Friday EST. The market has its own dynamics, which depend on the economic circumstances that are particularly relevant to the countries that issue their currencies.

Even if you have knowledge in other marketplaces, such as merchandises or the standard marketplace, a related in the forex marketplace is priceless before you twitch trading. Below, you will find some preliminary steps to take before starting the business from South Africa.

The first consideration to be taken into account is the need for a trusted broker. Next, your knowledge level and trading experience will influence what you need in a forex broker. If you already have substantial trading experience, you can focus on selecting a broker with adequate trading tools and a sufficiently advanced trading platform.

If you have a certain amount of experience, a broker with excellent customer service and educational resources will be your best bet. Low-experienced traders often find that trading in a demo account provides insight into how the forex market trades and prefers trading environments.

Since not all forex brokers are created equal, consider your requirements carefully before opening an account.

Once you have the knowledge of the forex market and determine your requirements for trading, you can pursue a broker. Many foreign exchange brokerages have based their operations in South Africa. Also, you can accept South African customers and open an account for join trading Forex with an international-based forex broker controlled by the FCSA. South African Rand ZAR to another currency like Euro or a US Dollar.

If you exchanged your currency before, then you have already traded in the forex market. In this example, you would be physically selling your home currency South African Rand for buying US Dollar. When you are exchanging your money for travelling abroad, you through your bank are making a forex transaction in the global forex market without even knowing. The rate at which you can exchange your currency to another is called the Exchange Rate. This rate is continuously fluctuating every second as the forces in Forex market determines the rate.

If the ZAR's exchange rate in the live market is R The difference of R0. In theory, Retail forex trading through an online broker is similar to currency exchange, but still there is more to it. Don't worry, we will be explaining everything in the next chapters of this guide!

Currency Pair is the quote of one currency relative to the other currency. In the Forex market, all currency are traded against each other, therefore being called 'currency pairs'. So when you are trading in the forex market you are actually trading 2 currencies simutaneously. There are other terms like a Base Currency, Quote Currency, majors, minors etc.

Let's get to them. Here we will explain all the important terms that you must know before understanding more about forex trading. You will hear a lot of these terms commonly while trading, so let's start.

If you hear the local business news or a trader talks about the currencies like: "The South African ZAR edged higher againt the Dollar today, reaching a two-week high of And 'Ask price' is the price at which you can buy the base currency in the pair.

Bid price is always lower than the ask price. This is the fees charged by the forex brokers for each trade trade, and it depends on the market liquidity, and the currency pair that you are trading. The lower the spread, the better it is for you. Simply put, 1 pip is the smallest measure at which the market moves. It is important to select a broker that charges the lowest spread in pips. We will explain this more in the chapters below. So, don't worry if you don't understand this now.

The are are 7 major currency pairs, and these are generally the currencies of most stable and well-developed economies. They are typical less liquid and more volatile than the Major pairs. Exotic Pairs: Exotics are generally major paired against a currency of emerging economy. Legally trading forex is now possible for all individuals in South Africa.

For trading forex, you have to signup with a regulated Forex broker to place your real trades in the market. Choosing a 'good' broker is an important step because the broker plays a pivotal role in your trade.

There are many regulated forex brokers that accept South African traders: Hotforex FSCA Regulated , XM Trading , Exness, Forextime, Avatrade, FxPro, and so many others. You should also decide on the Account Base Currency that you want to choose. We have only selected the brokers that are regulated with atleast 2 regulators including FSCA, FCA, ASIC, CySEC , have competitive trading fees, and transparent record for fair dealing practice in the past.

Hotforex is our 1 recommended broker for Forex trading in South Africa. Start Trading at Hotforex Important: Forex Trading involves high risk, and your capital is at stake. Note: Before you open your trading account with any forex broker, make sure to check that it is licensed or authorized by the FSCA for offering derivative instruments. Some brokers may claim to be authorized but may actually be unlicensed.

Also, it is important to note that some fake forex brokers may use the license number of an authorized broker on their website, claiming that they are authorized, which may not be a true claim. Check the products for which the broker is licensed. And verify that you are opening account on the website actually licensed by the Regulator, avoiding any clones.

For example, Tickmill South Africa is authorized by FSCA under FSP No. After you have made your choice on the broker, you then need to open your trading account with that broker. For ID proof, you can normally submit your Driver's License, and a Home Utility Bill of your Residence for the Address proof. You must verify your account before you can start trading live on any broker's platform. Opening a demo account does not require KYC, but it will be required when you are opening a Live Account.

