Best Forex Brokers in South Africa

I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day. You may want an ECN-style account with raw spreads plus commission or a market-maker broker who charges just the spread and can take the other side of the trade.

Which is the Best Forex Trading Platform?

The major difference is the behavior of the currency pair — it’s moving in a direction rather than within a range. Day trading is a specific kind of price action trading that closes all trades by the end of the day. Placing a time limit on the action protects a trader from big overnight moves. Although forex trades 24 hours a day, weekend moves can be somewhat surprising.

1. The lowest minimum deposit requestment for South African traders we have found is R76 with ZAR account brokers or $5 USD with Hotforex Micro account & XM’s Micro Account.
2. Broker’s own trading platforms tend to be easier to use for beginner traders as they have fewer functions, less customisability and simpler interfaces.
3. The Economic Calendar is an excellent resource for determining which news has the most significant impact.
4. Even if retail traders could gain access to the interbank market, they would still need extensive knowledge and experience in forex trading to succeed.

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

Read our beginners guide on how to get started for forex traders in SA. You need to learn how plus500 review to operate the software, do analysis, and manage the risk in the account. We have a Forex trading for beginners section to continue reading and explore many of the principles to succeed in trading. Fundamental traders are often reliant on scheduled news events that alter currency price. A good example is the Non-Farm Payroll (NFP) report in the United States; the NFP is released on the first Friday of every month and details how many jobs have been added or lost in the US economy.

Hedging Strategies with ZAR Options and Futures

A strong currency combined with rigorous regulation makes South Africa an effective and relatively secure place to begin your forex trading journey. Overall, Tickmill is the best Islamic / Swap-Free Forex Broker in South Africa. Muslim traders can register an account with Tickmill with a minimum deposit of 1784,69 ZAR ($100). Converting their account is free, and zero admin or holding fees are charged. Furthermore, Muslim traders in South Africa can expect access to halal trading instruments, a powerful trading platform, a range of economic indicators, graphical tools, and customizable charts.

A CFD is basically an agreement between a buyer and a seller to pay the difference in the price of a security between the time of entering into the contract and the time of exiting the contract. CFDs allow you to speculate on the price movements of various securities without owning the securities. The Ask price is the price at which you can buy the base being referred to. For example, if the Ask price for the currency EURUSD is 1.15, it means you can buy 1 euro at a price of 1.15 dollars. Let us understand the complete process and working methodology of the forex market with the help of an example. The details of the regulation are generally mentioned in the footnote of the official websites of the brokers.

For instance, trading hours begin at 5 PM EST in the USA on Sunday and roll continuously with other markets until Friday at 5 PM. Note that even though currency trading is restricted for retail traders on weekends, the exchange rate keeps moving. Once you have signed in, deposit funds, conduct price analysis and open a position when you see fit. Forex trading in South Africa gives access to the world’s largest speculative financial market. There are many trading platforms and online training resources to support both beginner and experienced investors.

Best ECN Forex Broker in South Africa

A commission on forex pairs can range from $2 to $10 for a Roundturn trade (both sides) of a Standard Lot. Details of commission (if charged) must be checked before opening the account. These are the common ways in which a forex broker will charge the traders in Australia for trading. Liquidity refers to how quickly an asset can be sold or bought without affecting its value.

Also called FX trading, Forex trading is a standard in international business and is used by financial institutions and investment banks to makes profits and hedge their other investments. Forex trading is also a popular form of investment for private citizens – called retail Forex traders – in South Africa. There is no set minimum amount required to start forex trading in South Africa, it varies between providers. Some platforms will allow you to begin forex trading with a deposit as low as $1. Forex traders in South Africa try to predict price changes between currencies to generate profits. This is done by bitmex review buying or selling currencies when you believe the price will change, then doing the opposite after a profit has been made.

A forex chart will graphically illustrate the historical behavior of the relative price movement between two currency pairs across various time frames. Micro Accounts are best suited to traders with a small amount of capital. They allow investors to enter the financial market with a small minimum deposit limit. However, due to their low entry barrier, investors’ trading activity will be restricted. South African forex traders can utilize ZAR options and futures contracts to protect their positions and limit risk.

Hence, such brokers can easily run scams to defraud South African traders or carry on unfair practices. Most of the online forex trading is done in spot markets via Contract for Deposits (CFDs). Forex trading is like a global market where people trade different currencies. You want to exchange some of your dollars for euros because you think the euro might become more valuable.

Following the 2008 crash, some central banks engaged in quantitative easing or increasing the supply of money in circulation, which causes a currency’s price to drop. On the other hand, raising interest rates (usually used to combat inflation) will cause a currency’s price to increase as this leads to higher investor demand. MetaTrader 5 (MT5) is the most recent version of the MetaTrader Forex trading platform. Unlike the basic version of MT4, MT5 allows trading on exchange-listed assets like stocks and ETFs. Though still not as popular as MT4, MT5 is supported by a growing number of Forex brokers.

So, you go to this big market, and you find someone who wants to trade their euros for your dollars. You agree on a price, make the trade, and now you have euros instead of dollars. If the euro’s value goes up, you can exchange it back for more dollars and make a profit. It is legal to trade with both local Forex brokers and brokers based overseas. Most Forex brokers who offer cTrader don’t make money from the spread and will instead charge a commission per trade.