The simplest ways to make the best of Forex Trading in South Africa

Posted on 9th March 2017

It is a known fact that the forex market is the largest financial market in the world. In it transactions are conducted over-the-counter and round-the-clock by investors looking for profit-making opportunities. In South Africa too, the currency trading market operates in much the same way as elsewhere. It is one of the most developed countries in Africa and is considered to be a growing market economy. The Financial Services Board (FSB) is an autonomous entity to oversee South Africa's non-banking financial sector and was established about twenty years ago. We have herein listed few steps that you can follow to make the most out of forex trading in South Africa.

1.  FSB oversight: All dependable brokerage houses in South Africa will conform to the regulatory guidelines and obligations enforced by the FSB. In order to be successful as an investor in South Africa it is necessary to be licensed by it as it ensures that your funds are held securely in segregated customer accounts.
2.  Trading instruments: In order to set up any trade it is equally important that you know what particular asset or instrument you prefer to trade in. The South African currency the Rand is a popularly traded currency. Besides, comparing the spreads and leverage offered by your broker as compared to others are factors that should help you in your trading decisions.
3.  Platform: The trading platform or interface through which you execute your transactions is also crucial for your trades. Your broker may let you choose between two platforms or again, they might have their own natively-designed software. It depends upon you on which one best suits your needs and trading requirements.
4.  Use a trial account:It is always wise to begin trading with a demo account. That will help you to distinguish a good broker from a not-so-good one. A demo account will also build your confidence before you risk any real-money in a live environment and shall enable you to gain good practice in your trading strategies.
5.  Earn profits:Before switching over to an actual account you must start making profits in your demo account. Try it out for a few months. If you succeed then you can begin placing forex trades in the real-time market. If not, then your trading methods need to be scrutinised and accordingly modified or changed.