There are many ways to learn how to start Forex trading in South Africa. In this post, we explain step-by-step what you need to do to join Forex trading in South Africa. If you are interested in learning how to join Forex trading South Africa, you will find this guide very useful. We also address the key points you need to follow to start trading Forex safely and successfully.
Get Started with Forex Trading in South Africa
South Africa’s rand is ranked as the 18th most traded currency in the world by the Bank of International Settlements (BIS). According to the BIS, trading in foreign exchange (FX) markets reached $6.6 trillion per day in April 2019, up from $5.1 trillion three years earlier. This is one of the reasons why most South Africans are interested in knowing how to start forex trading in South Africa. Learning how to how to join forex can seem daunting, so we’ve broken Forex Trading in South Africa down into some steps to help you get started with Forex in South Africa.
STEP 1: Find A Broker
In order to start trading, you need to find a Forex broker online. We have listed the listed brokerages in South Africa above. Choose one broker to trade with. Once you have read the review, you can open an account with them.
STEP 2: Open A Demo Account
Before you trade with real money, first start with a demo account and learn how to place orders and know how to place a stop loss and take profit levels. A demo account, also known as a practice account, is funded with virtual money to help you learn how to trade Forex. Demo accounts will also help you get familiar with the forex market, broker and the trading platform they use.
STEP 3: Open A Live Account
Once you understand how to trade Forex on your demo account, it’s time to open an account. All legal and registered Forex brokers will require some form of FICA (The Financial Intelligence Centre Act) from you. This means sending them proof of your address and a copy of your ID. The broker’s compliance department will verify your identity and the admin process takes a few hours to a few days to complete. When everything looks fine, you will be able to login to their website. The next step is to deposit money into your account.
STEP 4: Fund Your Account
Now it’s time to fund your account. You can make a local EFT into their bank account. You can also fund your account with PayPal, Skrill, or some of the other online payment processors. After funding clears and the broker receives your funds, you are one step from starting to trade. By this time you would have a clear understanding about how to trade forex in South Africa.
STEP 5: Download A Trading Platform
Most popular brokers in South Africa have proprietary trading platforms. Make sure you download the trading platform so that you can make your investments into the Forex market.
STEP 6: Start Trading
Now your account is set. You can start trading Forex in South Africa.
It’s easy to open a Forex Trading account in South Africa. Remember to share these steps with others especially beginners so that they know how to trade Forex in South Africa. Also learn how the Forex market works before you open a Forex trading account. Develop a trading plan or strategy before choosing a Forex trading platform. Once everything is good to go, trade by opening, monitoring and closing your first position. Well, that’s it about how to start Forex trading in South Africa.
How Much Money to Start Forex Trading In South Africa
How much do I need to start trading Forex in South Africa? You can start trading with as little as 500 ZAR. This should be enough to open a trading account; however, brokers in South Africa recommend at least a minimum deposit of between 250 USD and 500 USD. A minimum 250 USD deposit is advised since your trading account balance will determine how much leverage you can use.
As the demand for Over-the-counter (OTC) Forex in South Africa is rising, so are the risks for traders. There are many factors that you need to consider before you start trading Forex in South Africa.