All you need to know about Forex Trading in South Africa
Recently, Forex Trading has gained so much popularity in South Africa that brokers are sprouting daily. How does Forex Trading works in South Africa? This trading involves buying and selling of various currency pairs. For instance, the Forex trader will sell USD and by South African Rand (ZAR) hoping that the value of ZAR increases. The trader will then sell ZAR when its value increases thus getting profit. In this case, both local and global brokers are looking for ways to attract South African traders to engage in Forex Trading.
Why has Forex Trading gained popularity in South Africa?
Here are top reasons that have lured many South Africans into Forex Trading;
#1. Low entry cost
In the past, Forex trading was a preserve for the rich people since it was expensive to trade in stock markets. However, recently, this has changed because South Africans can now trade with as little as 5000 Rands. In this case, the Forex market has grown tremendously in South Africa.
#2. Trade from anywhere
With the current technology, South Africans can trade from anywhere as long as they have Smart Phone, Tablets or PC. In this case, trading is not limited to geographical location. Whether living in the city or remote places, South Africans can enjoy Forex Trading. With the more accessible internet, you just fill an online form and start your trading journey. This is alluring for many potential Forex Traders in South Africa.
#3. Leverage in the currency market
Forex traders can trade large amounts of money rather than using deposit alone. This has presented South Africans with an opportunity to make more profits. However, there is increased the risk of loss of leverage.
#4. Free Forex Trading Courses
Numerous education providers help traders understand the currency markets. In South Africa, you can get expensive courses to free online courses. In this case, many South Africans get Forex information for free. Free access to research makes traders come up with strategies that make Forex trading a lucrative venture.
Forex South Africa regulations
The forex trading is South Africa is regulated by The Financial Services Board (FSB) of South Africa. It has the responsibility of regulating the non-bank financial institutions in South Africa. In this case, FSB has the authority to impose fines on fraudulent Forex Trading companies.
FSB has tight regulations that govern both brokers and traders. The aim of this is to retain as much money within the borders of South Africa. There are tough regulations on offshore Forex Trading in South Africa. The broker must comply with strict regulations when purchasing other forms of currency other than ZAR.
Every South African citizen is allowed to exchange up to 4 million Rand. However, may be allowed to trade an additional 1 million Rand which requires a lot of paperwork.
Success stories of Forex Trading in South Africa
There is a couple of individuals who have made immense profits from Forex Trading in South Africa. One of them is Sandile Shezi, the youngest millionaire in South Africa. He became a millionaire at 23 after investing the money meant his education. Dropping out the University was not a regrettable decision for Shezi. He is the founder of Global Forex Institute that equips young people with Forex training. Today, he is the role model for many youths in South Africa.
Another successful Forex Trader is Mike Ndlovu who is based in Cape Town. He has vast experience in currency trading and is an expert in Forex trading tactics. He established the IFBS Forex Trading Academy in 2007. Today, Mike is one of the most sought-after coaches in South Africa.
Importance of Forex Training
Nowadays, numerous coaches offer education on Forex Trading in South Africa. The obvious benefit of Forex Trading Course is that you will get more information about the market. In this case, the traders will know how to create a successful Forex strategy. Moreover, training helps you choose the right broker. Above all, the Forex Course enlightens trainers on various Forex platforms in South Africa.
Advantages and disadvantages of Forex Trading in South Africa
The greatest advantage of Forex trading is the high leverage it offers. The traders can make huge profits with small capital. However, the high leverage can cause a great loss for the traders. Since it is online service, Forex Trading can be done anywhere. Unfortunately, failure on the internet can result in a huge loss. Conclusively, Forex trading is the fastest way to make and lose money.