Forex Traders in South Africa
In this article
The forex market is intrinsically risky, but it has also allowed many people to become millionaires. Many people may believe Forex traders in South Africa are successful because they are lucky and enter the market at just the right time.
Forex is not based on luck, as gambling is more closely associated with chance than Forex. One of the key characteristics of a successful trader is the ability to enter and exit the market at the right time.
Traders must have a sound trading strategy that allows them to determine when to enter, the amount of risk for the position, and when to exit from the Forex markets.
Forex trading in South Africa requires more than just timing to succeed. You should consider the following factors when becoming a successful forex trader. We will examine the top 5 forex traders in South Africa and much more.
What is a Forex trader?
The term “online trader” refers to someone who places orders on financial markets. In this capacity, one may deal on behalf of big banks, investment funds, or hedge funds, or they may act as independent traders.
Orders are put in the trader’s name or on behalf of clients, financial institutions, or forex brokers on whose behalf they work. Further categorization depends on assets traded: Forex, equities, bonds, commodities, and so forth.
Financial institutions and good Forex broker employs traders to buy and sell assets on behalf of their clients. Instead of making money or losing money on their trading, such traders earn a salary.
Trading in this manner involves virtually no risk on the trader’s part. The customer covers the risk of buying or selling financial instruments.
Even though online Forex brokers offer leverage, retail traders trade smaller amounts than professional traders. We often conduct trading online over the counter (OTC), so traders’ accounts face losses.
Defining success as a profitable Forex trader
Considering the information you have learned about advanced traders, how can you become one? Whether a beginner or an experienced trader, it is important to understand your goals and what success means to you.
What points to keep at the forefront when learning to become a Forex trader?
- Set a measurable and realistic goal for yourself. An example might achieve a 20% annual return or attain a monthly total of 100 pips.
- You should also have an easy-to-measure goal.
- The best way to achieve a goal is to set it for the long term rather than a monthly goal for the year.
- It is time to implement your main trading goals for the year.
- Make a list of the resources you have at your disposal.
Consider the following questions.
- How much is the minimum deposit if you use your own money as a deposit?
- What if you could make a living trading Forex full time?
- Is trading just a part-time activity for you?
You need an action plan after you have defined your vision. In this plan, specify which FX pairs you plan to trade and how many trades you plan to do each day.
Skills needed to be a forex trader in South Africa
The ability to act quickly on new information is critical for traders, whether it is exchange rate changes or news that may have an immediate impact. Deciding how to act requires a combination of self-confidence and knowledge. Financial industry professionals refer to placing a trade as ‘pulling the trigger.
Most successful entrepreneurs can handle the high risk. To manage risk effectively, you must maintain a calm attitude.
People make mistakes when trading, but successful traders correct those mistakes before they cause too much damage to their account performance.
Trading consistently profitable requires analytical skill but is low on the list of things that separate successful traders from others.
The forex broker’s online trading platforms do all the calculations for the trader, such as lot size, currency converters, margins, and so on.
Forex Brokers in South Africa
When choosing the best forex broker in South Africa for your trading strategies, several factors need to be considered. Let’s overview the importance of each factor for beginner forex traders.
South Africa has various types of brokers, including:
STP (Straight Through Processing)
ECN (Electronic Communication Networks)
Market makers, like Forex brokers, manipulate prices frequently to force traders to stop losing. In the offshore B-Book market, this is more common among unlicensed brokers. You are protected from market manipulation by trading with an ECN/STP broker since they cannot manipulate the price of currency pairs.
Whether trading with international or South African brokers, you should look for fair trading conditions when you begin trading forex.
How can you select the Best Brokers in South Africa?
Whether you are a beginner or a more experienced trader, you might want to reconsider your choice of a South African forex broker. It is important, however, not to make a hasty decision when looking for the best and low-cost forex broker in South Africa.
If you are confident in your forex broker, you should feel comfortable referring family and friends to them. Your choice of the best Forex brokers is based on these reliable indicators.
Several up-and-coming brokers in South Africa offer top-notch services as well.
Is a regulated Forex broker required for successful Forex trading?
There may be a question on your mind: “Is forex trading legal in South Africa?” The answer is yes, forex trading is legal in South Africa. Forex brokers must be regulated by South African regulatory bodies to ensure their trades are conducted fairly.
The Financial Sector Conduct Authority (FSCA), formerly known as the Financial Services Board (FSB), regulates forex brokers in South Africa.
Regulators are careful about financial dealings and insist that forex brokers must be regulated before providing services to traders. These companies are also monitored for how they treat forex traders. When traders trade with South African forex brokers, they are more secure, trusting, and at ease.
