Forex Trading in Swaziland
Did you know over $5 trillion worth of transactions happen in the forex market daily?…
The FSCA, previously known as the FSB, is the regulatory body for financial services such as Forex brokers in South Africa. This provides Forex brokers in South Africa with an added level of security, trust and peace of mind for traders.
Are you looking for the Best Forex Brokers in South Africa? FSCA regulation is an important factor when selecting your Forex broker but not the only deciding factor to take into account. As a South African citizen, you are not legally obligated to trade with an FSCA regulated broker.
Our list consists of only the best Forex Brokers in South Africa. We continuously monitor and update our broker reviews to ensure traders have the best possible brokers to choose from. Every listed Forex broker will either have a demo account or a no deposit bonus account for you to familiarise yourself with their trading platform. Most reviews will feature Forex brokers with ZAR account options, ideal for trading Forex in South Africa.
Enjoy our latest up to date May 2021 Top 8 Forex Brokers In South Africa is a good place to start your broker review process. Browse the top 8 brokers below – honest, transparent and comprehensive reviews.
The Top 8 Forex Brokers in South Africa, listed on TradeFX, are all regulated, most even multi-regulated. This ensures client funds’ security and peace of mind! Whether you trade Forex, CFDs on Indices, Equities, or Commodities, we want to provide you with a broker that you can trust and have a profitable trading experience with.
When choosing Forex brokers in South Africa, each category within our Forex brokers in South Africa reviews should be carefully considered. It is important that traders fully understand the importance of each. Although they all matter, some carry more weight than others.
Most of these main categories will contain sub-categories to provide a breakdown and a deeper insight into the brokers. From STP, ECN to Market Makers, should not be your deciding factor.
We have come across a so-called ECN broker with horrible trading conditions and executions. Even broker made stop-hunts are not uncommon with STP and ECN brokers. Someone, bank, institution, broker or hedge fund always take the opposite side of your trade. Without this functionality, there is no market.
All brokers get price feeds from some source. Some brokers as mentioned, manipulate the price slightly just to stop you out. 99% Of all brokers take on full or partial risk against their clients, which is not uncommon or wrong/illegal. All you should be on the lookout for is fair trading conditions, even from a market maker.
They are not all out to get you! Most brokers want longevity and do business with their traders for as long as possible. When we say most, we are well aware of brokers that “burn” their clients as soon as possible. To them, it is a simple volume game.
Regulation and fund safety is at the top of the criteria to be checked off. The Forex industry has evolved a lot in terms of regulation. A broker without some form of regulation does not last long before they are shut down by regulators. A trustworthy broker should be regulated with either one of the following entities; FSCA (South Africa), FCA (United Kingdom), ASIC (Australia), CySEC (Cyprus).
The benefit you receive with a South African FSCA regulated Forex broker, is the surety that any issues can be resolved within SA. This simplifies matters for you as a trader.
Broker Type refers to DMA (Direct Market Access) or MM (Market Maker) brokers. Although the latter is taboo, such brokers can still offer a great trading experience with fair market conditions. At some point, an institution, hedge fund, bank, broker or trader is taking the opposite side of your trade. Where your order is executed is not as important as receiving fair trading conditions.
Order execution time, slippage and price latency will be covered within this category. Some brokers do not allow scalping or hedging – We will inform you if these trading methods are allowed.
Support is an important factor for traders seeking a good broker. Having easy access to different channels greatly increases trust and peace of mind. Educational material, trading tools and webinars play a big role in supporting traders while extending their account lifetime. The brokers that put effort into providing adequate resources are well rewarded.
Deposit and Withdrawals are right at the top after regulation. Some brokers make it extremely easy to deposit but withdrawals seem to be slow and lengthy. We will cover deposit and withdrawal fees, methods and ETAs. No “umms” and “ahhs” at withdrawal time. Minimum deposit and withdrawal amounts are also a key factor and will be discussed.
Trading Conditions are subcategorized into the different account types that brokers offer. Each account type has its own leverage, spreads and minimum lot sizes associated with it. As per our standards, each and every broker listed will provide traders with a demo or no deposit bonus account to practice with. Swap-free accounts, also called Islamic accounts, are becoming a standard offering. We expect brokers to offer these accounts to all traders in the near future.
