain the strategy that works for you. What can generate profit for one trader is not necessarily valid for another. How can you find out what works for you? To experiment, to learn from mistakes and to have a disciplined approach.

Be aware of what is happening in the monetary world!

Before making Forex transactions, you must be aware that the evolution trends of the foreign exchange market are not easy to intuit.

The money market is influenced by countless variables, such as:

  • National banks
  • Speculators
  • Multinational companies
  • Financial or non-financial institutions

Understanding this world requires constant effort to be aware of what is happening, so that when you enter the world of transactions you are prepared.

We want to help you with a series of tips and strategies to ensure that you handle these transactions with the utmost responsibility.

Five steps to start making money with Forex Trading in South Africa:

  • Step 1: Invest in yourself. Meaning; do not take practical steps in this area before you have a minimum experience in the business field, it is necessary to learn (study Forex trading in South Africa constantly) and improve your knowledge. You will find that the scientific resources in this field are many and varied.
  • Step 2: Always try to work with a good and reliable forex broker in South Africa. There are many Forex brokers in South Africa that work in this field. It is important to make a comparison and choose the one that best suits your needs. For example, you can compare which of the brokerage houses have more accessible deposit and withdrawal systems; whether they are regulated; are internationally renowned. Another important detail to check is on the opinion of the broker’s clients and also on the brokerage company’s history of achievements, if it has already received a performance quality award, for example. The spread is the difference between the purchase and sale price or is the commission that the company receives.
  • Step 3: Start with a demo account. With the demo account, you can trade in the same real account environment without real money. This lets you know how the forex trading platform works and will allow you to test what you have learned previously.
  • Step 4: Develop your own SA forex trading strategy, study it well, test it on the demo account and constantly improve it until you are sure it is good and get satisfactory results.
  • Step 5: Start working on a live account. It is preferable that the amount of money you are working with exceeds your needs. This will be better for your psychological state during the negotiation and will not affect the course of your life if there is any loss. Finally, remember again that you have to read constantly and look for more information, because there is a lot of new research done continuously in this field and this will add new ideas and new techniques to your previous knowledge. If you stick to it, you will develop your experience until you reach the professional stage.

We often hear conversations from some people, who have no experience in this area, saying that trading in the Forex market is a big lie and in this market, you will not make any profit, as the only objective of companies of this type is to steal money from traders. But generally the people who have such opinions are the ones who saw an advertisement from companies like ForexTradingSouthAfrica and then opened an account without any study or background, which eventually led them to lose their money. We can avoid this type of negative experience and make a reasonable profit if we comply with the previous five rules.

how does forex trading work in south africa photo

Best Forex Brokers South Africa

Forex Brokers South Africa are the entity that connect the investor with the trading market. In this guide, you will learn how to choose the right Forex trading broker for you. The most important criteria for choosing the best Forex broker in South Africa. Objective reviews of regulated Forex brokers best in South Africa.

Best Forex Brokers South Africa 2021

Forex BrokerReviewMinimum DepositVisit Site
XMRead ReviewR 100 Visit Broker
CM Trading
Read ReviewR 3800 Visit Broker
Plus500Read ReviewR 1500 Visit Broker
HYCM MarketsRead ReviewR 1000 Visit Broker
Markets.comRead ReviewR 1000 Visit Broker
FXGM South AfricaRead ReviewR 3800 Visit Broker
AvaTradeRead ReviewR 1000 Visit Broker
easyMarketsRead ReviewR 1000 Visit Broker

What is a Forex Broker?

The Forex broker is the entity that functions as an intermediary between investors and the trading market. Forex Brokers that perform such processes are licensed and approved by the responsible institutions.

ForexTradingSouthAfrica provides South Africans with a list of regulated Forex brokers with verified reputations. You will also find complete guides about each of them, with useful information and steps you need to follow to open an account. We always emphasize the importance of opening a Forex Demo Account – the place where you can practice your strategies, whether you are a beginner or an experienced trader. Inform yourself thoroughly, from verified sources, that your decision will be one based on study and reasoning!

Best Forex Brokers in South Africa for 2021

  • XM Trading – Fast Execution & low spread
  • CM Trading – One of the Best South African Forex Brokers
  • AvaTrade – Fixed spread forex broker in SA
  • FXTM – FSCA regulated Forex broker with Instant execution
  • FXCM – Good Overall FSCA Regulated Forex broker in South Africa
  • Plus500 – Good Crypto CFD platform
  • IC Markets – Best ECN Forex Broker
  • Tickmill – One of the Best Forex Brokers in South Africa
  • Hotforex – One of the Best Forex Traders in SA
  • Interactive Brokers – Great for professionals and institutions
  • FOREX.com – Great all-round offering
  • IG – Best overall broker 2021, most trusted

Forex Brokers South Africa

What role does the Forex broker play in the trading process?

To better understand the role of the Forex broker, we can start from an analogy. When you want to buy a home, you will probably go to a good real estate agent. He will use his contacts to facilitate the meeting between the buyer and the seller.

Like a real estate agent, the broker acts as an intermediary.

The market is, however, made up of currencies, and the sellers are the largest investment banks in the world.

Given their size, banks do not manage transactions directly with individual traders. Thus, when you want to trade a certain currency pair, you need a broker that gives you access to the instruments you want.

What is the real help that the broker offers you?

A good FX broker will provide valuable services, will work for your benefit and will help you reduce your risks.

  • The broker functions as an intermediary, facilitates the sale and purchase operations and allows you to use technical analysis to forecast market movements.
  • A reliable broker will give you the tools and resources you need to make a profit from trading.
  • Access to a trading platform allows you to quickly find the currency pairs you want to trade before placing orders.
  • You will be able to keep track of transactions, profit, but also losses.

How do you choose the right trading broker for you?

In order to choose the right Forex trading broker for you, it is important, first of all, to know your objectives, then to compare, classify and make a decision.

In the analysis of the market offer, you must pay attention to parameters such as security, transparency, broker experience, account details and trading conditions (commissions, initial deposit, available currency pairs, etc.), license and regulations.

We will discuss in detail about the aspects to take into account when choosing your Forex broker, without the list being final. It is important to identify the best brokers on the market, but it is equally important to detect disadvantageous situations.

Best Forex Brokers in South Africa

In recent years, the number of Forex brokers SA has increased significantly on the South African market. The vast offer offers the investor a greater freedom, but also an increased responsibility. Choosing a reliable broker is not an easy task, especially since, like any financial market, Forex is not deprived of scams!

There are some criteria that we recommend you to consider when choosing your Forex trading broker.

A regulated broker

Probably the most important aspect you need to check is the legality of the activity carried out by the broker.

Before it is officially listed on the market, any Forex broker will receive a license from a financial authority. Only in this way can the trading platform that it makes available to the investor be considered legitimate. Forex brokers in SA that are not regulated on the market or do not have a valid license carry out a fraudulent activity and may expose you to a risk.

When you work with an authorized broker, you are sure that you are safe from potential fraud and that your money is safe, in segregated accounts, in the event of losses.

If you want to investigate further, the year in which the broker obtained his license can be a good indication of the market experience and experience.

In South Africa, you can check if the broker is regulated on the FSCA website.

The reputation of a Forex broker

Reputation is a good parameter for the broker’s confidence level. Of course, no brokerage firm will have 100% satisfied customers, but it is important to check the rating charts and the opinions of other traders.

