Trading the Currency Market – Best Practices
Trading the currency market can seem like a daunting task if you don't know where…
Forex trading is becoming immensely popular amongst currency enthusiasts seeking reliable, trustworthy Forex brokers in South Africa. Are you one of them? Opting to trade with the best Forex brokers based on accurate, non-bias broker reviews are key to your long-term trading success. We only review the top Forex brokers to ensure South African traders a safe and secure experience.
Our reviewing process consists of strict criteria that help beginners identify their regulated broker of choice. Becoming a profitable Forex trader does not come down to luck. Enhance your knowledge with our wide range of education, guides, tips and how-to articles designed for traders – by successful traders. Forex trading in South Africa requires you to do your research to give you the best odds of being profitable. Take the first step to maximise your returns!
Our Forex Trading SA review site is a good place to start your Forex trading broker review process. Browse the top brokers below – honest, transparent and comprehensive reviews.
Enjoy our latest up to date April 2021 Top Forex Trading Brokers in South Africa, tested on TradeFX. All brokers regulated, most even multi-regulated entities. This ensures client funds’ security and peace of mind! Whether you trade, CFDs on Indices, Equities, Commodities or Forex, we want to provide you with a broker that you can have a profitable and safe trading experience.
TradeFX South Africa was designed for traders – by successful traders! We have taken into account all the factors and emotions that beginner traders encounter. Our goal is to answer these questions and help you make an educated decision when selecting your Forex broker of choice. Forex Trading South Africa can be a profitable journey and an opportunistic opportunity when trading with a regulated broker, with a local presence.
Do not try and go after no deposit bonuses, high leverage or unrealistic welcome bonuses! Low spreads, good support, low spreads, regulation and a fair trading environment should be your motivating factors. Do not follow the 95% of losing traders, be the 5% that succeed!
Education is key, there is no magic formula, EA, Roboto or signal service. If I was good at trading, had a successful EA, why would I sell my service or product? I would sit back and rake in the profits. Give it some thought and it will all make sense.
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:
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.
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 its pros and cons whilst all 3 can still provide fair trading conditions. Most brokers will not openly admit that they are Market Makers. Each broker will also be given a beginner rating.
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 time zones, around the clock support while markets are open remains key.
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.
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.
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.
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.
A wrap-up and our honest consultation based on the review criteria. A transparent broker review for you to make an educated decision on your broker of choice. 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, exciting to read and easy to learn and understand.
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. By 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.
The 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:
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.
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.
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.
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 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.
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. However this is not the same for JPY related crosses, where a pip is the second digit after the decimal place.
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.
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. Some brokers offer exclusive risk management software.
MT4 (MetaTrader 4) is the world’s most popular trading platform, mainly designed for Forex Trading. It provides huge flexibility and is EA, Robot and custom Indicator friendly. Although MetaQuotes launched MT5, the adoption has not gone as planned and is not as popular as everyone expected.
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.
A stop loss is your best friend. As the word implies it stops or limits your losses. A take profit locks in profits on a given trade, partially or in full. Both these are pending orders that need to be triggered by market price, either the bid or ask. This is dependent on your trade direction, buy or sell. Always use a stop loss and take profit!
To keep things interesting and fresh we have added a Traders Blog. Our Traders Blog is a fun, informative and exciting section with topics you asked for! We say it as it is. The Good and the Bad – The Truth! Come back for weekly posts. Are you ready to start Forex trading? Follow these steps on how to start Forex trading. An easy to follow step-by-step guide to get you started!
Trading the currency market can seem like a daunting task if you don't know where…
After becoming familiar with the forex market, a thought that probably pops in your head…
The forex market is the most liquid market in the world, with an average daily…
We all wish there was a tree in our backyard from which we can pluck…
If you are new to forex trading, technical analysis can be like solving a complex…
When it comes to currency trading, the timing of trades can have a huge effect…
Blackstone Futures is a truly local FSCA regulated broker with offices in Rosebank Johannesburg. Enjoy same-day withdrawals.