The last few years have seen an unparalleled growth in the online Forex trading field in South Africa, making it a profitable market for Forex brokers and traders both! Many financial bodies in the Europe, UK and other European regions are looking to get a piece of the pie by expanding under the Financial Services Board of South Africa (FSB), to make the most of the boom the South African currency markets are witnessing today!
The rising competition between Forex brokers in South Africa only serves as a catalyst to improve the trading environment for the currency traders here. With there being an ocean of brokers to choose from, Forex traders can take their sweet time comparing and forex avail the brokerage from an agency providing low spreads, stellar trading platforms and absolutely impeccable brokerage.
How does Forex trading Work?
The 1970s were the birthing era for the Forex trading markets we see today. For almost 50 years now, the foreign exchange markets have served as one of the most liquid and volatile investment domains. At any instant, you can rest assured that you will find a counterparty for your trades - that's how liquid Forex is!
In the early days, Forex trading was somewhat exclusive. Since trading required huge amounts of capital back then, a big majority shied away from participating. We have come a long way since. With online Forex trading available today, you can get started with as little as $500! Another immensely beneficial provision is that online Forex trading is unparalleled in its speed and efficiency. When Forex originally began, trading had to be done manually over phone calls. Now, trades can be made with the click of a few buttons!
Long gone are the days of the currency markets being dominated by established currency traders. Novices and newbie traders are beginning to multiply in numbers, with trading becoming easier and more viable by the day! With a plethora of free resources available online, learning has become much simpler, cheaper and tremendously convenient. You can learn everything from drafting strong Forex trading strategies to acing trades in just a few months!
How to Trade Currencies In South Africa?
Forex trading is often categorized geographically to prioritize on a particular currency, but the essence of trading is globally the same. With a laptop connected to the internet and a reliable broker's guidance, you can not only get started in an instant but get started on a profitable note.
As far as Forex trading in South Africa goes, the best time to trade is anywhere between 9-10 AM, when the London and Tokyo markets see an overlap. Similarly, the new York and London market overlap between 3-7 PM also works just as well. These timeframes are known to see tremendous liquidity.
Forex trading is no cakewalk, there are a lot of market risks, and these aren't the only factors to worry about! With growing profitability, several Forex brokers have started employing wrong means of making money. By scamming traders, brokers end up making big money while the former suffers. From providing poor brokerage to false trading data to bad Forex trading strategies, many such ill means are employed to earn unfairly. To protect Forex traders from such scammers, regulatory agencies have been formed to supervise the everyday happenings. For the South African trading markets, the Financial Services Board (FSM) is the primary regulatory agency.
The difficulties A Beginner Faces
Traders have to be wary of other traders just as they are wary of the bad brokers. As novices, traders tend to get influenced by others like them, who have made a name for themselves in the Forex markets. By following professional traders, beginners aim to see the same profitable result as the former. However, that's not always the case. Many success stories you read are framed and designed to coerce you into following certain methods and making certain investments. But as a novice, differentiating the truth from lies is a tough task. To add to this, traders get drawn in by the flashy lifestyle projected by the so-called rich traders! And needless to say, money is a greater motivator than anything else.
While there are a number of free blogs and videos that teach Forex trading, some project fake ideas that are designed solely to throw you into disarray! This is why a little bit of skepticism doesn't hurt while new to Forex. Being wary of your surrounding will allow you to keep the scammers at bay.
Do Traders Manage to See Success Trading Currencies In South Africa?
When you dig a little deeper, beyond the fake claims of profits and the fabricated success stories, you will see that several traders see consistent results. These Forex traders work with discipline and are dedicated. No amount of distraction hinders them, and they have a clearly defined goal to work towards! With discipline, patience and resilience, any novice can get started on a profitable note and see consistent results on the regular!
You can get started with Forex trading today! Don't let the professional jargon intimidate you, with proper assistance, you will blossom in the South African currency markets.