Trading Platforms come down to trader preference. Although there are excellent proprietary platforms designed by brokers, traders tend to stick to what they know best. MetaTrader 4 is the king of the Forex trading platforms. MT4 has a vast amount of online tutorials available for free. MetaTrader is also an EA (Expert Advisor) and robot friendly. Indicators are also in abundance compared to MetaQuotes’ latest MetaTrader 5 platform.
IB Affiliate Program is not only important to marketers but to the traders that use the broker. Refer a-friend programs allow users to easily generate a tracking link to share on social media and email. Active traders produced via these links result in a financial gain to be used to trade with.
Although there are many regulators globally, not all are rated equally. Some Forex brokers in South Africa hide behind smaller entities that are not well managed nor trusted. Brokers that are regulated by internationally recognised entities should be preferred over their counterparts in; Bermuda, Cayman Islands and St Vincent.
These are small island states that are not considered to provide the same level of safety and security to their traders.
Forex brokers that are regulated by one of these entities are a strong indication of safety, security and fair operations.
The importance of choosing the right Forex broker is what sets you up for long term success. That is only the beginning of a profitable trading journey. We elaborate and provide insight into choosing the right broker. First and foremost you need to understand; what is Forex trading and how does it work.
Whether you are a new, intermediate or expert trader, you might want to re-evaluate your broker choice. We point out the review and selection process you should follow. Your broker is like your bank. You are trusting them with your money. This decision should not be taken lightly. You should feel at ease at all times. You should be able to recommend your broker to family and friends. These are good indications that you have made the right broker choice.
Your first step is to make an educated decision on the broker you will trade with. Opening a live account with your selected account currency, account type and leverage is an important step. Deciding how much you are going to fund your trading account should be well thought through. Never risk money you cannot afford to lose. Don’t put yourself under unnecessary financial stress.
You are then ready to implement your trading strategy and execute your very first trade. Read our full article on how to start Forex trading.
This is a very important topic and ties in with other mentioned factors. How much should I start trading with? What you put in is what you get out. Trading is no different from any other business. A business that only has a capital input of R1,000 is not going to get very far in the respected industry. You should have the same mindset when it comes to your trading account. Never risk money you cannot afford to lose.
Depending on your country there might be different tax implications set on profits or losses. You should always consult an accredited accountant or local TAX revenue service.
Only you as a trader can truly answer the question as to how much you should start trading with. We can simply provide you with industry averages and reasoning to better make your decision. The median first-time deposit in South Africa is R15,000 with the low end being R1,000. These are usually available by Forex brokers with ZAR accounts. Seeing first-time deposits of R100,000 and up is not uncommon.
As trading is a, ‘you get out what you put in business’, it does not make financial sense to start with an amount you would not be satisfied with getting out on a monthly basis. Unless you are a trading wizard you cannot expect to triple your account on a monthly basis. Realistic returns based on our research is between 3% – 30% depending on your overall skill level.
Any and all regulated Forex brokers in South Africa and globally have to KYC (Know Your Client) each live account opened by individuals or companies. This is to prevent money laundering. You would normally be asked to upload the following documents; Proof of Identity (ID, Passport), Proof of Address (Utility Bill, Bank Statement), Proof of Bank Account (Bank Statement, Bank Verified Proof of Account).
Some brokers might require more than 1 document depending on your country and risk profile. Verification time can range from a few minutes to 48 hours with some brokers.
If stocks or Equities are important to you, a broker that offers these assets is key. Spreads and commissions will differ between brokers and is an important factor. We are also building out a stock market education section.
Forex trading in South Africa should be approached the right way. We are here to make that journey informative and successful. Be sure to trade with the top Forex brokers in South Africa. Visit our Forex trading education section to boost your knowledge.
Technical analysis may provide a wealth of trading knowledge in a very short period of time. Traders can easily detect trends and place trades based on those trends.
Of these technical analysis styles, bar charts, volume comparisons, and time comparisons are usually needed.
Bar charts are made up of several price bars, each of which depicts how an asset or security price changed over a given time span. Each bar usually displays the open, high, low, and closing (OHLC) prices.
Traders may use bar charts to evaluate patterns, identify possible trend reversals, and track volatility and market movements.