An important question is how much money is required to start forex trading in South Africa? In ZAR the minimum is R70 at Hotforex. But it is advised to start with a capital that is not too low, otherwise you are likely to use very high leverage in order to gain more profits.

And this puts your entire trading capital are huge risk with every trade. We will first dive into some important terms that you would need to know while placing your trade. There are mainly lot sizes i. The number of lots that you can trade will depend on factors like leverage, margin, your risk threshold etc.

Otherwise you risk losing your total capital in a single trade. Let's understand this with an example. You risk losing your entire account balance on a single trade. Leverage: Leverage, by definition, essentially involves borrowing a certain amount of money to invest in something.

In Forex, if you are using leverage then it means, you are borrowing some money from your broker to place order for a bigger position than your actual capital. Don't worry, and follow through the following example. But what if you can lend money from your broker, and place the order. But Leverage is kind of a double-edged sword which has the potential to increase your profits if you are right, but also increases the risk of a bigger loss to you if you are wrong. A leverage of allows the trader to take a position that is times the amount of initial margin.

If the trader is not careful in setting up the stop-loss, it could quickly deplete your trading account. But if the trader is right in his trade, then he can gain from the trade. But as you can understand from this example, the risks of using excessive leverage to trade forex is very risky. You must never use more than leverage. Margin: Margin is the amount needed in your trading account to place an forex trade. Forex brokers set margin requirements to open a trade, and this is the money set aside with the broker when your position is open.

If margin goes down below a threshold required by the broker, you will receive a notice from the broker to fill it up to the required levels. Stop Loss: Stop loss is the level that you can set, at your desired price where you decide to exit a losing trade.

Losses are inevitable, but how you manage that loss is important. So always remember to set a stop loss whenever you are placing a trade. Some brokers also offer GSLO Guaranteed Stop Loss , which guarantees that your position will be closed at the price limit set in your order. We will now take example of actual trading positions, and how you can place the trade in Forex market.

Loss Case: But if the market goes against you, let's say to 1. Loss Case: In case the market goes up, from 1. Both the above cases highlight how you can lose or gain from a forex trade, depending on your position, position size lots , leverage etc. It is best to fully understand all these dynamics on demo, and then only trade live when you have a proper strategy in place.

And always remember to use a Stop-loss for every trade. Successfull forex traders follow a sound trading strategy. With technical analysis trading, you are basically relying on the price chart, and trading based on the chart patterns, technical tools like candlestics, moving averages etc. On the other hand, fundamental trading involves trading long term based on macro economic factors of a country like their employment data, Retail Sales, Central bank's interest rates etc.

Fundamental analysis mainly involved trading based on the news releases. would determine the price of currency and base the decisions of currency movement by analysing these factors.

There are plenty of online Forex news calendars available for free if you want to make it your sole trading strategy. Also, you can get an idea on how a particular information may effect the market movement upward or downward.

For example , the release of employment news data of a country is a major news because if the higher population is employed, it is a sign that the economy is improved and hence this would reflect in the overall currency value. Similarly, a bad news or policy change by the central bank of the country would likely affect the currency' price's exchange rate in the short term as well as long term.

Even if you consider yourself a Technical trader, it is really important to keep track of the Economy News as this would affect the direction of a currency. For ex. A weaker than expected Economic growth in the UK would affect the rates of GBP against other major currencies like US Dollar, Euro etc.

Similarly, an increased in interest rates by the Fed, and divergence in the Central Banks monetary policies can affect the currencies. So, it is really important to understand how ihis works, and use it to form a general bias on the currency's future price.

It is wise to learn about both the strategies on demo, spend hours to analyse the charts, and also analyse how the currencies are affected during news hours, and only then trade based on the strategy that works for you. Most Forex brokers offer multiple trading platforms for online forex trading. In this chapter, first we will list for you all the popular trading platforms offered by different brokers. And then give you the comparison of all the best forex brokers based on their platforms.