A simple internet search can bring to light more important information than you think. Forums are a useful source of information in this situation. Here you will often find the opinions of real traders, clients of trading platforms. The rating pages also contain expert feedback and ratings and can help you make an easier decision.

In general, a South African Forex broker with a good reputation will not have problems regarding opening a trading account, withdrawing funds, deposit, etc.

Security of your funds

When you open a trading account, a lot of personal and financial information reaches your broker. Check if the broker has a security provider against online threats.

Also, make sure it uses SSL technology, an encryption protocol that secures information about the financial data you transfer. In most cases, site security and verification criteria indicate an investor-oriented approach.

It is equally important to make sure that the funds are kept in segregated accounts, so that, in the event of a possible bankruptcy of the company, the money remains safe.

Broker commissions and spread

Normally, this information should be available on the broker’s website. Reduced spreads and commissions involve a lower trading cost. Check if the broker perceives a fixed spread or a variable spread. The lack of commissions or any form of customer taxation can also mean the existence of possible hidden costs.

We do not recommend choosing a strict Forex broker based on the bonuses they offer you. Many are just marketing initiatives and do not reflect the true value of the broker.

The commissioning policy is not, however, the only differentiating element. It is equally important to look for information about the broker ‘s relationship with the banks.

Forex Brokers

Tools provided by the broker

Set your goals and see to what extent your broker can help you meet them. Does it give you access to a demo account? Does it allow you to trade in those markets that are of interest to you? Does it provide you with the trading strategy you want to use? Can you adjust the leverage ? There are some Forex brokers high leverage in South Africa.

Also, if learning and continuous evolution are important to you, you will want to check if the broker offers you the necessary tools in this regard: trainings, advanced courses or a demo account, which I have already mentioned.

The trading platform provided by the broker

The trading platform is, in fact, a stock exchange software provided by the broker, in which you place trading orders.

Its usefulness is not limited to this operation. The trading platform helps the trader to perform the technical analysis and to verify the price movement, so that he can make the best decisions.

One of the most popular trading platforms on the market is MT4 (short for Meta Trader 4). Almost all Best Forex brokers in South Africa offer MT4 because it has been widely adopted by the trading community.

The trading platform is not an element that significantly differentiates brokers from each other, unless they develop their own platform. Of course, it is often easier to offer investors a familiar tool, so it can happen that South African forex brokers who have their own trading platform also offer MT4.

What are the types of Forex platforms

It would be almost impossible to name all the platforms available on the market, but it is much easier to describe them depending on the category they belong to.

Depending on the type of activity, the platform can be:

  • Web based – when you can trade from an internet browser. Although not the most popular option, it has some advantages. One of these is that you can trade from anywhere you have internet access, without having to download and install the software.
  • Desktop based – involves downloading a program to your computer before accessing the trading platform. It is ideal for those who trade from one place. It allows easy navigation, is more complex and gives the trader the ability to monitor market positions and movements more easily.
  • Mobile – works as an application and can be installed on your smartphone or tablet.

Trading platforms can be free or paid .

If you are new to the Forex market, we recommend that you start with a free platform. As you advance in the trading activity, you can also try a more complex platform for a fee.

How to determine which are the best Forex platforms

It is difficult to answer the question “What is the best Forex platform?”, Given that each trader will have different objectives and preferences.

So, the most important thing is to identify the important issues for you and to do this, you can start with a few questions.

What is the cost of the platform? Although the price of a platform should not be very high, you may want to go for the types of software offered for free, especially if you are just starting out. If you need certain functions that you only find on paid platforms, then this may be a better option for you.

What is the type of software? As we discussed earlier, there are several possibilities to access the trading platform. Do you need mobility, or are you used to working in one place? Depending on the answer to this question, you will decide if you prefer web based or desktop based platforms.

What are the additional benefits? Do you have access to online trainings and courses? Can you program trading robots for free? Can you trade directly from charts? Check which platforms on the market offer you these options.

It is important to remember that there is no “best Forex broker” or “best trading platform” without important goals and criteria for you. For this reason, it is important to define your investor profile, to establish on which markets you want to trade, what strategies to use, and other aspects related to your trading style.

Forex Broker South Africa

The Best Forex brokers South Africa we recommend are tested

Our reviews of Forex Brokers best, and more, are 100% objective.

The ForexTradingSouthAfrica team provides you with valuable reviews, with information meant to help you as an investor. We provide the most valuable guides, which contain verified data. Thus, we take into account some important aspects in our reviews about Forex brokers regulated in South Africa, such as:

The registration process tested

Every step of the registration on the Forex brokers’ platforms is tested, in order to see both the details about the transactions and the customer relations service.

ForexTradingSouthAfrica reviews are documented

Our reviews contain everything you need to know about a broker, from the positive details to the negative aspects of it. The articles in the form of guides published by ForexTradingSouthAfrica experts are structured intuitively and easy to understand, so that the decision is made as objective as possible.

Transparent information

Following the transparent information we provide you, your decision will be as objective as possible when it comes to reviewing South African Forex brokers.

Read the materials available online both on the ForexTradingSouthAfrica website and on other platforms.

Broker platforms also contain contact details. Do not hesitate to contact a company representative to receive the answers you need.

In search of the best broker in South Africa, you will be able to form an investor profile, which will make finding it easier.

List of the best Forex Brokers in South Africa for 2021

We have reviewed the prominent and most influential forex brokers registered with the South African financial regulatory agency; The Financial Services Conduct Authority (FSCA).

CM Trading

CM Trading is considered the biggest stakeholder of the SA Forex market, offering all registered clients daily market review analysis of active currency exchange rates, financial global news, and diverse information relating to gaining active representation across the forex trading base in South Africa.

As an innovative host, CM Trading’s CopyKat trading system provides every trader, irrespective of their experience level, the unique feature of duplicating the trade signals, financial instrument data and currency pair trades of expert users on the platform. Strictly regulated by the FSCA, this broker gained clients easily in significant numbers as it also provides personalized trading solutions and manages clients financial inputs in separate accounts.

In South Africa today, the prevailing trading orientation easily shifts forex rookies to trade with CM Trading.

Forex Time Trading

FXTM controls another notable chunk of the forex traders base in South Africa. Operating on the philosophy of quality global representation of clients, this broker makes forex trading an interesting experience for clients with no upright confidence in the fluid money market by offering a Cent trading account operating at a minimum deposit of $5!

This gesture in its entirety sharply contrasts the minimum balance account regulations of competing brokers as the uniform minimum deposit for other brokers stands at $250.

The FXTM demo account allows new clients to register a virtual account that operates on the real time market analysis for free. This feature also produces virtual earning, records trade history, and match each demo account trader with an account manager; a perfect simulation of live forex trading, reckoning with all trading variables. Over 250 financial instruments are available for users to choose from, with a live stream of marketing research information provided on affiliate media outfits by the FXTM research team.

Today in Africa, FXTM is championing the race for advanced forex trading with the potential to trigger renewed interest in forex trading on the planet, and become the biggest stakeholder in the nearest future.

AvaTrade

AvaTrade’s reputation in the SA Forex climes”’ has been closely linked to its user friendly, easy to use AvaTradeGo app, providing a wide selection of financial instruments as a bundle of innovation made available on  generally applauded interface.