The study of the number of contracts or shares of a security that have been traded in a given time period is known as volume analysis.
Volume analysis is one of the considerations that technical analysts use to inform their trading decisions. Investors can calculate the importance of price fluctuations insecurity by examining volume patterns in accordance with price movements.
Forex timeframes are simply various hours, such as 15-minute or weekly, that can be used to see if the price has changed, and then traders can conduct technical analysis on the charts.
The economic calendar is one of your strongest trading allies. You’ll only spend one minute a day (or less) on it, but that one minute is critical if you want to be a successful trader.
An economic calendar is a list of important news releases and activities that could impact currency exchange rates and the stock market as a whole.
These occurrences often have a large impact on capital markets and currency volatility.
An economic calendar informs traders of what will happen when.
The economic calendar is used by traders to schedule trades and be aware of any event threats that may impact their open trade positions.
Economic calendars are typically focused on the planned publication of economic reports for a specific nation.
An economic calendar can include GDP results, jobs reports, central bank announcements, consumer sentiment, and hundreds of other types of events.
The majority of the events are divided into two categories:
Following the economic calendar can be particularly useful for a trader who wants to trade news.
If news traders correctly predict the outcome of a news release, they may open a place immediately before the expected news and close it within hours of the announcement.
Back in the 1920s-1930s, there was a brilliant genius and professional accountant called Ralph Nelson Elliott.
Elliott discovered that financial markets, which were thought to behave in a very disorderly manner, actually did not by closely reviewing 75 years of stock results.
His theory was published in the book The Wave Principle.
Elliott demonstrated that price fluctuations triggered by collective psychology often appeared in the same repeated patterns.
He referred to these up and down swings as “waves.”
He assumes that if you can correctly recognize price repeating trends, you will forecast where the price will go (or not go) next.
As a core principle, the theory represented impulse and corrective waves. As a result, they are Elliot wave forms.
Impulse waves are made up of five additional waves, three of which are motive and two of which are corrective. It’s written as 5-3-5-3-5. This series of five waves represents the continuation of a trend.
Corrective waves, also known as diagonal waves, are made up of five waves that show a pattern reversal.
To apply the Elliot principle, traders must first count waves before deciding whether to ride the trend or go against it. You need to follow a few sets of rules before applying it as a trading strategy.
A trader’s assumption that the market will advance in a certain direction as a result of particular events is known as directional bias, and it can be defined in a variety of ways.
Developing a directional bias also entails examining charts for support and resistance levels as well as price action. It’s also important to consider market momentum: the market will continue to move in one direction until something triggers a break in the trend and reverses the tide.
Creating a directional bias is a two-step process:
Psychologically, once you’ve established a directional bias, you’ll be more confident in executing your trading strategy because you already know what you’re going for.
With a directional bias, you are no longer a reactionary investor but can schedule your trades ahead of time and are less emotionally attached to the markets.
It is not enough to create a directional bias; you must also have trading rules in place to validate your bias, or you will end up being more wrong than right.
In the trend vs. counter-trend strategy, directional bias is extremely important. Finally, directional bias can assist you in determining the course of the trend and whether to go long and buy or short and sell.
There is no question that forex is the most liquid market in the world, with regular transactions exceeding $5 trillion.
It stands to reason that market participants can exhibit signs of emotion. It’s in human nature wherever there is a significant amount involved; emotions come into play.
Sentiment analysis is used to determine how other traders feel about the overall currency market or a specific currency pair.
The forex markets do not simply represent all available information because traders can all act in the same manner.
Regardless of the information available, each trader’s thoughts and opinions, expressed by whatever position they take, contribute to the market’s overall sentiment.
The problem is that as a retail trader, no matter how much you believe in a particular trade, you cannot influence the forex markets.
As a trader, you must take all of this into account. You must conduct sentiment analysis.
It is up to you to determine whether the market is bullish or bearish.
Then you must determine how you can integrate your market sentiment perception into your trading strategy.
It is entirely up to you if you want to ignore market sentiment. But, we’re telling you right now, you’ll end up at a loss!
MT4 is one of the best platforms for financial trading. The platform is well-known for its user-friendly interface and ease of use.
