Assume that you can have a series of losses, few in a row, and take risk accordingly only. Follow the exact same strategy for 30 trades in a row, regardless of the outcome of the sasol fuel trade. Let’s assume that you exchange R15,000 for $1000 through your bank or local regulated exchanger, for travelling abroad to US. In this example, you would be physically selling your home currency (South African Rand) for buying US Dollar. When you are exchanging your money for travelling abroad, you (through your bank) are making a forex transaction in the global forex market without even knowing. TradingBeasts helps individual traders learn how to responsibly trade forex, cryptocurrencies and other asset classes.
Step 2: Minimum account size
Understand the fundamentals of forex trading before investment, like currency pairs, market trends, and technical indicators. There are some really great forex traders in South Africa who have shown tremendous skill and discipline. South African foreign exchange traders are able to make informed decisions in the foreign exchange market using indices. The use of indices as a sign of risk can sasol company assist traders in controlling their exposure to forex and protecting against adverse movements in the market.
- They are regulated with top-tier regulators including FCA (UK), ASIC (Australia) & CySEC.
- For example, assume that at any given moment the broker has 100 lots of buy orders from its clients, but 200 lots of sell orders (this is just an example).
- Another plus, is that they don’t charge any fees on deposits & withdrawals.
- So, if you are risking too much of your capital on any single trade, and you lose that trade, then the equity drawdown would be higher, and you will need to make more to get back to breakeven point.
What leverage is available for traders in South Africa?
While these traders have gained significant wealth, they are not a representation of the whole industry. Traders should approach the market with realistic expectations and great caution. With that said, let’s now look at the 10 richest and most successful forex traders in South Africa. Arslan Butt, a financial expert with an MBA in Behavioral Finance, leads commodities and indices analysis. His experience as a senior analyst and market knowledge (including day trading) https://istorepreowned.co.za/ fuel his insightful work on cryptocurrency and forex markets, published in respected outlets like ForexCrunch. Indices are statistical figures that indicate the performance of a specific group of assets, such as stocks or commodities, in a specific market.
Best Forex Brokers in South Africa (Top List
Bank transfers are a widely used method for funding forex trading accounts in South Africa. Traders can use local banks such as Standard Bank, First National Bank (FNB), Absa, and Nedbank to make https://www.bidvestbank.co.za/ direct deposits into their trading accounts. This method is often preferred for its security and the ability to transfer large sums of money. Traders who value flexibility and mobility will find IC Trading a great fit.
How we selected the best Forex Brokers in South Africa
The typical spread is 0.7 pips for EURUSD with this account type, and the Swap charges are also 0 pips for both Long & Short. So the overall fees (including the spread, commission & swap charges) with this account type is low. In terms of fees, AvaTrade’s trading fees with their account are lower, than other brokers that we have compared. They offer fixed spread accounts, with EUR/USD spread being 0.9 pips (on average) with Retail account. But their & non-trading charges are high, as they charge an inactivity fees (for non-trading for 3 months) of $50, and an Administration fee of $100 for 12 months of inactivity in an account. AvaTrade is a European broker that is also regulated with FSCA in South Africa.