Search the FSCA’s website for the broker’s name or regulatory number to determine whether the online broker is regulated. Check the broker’s authorization status in addition. The broker you choose should also be authorized to offer derivatives trading.
A broker not regulated by the FSCA is not legally required to offer services to South African traders. If you choose a forex broker, make sure it is regulated by one of the following international regulatory bodies:
- South Africa: Financial Sector Conduct Authority (FSCA)
- United Kingdom: Financial Conduct Authority (FCA)
- Australia: Australian Securities and Investments Commission (ASIC)
- Cyprus: Cyprus Securities and Exchange Commission (CySEC)
Foreign exchange brokers that internationally renowned organizations regulate should be preferred over those in the Grenadines, Saint Vincent, Bermuda, and the Cayman Islands. The traders in these little island nations don’t seem to be offered the same level of protection and security as their counterparts in larger island nations.
All OTC derivative brokers were required to obtain a license under the ODP system in addition to forex brokers. South African providers of OTC derivative products must apply for and obtain approval under the FSCA’s ODP licensing program before they can offer such contracts legally.
OTC derivatives brokers, banks, and other non-banking financial institutions that offer their clients OTC derivatives are the biggest beneficiaries of FSCA licensing requirements.
A Forex trader’s daily routine
It is common for an experienced Forex trader to review their overnight positions first thing in the morning. In the same way that trading Bitcoin is 24 hours a day, trading fiat currency is 24 hours a day, so a trader’s profit or loss could have changed during inactivity.
When a trader wakes up in the morning, they always check the forex rates, stock indices, precious metals, or other related financial markets, often via a heat map.
They will review the latest economic calendar and check the latest news headlines. This allows them to understand better how the overall financial markets are doing.
A trader’s trading strategy will determine how much buying and selling they do during the day. The day trader opens a trade position anytime but closes it before the market ends.
Scalpers buy and sell assets all day, making quick in-and-out transactions.
Forex traders in South Africa spend most of their time analyzing trade ideas, ensuring existing trades are still viable, and refining their Forex trading strategies.
Often, new traders will benefit from a forex signals service, a forex trading course, or a forex mentor who will help them with spot forex analysis.
South African forex trading steps
Getting a college degree and practising Forex trading might be necessary before becoming a forex trader. If you’re interested in becoming a forex trader, follow these steps:
Practice Forex trading
You can practice forex trading with a demo account. Real-time Forex trading allows you to see potential outcomes. The reports offer real-time market data, expert insight, and live trading simulation.
Because performance and income may fluctuate monthly, forex trading can benefit from goal setting. Forex trading in small amounts is a good way for some professional traders to minimize risk and set long-term goals.
Earn a degree
The skills you gain from an education in a related subject, such as finance, are valuable within the currency exchange industry. If you are interested in learning more about world currencies, you might also want to study them.
Trade-specific Forex pairs
The forex trading industry allows you to trade minor and major currency pairs. The strong liquidity, or ease of selling, of these forex pairs may make them a good place to trade.
The market is most active during peak hours, so you might also consider trading around certain times.
There is a high level of liquidity in the following currency pairs:
Use an automated trading program
Forex traders can either trade manually or use automated trading software. With a “set and forget” program, new traders can experience trading by using real-time currency prices and automatic trade orders. Forex beginners find many automated trading programs helpful because of their simple interfaces.
Seek professional advice
Trading strategies or gaining advice from a forex trainer or guidebook can benefit new traders. A trader may want to develop their ideas and styles, but getting professional advice at the beginning is often helpful.
Quality trading platforms
Platforms that provide reliable market coverage and helpful tools can help forex traders. Consider Forex trading platforms that offer the following features:
- Enhanced charting capabilities
- Automated trading
- A real-time market update
Tips to become a successful Forex trader
Manage your expectations
The tendency of novice Forex traders to chase profits can immediately lead to problems. When you chase profits, the anxiety can cloud your judgment, leading to mistakes that will cost you money.
We, therefore, advise you to let go of any unrealistic goals when learning to trade Forex.
In most cases, best Forex traders don’t become rich overnight, and if they believe otherwise, they may operate with greater risk, jeopardizing their capital.
Define your trading Forex risk profile
Get a solid understanding of the market’s fundamentals before making substantial commitments.
Be aware of your level of capital, read trader testimonials to get a feel for what to expect in terms of returns, and research the markets and FX pairs that interest you. Do not invest in Forex if you do not feel comfortable, even if it might be profitable. No matter what market you are in, this applies.
