Forex Trading: Forex (foreign exchange) is the largest global foreign exchange market that is comprised around US $5 trillion in daily transactions. Forex market is far bigger than the whole world’s stock markets. Forex transactions are all about exchanging the currency, just like if someone has travelled overseas and he has made a forex transaction by converting his euros into pounds. After this the exchange rate between the two currencies is based on the principal of supply and demand by resolving that how many euros you get for your pounds. However the exchange rate keeps changing.
Forex South Africa:
Forex trading is becoming extremely popular in whole world including South Africa and the number of stockbrokers is growing rapidly. Both local and global stockbrokers are trying their best to catch the attention of South African traders to deposit their funds and initiate the business. However the Financial Services Board (FSB) in South Africa tends to guarantee your deposited funds completely.
What is forex trading and why do South Africans do it?
Since the lapse of a decade the forex market in South Africa has much developed. Effortless access to the market for everyone is the basic driver behind its growth. Many South Africans found it productive and has shown their interest in the exchange rate among the US Dollar (USD) and the South African Rand (ZAR). There are many tempting elements of the forex market for South Africans.
Why has it become so popular in South Africa? What are the main motivations?
Behind the popularity and motivation for the forex market in South Africa these are the basic reasons:
Low entrance Cost
In past it was expensive to trade the stock market and that made this insight common that trade is only for rich people and or for the multinational companies. Similarly in South Africa it also gave opportunity to individuals to begin their trade business from fewer amounts. So when people get to know this they rushed towards because of its “low entry cost”. Since the time of introduction the forex market in South Africa it is growing swiftly and rapidly.
Influence in the Currency Market
This pint highlights that the forex market is not accessible just instead it gives you larger platform to trade and to get benefits accordingly. Influence or leverage is also known as double edged sword. So always consider the idea of leverage before initiating your trade ferox in South Africa.
Forex Trade in South Africa – Global trade
By just staying in South Africa one needs to fill out an online form and after submitting the necessary documents and voila one can begin his forex trade.
What are advantages and disadvantages? Who should trade who should not?
The South Arrican Forex market has accessibility, influence, potential for speedy returns, and unlike the other forex markets it also has the advantage of simple short selling, its technical strategy is very strong and has tough grip over the complete forex market. Moreover it based on the simple rules of taxation, the payment or commission charges are also affordable for everyone, and the chances of price manipulation are fewer because of its automated strategies of Forex market.
As far as the disadvantages are concerned the African’s forex market just like other stock markets shows instability and volatility. Due to that instability the small traders who don’t have much exposure and strong strategy about exchange rates could suffer. Less regulatory protection is another disadvantage of forex market which happens due to the centralized exchange rates or because of fake stockbrokers.
What are the specific rules and regulations and how to follow them e.g funding your account. Please be very specific!
There are many rules and regulations which one should follow while trading in Forex market; hire a trustworthy broker so investigate before hiring, be aware of exchange rates in forex markets, have access to information because major brokers can influence the market.
Are there any success stories? Sandile Shezi has been a role model as he is the youngest millionaire in South Africa at the age of 23. It is a popular Forex training company in South Africa that provide jobs to young people to train and educate about forex trading.
Mike Ndlovu is a renowned forex trader from Cape Town, South Africa. He has several years of experience in currency trading and is well thought-out to be an expert on forex trading tactics. Mike founded the IFBS Forex Trading.
Why is training so important
Training is very important while trading on the forex market especially in South Africa where it has become very popular thus involving high risks. There are many stockbrokers or advisors available in the South Africa’s Forex markets. Various courses of different categories from expensive stockbrokers to free online courses are easily obtainable. The most popular courses of South Africa such as Metatrader 4, and other related courses and bulk of information are available at internet free of cost. One needs to learn the ropes to ensure success because forex markets are very competitive, fragile and volatile as you cannot afford to lose the money in the beginning so train yourself.