MetaQuotes developed the platform in 2005, and it is available in 40 languages, as well as on Android and iOS.
Although the app was created to trade forex, it can also be used to trade metals, indices, and other assets.
Fundamental and technical analysis are two of the most common methods used by investors and traders to decide which forex pairs or other assets to buy or sell.
Fundamental analysis entails determining a country’s economic well-being and currency. It does not account for changes in currency prices. Fundamental forex traders but would use data points to calculate the power of a specific currency.
Pattern identification on a price chart is used in technical analysis. Technical traders seek after Price patterns such as triangles, flags, and double bottoms. A trader can decide the entry and exit points based on that pattern. Unlike a fundamental trader, a technical trader is not concerned about whether anything is moving because the movements and patterns on the charts are their signals.
Fundamental and technical analyses are very different trading techniques and methods, each providing specific value and insights to help trading decisions, such as when to enter or exit a trade. Although some traders tend to use these forms of analysis separately depending on their trading style and objectives, many use a combination of the two.
Technical and fundamental analysis work hand in hand to allow you to develop good forex trade ideas.
All of the historical market action and economic statistics are available – all you need to do is put on your thinking cap and put your analytical skills into action!
Forex is usually traded in lots, which are essentially the number of currency units you can buy or sell.
A lot is a unit of measurement for a transaction amount.
When you place orders on your trading platform, they are placed in lots of a certain amount.
Lot sizes are classified into three types:
A micro lot is 1,000 units of the base currency and is usually the smallest place size you can exchange.
10,000 units of the base currency constitute a mini lot.
A standard lot is defined as 100,000 units of the base currency.
Using leverage involves borrowing money from your forex broker, which allows you to open much larger trades than you would have been able to open without leverage.
Currency pairs can take days or even weeks to move a few percent. This means that if you do not use leverage, you are unable to make a decent return on your investment in a short period.
The amount of leverage you use will be determined by your broker and your level of comfort.
Typically, the broker would ask for a deposit, also known as a margin.
You will be able to trade once you have deposited your funds. The margin needed per position (lot) traded will also be specified by the broker.
Equity reflects the current value of your trading account.
When you look at your trading platform on your screen, equity is the actual value of the account, and it goes up and down with each tick.
It is the sum of your account balance and all floating (unrealized) gains or losses from open positions.
When the value of your current trades rises or falls, so does the value of your equity.
If you don’t have any open positions, your equity equals your balance.
To open and maintain a new position in forex trading, you just need a small amount of money.
This capital is referred to as the margin.
Margin can be thought of as a good faith deposit or collateral required to open and maintain a position.
It is a good-faith guarantee that you can continue to keep the trade open until it is closed.
Margin is a portion of your funds that your forex broker deducts from your account balance in order to hold your trade open and ensure that you can cover any future losses.
As margin is expressed as a particular amount of your account’s currency, this amount is referred to as the required margin.
The price movement of a financial asset is referred to as price action.
Technical analysis includes the study of price behaviour.
Price action is about getting to the bare bones of trading instead of using chart pattern recognition or applying technical indicators derived from price changes and having a normal lag.
By analyzing market movement over a fixed time, you can obtain all of the details you need to exchange patterns, breakouts, and swings effectively.
Price responds to all known news, so price movements tell you what the collective perception of breaking news is rather than any single person.
The core principle of market action analysis is that price is always right.
Price action traders prefer breakouts, candlesticks, and patterns as tools. They also employ concepts like support and resistance. These methods and ideas are used by traders to create strategies that fit with their interests.
Price action trading can be beneficial to all new traders. Learning to read and interpret price chart changes develops into a trading device in and of itself. It can be useful if you plan to use other research methods like statistics, indicators, or seasonality.
Price action trading does not assure profits, but it can become an excellent trading style with time and practice.
Did you know over $5 trillion worth of transactions happen in the forex market daily?…
You probably have heard about forex trading. You read and watch videos where people are…
If you've looked into trading forex as Tanzanian and feel there can be an opportunity…
The majority of beginner traders are charmed by stories of successful forex traders in Namibia.…
Like many African countries, Kenya has recently turned its attention towards forex trading. Many young…
You've probably heard about the latest buzz surrounding forex trading in Nigeria. Those YouTube videos…