Regulated Forex Trading in SA
TradeFX South Africa was designed for traders – by successful traders. We have taken into account all the factors and emotions that beginner traders are faced with. Our goal is to answer these questions and help you make an educated decision when selecting your broker of choice. Forex trading in South Africa can be a profitable journey.
- Transparent broker comparisons helping you review the best brokers in South Africa.
- Assist you in choosing the broker that best suits your trading needs.
- Help build trust between you and the broker you decide to deposit and trade with.
- Avoid you from constantly having to switch brokers. (broker hopping)
- Set traders up with the best possible start to their trading journey.
- Provide consistent education, tips and trading material.
- Always be ethical in what we do.
- Set you up for success.
Broker Review Categories
You asked and we answered. We have researched the most commonly asked questions, concerns and trust factors traders required to make an educated decision when choosing Forex brokers in South Africa.
We review and rate every broker using the following criteria:
- Regulation: Regulatory entities have shown to be one of the deciding factors when choosing a broker. We have put this as the focal point of our reviews along with other trust factors. The FSCA is the entity that oversees financial services within SA. They have proven to be ethical and protect clients, taking action when needed against fraudulent companies. Other than the FSCA there are 3 common regulatory bodies to consider; FCA (United Kingdom), ASIC (Australia), CySEC (Cyprus) – The latter has come under some scrutiny in the past.
- Broker Type: A big deciding factor for most traders is the method of operation, although there might be more emphasis placed on this than needed. Brokers can be put into 3 main categories; ECN (Electronic Communication Network), STP (Straight Through Processing), MM (Market Maker) – Each has their pros and cons whilst all 3 can still provide fair trading conditions. Most brokers will not openly admit that they are a Market Maker. Each broker will also be given a beginner rating.
- Support: Client support greatly affects the overall experience traders have with their broker. It is important that support is offered via different channels on and off the website. Since traders and brokers might be in different timezones, around the clock support while markets are open remains key.
- Deposits and Withdrawals: In our researched opinion, this is a make or break factor. While deposits are mostly instant, withdrawals should be processed swiftly as well. Methods of deposit and withdrawals should be broad. Debit/Credit card and bank transfer is the norm. Additional options are well rewarded.
- Trading Conditions: The leverage, spreads, assets and account types are reviewed under this category. These are important factors that have a direct effect on profit/loss. This is considered the bread and butter of any trader’s account.
- Trading Platform: Different brokers offer different trading platforms. It is uncommon to see a broker not offering the industry standard MetaTrader 4 (MT4). Other popular platforms are MetaTrader 5 (MT5), cTrader and broker designed proprietary platforms.
- IB Affiliate Program: Traders that are happy with their broker often decide to promote or recommend them to their friends or family. We will highlight their offerings, tools and overall assistance to make the journey smooth. A broker that offers a ‘refer a friend’ program, will be well noted.
We provide traders with a user-friendly way to navigate and filter between brokers. View what is important to you at a glance. Reviews that are informative and exciting to read.
Are There Risks Involved Trading Forex?
A common question asked by beginner traders. You first need to understand what is Forex trading. Any form of trading or investing carries a level of risk. Choosing a reputable broker combined with adequate education, these risks can be minimised. It is worth mentioning that screen time (time spent trading and analysing charts) plays a major role in this. Lack of the former mentioned is directly contributed to why the majority of traders lose money in the long term.
Avoiding the following can dramatically put the odds in your favour:
- Uninformed misconception about the industry as a whole
- Thinking Forex trading is an easy way to riches
- Not putting in the time to educate yourself
- Allowing your emotions to control your decisions
- No trading plan
- No risk management
We have spent weeks putting together all the knowledge we have gathered, with over 30 years of trading experience. Expand your knowledge by visiting our educational articles. We want you to feel absolutely confident before investing your hard-earned money. Let your winners run and cut your losses short. Forex trading in South Africa can be profitable.
FAQs to Trading Forex in South Africa
Forex trading, in general, can be intimidating to beginners. The general terms and understanding need to be researched before traders can feel comfortable trading the financial markets. We break down the most commonly asked questions to assist you in your trading.
- How Does Forex Trading Work?
The concept behind Forex trading is fairly simple to understand. In a nutshell, you buy or sell a selected currency pair with the speculation that you can either buy it back for cheaper or sell it for a profit. Currency pairs are categorised as majors (EURUSD, USDJPY), minors (EURAUD, GBPJPY), exotics (USDZAR, USDNOK) – It is worth noting that minors and exotics normally have higher spreads due to lack of liquidity. Read our in-depth article on how does Forex trading work to get a better understanding.
- How to Familiarise Yourself with the Trading Platform?
Do not use demo accounts to determine if you are profitable and ready to execute your live trading strategy. An EA or automated robot taking our all human emotions and decision making can be an exception. A Forex trading demo account should only be used to learn the ins and outs of the trading platform. This includes proper trade entry and exiting procedures.
- What are Pips in Forex Trading?
A pip is a widely used term in the Forex trading industry and something you will need to understand to calculate risk and reward in currency terms. A pip is the 4th digit after the decimal in a price quote, $0.0001 for USD related pairs. In simple terms 1/100th of 1% or 1 basis point. This is however not the same for JPY related crosses where a pip is the second digit after the decimal. Pips can also be broken down into fractions, which are called pipettes. Read our full article on what is a Pip and how much are they worth.
- How to Apply Risk Management?
This can make or break a traders’ account. Even with the best trading strategy, you can still be looking at a declining account balance if your risk management (risk to reward ratio) is not properly managed. No trader can expect to be right all, or even most of the time. This is where the risk to reward ratio comes into play.
- How to Design and Implement a Trading Strategy?
Not having a trading strategy is comparable to driving a car for the first time. You are not too sure what you are doing, what to expect or confident. We refer to it as going in blind. Every consistently profitable trader in history followed a well-developed strategy and you should be no different. Research, screen time and testing on a live account, with minimal acceptable risk, is the only way to get from point A to point B under true market conditions.
- What is a Stop Loss and Take Profit?
A stop loss is your best friend. As the word implies it stops your losses. A take profit locks in profits on a given trade, partially or in full. Both these are pending orders.
Are you ready to start Forex trading? Follow these steps on how to start Forex trading.