AvaTrade’s big guns procured for a knife exhibition are all mobile app enabled features branding step-by-step online tutorial for clients, easy-to-use ebooks, carefully prepared tutorial videos.

This broker hoist the flag of incorporating Cryptocurrency in forex trading on the African planet, securing a relatable position with the tech-savvy young personnel interested in forex trading right in South Africa and beyond its coast.

Other notable features offered by AvaTrade include CopyTrade, SharpTrader; a forex academy, AvaOptions; a compilation of financial solutions and trading instruments, and DupliTrade; a pioneer social trading platform.

With AvaTrade, Technology leads the way! It is also one of the best Forex brokers in SA.

IronFX Solid Trading

Banking on cliche chant of transparent trades, IronFX provides a list of trading options bordering on stocks, spot metals, commodities and spot indices with a future option of incorporating push alerts as with other brokers.

IronFX provides a tempting range of non-withdrawable bonuses for all registered client’s. The ease with which tradings are made, the unique customer service, and a swift order execution system are the basic selling point for IronFX.

The IronFX card provide the idea of fund security by offering the client a fund withdrawal service anywhere around the globe at a meagre currency conversion charge. Trading over 100 liquid money pairs, the clients on this platform have a choice account types ranges from a spectrum of VIP premiums; at $20,000 or more. IronFX is one of the best Forex brokers with bonus in South Africa.

Standard premium; at a deposit of $2,500 and the Minimum account fund of $100.

FXCM

FXCM easily leads the pack of international forex brokers in South Africa with their presentation package of trading many products with the same forex fund account. This broker also provide a personalized trading experience with the TradeStation feature. This feature provides an easy integrated access to a host of carefully selected chart tools, market level indicators and financial instruments peculiar to chosen currency trade pair.

Flaunting a $20 dollar registration bonus, FXCM is moving the border of conventional forex trading ideas to a futuristic angle by providing trading community referral programs, free workshop at different localities, and a demo account for potential big time forex traders.

In the SA Forex arena, FXCM is clearly dominating the recruit story headlines! It is one of the top South African Forex brokers. 

List of Successful Forex Traders in South Africa and their Successful Stories

Are you interested in Forex SA and you are not sure if forex really works? Below is a list of successful forex traders in South Africa and their success stories to motivate you. You may have heard that forex trading beginners are lucky and make their first profit when they open real trading account. As a beginner, you may not become a billionaire, but you can be a profitable forex trader in South Africa. Moreover, can make a stable profit every month. Have money to pay bills, travel, and invest in real estate.

Forex trading is very volatile with a volume of more than $5.3 trillion dollars traded on average daily. With the right tools and techniques, you too can become a successful trader and become one of the best traders in South Africa just like Ref Wayne and Sandile Shezi. These two are some of the richest forex traders in Africa.

To help you understand how much do top Forex traders make, we’ve decided to discuss some of the strategies top forex traders in the world use.  There are best forex traders in South Africa and you can follow their stories online as a beginner.

Most Successful South African Forex Traders

When it comes to forex in South Africa, you will hear different opinions. Some people say it’s a scam and you will lose money. It is designed to make you lose money and only forex brokers benefit. Luckily, there are successful forex traders stories that will motivate you. FX is not like gambling, it requires you to understand the market, have enough knowledge and implement strategies to master online FX trading. Most successful forex traders in South Africa such as Sandile Shezi, Steve Cohen, or George Soros, accumulate their wealth through trading online.

Another forex myth is that you must have lots of money to become successful. People who are successful invested a lot of money. Logically, the more money you put in, the more money you earn. There’s a part of the truth in the above statement.

However, you don’t need to start trading forex with a higher amount. In South Africa, you can start trading forex in South Africa from as little as $5 (70 ZAR). Most brokers recommend a minimum deposit of between $200 and $500 to open a trading account.

If you want to trade forex and don’t think it’s possible to become rich, we suggest you check out our list of successful forex traders in South Africa and see how they make it. Do forex traders pay tax in South Africa? Well, read on to find out for yourself.

List of Successful Forex Traders in South Africa

  • George Van Der Riet
  • Sandile Shezi
  • Ref Wayne
  • Jabulani ‘Cashflow’ Ngcobo
  • Simz D’ Mandla
  • Louis Tshakoane Junior

Most successful female Forex traders in SA

Truly speaking, the foreign exchange market is the male-dominated industry. However, nothing is stopping some female traders to become the most successful female forex traders in South Africa. Over the past years, we’ve seen young black female venturing in the forex industry and they are very successful in trading forex in South Africa. Stories of successful female forex traders in SA are worth reading and below are some of the women who are successful in it.

  • Nelisiwe Masango
  • Paballo Nkwe and Danielle Lester
  • Reabetswe Shongwe

Top 10 richest forex traders in South Africa

The below is a list of top 10 richest and most successful Forex traders in South Africa who invest in currency

  1. Jabulani “Cashflow” Ngcobo
  2. Simz D’ Mandla
  3. Mike Ndlovu
  4. Reabetswe Shongwe
  5. Sandile Shezi
  6. Louis Tshakoane Junior
  7. Ref Wayne
  8. George van der Riet
  9. Nelisiwe Masango
  10. Paballo Nkwe and Danielle Lester

How to get rich in Forex South Africa

There are so many ways that South Africans can get rich through forex. Most people tend to ask our researchers this question “how to get rich in forex South Africa?” we have developed some online forex trading tips on how to be rich in foreign exchange trading.

Trading Forex in SA is not easy. We know that most of you want to have a luxury life, drink the most expensive campaigns, drive expensive cars, show off luxury lifestyle on Instagram and stay in a big mansion. Another thing, you want to be part of the top forex traders in SA list just like George Van Der Riet.

Tips for getting rich in forex:

Below are some of the tips some best forex traders in South Africa use. Let’s see how SA home traders make money through forex in SA.

1. Limit Your Losses – do not spend the money you do not have. The foundation of your success in trading foreign exchange is the money you spend to speculate on foreign currencies. For example, if you deposit R10 000 and you lose 100% of the money, it is game over for you. It is always important to draw a budget and know how much you are willing to spend on your forex account. You can limit the risk of losing money by using stop loss and other functions that come with forex trading platforms.

2. Study the foreign exchange market – studying the foreign exchange markets is one of the most important tips that one should follow. You can’t just decide to trade foreign currencies and expect to be rich by not studying how it works. There are forex brokers in South Africa that offer demo accounts to South African traders. Demo accounts are designed to help you learn how to trade with fake money before trading with real money.

3. Choose a good forex broker – there are many good forex brokers you can choose from here in South Africa. You cannot become rich in forex if you are trading with a broker that does not provide good foreign exchange services. Choose one broker that meets all your needs and stick to it. If you are not sure if they provide good services, make sure that you read their reviews. Check what other people are saying about the company. Customer feedback is always important and you must never ignore it.

4. Use brain – there are a lot of lazy people out there who think everything comes easily. They don’t want to think out of the box and come up with good trading strategies which will help them become rich. Use your brain wisely.

5. The pace matters – the speed is always important, you need to work fast. According to our research, 99% of the FX market doesn’t work in real time. Here is how many South Africans make lots of money in Forex, they know that it takes a few seconds even minutes of an event to take place. Therefore, this provides them a bigger correction to the exchange market. You can make millions if you answer only one second before a correction.

6. Motivation – motivation is key. If the motivation is there, you can become a good currency trader. Always remember the reasons you trade forex in South Africa.

