Want to trade Forex online in South Africa? Forex trading can be a lot of fun, but it does come with a great deal of risk. If we help you choose the best broker, by weighing every pro with a con, we have then succeeded in our goal. What is Forex Trading? In the past, you might remember that when we traveled overseas we needed to exchange money before we hopped on the plane. Although this no longer happens as much because of wide-spread credit card use, the practice of buying and selling one currency for another still takes place.
It takes place on the global currency market and everyone from the smallest of forex traders to the biggest of banks are continually buying and selling currencies for profit. The Foreign Exchange Market, or Forex, is the biggest financial market in the world. Dealing in the trading of international currencies, Forex has different financial centers located around the globe, and buyers and sellers work throughout the week to trade currencies and other commodities.
Forex trading, as with the buying and selling of any other product on the market, has everything to do with supply and demand. If we are going to sell a currency there must be someone else who must be willing to buy it.
Because of the potential for profit, there will always be a lower price and that buyer will be willing to pay for a unit of the currency than for buying it. A forex trader is able to make a profit by purchasing a currency and then selling after the price has changed. The biggest difference with Forex trading, compared to trading more physical products, is that traders can either invest in the price increasing or decreasing.
This is called going long, or short. A forex trader is able to make money by speculating on a currency dropping in value going short or increasing in value going long as long as the determination is made in advance.
Learning to trade forex can be hard but you are not alone. Much of trading is learning by doing. Once you understand the basics because it is only using expert tools and doing your own analysis that you will start to understand what is involved.
So, as you choose your broker, read the following articles. Demo accounts are a good way for a new trader to try a broker without risking any capital.
Looking to trade Cryptocurrencies like Bitcoin and Etherium? They have become very popular and are good trading for those who enjoy technical analysis and charts. Here are the best brokers who offer these assets.
Some Forex trading apps are high quality and can be used in trading, price quotes, currency comparisons, and analysis. Here is a list of brokers with great mobile apps so you are ready to trade on the move. What is Forex Trading Like? Forex traders spend much of their time looking at the way the value of a selected currency changes over time.
This is always done in relation to another currency, just like the example above when we would sell our ZAR to buy another currency we traveled. The best way to visualize these changes over time in on a chart, and below is the chart showing the changes in the ZAR and USD prices over time.
Forex Trading can be profitable or unprofitable depending on what at trader invests in, how the trader makes the investment, and the market conditions during the time they hold the investment. These aspects working together will determine if the trade is profitable. Forex traders will always lose a portion of their trades, so it is important for all traders to set a win-loss ratio that you should target. Yes, and there are a great number of tools to help with Forex trading.
Most of them are already included in the platform that you use when you sign up with the broker, but once and a while there is a great stand-alone piece of software that can be a real help in Forex trading.
We love to feature these kinds of software because we believe they have great value for the readers. An example of a tool like this is FormationSeeker that helps traders identify harmonic patterns in the trading and highlights opportunities for profit. For a full review of all Forex analysis tools, you can read our article.
Forex gains are not tax-free income, and all gains from your Forex trading are taxable even if your brokage and capital are overseas. For more on this read our taxation article for forex traders who reside in South Africa.
Regulators like the FSB are put in place to protect the public from financial crimes and irregularities. Forex trading is only one of your options for trading. There are other ways that we can trade with currencies and these can be good to mix into your trading portfolio.
Some brokers will also allow you to trade cryptocurrencies like bitcoin , which can add a different flavor to your trading. This form has double opt in enabled. You will need to confirm your email address before being added to the list. Forex Trading South Africa. Home Forex Trading South Africa. Deposit Regulated by Next Step Sign Up Read review New to Forex Trading? Starting Resources How does Forex trading work?
What tools do Forex traders use? Risk management in Forex trading How do you develop a trading plan? Getting started with Forex Trading Find a broker on our website that would suit you. The broker will call to see how to give you the best start. Demo Accounts Demo accounts are a good way for a new trader to try a broker without risking any capital. Forex Trading Apps Some Forex trading apps are high quality and can be used in trading, price quotes, currency comparisons, and analysis.
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