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How to Choose South African Forex Brokers

Let’s be honest. The forex journey can be a daunting one, especially for a beginner. There are so many things that one has to learn about the market before they can even think about opening their own forex trading account. The persistent learners are the ones who become successful, but even the most brilliant forex traders face the inevitable challenge that can make or break their trading careers. The Forex Broker.

Broker
Platform
Leverage
Regulation
Action
XM LOGO SMALLOpen Live
Open Demo
MetaTrader 4
Web Trader
1:888
CySEC, FSP, ASIC
SignUp
Review
plus500 logo smallOpen Live
Open Demo
Plus500
1:200
FCA, ASiC
SignUp
Review
easy forex logoOpen Live
Open Demo
MetaTrader 4
1:400
ASiC, CySEC
SignUp
Review
grand capitalOpen Live
Open Demo
MetaTrader 4
1:2000
FinaCom
SignUp
Review

How to Choose South African Forex BrokersThe Forex Broker plays the role of the intermediary between the forex trader and the currency market. They are the medium that allows small scale traders like retail traders to be able to participate in the market alongside the large financial organizations like hedge funds and banks. This means that they have significant control of how a trader operates in the market. Every trader wants to know that he is in business with a forex broker who is not only trustworthy, but offers good spreads on their orders. It doesn’t matter how brilliant of a trader you are, if at the end of the day you can’t collect your profits. This is not a common occurrence in forex trading, but it does happen. How you may ask? The answer is, through deception.

With the explosion of popularity in forex trading, it has become very profitable to be a forex broker. Unfortunately, it makes it harder for those new to forex trading (and even some veterans) to distinguish between the reliable professionals, and the unscrupulous or incompetent companies who do not care about offering great service and instead only want to make money off you.

In a world where anyone can get professional websites and buy compelling reviews from strangers, it can be quite difficult to distinguish between flukes and companies that are offering quality service. This is especially more complicated in emerging markets like South Africa, where South African Forex Broker regulation is not as strict. Luckily, there are some key elements that trader can use to help them choose the forex broker.

What to Look for When Choosing a: Forex Broker South Africa

Regulation:

The way that the international financial market is set up, there are regulatory bodies that provide safety to clients of financial institutions by ensuring stability in the financial industry. They are the ones that provide standards in the financial markets to fight corruption and prevent fraud. Traders who choose to do business with regulated forex brokers know that their funds are secure.during their transactions.

For South African Forex Brokers, the environment is a bit different. The South African forex market is not as heavily regulated as some parts of the world. The country mostly focuses on exchange control (outflow and inflow of cash to the country) which is controlled by a governing body, the South African Reserve Bank.

Under this body, any transaction involving transferring money to a foreign party must be reported. This can make things complicated for traders, as this is how deposits and withdrawals are usually made in forex trading. Luckily, citizens may use the annual offshore investment allowance and the single discretionary allowance which allows individuals to invest up to 10 million Rands (south african currency) and 1 million rands, respectively. South Africa FX Brokers may also be regulated under another body, South Africa’s Financial Services Board or the FSB, which is a highly respected institution.

The Best South African Forex Brokers will share traits similar to quality Forex Brokers across the world. While each traders needs and tastes are unique, there are some elements that are universal, particularly security, competitive spreads, currency pair diversity and good customer service.

Currency Coverage:

No we are not talking about covering your money with an umbrella or even a piece of clothing. Currency coverage here refers to the type and range of currency pairs that the brokers offer. The currency in South Africa that is used is the Rand, it would then be expected that it would be main currency offered by South Africa Forex Brokers. For these brokers this usually appears in the form of currency pairs like the ZAR/USD and the ZAR/GBP. For traders who are looking for unique trading opportunities, where fundamental news plays a large role in currency movement, then these exotic currency pairs would be more than enough. For others, especially beginners, who are more comfortable with the more popular pairs like the EUR/USD, it then would be necessary for them to compare the currency pair diversity of each broker before making their choice. After all, it wouldn’t be good thing to get stuck with a broker who doesn’t even offer the currency pairs that you want to trade.

Spreads, Commissions and Fees:

Unfortunately for those of us who love the simple things in life, choosing the right South African broker is not just about the range of currency pairs that they offer. Like many forex brokers, the Top South African FX Brokers have similarities that are shared by even the worst forex brokers in the world. This makes our jobs a bit more difficult when trying to find the right forex broker. Many brokers may offer similar currency pairs, similar trading platforms and even allow for a wide range of trading accounts and styles, so how do we know which ones to pick? One way to distinguish between the good and bad forex brokers is to look at their fees.

Fees, spreads and commissions are usually the way in which forex traders make their profits. The more competitive forex brokers will offer tight spreads and low commissions to their clients. And with the large amount of forex brokers in the market, this means that traders have the power to find the best forex rates that suit their needs. To find the best FX Brokers South Africa traders should pay attention to the deposit and withdrawal fees, commission percentages, swaps and variations in spreads across currency pairs for each broker that they are considering doing business with. Some traders find themselves with brokers who they can easily deposit money with, but find it almost impossible to withdraw their profits from. This is an example of getting trapped by a bad forex broker. To avoid this, make sure you do your research before you commit your hard earned funds to Forex brokers South Africa.

Know What You Want

Of course there are many other factors that we could mention here. We could delve into looking at different account types or trading styles or even the different types of trading platforms that South Africa Forex Brokers offer, but the one advise that covers all of that is to know what you are looking for. This goes to any trader searching for a broker in any market. It may also means different things to different traders. Some traders prioritise fees and spreads over security, others prioritize regulation and payment methods; for others customer service is the most important to them. The point is to be aware of what is most important to you, so that you may find a broker to satisfy those requirements

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