If you follow the above tips accurately, you can become rich and the best forex trader in South Africa. You can at least make R10 million rand if you work harder. Don’t only follow these tips; you can also do another research on “how to become a millionaire by trading forex South Africa.”

In the end, here are some important tips to consider when trading forex in South Africa:

  1. One of the most important factors that can affect the dealer is the psychological factor so it is best to stay away from the screen in the case of mental disorders.
  2. In case of loss, it is preferable to move away from the screen and study the reasons that led to it and return to forex trading in South Africa when the negative impact of the loss disappears because keeping an eye on the screen, in this case, can cause significant losses.
  3. There are many opportunities on the market every day, so don’t be upset if you missed a certain opportunity.
  4. Proper capital management is one of the most important reasons for success. While the use of great leverage is a major cause of loss.
  5. Patience is one of the most important reasons for success. In the words of one of the most important investors: “Trade is the transfer of money from the impatient trader to the patient trader.”
  6. According to Warren Buffett, one of the biggest investors in the world, if you are working on a particular strategy and achieve satisfactory results, you must maintain it, as many traders have failed when they decided to change their strategies.
  7. If you find yourself having more losses than profits, you need to change your strategy.
  8. It is said: “Don’t put all your eggs in one basket”. So, be careful to focus your investment on more than one currency pair. If you miss an investment opportunity in one pair, you can succeed in another and that makes your investments safer.

Forex Trading South Africa: How To Trade Forex in South Africa

How to start trading Forex in the Forex Trading SA market? Before you begin forex trading, you need to decide which currency pair you wish to trade. At ForexTradingSouthAfrica we exist to help you choose. There are over 65 currency pairs to choose from. You then decide on the type of Forex trade, whether CFDs, Commodities or Forex. After you have decided what you want to trade, you can buy or sell currencies.

Forex is traded in pairs, this of USD / ZAR, USD is the base currency and ZAR is the quote currency. For example, One US Dollar costs R13.41. Imagine you buy 1 000 US Dollar and you pay R15 910 ZAR. Later that day, the USD rises. When you close your position by selling the USD 1 000, you will receive ZAR 16 160. Meaning you will receive a profit of ZAR 250.

But imagine if the USD decreases later that day, when you close your position by selling the USD 1 000, you will then receive ZAR 15 660, losing ZAR 250.

Reasons to Trade Currencies Through Forex South Africa Brokers

  • When you trade currencies through Forex Trading SA or Forex South Africa brokers, make sure that they give you powerful currency trading platforms. You can trade currencies manually or use automatic trading.
  • Most brokers are internationally regulated online forex trading companies, so you can trade peacefully.
  • Trade leveraged trading up to 400:1 leverage on popular traded currency pairs such as USD / GBP or USD / EUR
  • You get a chance to trade more than 60 currency pairs. You can trade major, minor and exotic currency pairs.
  • Trade with low spreads
  • Most Forex Trading SA brokers offer demo accounts for practice, as well as free manuals for forex education.
  • You also get to choose from a wide variety of languages
  • Guaranteed 24 hour, 5 days a week multi-lingual call centre customer service
  • You can open a trading account with any of the above mentioned SA regulated brokers.

Types of Forex Trading Accounts in South Africa

  • Demo accounts – Demo or practice account, uses fake or virtual money. Demo accounts are for training purposes. If you are a forex beginner, you need to practice with demo before trading with real money.
  • Cent Accounts – have a minimum deposit of $5 (+/- R80), Spreads from 1.5.
  • Standard Accounts – have a $100 minimum deposit (+/- R 1,400), Spreads from 1.3.
  • Micro Accounts – require a minimum of $100.
  • Mini Accounts – this type of accounts does not require clients have a minimum amount. Some brokers recommend mini accounts for beginners. It has loose spreads.
  • ECN Zero Accounts – require a minimum deposit of $500 and provide 0-pips spreads in exchange for transaction fee. Some experts don’t recommend this type of forex account for beginners; only experienced traders with sizable assets can choose it.
  • Premium Accounts – have a $2,500 minimum deposit. Premium accounts give traders access to a wide range of expert advisors and auto-trade benefits.
  • VIP Accounts – require a minimum deposit of $20,000 or more.

After you have decided which online forex trading account you wish to choose, you can sign up an account with a broker listed on South Africa Forex Trading homepage. After signing up, the broker will verify your information through a phone call and you will also be required to submit supporting documents such as copy of your ID.

How to open a forex trading account in South Africa?

Before you open a live forex trading account with any South African Forex Trading or Forex Trading SA broker, you need to understand how forex and market analysis work. You need to understand that the currency market here might be different from another country. Here, trade forex involves taxation. The South African Revenue Services (SARS) taxes trading profits for forex traders who trade in South Africa and make regular profits. According to SARS, Tax rates range from 18% to 42% depending on the amount of profits generated and other factors relating to each individual’s tax status.

You also need to have knowledge about the regulation in your jurisdiction as indicated by ForexTradingSouthAfrica. Brokers in South Africa are regulated by the South African Financial Sector Conduct Authority (FSCA), which is is responsible for market conduct regulation and supervision. Forex brokers, who are licensed and regulated by the FSCA, are not permitted to give clients’ information to third parties and are required to maintain trader funds in separated accounts.

Forex Trading in South Africa

How to trade Forex in South Africa?

You need to understand the foreign market before you start trading currencies through Forex trading SA brokers. The market opens 5 days a week from 5pm EST on Sunday until 5pm EST on Friday. Below are steps to take before you begin to trade currencies:

  1. Step 1: finding the right South African Forex broker

With the help of the best Forex Trading SA also known as Forex South Africa brokers, you can run trading strategy smoothly, both in technical analysis or fundamental skills. But you also could end in failure if the broker you choose turns out to be of poor quality. Characteristics of a good Forex broker is not rigging its clients. To find out which cheating broker, you can see from regularity and by trying to trade on demo accounts.

For new Forex traders may be more important is using the demo account to practice your trading skills. If you are a new trader, remember to start your trading experience only with a demo account! You certainly don’t want to want to lose money because of the first error, isn’t it?

  1. Step 2: learn the basics of forex

If you’ve found the appropriate forex broker through South Africa Forex Trading website, then it is time to shift the focus of information about forex. You can get it easily from sites provide a variety of information.

There are many articles and websites dedicated to the basics of forex, you need to do is simply type in Google about “the basics of foreign exchange market”. You will find everything you want, even more. This step should not be taken lightly, as it tries to trade without understanding how the market works is extremely risky.

  1. Step 3: forex trading education

Forex education is like no other education. The subject of forex education market is very messy, so that education about it also likely fared the same. There are no fixed rules in foreign exchange market movement, otherwise it is unstable and likely to be dynamic.

To be successful you have to learn new things about forex trading online regularly and continuously. Try to read many online Forex Trading books, articles, and hear the opinions of other forex traders. The more learning, then you will be more educated and experienced.

  1. Step 4: develop a forex trading strategy

When learning through South African Forex Trading site, you will be satisfied with seeing and trying other people’s forex trading strategies or even follow signals given other currency traders. But remember, your goal is actually to be able to develop its own strategy. In order to do so, not only needed repair for one hour only. You will be obliged to follow the development of trading and the forex market day by day. Thus you will not only create new strategies, but also able to repair if the error and failure when trading currency.