The Forex market may not be suitable for your investment approach, however! You should, however, keep in mind:
- Keep your investment risk to a minimum
- Make sure you diversify your investments; investing less than 20% in any market is recommended.
- Select your risk profile Amon moderate, aggressive, or conservative.
Choose a forex trading strategy
The next step after becoming a trader is to design a Forex trading strategy. Choosing the right approach matters, not whether you trade right or wrong. In some markets, one strategy is more suitable for a certain currency pair than another in another market, depending on the market.
Developing a trading strategy that aligns with your risk profile can help you succeed as a Forex trader.
Investigate Forex trading tools, study techniques, and consider how to incorporate them into your strategy. Understand the Forex industry and how the market behaves.
After you have created your strategy, back-test your favourite markets until you feel comfortable with them.
Control your emotions
Traders who want to become the best Forex traders must know their emotions. A successful trader knows how to approach the forex market, trusts his analysis, and follows his trading strategy.
Make sure you are making rational and informed decisions when trading. Be aware of your stress level and try to manage it. It is undeniably harder said than done. However, it is the secret to successful trading.
Trading is not a good idea if you lack capital. Excessive confidence and excitement after a winning streak can also result in trading Forex- refrain from trading or be aware of your mental state. There can be great losses associated with overconfidence.
Use stop losses and take profits
Stop losses should always exist when trading Forex, regardless of your trading style or strategy. Setting a pre-determined closing price for your trade through a stop loss and a take profit is possible. If you aren’t present at your trading terminal, your business will close automatically when the price reaches this point.
When you use a stop loss you will not lose more than the limit you define if the market moves against you. A take profit allows you to exit a trade once your desired profit level reaches.
Develop your trading strategy
Long-term market participation requires building and sticking to a personal trading strategy. We should only develop a strategy after sufficient research on the instruments and technical aspects, a demo account experience, and a realistic risk profile.
Forex scalpers and long-term investors must develop consistency and routine as part of their strategies. The only way to become a master of any skill or profession is to practice. Your ability to consistently make successful decisions within a particular instrument or technique increases as you learn more about it and gain experience with it.
Growth and development as a trader will also result in the growth and development of your strategy.
Do not over-trade
Many dreams of becoming Forex traders, but most don’t go beyond trading Forex on a demo account. A successful trader needs to make money with their trades to be successful consistently. You can only make money with a live performance if you are trading with real money.
Because of this, switching to a live trading account is essential as soon as possible. Demo accounts should learn the ropes so that you can change to a live performance once you are comfortable trading.
The first month of trading on these accounts is usually sufficient for new traders to become familiar with the Forex trading platform mechanics and start their journey to becoming successful traders.
We should not delay trades with these accounts for over three months before moving to live to trade.
How to become a Forex trader
After establishing your trading strategy and switching to a live Forex trading account, proceed to the following steps:
- Keep your trading plan up-to-date at all times.
- Make sure each trade has a stop-loss. Failure is almost inevitable otherwise.
- Each trade shouldn’t exceed 2% of your margin.
- Don’t let your emotions affect your trading.
- Trading should never compensate for losses.
- When it feels right, trade.
- Losses are a part of every trader’s life.
- Trade Forex more profitably and less unsuccessfully.
You should follow this path to become a successful Forex trader. You will experience many losses and stress throughout when you trade Forex but stay strong. We can make any negative experience up with effort and passion.
We offer a variety of educational webinars if you wish to learn more about professional Forex trading – some of which provide you with an opportunity to explore advanced trading psychology and candlesticks.
Successful Forex traders in South Africa
Several of the world’s richest forex traders come from South Africa, and below, we introduce you to them and examine how they got to where they are.
A well-known and award-winning forex trader, Nelisiwe Masango is a young entrepreneur in forex circles.
Founder and CEO of Bear Run Investments, she works to provide affordable financial programs and packages for underprivileged communities. As a result, financial growth can be stimulated and maintained.
Masango completed high school and pursued a Bachelor of Commerce degree in Entrepreneurial Management. She then plunged into the foreign exchange market in her second year of university and achieved important success there.
The company she founded in 2013 continues to positively impact the lives of South Africans, providing them with the tools to take control of their finances into their own hands. Along with Bear Run Investments, Masango also operates Gentle Hands Agency, an employment agency that seeks to create and full job opportunities.
The forex trader Sandile Shezi is one of the wealthiest South African and a strategic success and sound trader. A rural community is the setting for Sandile’s story, which started while he was still in school.
