As a beginner looking out for the best forex brokers in South Africa, you have to get one that offer the three important benefits. They need to first of all be regulate as well as a brand that is trusted which offers web based platform that is user friendly. Second, they should provide educational resources which are varied. The third thing is that, they provide access to market research that is quality.
Having to trade with the forex is risk and might require that you get special knowledge and skills. The risks become higher in case the broker you are utilizing stays not reliable as you could become a victim of various law violations and scams. The major problem is that, you will never detect this via advertisements as they always want to attract a lot of clients, trying to appear as the ones who are safe in the market. There are certain features that you will require to look at which are normally absent on sites which are fraudulent or the ones that don’t respect your freedom of finances.
The following are for qualities that you will never find when you are on a website that is fraudulent forex traders:
License confirmation
For you to get access to the financial markets, there has to be an intermediary who has the rights of performing operations on the. If they are not licensed, you cannot be sure that it will be able to play using the rules set. If your intermediary doesn’t respect the laws, it is impossible to be certain that it will be in a position to respect you.
Presence of a demo account
The demo account are not only for newbie on the forex trading. Even if it happens that your broker is the best one, you will want to ensure that they have the capabilities of analytics the set of the assets which are readily available for the trade. If you find that the intermediary is unable to allow the traders in practicing on a demo account, then they might not like it to make deals with the real assets.
High trading instrument rates.
Diversification is what reduces the risks and variations. The intermediary whom you are using has to give you access to various pairs of currency, commodities, shares, and other instruments of trading to provide you with a payout which is safe in many cases. If a number of trading instruments happen not to be enough, then the brokers will not value your freedom to choose and the right that you have to diversify.
Warning on investment which is risky
It is something that is quite normal for the brokers to be able to inform you regarding the trading opportunities which are lucrative. But you don’t have to forget that, trading also brings several risks with it. If the broker tells you about opportunities without mentioning the risks involved in forex trading, you will not be able to get a full picture. And if they don’t act transparently from the beginning, you will not be sure that their policies are transparent.
Reliability of service is not only regarding the abiding rules and the transparency shoving. Great brokers will ensure that they have respect for their clients. And in case there is a problem with the platform, or some questions regarding the use of the instruments on the platform, the customer service needs to be ready all the time with the much needed answers to the questions. If you ask about an issue and the answer is not given in at most 10 minutes, you will not be sure if something that is more serious is happening, they will have to respond very fast. Choose a broker who will respect your financial freedom and your time also.
The following are some of the questions which you might require answers for:
What is forex trading?
It is a process of exchanging a particular currency for another which is known as selling or buying pairs of currency, based on the exchange rates which are prevailing from the forex market. The forex market is the largest world market, which is about $7 trillion in currency that is traded daily on average.
What is forex broker?
When thinking about foreign currency trading, you utilize a forex brokers, also referred to as a broker for currency trading, to be able to place the trades. Whenever you trade forex, you sell or buy in pairs of currency like EURO/USD. You will have to open an account, deposit some funds then utilize a broker trading platform in selling and buying currency via their margin. The market of forex operates for 24 hours for five days in a week.
The following is a summary of some of the best forex brokers for the newbies in the forex market:
- Plus 500 which is the best overall for beginners
- IG which is most trusted and excellent for providing education
- eToro known to be the best for copy trading platform
- AvaTrade has educational resources that are quality
- CMC markets are known to be best web trading platform and has excellent education
- OANDA has quality research and a platform that is user friendly
- XTB has great education and is best when it comes to customer service
What are some of the currency pairs which are most popular?
There are seven currencies which are traded frequently as pairs of currencies at times referred to as Majors: USD/JPY, EUOR/USD, AUD/USD. GBP/USD, USD/CAD, NZD/USD, USD/CHF. About 85% of the forex trades are normally across the seven pairs.
Is it possible to be rich by forex trading?
While there are some forex trader which can make you to get reach faster, majority of them will not. Forex trading is known to be quite risky. Speaking historically, there are hedge fund managers who have been able to become rich through trading in forex.
How can I start trading in forex?
First, it is important that you ensure to practice. You have to start to open a demo account so that you can be able to get used to the platform of trading plus the tools. To read books is also essential so that you can learn about how to be able to conduct the research for market, performing technical analysis.