The improvements should continue to do until you find the most appropriate strategy. After the strategy is found and the system is fixed, then it’s time to enjoy your currency trading results. Furthermore, Forex trading online will be a real pleasure, which leads to your financial freedom today and in the future.

How to start Forex trading for beginners

Trading Forex can be especially difficult for beginners. This is due to the fact that they have unrealistic expectations, which are common among newbies. Something important to know is that currency trading is not a scheme to get rich quickly. Forex trading for beginners South Africa is our definitive guide to the Forex Market for Beginners.

In this guide for beginner traders, you will receive an introduction to the Forex market, so that you understand what Forex is and how it works, the most important terminologies, in addition to the benefits of trading different currencies.

We will also cover how to start trading (including choosing the best broker and trading software), the fundamentals of risk management, the different ways of analyzing the Forex market, as well as an overview of the most popular trading strategies.

At the end of this guide, you will have the necessary knowledge to start testing your trading skills with a free demo account, before proceeding to a real account.

What is Forex Trading for Beginners?

Forex is the market where currencies / currencies are traded. In a simplified way, a Forex transaction can be, for example, when your local currency is transferred and exchanged for another currency, for a holiday trip in another country.

In the Forex or Foreign Exchange – foreign exchange market (also abbreviated to FX), an estimated volume of US $5.3 trillion circulates, which is traded daily between governments, banks, companies and speculators.

Knowing how Forex works is important, because the collective combination of all participants creates the market in which you can trade. The relative weight of each market participant is measured by the money that participant generates – from billionaire hedge funds and investment banks, to private traders with a few thousand dollars in action.

Currencies are traded in pairs, and the movement of currency pairs measures the value of one currency in relation to the other. For example, the EURUSD pair measures the value of the euro against the US dollar. When the value of the pair increases, it means that the value of the euro has increased against the US dollar. When the value of the pair decreases, it means that the value of the dollar has increased (or that the value of the euro has decreased).

When trading Forex and CFDs, traders can make profits from these cross-currency movements.

Which Forex Pairs Can Beginners Trade?

Forex pairs can be classified as major (major), secondary (minor) and exotic.

The main FX pairs are made up of the most frequently traded currencies, which are:

  • USD – US Dollar / EUR – Euro
  • JPY – Japanese Yen / GBP – British Pound
  • CHF – Swiss Franc / CAD – Canadian Dollar
  • AUD – Australian Dollar / NZD – New Zealand dollar

A main pair contains any of these currencies against the US dollar, such as EURUSD, USDJPY or GBPUSD. Secondary pairs are made up of major currencies that do not include the US dollar. These pairs include EURGBP, EURCHF, AUDNZD, among others.

Finally, exotic currencies are any currencies that we have not previously mentioned, such as the Hong Kong dollar (HKD), the Norwegian krone (NOK), the South African rand and the Thai baht (THB). Exotic pairs include an exotic currency and a main currency.

When learning about Forex, many beginners tend to focus on major pairs due to their daily volatility and low spreads. But there are countless opportunities – from exotic Forex pairs, to business opportunities in stock CFDs, commodities, energy futures contracts, and even indices. There are still indexes that accompany groupings of other indexes, and you can trade them too.

The number of markets you will have to probe for opportunities depends on you, but do not limit yourself to just one financial instrument or just one market.

Limiting markets can lead to over-trading, overtrading, so be sure to diversify your investment.

How Do Forex Quotes Work?

When you trade Forex, you will see that there are two prices quoted, “Bid” and “Ask”. Bid is the price at which you buy the currency, while Ask is the price at which you can sell it. If you are buying a currency in a trade, it is called a long position, and the hope is that the traded pair will increase its value, so that you can sell it at a higher price and profit from the difference.

If you are selling a currency in a trade, the opposite is what counts – the hope that the traded pair will decrease its value, so that you can buy it at a lower price, and thus profit from the difference. We call this type of trading a short position.

The price quoted for these prices is based on the current exchange rate of the currencies included in the pair, that is, how many units of the second currency it is possible to have in exchange for one unit of the first currency (for example, if 1 euro could be exchanged for 1.13 dollars, bid and ask prices would be on both sides of this number, respectively).

How Much Do the Currency Values Change? (Which Liquidity of Different Forex Pairs?”

If the way in which traders profit is from the difference between the selling and buying prices of currency pairs, the next question to ask is: How much does the price of currencies fluctuate in Forex?

This depends on how liquid the currency is, or how much of it is being bought or sold in a given period. The most liquid currency pairs are those with the highest supply and demand in the Forex market, and this supply and demand is created by banks, companies, importers and exporters, in addition to traders. Major pairs tend to be the most liquid, with EURUSD moving from 90 to 120 pips on average daily.

In contrast, the AUDNZD pair moves only around 50 to 60 pips a day, and the USDHKD pair moves on average 32 pips daily (when looking at the value of currency pairs, most will be displayed with 5 decimal points, a ‘pip’ is 0.0001, so if the EURUSD pair moves from 1.16667 to 1.16677, this would be the representation of the 1 pip change).

The main Forex pairs tend to be the most liquid, and therefore offer more opportunities for trading short term. However, there are also several opportunities in minor pairs and exotic currencies, particularly if you have some specialized knowledge about a particular currency.

What is Forex Spread?

Spread, in Forex, is the difference between the bid and ask prices of a currency pair. For example, if the purchase price of EURUSD is 1.16668 and the sale price is 1.16669, the spread will be 0.0001, or 1 pip. In any Forex trade, the value of a currency pair must cross the spread before it becomes profitable. Taking the previous example, if a trader entered a buy trade in the EURUSD pair at 1.16668, the operation would not be profitable until the pair’s value was above 1.16669.

In a currency pair with an extended spread, such as EURCZK, for example, the price should make a bigger movement so that the trading becomes profitable. At the time of writing this article, the purchase price for this pair is 25.4373, while the sale price is 25.4173, so the spread is 0.0200, or 20 pips.

It is also not uncommon for this pair to have movements of less than 20 pips per day, meaning that traders must trade for several days to achieve a profit.

This means that trades with low spreads are often a priority for Forex traders, so that their trades can become profitable more quickly, and that they can do more small trades, rather than relying on trades bigger to make money.

What Are Forex CFDS?

The term CFD (Contract For Difference), is a contract used to represent the movement of prices of financial instruments. In terms of Forex, this means that instead of buying and selling large amounts of a currency, it is possible to profit from price movements without actually owning the asset. In addition to Forex, CFDs for stocks, indices, bonds, commodities and cryptocurrencies are also available. In all cases, CFDs allow price movements to be traded without having to buy the assets.

If you have been researching Forex, you may have seen the term “Forex CFDs” somewhere. There are two ways to trade Forex: using CFDs or Forex spot (also known as margin).

Forex spot involves actually buying and selling the currency. For example, in the case of exchanging a certain amount of British pound for euros, and then, once the value of the pound increases, you can exchange the euros for pounds again, receiving more money compared to the amount you originally had before the purchase.

How Forex Leverage Works

Trading:

In addition to allowing access to various financial markets, another benefit of trading CFDs is that the trader will be able to access a much larger part of these markets, and thus increase potential profit.

CFD Contracts provide leveraged market access, so that a trader can have access to a much larger portion of the market than he would have if he bought the assets permanently.