These funds could have gone to pay for his tuition, but he saved them and invested them in forex trading. With his initial investment, he made a modest profit and quickly became a successful forex trader.
Founder of Global Forex Institute, Sandile Shezi, aims to develop the fundamental knowledge and understanding of forex trading in South Africa among young South African entrepreneurs.
He prepares new traders to become successful by teaching them to understand the different financial markets, tools, and trading strategies they can use.
A well-renowned South African Forex analyst, Ref Wayne has mastered the trading skills to own the financial markets.
He began trading at a very young age because of a lack of career development opportunities. His experience in forex trading made him a multimillionaire, and he now features alongside other successful South African traders in the ranks of multimillionaires.
Ref Wayne succeeded at 22 years of age, got a steady income stream, and ventured into cryptocurrency. In 2010, Ref Wayne created the first cryptocurrency in South Africa, called Pip Coin.
Also, he founded the African Forex Institute, providing free lessons on forex trading to rural communities.
George van der Riet
Trader George van der Riet, Sandile Shezi’s top mentor, is one of South Africa’s most successful traders. Van der Riet is a seasoned forex trader who uses proven and effective trading strategies, risk management tools, and protocols to trade Forex Markets.
After serving time in jail in London for crimes he committed, George van der Riet returned to South Africa and became a millionaire with a small investment in TD Markets.
Jabulani “Cashflow” Ngcobo made his mark on the currency markets as one of the earliest successful forex traders in South Africa.
Ngcobo was involved in several controversies and served some time in jail. He is now a motivational speaker and manages a Forex trading software program called CashFlow Pro that helps students achieve their goals.
A millionaire at 21 years old, Shaun Benjamin is another well-known name. Shaun Benjamin faced many challenges early on because his mother raised him.
Shaun Benjamin started trading forex to make a steady income. In forex trading, Shaun Benjamin found a steady source of income. A full-time job could be left behind, allowing him to pursue a career in foreign exchange trading. Benjamin established the Benjamin Forex Academy to teach others about the forex market.
Skills for a forex trader
Developing hard and soft skills will lower traders’ risks and increase their success. A few of these are:
Having self-control and patience are crucial to making rational trade decisions. When you are patient, you can buy and sell at the right time and price.
You can navigate trading platforms and programs more easily with computer skills. Learn more about computers by taking a computer course.
Forex traders can also use spreadsheets and other programs to organize their trades.
How much do traders make in South Africa?
In South Africa, how many does a Trader make? South African government statistics show that trading compensation ranges from R 600,000 to R 308. A salary of R 420 000 per year is typical for entry-level positions, while one of R 6 411 000 is typical for more experienced workers.
Do Forex traders pay tax in South Africa?
Forex trading attracts tax in South Africa. South African traders generating profits from forex trading within the country’s borders are liable for taxes. Tax returns must be filed in South African Rand value since we consider yields normal taxable income.
Taxes in South Africa are residence-based, i.e., not based on where the income originates but on the individual’s residence. No matter where an individual’s income comes from, every South African must pay the tax on that income.
Traders who move out of South Africa could still be subject to tax if they do not take the proper steps to emigrate. Traders must submit applications to SARS and the SARB, which may or may not grant them capital gains tax liability.
Income tax still applies to profits derived from offshore retail investor accounts. Tax rates vary depending on the profits, starting at 18% and going up to 40%.
Starting with a demo account is easy for beginner Forex traders. You can get started within minutes. Start trading by creating an account, downloading and installing the Forex trading platform software of your choice, and get started!
Instead, you can immediately transfer your funds to a live performance and begin trading the markets in real time if you are confident in your trading ability.
Trading Forex allows you to work from almost anywhere with an internet connection. The latest technological developments have enabled us to connect from hotel rooms, cafes, and even the far reaches of the world.
A Forex trader’s lifestyle offers a great deal of enjoyment and strong growth potential. The gift of this path doesn’t come easy for those who have taken it. Your progress will be faster if you get started as soon as possible.
Even though the journey may be challenging, the outcome can be extremely rewarding. To achieve success, you must first identify your goals: do you intend to trade as a full-time profession or just as a side hustle?
Next, you need to make a learning plan. You will save time by choosing the right course/books/mentor from abundant materials. There will be a lot of trial and error after that.
It is important to remember that successful trading requires a constant state of alertness and an ability to adapt – even the best traders cannot become complacent.
Jason Morgan is an experienced forex analyst and writer with a deep understanding of the financial markets. With over 13+ years of industry experience, he has honed his skills in analyzing and forecasting currency movements, providing valuable insights to traders and investors.
Forex Content Writer | Market Analyst