Metatrader gives traders the ability to perform advanced trading operations, run Expert Advisors and copy trades of other traders. This platform is owned by MetaQuotes Software Company. The best feature with MT4 also offers the flexibility to write your own code and create your own custom indicators and 'Expert Advisors' or EAs. Most of the brokers offer MT4 or the latest MT5 for free. We advise you to go for a broker that offers Metatrader.

cTrader: CTrader Platform is offered by some of the regulated forex brokers like FXPro. Their fees with cTrader platform is lower than their fees with MT4 platform. Web Trader: Numerous brokers including Exness, HotForex, Tickmill etc. offer their Web Based Trading platform where you can just open the chart in a browser instead of downloading the software.

For a start, you may want to consider trading off a WebTrader. You can see the performace of the available copy traders over a period, risk ratio etc. You also must note that copy trading carries singinificant risks, so you must carefully check if you want to follow the strategy of a trader or not. Proprietary Platforms Some forex brokers offer their own platform.

But there are disadvantages of choosing such brokers, as you will not get the flexibility of third-party platforms. Even the best of traders have bad days, but with good money management you can minimize your risk. As for the pros , trading in the forex market offers opportunity to gain income.

But there are many risks also. Can the risks associated with forex trading be managed? Yes, it is possible. All these are sound money management practices that will ensure that you have a better chance of being a successful forex trader. All brokers have different minimum deposit requirements. We advise beginner traders to use minimum leverage of not more than for keeping your risk low.

South African traders should start with the right balance, so that you won't be overtrading or risking a lot of your capital for each trade with very high leverage. Yes, forex trading is legal for traders in South Africa. Although, it is not mandatory for traders to trade with a locally regulated forex broker but it is advised for South African traders to choose a FSCA regulated broker or a any top tier 1 regulated broker like FCA, ASIC broker for safety of your capital and fair trading conditions.

It is advised to trade with FSCA regulated brokers for traders in South Africa, as this would offer you grievance addressal in case of any dispute with the broker rather than in case of a foreign broker. There is no guarantee of profits in forex trading. Trading forex can be profitable for professional currency traders, but for most retail day traders it can bring big losses.

Hence, forex trading is not for inexperienced traders. As per some reports there are , forex traders in South Africa.

Before you dive into forex trading, you must first understand the forex market. The market of Forex is different from any other marketplace in the ecosphere. It continues to trade throughout the trading week from 5 pm. Sundays until 5 pm EST. Friday EST. The market has its own dynamics, which depend on the economic circumstances that are particularly relevant to the countries that issue their currencies. Even if you have knowledge in other marketplaces, such as merchandises or the standard marketplace, a related in the forex marketplace is priceless before you twitch trading.

Below, you will find some preliminary steps to take before starting the business from South Africa. The first consideration to be taken into account is the need for a trusted broker. Next, your knowledge level and trading experience will influence what you need in a forex broker. If you already have substantial trading experience, you can focus on selecting a broker with adequate trading tools and a sufficiently advanced trading platform.

If you have a certain amount of experience, a broker with excellent customer service and educational resources will be your best bet. Low-experienced traders often find that trading in a demo account provides insight into how the forex market trades and prefers trading environments. Since not all forex brokers are created equal, consider your requirements carefully before opening an account.

Once you have the knowledge of the forex market and determine your requirements for trading, you can pursue a broker. Many foreign exchange brokerages have based their operations in South Africa. Also, you can accept South African customers and open an account for join trading Forex with an international-based forex broker controlled by the FCSA. If you live in South Africa and want to consider a local broker, take some time to see if the broker has a good reputation with other traders on forex forums and websites.

Below is a brief selection of foreign exchange brokers at home and abroad that accept customers from South Africa:. Now that you have opened your trading account, you can join trading Forex online. We hope you have done your homework and created an action plan. To help you in this highly volatile trading environment, a business plan with clear money management principles is essential. Forex trading will allow you to make more money , but doing so will slow down your account very quickly if you are on the wrong side of a fast-moving market.

So, use stop-loss orders to avoid losing your entire deposit. How to Join Trade Forex in South Africa by Michele Riley February 9, February 11, Step 1: Consider your Forex Broker Requirements.

Let's begin! So, use stop-loss orders to avoid losing your entire deposit. If you hear the local business news or a trader talks about the currencies like: "The South African ZAR edged higher againt the Dollar today, reaching a two-week high of Exotic Pairs: Exotics are generally major paired against a currency of emerging economy. South African traders should start with the right balance, so that you won't be overtrading or risking a lot of your capital for each trade with very high leverage. Sort By Please Select Max.

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