Using the Gold CFD as an example, to buy an ounce of gold you will need to spend $ 1,200. However, with a leverage rate of 1:20 (which means that the trader will be able to trade up to 20 times the amount of his initial deposit), a trader will be able to trade the total value of an ounce of gold (equivalent to $ 1,200 ) for a deposit of just $ 60.

Similarly, if you want to buy 3,000 US dollars with euros (in EURUSD), the cost would be 2,570 euros. However, with a leverage rate of 1:30, you could have access to $ 3,000 in the EURUSD pair through a CFD with only $ 100.

The best part is that the potential profit is the same as if you had invested in the asset itself. The risk here is that the losses are magnified to the same extent as the potential profits.

  • Forex CFD trading (1:20 leverage)
  • Traditional Trading
  • Your deposit $ 500 US $ 10,000
  • Trading on EUR / USD opened at 1.16766, and closed at 1.16926, with a difference of 0.00200.
  • You make USD $ 200 in profit, or 40%.
  • You make USD $ 200 in profit, or 2%.

Trading on EUR / USD opened at 1.16766, and closed at 1.16532, with a difference of 0.00234.             You lose USD $ 234, or 46.8%.

You lose USD $ 234, or 2.34%.

How to Calculate Profit in Forex

Now that you know the basics of how Forex trading works, including currency pairs, CFDs and leverage, why not see what a trade looks like in action?

Before we continue, let’s review some key concepts covered so far with this list of important terms related to Forex:

Pip: A pip is the basic unit in the price in currency pairs, or 0.0001 of the quoted price. When the bid price of the EURUSD pair goes from 1.16667 to 1.6677, this represents a change in a pip.

Spread: Spread is the difference between the bid (ask) and sell (bid) prices in a currency pair. For the most popular pairs, the spread is usually low – sometimes less than 1 pip! For pairs that are not traded as often, the spread tends to be higher. Before a Forex trade becomes profitable, the value of the pair must exceed the value of the spread.

Margin: Margin is the money in the trader’s account. However, retail traders generally do not have sufficient funds to trade a sufficiently large volume and thus make large profits. For this reason, many Forex and CFD brokers offer access to leverage to their clients.

Leverage: Leverage is the capital provided by a Forex broker to reinforce your clients’ trading volume. For example, if your trading account has $ 1,000 and uses a 1:10 leverage rate, you can trade a volume of $ 10,000 on Forex. If the negotiation is successful, the leverage will maximize profits 10 times. Note, however, that leverage will also multiply your losses by the same proportion, so it should be used with caution. If your account balance is below zero, Negative Balance Protection may be triggered (if you are trading at a broker regulated by ESMA), which will result in the automatic closing of the trade in question. Fortunately, this means that your balance cannot be negative, so you will not owe anything to the broker.

What Are the Advantages of Forex – Trading for Forex for Beginners

Now that we have an overview of the Forex market, you should ask yourself, “Why trade Forex”?

There are countless reasons why people decide to start day trading. Some of the reasons may be the potential to earn extra money without leaving home, the opportunity to learn a new skill in your own time, or even the dream of achieving financial freedom, and to have more control over your financial future.

But when it comes to Forex in particular, there are a number of benefits that make it a very financial instrument attractive to negotiate.

Forex: The Largest Financial Market in The World

Forex is the largest financial market in the world, with more than $ 5.09 trillion dollars traded every day. In other words, in just one day, more money is traded on the Forex market than Japan’s GDP (Gross Domestic Product) size!

Of these transactions, $254 billion is traded through CFDs and other derivative instruments.

As it is the largest and most active financial market in the world, it is also the most liquid market, making it easy for traders to enter and exit trades; and can trade at very low cost in the most liquid pairs (even for less than a single pip!).

This also means that the Forex market is volatile, creating several opportunities for the trader to profit, both in positive and negative movements of currency pairs.

Negotiating Time

Forex is the market that never sleeps, which means it can be traded at all hours of the day (or night). Unlike stock exchanges around the world, which are located in physical spaces like the New York Stock Exchange or the London Stock Exchange, the Forex market is known as an “Over-The-Counter” (OTC) market.

This means that negotiations take place directly between the parties that hold the currencies, rather than being managed through a stock exchange. Centralized. Consequently, the Forex market has never been restricted to the trading hours of any exchange.

Despite this, since the Forex market is global, there is always a part of the world that is “awake” and doing business, and during these hours your currencies tend to experience more movements. For example, currency pairs involving the US dollar tend to move more during US trading hours (from 16:00 to 24:00 GMT), while the euro, British pound, Swiss franc and other currencies European, have greater movement during European business hours (from 8:00 to 16:00 GMT).

In turn, the Australian dollar, the New Zealand dollar and the Japanese yen tend to be more active between 00:00 and 08:00 GMT.

As a trader, this means that you can trade when it suits you best – if you work during the day, there will be currencies available to trade before or after working hours. If you have children but are at home during the day, you can simply choose a different currency. In the Forex market, you can trade 24 hours a day, 5 days a week!

Specular About Rising and Price Drop

One of the most common philosophies in trading and investing is “buy low and sell high” – this is particularly the case for long-term investments, such as investments in stocks or bonds, which depend on adding value to the asset.

In the Forex market, you can also sell at a high price and buy at a low price. In this way, you can potentially make profits in both upward and downward trends. As previously mentioned, in a long position, a trader will open the trade at the bid price, and will aim to close the trade at a higher price, profiting from the difference between the opening and closing value of the given currency pair.

So, if the EURUSD bid price is 1.16667 and the trade closes at 1.17568, the difference is 0.00901, or 90.1 pips. (If you are negotiating a whole lot, this means a profit of 901 USD). Traders can also open short positions (also known as short positions), where they sell a Forex CFD at the ask price, and a

Once the price drops, they buy at a lower bid price, and profit from this difference.

In this case, if the ask price in the GBPUSD pair is 1.32265 and the trade is closed at 1.31203, the difference will be 0.01062 pips (which would result at a profit of 1,062 USD if you traded 1 entire lot).

Low Costs in Forex Trading

Because Forex CFDs are leveraged (leverage), traders have access to large amounts of currency in the market at a very small margin – sometimes as low as 1/500 the size of the market they want to access (based on a leverage of 1: 500).

There are also additional costs – most Forex trading accounts have little (if any) commissions, order fees, and account management fees. If there is any trading fee, it is usually a margin that the broker adds to the spread.

Forex Easy Access

One of the biggest advantages of trading Forex is that it is one of the most developed financial markets in terms of technology. While many markets are accessible only through outdated trading platforms, there is constant competition in terms of software available for the Forex trading market.

The MetaTrader 4 (MT4), MetaTrader 5 (MT5) and MetaTrader WebTrader platforms. MT4 and MT5 are available for Windows, Mac and Android and iOS devices (for iPhone and iPad).

With access to all of this software, Forex can be traded anywhere in the world – and all you will need is an internet connection. With online platforms, trading applications and desktop programs, modern online Forex trading platforms are accessible to all traders and all styles of trading.

In fact, it is now possible to start trading in a risk-free environment with a free demo account!

How to Start Trading Forex for Beginners in South Africa

  1. Is the forex broker regulated in South Africa?
  2. Assess the quality of the broker’s trading service
  3. What are the costs of Forex Trading in South Africa?
  4. What products and markets are offered by the broker?
  5. What trading tools are available?
  6. Do the broker’s offers suit your trading style?
  7. Does the broker offer education and support materials to learn Forex?

