Are you new to the Forex trading market of South Africa? Forex trading sounds hostile and complex to tackle, but it’s not that complicated. It is similar to simple trade, where a trader buys at low and sells high. However, forex trading is all about the selling and buying of trading currencies in the Forex market.
What is Forex?
Forex is one of the biggest financial markets around the globe. The Forex market is making trillions of currency exchanges daily as it operates 24 hours and seven days a week. Hence, it is reported as the most liquid financial market in the world.
The trading is relatively more accessible and more liquid as compared to other financial markets like stocks. The trade market in Forex is not centralized to an area. It operates 24 hours a day throughout the world. It starts in Sydney and ends in New York to trade at the forex market without local time concerns.
Previously, trade through the Forex platform was accessible to large financial institutions, including banks. Also, it was provided to large companies, multinational corporations and pro currency dealers. That was because of the high and complicated financial requirements that the Forex market imposed. Small businesses and individual traders were unable to trade at the Forex platform in the past.
During the late 90s, Forex became available to all interested individuals and small businesses because of the high telecommunication technology in South Africa and neighboring countries. Better internet facilities fascinate people to enter the Forex market to make more income for their families.
Here is the stepwise guide about the basic things that one should know before considering trading in the Forex market.
Choose the right broker in the Forex market
The first step is to choose the right broker to open an account in the Forex market. Next, you should check whether the selected broker is regulated by at least one entity or not. It is an essential part to consider before entering the market as a trader.
A broker is chosen. What next?
After the selection of a broker, you will have some choices to start your trading career. Every broker offers different types of accounts on their platform. Some of these are the following:
- A micro account: it is the account for beginners having a minimum deposit fee. If you want to start actual trading initially, you can open a micro-account in the Forex platform. In most cases, the minimum deposit is ZAR 3000.
- A medium account is the most famous account for regular traders that allow actual trading with an average deposit. It provides maximum profits and benefits and the best experience to use some pro tools at fewer costs.
- A VIP account: it offers the highest minimum deposits of ZAR 70000. Experienced traders mostly use it. It provides maximum leverage and the best tools in the trading platform.
- A demo account: it is the best account to practice trade for beginners. You will have an opportunity to trade with original trade markets without any risk.
After opening an account, you can start selling and buying currency pairs already available in the Forex market. In South Africa, the most used currency pairs are USD/ZAR that are highly liquid and accessible.
Bottom Line
Forex trading always comes up with a significant chance of risk besides promising profits. A beginner in the Forex trade market of South Africa must start trading from a demo account without any real money deposit. After having experience with tools and indicators of the platform, you can start investing real money in the trade market. Start with these tips, and you will have a good understanding of the basics of the market and how to make successful trades in the Forex market.
