WHY SO MANY PEOPLE TRADE WITH THE BEST FOREX BROKERS IN SOUTH AFRICA?

Choosing a good broker will have a positive effect on your trading success. Choosing the best forex brokers in South Africa is not an exception. They can give you success as well.

Many research has been carried out with the most popular Forex brokers since 2008. When comparing brokers, we consider the reputation of the broker and how they compare to each other. The following article will help you find a regulated and reliable Forex trading platform.

HOW TO COMPARE BROKERS IN SOUTH AFRICA?

In order to find the top 5 forex brokers in the world, it’s necessary to refer to some of the following criteria.

  • Regulation is a symbol of trust in the investment business. There are major regulators and minor regulators and we took all of them into account.
  • Trading conditions are the details of the product the broker has to offer the trader, and we compared them.
  • Account types.

Our broker rankings are based on broker regulation, platform choice, and trading conditions.

FOREX BROKER REGULATION

WHAT IS A REGULATED FOREX BROKER?

FCA, FSCA, CySEC & ASIC are governmental regulatory bodies which set the regulations to brokers and traders within the boundaries. These regulatory agencies want to ensure that the broker keeps a fair trading environment while offering strict auditing oversight and protection of funds. A Forex broker regulated by more than one international agency is considered to have more trust.

FOREX BROKER REPUTATION

CAN YOU TRUST A FOREX BROKER?

Regulation, trade execution method, and client fund management are taken into serious consideration to understand if a broker should be trusted or not.

Regulation is a symbol of strong indicator of the level of the broker set by government regulatory agencies. Also, the method of the broker’s execution, and if a dealing desk is involved in the execution or if there is any conflict of interest between traders and the brokers are regarded as key component of trust.

Moreover, if all client funds are divided in different accounts at major banks in the local jurisdiction, this is a good indicator of trust. At that time, client funds are protected against the broker going bankrupt.

FOREX BROKER TRADING CONDITIONS

SPREADS

Spreads can be wide or tight and are measured in pips. This is an indication of the buy and sell price for any currency pairs that are far from each other, or close to each other. If the spread is 15 pips wide, that is considered a wide spread, where a 0.4 pip spread is considered tight.

Several spreads will be offered by different brokers on their FX pairs. Traders will always find a broker which has the tightest average spreads on the pairs to yield their profits.

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LEVERAGE

Leverage is a tool to amplify in trading Forex pairs. This is important because the movements in the market are so small that, and there is no way to amplify the size of the trade. Accordingly, it’s impossible for individual retail traders to participate in the business. Leverage is in a format like 300:1 – in this case, a trader can increase the size of the trade by a maximum amount of 300 times. Leverage varies between brokers, and brokers may also reserve the right to limit a client’s leverage.

FOREX BROKER ACCOUNT TYPES

There has been a tendency to use fewer account types recently but most brokers have some popular accounts as follows. They are the Live or Real accounts, the Demo accounts, and Swap-free account. Managed accounts are available, but rare.

LIVE OR REAL ACCOUNTS

Real money is put into these accounts to trade in the markets. Your account balance is a result of everything that you do in this account.

DEMO ACCOUNTS

The funds in these accounts are fake, and so does not expose a trader to any risks. This gives the trader an opportunity to try the trading platform, customer service, research area, and trading conditions. Some demo accounts are time-limited, and the others are time-unlimited.

There is no doubt that the best forex brokers in South Africa are reliable brokers to partner with because they comply with all standards of the best brokers.

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