How to Manage Risk in Forex Trading for Beginners?

Before making your first trade, it is important to consider how to manage risk in the Forex market effectively. As we discussed earlier, trading Forex CFDs gives you the opportunity to use leverage, meaning that you can use a relatively small deposit to gain access to a larger portion of the market (up to 500 times the value of your account balance).

This multiplies your potential profit in the same way. However, it also multiplies potential losses.

To use an extreme example, imagine that you have an account balance of EUR 2,000 and put it all in one single row. If trading goes wrong, you will lose all of your investment, and due to the rapid movement of the Forex market, losses can happen very quickly.

That’s why risk management is essential – to help you minimize losses and protect your profit. The key areas to consider when managing the risk of your Forex trades are Trading Psychology and Financial Management.

Master your Trading Psychology

While it may seem strange to discuss topics such as mindset and psychology in a guide to Forex Trading South Africa, the truth is that these are some of the most important factors that separate successful traders from unsuccessful traders.

Developing discipline when trading and the ability to manage your emotions will help you stay calm under pressure, being able to enter trades at the right time and know when to exit such trades – whether to reduce losses, or make profits before the market change the direction.

Some key points of trading psychology to keep in mind include:

  • Stay calm: As exciting as trading can be, it is a stressful job. There will be several obstacles on the way to the top. Emotions can force trades to open too early and / or close too late. The main cause of stress in Forex beginners is the fact that some trades will end in losses, regardless of what you do – it is the way the Forex market works. Just remember that war is not won with just one battle. In the end, it is the overall performance that counts most.
  • Understand your risk tolerance: Each person has a different level of risk tolerance, and this will influence the size of the trades they take, the losses they will be willing to bear, and their psychological effect on traders. To manage your stress levels while trading it is important to consider your level of risk tolerance and choose strategies that support it. For example, someone with a low risk tolerance would feel more comfortable doing several small trades over time and making several small profits. Conversely, someone with a high risk tolerance might want to make bigger trades, with opportunities for bigger profits (but also bigger losses).
  • Set realistic goals: It is important to be realistic in your expectations in trading. This way, you will know the best times to open and close trades. Many novice Forex traders have high expectations about their potential profits, and this makes them trade very aggressively, with large amounts of money and make decisions very quickly. Again, start with little to test your knowledge and skills, and once you start consistently achieving your results, you can set bigger goals.
  • Define your limits: Before entering any Forex trade, you must have defined the price at which the trade will open, the price at which it will close with profits and the price at which it will close if the market unexpectedly occurs, in order to minimize your losses. Once you have established these limits, it is important to stick to them! Many novice traders prefer not to close a trade because they believe the market will still move in their favour, but end up losing all of their profit when the direction suddenly changes. If your trade reaches its predetermined target, close it and enjoy your earnings. If the market moves in the opposite direction, close the trade or set a Stop-Loss so that it closes automatically.
  • Prepare for the worst: While this may seem pessimistic, in the Forex market it is better to prepare for the worst than to expect the best. Several times throughout history, financial markets and trading instruments have experienced sudden spikes or declines in value. When considering the worst possible result of a trade, you can take measures to protect yourself, if this happens, for example, by setting a Stop-Loss in advance.

Money Management in Forex

Managing your money on Forex depends on the specific measures you use to increase your profits while minimizing potential losses. Successful Forex traders have much more to do with effective money management than having a set of good trades, and it is one of the secrets that separate those who trade Forex successfully in the long run from those who withdraw after a few trades.

Here are some fundamentals of money management to monitor your trades:

  • Decide how you will finance your trade in advance: Only one type of money is good to invest, which is what you are willing to lose. Preferably, without damaging your physical and mental well-being during the process. Every profitable trader is profitable in his own way, while every loser experiences losses in exactly the same way. Remember, use every opportunity available to learn. It is an endless process!
  • Define your level of investment: One of the most common questions about trading FX is “how much does it take to start trading Forex?”. In online Forex it is a good idea to start at the bottom and build your way. Fortunately, many Forex brokers have reasonable minimum deposit levels to open an account. At Admiral Markets, for example, the minimum deposit is 100 USD. Be aware of any broker that offers bonuses for certain deposited amounts, as they can be fraud, and it can be very difficult to withdraw your money in the future.
  • Calculate your risk: Make sure you calculate your risk before entering a trade. If the potential profit of a trade is less than the risk potential, so the trade is probably not a good decision. You can assess your risk with our free Forex calculator.
  • Determine the profits needed to cover your losses: Along with calculating your risk before any trade, it is also worth calculating how much you will need to earn again to cover losses in any future trade. It is often more difficult to earn money back than to lose it, simply because your remaining investment is less, which means that you must make a larger profit (in terms of percentage) to reach the balance before the loss. For example, if you invested 5,000 EUR and lost 1,000 EUR, you will have lost 20% of your balance, leaving you with a final balance of 4,000 EUR. To have a balance of EUR 5,000 again, you will need to make a profit of EUR 1,000. However, with an initial balance of EUR 4,000 (after the previous loss), a 25% profit will now be required instead of 20%.

Forex Trading Tips for Beginners South Africa

We have already covered a lot of information in this article regarding Forex Trading South Africa, so we would like to conclude with an overview of our main Forex trading tips for beginners. If you can take something from this article with you, here are the following tips:

  • Do your research about Forex Trading South Africa market
  • Generally speaking, the less you know, the greater the risk involved, and there is no limit to how much you can know or risk. An infinite amount of information is available for free on the internet, such as: Forex educational videos for beginners, Educational articles and tutorials, Forex seminars for beginners and professionals and Forex Webinars.
  • If you want to know more about trading Forex as a beginner, simply read as much as you can, and always analyze what you read – don’t take all the information as if it were 100% correct.
  • Test with a Demo Account or Simulation Software. All brokers offer a demo account – whether you are a beginner or not, first try out all the new strategies in the demo account.
  • Continue until the results are conclusive and be confident in what you are testing. Only then will you be able to open your real account and use your strategy with small amounts of money. Be sure to treat your trades on a demo account as if they were real trades. You can also use simulation software to simulate market conditions and create the impression of a real trading session.

The Trend is your Friend in Forex

Whether you are a beginner or a professional forex trader, it is best to trade what you see, not what you think you see. For example, you might think that the US dollar is overvalued and has been overvalued for too long. Naturally, you will want to sell it, and eventually, you will. But if the price is moving upwards, it doesn’t matter what you think. In fact, what nobody thinks matters. The price moves up and you should be trading with the trend.

Keep it all registered

A novice Forex trader must develop the mindset of a business owner. All companies have a business plan, constant monitoring and regular audits. Skipping steps without plans and processes is a sure way to fail. Starting a trading diary is absolutely essential.

Daily, be sure to write about the following topics:

  • Points for further research
  • Reasons to open or close a trade
  • Your achievements and mistakes

About Forex Trading South Africa (ForexTradingSouthAfrica.co.za)

Forex Trading South Africa (ForexTradingSouthAfrica.co.za) is not an online broker. At ForexTradingSouthAfrica, we simply review and list our top regulated forex brokers in South Africa. We do not offer financial advice to anyone who visits our website. Make sure that you read the reviews and understand Forex before signing up with any Forex broker in South Africa.

