How to Do Forex Trading in South Africa
Here is how to get going.
Link up online. From anywhere in South Africa, you may access to the forex market and trade currencies throughout the globe.
Look for the top fx broker online.
Launch the account.
Add money to your account.
Download the trading platform.
Trade.
Example of forex trading in South Africa
Say you believe the price of zar/usd, which is currently trading at 0.05780/0.05790, will increase. You wish to buy r150,000 at the current margin rate of this currency pair, which is 3.17%.
Only $275.08 will be required in your account; the remainder can be borrowed from the broker.
The zar/usd exchange rate rises as expected. It is now trading at 0.06020/0.06040 after 3 hours.
Your profit is (r150,000*0.06020)-(r150,000*0.05790), or $345, for this move of 23 points (0.06020-0.05790).
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Forex trading for profit in South Africa
Outside of the conventional “buy cheap, sell high” maxim, there are several more strategies to profit in the foreign exchange market (which works just fine as well). Knowing more makes it easier to recognize opportunities when they arise.
Carry trading: you can profit from a currency pair’s directional movement as well as from changes in the currency’s interbank interest rate. Holding money in a forex account is exactly like keeping it in a bank. Your investments earn interest for you. Carry traders aim to make money off of the disparity in the interest rates of different currencies.
Binary options: you can engage in all or nothing options rather than taking a profit or loss depending on the real-time movement of a currency pair. You win money if the value of a currency is a certain amount on a specific day. You forfeit your investment if it is less on that date than the previously agreed-upon price.
Shorting: if you believe a currency’s value will decline in the future, you can borrow it, sell it at a high price, and then purchase it back at a lower one. This is referred to as currency shorting.
South Africa’s top forex brokers
The list of trustworthy brokers provided below is a great place to start if you’re looking for an online forex broker to use from South Africa. These include internationally licensed overseas brokers who accept South African clients, such forex.com, as well as online brokers or banks having a presence in South Africa, including fxpro, fxtm, fxcm, and saxo bank.
Choosing a broker with a website that is translated into the language you like may be a good idea if you want to conduct business in a language other than english. Additionally, the broker must to have a native speaker of that language working in customer support.
Choose a broker who has a South African office and is subject to FSCA regulation.