Forex Trading South Africa FAQs

Get answers to the most frequently asked questions about Forex Trading in South Africa.

What is Forex?

Foreign Exchange (Forex or FX), is the currency trading market. Forex is the largest and most liquid market in the world, being open 24 hours a day, five days a week across major financial centers across the globe. In comparison, on the New York Stock Exchange, the largest stock exchange in the world, about 169 billion dollars are traded in transactions daily, while the foreign exchange market exceeds the volume of 5.3 trillion dollars traded daily.

How does the Forex market work?

In the Forex market, currencies are traded only in pairs. The best known pairs are: Euro / Dollar, Japanese Dollar / Yen, British Pound / Dollar, Canadian Dollar / Dollar. When you buy one currency, by default you sell the other. The goal is to make a profit by buying and selling currencies when their value increases or decreases. There are many economic or political factors that influence exchange rate fluctuations, which traders and analysts try to decipher.

Is Forex trading in South Africa legal?

Yes, Forex trading is legal in South Africa.

What does ECN mean?

ECN stands for Electronic Communication Network. Specifically, an ECN account gives you direct market access, so you can trade directly with all market participants.

What is a Forex broker?

A Forex broker is an intermediary between the investor and the interbank market. A Forex broker offers clients the prices received from banks that act as a liquidity provider for that broker. Admiral Markets has as liquidity providers the largest banks to offer the best price quotations and the fastest execution.

What is a spread?

The spread is the difference between the selling price and the buying price of an instrument. The bid price is the price at which you can sell an instrument, and the ask price is the price at which you can buy an instrument. With us, you can trade a wide range of instruments with variable spreads. This gives you more transparency in trading.

What is the spot market?

Spot markets refer to the markets in which the current price of financial instruments is traded. Instrument prices coincide with the current market price.

Is Forex Trading SA profitable?

Forex trading in SA is profitable. However, In order to achieve profits, you must apply some strategies to adapt to and you need to understand Forex market and what drives it, and efficiently manage risks.

What are the best Forex South Africa Brokers?

The best Forex South Africa brokers have been listed above. At ForexTradingSouthAfrica, we only partner with the best Forex brokers in South Africa.

How can I start trading in the Forex market?

The fact that you are reading this chapter of questions and answers is already a first step! Creating a demo account is definitely the first necessary step towards successful trading. Both novice and advanced traders use the demo account, practice, either to familiarize themselves with the platform, or to test various strategies or trading conditions. Demo accounts open for free and involve no risk.

What are forex rates?

In online Forex trading South Africa, the pairing of the currencies is conferred as a rate that reflects the magnitude relation between the values of the 2 currencies. Take for an example, the rate for buying the pair USD / ZAR is 1.00, that is R1 = 0.071 United States Dollar ($).

What is the best stock trading website for beginners in Johannesburg?

Well, at South African Forex, we only recommend the ones listed on our site. They are more trustworthy and reliable. You can also use their demo forex accounts to practice using virtual money before using real money.

What is online trading and how does it work?

Buying and selling stock or anything online is referred to as “online trading”. Brokers buy and sell stock online through forex investment and they charge people a commission. To become a forex broker in South Africa, you need to have a license that permits you to trade stock through exchange.

Is it safe to trade Forex online in South Africa?

Yes, it is safe to trade currency as our website South Africa Forex has indicated. In fact, make sure that the broker’s website is secured with an SSL Certificate to avoid your information being stolen or leaving your sensitive information on the website. Nonetheless, we recommend you trade with trusted trading companies. Do your research to find out if the company is legit and not just some online scam.

Is currency trading in South Africa legit?

Currency trading is real and legal in South Africa. However, some people come up with scams online. Forex market regulators work day and night to eliminate scammers who rob people their hard earned money through foreign exchange investment.

Is Forex trading in South Africa legal?

Forex trading in South Africa is legal as long as you follow the laws and regulations of the forex markets to avoid money laundering and you provide your income tax. Check the forex brokers we’ve listed on our website Forex Trading South Africa.

What is a binary options broker?

Binary options broker is a person or a company that runs a financial option whereby the payoff is either some fixed economic amount or nothing at all.

Is Binary Options a gamble?

Binary options in some parts of the world are seen as a form of gambling. Some binary brokers and outlets have been exposed as scams. Some parts of financial investments regard binary option as a high-risk.

How do I start investing with little money in Forex market?

Well, it’s easy, start by saving every month. Avoid spending your money on unnecessary things. Save with a goal in mind. When you are done saving money, use your savings. Begin to trade currency or binary options little by little. There’s no rush, take your time to avoid risks. This saving strategy works better for forex for beginners.

How much money do I need to start forex trading in South Africa?

It depends on the forex broker, for example, some Forex trading SA brokers require you to deposit any amount between $5 and $500 to open your forex account. The quantity you deposit can impact the quantity of leverage you’ll be able to use in your trades, as equity and margin are essential in Forex in South Africa.

Can I lose more than I invest in Forex in South Africa?

Normally you can’t lose. Forex brokers never let a trader lose more than funds available on their trading account. When the balance in your account approaches zero, brokers close your position. The loss which is large than the trader’s deposit is a loss of the Forex broker. Brokers must prevent this kind of loss.

Can you trade South African Rand in Forex?

The answer is yes, forex traders can trade the South African Rand in Forex Trading SA. The rand (sign: R; code: ZAR in Forex) is the official currency of ZA. Currency traders commonly trade ZAR. Some best brokers pair the Rand with other currencies such as US Dollars, the Great British Pound and Euros.

How many times a day can you trade forex?

You can only make five trades per day in the Forex Trading SA market. You don’t have to overdo it. Furthermore, we can always recommend additional reading. We are here for you.

What is a foreign exchange rate?

In forex, foreign exchange rate is the rate at that one currency is going to be changed for another currency. It’s additionally considered the worth of one country’s currency in relevance another currency. Foreign exchange rates can change and there’s no guarantee until payment has been processed. For example, the exchange rate for USD to ZAR is 1 United States Dollar equals to 14,43 the Rand.

How can one be a successful trader?

Becoming a successful currency trader comes with practice. You cannot wake up today as a successful trader. Do your research, find yourself a mentor (someone who will guide you), develop forex trading strategies and use demo accounts to practice more. Furthermore, if the market is favouring you, take advantage of it. Remember, you also need to teach others so that you won’t forget your foreign exchange trading tips. Sharing is caring.

Is it easy to trade forex?

Forex Trading SA is easy once you understand how it works. Remember to start off with demo accounts before trading using real money. Also learn different forex terms so that you will know exactly what you are doing.

How can I become a successful trader?

Forex is just like any other work. There are many forex trading South Africa beginner’s guide you can find online. Some brokers also offer free course where you can learn trading jargon.

What is Leveraged Trading?

Leverage in Forex Trading in SA is given by the broker to modify forex traders to carry trading positions that square measure larger than what one’s own capital would otherwise enable.

What is a Pip?

Pip in Forex Trading SA is an acronym for “percentage point” or “price interest point”. Pips are the smallest possible variation of a course anytime. When a currency pair increases or decreases, its movement is measured in pips. For example, if ZAR/USD moves from R13.36212 to R13.36321, it has moved a single pip. Pips are the fourth decimal place of the currency pair. But currency pairs that are calculated in hundreds, the pips is the second decimal place. A good example will be R13.36

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